BSP encourages banks to put up branches in less developed areas

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is encouraging banks to expand their operations outside the National Capital Region and other developed areas as part of the central bank’s effort to make financial services more accessible in less developed areas.
BSP Deputy Governor Nestor Espenilla Jr. said in an interview with reporters that there is a need to make banking and financial services accessible throughout the Philippines.
“The distribution seems to be heavily concentrated in NCR, then Calabarzon, Region III, and then there are pockets in Cebu and in other cities,” Espenilla stressed.
He pointed out that the concentration in these areas show that banks follow centers of economic activity and population.
 “In an archipelago like ours, there are very well defined centers of economic gravity and banks are basically profit-driven enterprise so of course you go where the business is,” he added.
He pointed out that the density of banking offices to population in the Autonomous Region in Muslim Mindanao (ARMM) is one banking office for 40,000 person per area.
“We have totally lifted banking restrictions outside NCR. We are really sending a signal to put branches outside so that you can better service the public,” Espenilla said.
Latest data showed that the number of banking institutions (head offices) fell further to 797 as of end-September 2009 from the year-ago level of 835, indicating the continued consolidation of banks as well as the exit of weaker players in the banking system.
By banking classification, banks (head offices) consisted of 38 universal and commercial banks, 73 thrift banks, and 686 rural banks.
Meanwhile, the operating network including branches of the banking system increased to 7,914 from 7,811 reflecting mainly the increase in commercial and rural banks’ branches.

Source: The Philippine Star

Net hot money inflow hits $308.7 million in January-February

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) reported a net portfolio investment inflow of $308.7 million in the first two months of the year or almost 14 times the inflow of $22.6 million registered in the same period last year due to higher export earnings and additional government borrowings.
Data released by the central bank showed that BSP-registered foreign portfolio investments increased $286 million from January to February this year after the country’s merchandise exports jumped 42.5 percent in January.
“Net inflows were sustained due to news on higher export earnings, inspite of jitters about the coming elections and recent sovereign debt concerns in some European countries,” the BSP stressed.
Inflows surged 53.9 percent to $1.076 billion in the first two months of the year from $698.92 million in the same period last year. Major sources that accounted for about 83 percent of the total portfolio investments in January and February included the United Kingdom, the US, Malaysia, Luxembourg and Singapore.
On the other hand, gross foreign portfolio investment outflows climbed 13.5 percent to $767.73 million in the first two months of the year from $676.3 million in the same period last year due to withdrawals from interim peso deposits.
For the month of February alone, foreign portfolio investments posted a net inflow of $139 million, a complete reversal of the $198.73 million net outflow registered in the same month last year.
Portfolio investment inflows surged 154.2 percent to $500.39 million in February from $196.85 million in the same period last year.
Investments in shares being traded at the Philippine Stock Exchange (PSE) accounted for about 74 percent of the total inflows, followed by government securities with 18 percent, and peso bank deposits with minimum maturity of 90 days with eight percent.
On the other hand, outflows retreated 8.5 percent to $361.81 million in February from $395.58 million in the same month last year.
Registration of inward foreign investments with the BSP is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of dividends/profits/earnings that accrue on the registered investment.
The Philippines shrugged off the global recession and posted a portfolio investments net inflow of $388.02 million in 2009, a complete reversal of the $1.784 billion outflow posted in 2008.
Inflows, the BSP data showed, amounted to $6.335 billion last year or 23.8 percent lower than the $8.321 billion inflows registered in 2008 while outflows fell 41 percent to $5.947 billion from $10.105 billion.

Source: The Philippine Star

BSP sees OFW remittance growth of 6% in January

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) believes that the amount of money sent home by Filipinos from abroad in January grew by more than the full year growth target of six percent due to high demand for skilled Filipino workers abroad.
BSP Governor Amando M. Tetangco Jr. told reporters Friday that overseas Filipino workers’ remittances likely grew faster in January than the full-year growth of six percent based on preliminary data.
“This year we are projecting six percent for the whole year, but for the initial data I have seen, it looks like the figure for January could be in excess of the projection for the year,” Tetangco stressed.
The BSP sees OFW remittances growing by six percent to a new record level of about $18.1 billion this year.
Last year, remittances went up by 5.4 percent to a new record level of $17.348 billion last year from $16.426 billion and exceeded the revised four percent growth forecast set by the central bank due to the sustained demand for skilled Filipino workers overseas particularly engineers, medical practitioners, and teachers.
This, after the money sent home by overseas Filipinos surged by 11.4 percent to hit a new monthly record high of $1.567 billion in December 2009 from $1.407 billion in December 2008.
The amount eclipsed the previous monthly record high of $1.531 billion registered last October.
Major sources of remittances last year included the US, Canada, Saudi Arabia, United Kingdom, Japan, Singapore, United Arab Emirates, Italy, and Germany.
The remittance level accounted for about 10.8 percent of the country’s gross domestic product (GDP) that expanded by 0.9 percent last year from 3.8 percent in 2008.
The stronger-than-expected growth could also be traced to the decision of the government to conduct bilateral talks with host countries that continue to open up new employment opportunities abroad for Filipinos and to facilitate the hiring of displaced workers who were affected by the global economic difficulties.
Authorities also cited the continued expansion of remittance transfer facilities that has helped capture a large share of the global remittance market.
Commercial banks’ established tie-ups, remittance centers, correspondent banks, and branches or representative offices abroad increased to 4,192 as of 2009 from 3,015 as of 2008.
Data from the Philippine Overseas Employment Administration (POEA) showed that the government processed about 41.6 percent or 221,548 of the total job orders that reached 532,214 last year. These jobs comprised mainly of service, production as well as professional, technical, and related job categories in Saudi Arabia, Qatar, UAE, Kuwait, and Hong Kong.
The POEA reported that Middle East countries particularly Saudi Arabia continue to absorb a significant number of deployed OFWs including those that have been displaced elsewhere.
The BSP was originally looking at a zero growth last year but later revised the outlook to a growth of four percent due to the steady deployment of Filipino workers abroad and the increase access to formal remittance channels.
OFW remittances are expected to grow faster at six percent next year especially with the signing of a memorandum of agreement between the BSP and member banks of the Association of Bank Remittance Officers Inc. (ABROI).
The agreement calls for the use of the central bank’s Philippine Payments and Settlements Systems (PhilPaSS) to send the remitted money to the beneficiaries’ accounts in other banks.
OFW families are expected to save at least P92 million to as high as P922 million due to the faster and cheaper delivery of remittances to the beneficiaries at a lower rate of P50 per transaction instead of the current range of between P100 and P550 per transaction.

Source: The Philippine Star

PAL still reigns with 43% market share

CEBU, Philippines - Despite discount rates offered by main rivals in the industry, Philippine Airlines continues to dominate the various air routes in the country retaining a lion’s share of 43% of the total passenger traffic led by its Cebu operations, which accounts for the highest share of 42% of the total market.
And as the country’s premiere flag carrier celebrates it 70th year in March 2011, PAL country manager Genaro “Bong” Velasquez said they want to make it big and share the airline’s milestone to the customers by commencing the year-long celebration with a series of promotional events.
Velasquez yesterday announced during a press briefing held at Laguna Garden Café that 70,000 free seats will be given away through a series of promo initiatives including a grand seat raffle, a “Philippines Free” international campaign, a major discounted promo, and a loyalty program targeting the youth market dubbed as the Y Flyers.
The promotions will be formally announced during the 69th anniversary celebration of PAL on March 15, 2010 at the Century Park Hotel.
The Grand Seat Raffle covers all PAL revenue tickets purchased in the Philippines and through PAL’s website. Travel

period must be between March 16 and December 31, 2010.
The raffle draws will span for nine months wherein 16,000 winners will be chosen to win free tickets equivalent to those purchased and flown. And on the day of the 70th anniversary of PAL, 3,000 passengers will have the chance to travel for free.
Meanwhile, the “Anniversary Fare Special” fares promo will offer discounted rates on all domestic routes served by PAL. One-way flights from Manila to any point in Luzon or Visayas will be pegged at a flat rate of P700, while flights to and from Mindanao will be offered at P1,700.
Moreover, the “Philippines Free” campaign will offer free travel to the Philippines from 18 international destinations. The sale period is between March 15 and April 7, 2010.
And those who will be celebrating their 70th birthday between March 15 and April 15, 2010 will receive a free domestic ticket, provided that a companion purchases a ticket for travel on the same route and date. Travel date must be within May 15 and August 20, 2010.
PAL likewise initiated a promo for the younger flyers dubbed as the Mabuhay Miles “Y Flyer” which will start on March 15, 2010.
The “Y Flyer” promo gives 10% discount off published fares to passengers between the ages two and 21 years. Current members of Mabuhay Miles are automatically qualified as Y Flyers.
Y Flyers will also get a chance to grab a ticket to the “Changing Lives: Timbaland Shock Value II” concert on March 27 in Manila, which will feature Justin Timberlake and Jojo. PAL will be giving away 50 concert tickets.

Source: The Freeman Cebu

French oil giant to invest P400 million for Cebu stations

CEBU, Philippines - French oil giant, Total (Philippines) Corporation (TPC) announced its P400 million investment plan for Cebu in the next three years.
This plan includes the installation of five more stations in Metro Cebu this year, which will incur an investment of P120 million.
In an interview with TPC president and managing director Ernst Wanten, he said that Cebu’s vibrant economy presents a growth opportunity for TPC.
Since its entry to the Philippines in 1998, Total has already installed 133 stations mostly in Luzon. This year, the company has decided to explore the Southern Philippine market, through a stronger presence in Cebu.
As part of its expansion program, the company opened a fuel depot in the province, which has a capacity of two million liters. It also currently upgraded its waterborne fleet with the acquisition of MT Camille, a 3,651 deadweight ton double-hulled vessel classified by the Korean Register Shipping as accredited by the International Association of Classification Societies (IACS). The depot will serve both retail and wholesale consumers.
Total’s strong entry in Cebu will not only provide wider options for consumers to get their fuel requirements, but it also offers business opportunity for entrepreneurs who may want to partner with the Total.
The company offers two packages for entrepreneurs for partnership these are via Company-Owned-Dealer-Operation (CODO) and Dealer-Owned-Dealer-Operated (DODO) options.
Of the total 133 gasoline stations installed by Total in the Philippines, 97 of which are DODO, and 36 are CODO.
In Cebu, Wanten said the company will build the infrastructure, which means the physical gasoline stations, and partnership will depend on the negotiations of interested entrepreneurs.
The first Total station in Cebu is located along Plaridel Street in Mandaue City. It has four pump islands and also has a Bonjour convenience store and Café that offer a wide selection of quality snacks and sundries. It is run by a staff of a 25 personnel.
“Our forefront service crew and Bonjour staff have been trained on the Total brand of customer service, which is what differentiates us from our competitors,” he said.
The Total big boss was here in Cebu to attend the Petro/World Forum held last March 9 to 12 at the Shangri-La Mactan Resort and Spa in Mactan Island.
In the next three years, the company plans to build at least 20 Total gasoline stations around the Cebu Metropolis.
“Cebuanos are different clientele. They are interesting,” Wanten said describing Cebuano customers as more demanding and critical. He said this is what makes it challenging for Total to establish its brand here.
With the quality and competitive products and prices offered by the company, Wanten is confident that Total will be able to hit the taste of the “Cebuano market”.
Total is the fifth largest publicly-traded integrated oil and gas company in the world. It reported sales of 179,976 billion Euro in 2008.

Source: The Freeman Cebu

BPI eyes slower remittance growth this year

Ayala-led Bank of the Philippine Islands (BPI) expects the growth of money sent home by Filipinos through its 19 remittance centers abroad to slow this year.

The bank, which recently opened its newest branch in Madrid, Spain, expects remittances to grow by 11 percent to $5 billion this year. Last year, remittances went up faster at 15 percent to $4.5 billion despite slower inflows from the US.

BPI Senior Vice-President Teresita Tan said three-quarters of the remittances had come from land-based workers, and the balance from seamen.

"There was a slowdown of remittances from the US but it remains large in terms of volume," she told reporters.

The growth in money sent home by Filipinos in the Middle East, Europe and other Asian countries was steady.

According to a central bank ranking, BPI had the second biggest remittance volume in 2008, with a 23-percent market share.

The central bank expects remittances to grow by 6 percent this year after actual growth exceeded the target last year.

Data showed remittances coursed through banks rose by 5.6 percent to $17.3 billion last year — better than the 4-percent goal — due to sustained demand for Filipino workers abroad.

The remittance level accounted for about a tenth of the country’s economic output, supporting local consumption amid the global economic slump.

The major sources of remittances last year were the US, Canada, Saudi Arabia, Britain, Japan, Singapore, United Arab Emirates, Italy and Germany.

Source: GMA Business News

Metro Cebu has enough water supply for its 2-M users till June–MCWD

THE water distribution utility serving Metro Cebu assured its customers that there is enough water for its 2 million residents during the expected long dry spell and the supply will last until the scheduled rainy season in June.

Metropolitan Cebu Water District (MCWD) production and distribution chief Genaro Mejor said there is no need for water rationing in their franchise area as of yet.  However, he explained there will be lesser delivery hours and lower pressure in some districts as the dry spell takes its effect on the supply.

“We have anticipated the problem and, thankfully, we were able to augment the supply just before the dry spell,” Mejor said.

But he added that instead of a daily average of 22.5 hours of water for its franchise areas, they estimate the number will go down to 21 hours per day as the water supply needs to be distributed to more customers.

The Buhisan Dam in Cebu City already has signs of drying up, but Mejor said the facility, built in the early 1900s, supplies just a small portion of the water supply of the metropolis. Most of the supply of MCWD is still taken from underground wells.

The MCWD’s biggest water well field in Jaclupan in Talisay City cut production by more than half from an average of 45,000 cubic meters a day to just 18,000 cubic meters in March. MCWD was able to open more wells and commissioned several private bulk-water suppliers to augment the supply.

Early this year MCWD added more than 4,500 cubic meters of supply from several wells in the south district of the city and bulk-water suppliers with injection areas in the north.

Mejor said more wells will be opened in the summer, while existing bulk-water suppliers said they can increase their volume by up to 25 percent.

But while the hot summer months will not pose problems for existing MCWD consumers, the water district itself admits they are facing bigger long-term problems. The utility admits to servicing only 55 percent of its service area either because of shortage of supply or lack of infrastructure to bring water to more people.

MCWD serves more than 130,000 customers in Metro Cebu and produces some 160,000 cubic meters of water daily, but this still falls short to fulfill the pent-up demand—potential customers who have pending applications for water lines, but could not be served.

“Our priority is to provide the best service to our existing customers,” Genaro said.

With Cebu not having enough big bodies of inland water like lakes and rivers, most of Metro Cebu’s water is sourced from underground wells. Pollution and overextraction, however, forced MCWD to close some of the wells as contaminants and sea water have found their way into the water sources.

MCWD recently signed a huge 20,000-cubic-meter bulk-water supply deal with the city of Danao in the north, which should secure the water supply in the city for the next several years.

Source: The Business Mirror

Air Philippines to buy six Airbus planes

AIR Philippines, the low-cost partner of Philippine Airlines (PAL), is expanding its fleet this year with the planned acquisition of six Airbus units.

PAL president Jaime Bautista said this is part of the working plan of Air Philippines which is 99-percent owned by the Tan Group of Companies controlled by Lucio Tan.

“That is the plan but let’s just wait for the final announcement [which may happen] hopefully this year,” he said.  

Initially, the plan is for Air Philippines to lease six Airbus A320s, added the PAL president.

He also said the Airbus planes will service the airlines’ existing routes.  

Both PAL and Air Philippines are looking to strengthen operations with modest fleet and route network buildups. This, despite predictions by the International Air Transport Association of a dip in industry earnings due to higher fuel prices.

The two airlines have had close complementation in their flight operations, feeding passengers into each other’s networks and ensuring connections via their joint hubs at the Naia Centennial Terminal 2 in Manila and Mactan International Airport in Cebu.

Air Philippines earlier announced a new management team appointed to implement the airline’s new business model.

David Lim, president, and Cesar Chiong, executive vice president and chief operating officer, were tasked to fast track the airline’s conversion to a low-cost business model using a leaner workforce.

It said in a statement last year that the new business model involves the lease of Bombardier turboprop aircraft from PAL. The turboprop fleet flies to 19 towns and cities, operating out of two hubs—Manila and Cebu. From Manila, the airline flies to Tuguegarao, San Jose (Mindoro Occidental), Naga, Virac, Busuanga, Catarman, Calbayog, Ormoc and Surigao. From Cebu, it will service Kalibo, Iloilo, Bacolod, Tacloban, Butuan, Ozamiz, Cagayan de Oro, Gen. Santos, Zamboanga and from Zamboanga to Davao. 

The following flights are being operated by Air Philippines, as code shared with PAL with the latter as the marketing carrier. Tickets issued by PAL will be accepted for carriage.

PAL is set to announce tomorrow details of its new aircraft and new destinations.

PAL, said Bautista in an earlier interview, will resume flights to India after an absence for so many years. The flag carrier is appealing to the Philippine government to help negotiate landing rights so it can service the Manila-Bangkok-Bombay route.

“We want to fly back to India in Bombay. But the problem is the landing rights. We are talking to the government to negotiate for landing rights because Bangkok won’t permit us to pick up passengers there,” he said.

PAL ceased operating this route for commercial reasons. Now, Bautista said it is time for the flag carrier to resume flights on the back of strong demand. “There are many Indians flying to Manila but not so much the other way around. Even Tourism Secretary Ace Durano said there is a strong demand and the number of Indians that visited the country last year reached thousands and thousands.”

The PAL president is hoping that negotiations for landing rights will be successful so the airline can resume service as soon as possible.

Source: The Business Mirror

If elected, Gibo to prioritize bridge between Cebu, Bohol

CEBU, Philippines - Administration presidential aspirant Gilberto “Gibo” Teodoro said the construction of the bridge linking Cebu and Bohol provinces will be given immediate attention if he is elected into office.
Teodoro who joined the first day of Suroy-Suroy Sugbo southern heritage trail said that the development of Cebu and Bohol will continue if they push through with the plan to link two provinces by constructing the bridge.
At present, visitors from Cebu who also want to visit Bohol may ride through fast craft and other vessels. Those coming from Manila may avail of direct flights bound for Tagbilaran City.
The anchors of the bridge will be Getafe and Cordova towns in Bohol and Cebu respectively. Passing through shallow waters between the two provinces, the bridge is estimated to be 18 kilometers long —a “baby” compared to the bridge linking Incheon Airport and Incheon City in South Korea, spanning some 45 kilometers, now undergoing construction.
Bohol Governor Erico Aumentado said he envisions the bridge to improve vehicular and passenger traffic between the two provinces. It can also carry cables to Bohol so it can get more electric power.
The additional power can meet the requirements for the establishment of a shipyard in Bohol while the fiber optics will link Bohol to the information and communications technology highway.
To recall, the Regional Development Council-7 asked the Department of Public Works and Highways to endorse to the Korean government their request for the funding of a feasibility study on the proposed multi-access friendship bridge that will link the provinces of Cebu and Bohol.
During the RDC-7 full council meeting last year, Aumentado asked the endorsement and support from the RDC for the funding assistance of the project.
“I am happy to report to the RDC that one of our mega projects, the Bohol-Cebu multi-access friendship bridge now has the support of EDCF,” Aumentado told members of the RDC, which is headed by Cebu Governor Gwendolyn Garcia.
Aumentado said the Economic Development Cooperation Fund of Korea has already agreed to dole out $3 million for the needed feasibility study.
Aumentado said the bridge will hasten commerce and sharing of technology and exchange of power and water between Bohol and Cebu, if it will be implemented.
The bridge, which was conceptualized in 2006, is seen to cost at least P20 billion.
He also said that the completion of the airport in Panglao Island in Bohol will also add to the development of the two provinces. Teodoro also cited the need to construct a third bridge linking Mandaue City and Mactan Island.

Source: The Freeman Cebu

Maria Luisa Properties posts high sales, announces new development

CEBU, Philippines - The strong market in Cebu for house investments continues to grow as noted by the high sales of Maria Luisa Properties despite the economic downturn.
This was shared by Jovy Beltran, sales and marketing manager of Maria Luisa Properties, who said that the continuous support they gather from the public, especially their target market, which is the class A, has been very encouraging.
Beltran said that this was even proven as they announced their new development for Maria Luisa Subdivision where even if they did not have any formal launch yet, they already had three units sold.
The new project of Maria Luisa properties is the “Highlands at Maria Luisa” which boasts of its location within the established subdivision in Banilad, Cebu city.
Beltran said that with around 6.6 hectares for the Highlands, they expect to have a lot of takers for the soon-to-rise units since it is situated in the upper portion of the subdivision that has a perfect view of Mactan Island and the blue waters and a mountain-view on the other side.
“It is the exclusive part of the subdivision,” said Beltran.
He said that this is a joint venture project with the province of Cebu where they have 16 salable lots, three of these already sold.
Beltran explained that they have bigger lot cuts for the Highlands which range from 1,000 to 1,530 square meters.
Investments are welcome said Beltran with their P8,000 per square meter to P15,000 square meter price.
Beltran said that they have not formally launched the project since not like other companies and developers, they only launch their projects with everything done already.
But he said that despite only having initial advertisements for salable lots, they already had buyers which prove of their strong market in Cebu and the established presence that Maria Luisa has made.
According to Beltran, they are targeting the high-end class for the Highlands which has a price range of P8M to P22 M.
Beltran said that they are very eager with the new development and the support they would get in Cebu . “Cebuanos continue to invest in our houses and we have noted of this with the sales we had for the past year with our units in the other phases of the subdivision.”
He said that he was surprised with the show of sales amid the crisis but just proves that Cebuanos are looking for quality for their money which Maria Luisa could give.

Source: The Freeman Cebu

Villalons to take full control of Monterrazas development

CEBU, Philippines - Landco Pacific Corporation and Genvi Development Corporation officially ended their agreement to jointly develop the 210-hectare high-end hillside residential resort called Monterrazas de Cebu.
Genvi Development Corporation, owned by the prominent Villalon family in Cebu who is also the landowner, is now taking full control of the development, after the two companies terminated their joint venture agreement recently.
In a press conference, Genvi Development Corporation president and general manager Augusto Villalon said that the company is committed to stick with the original plan to develop the entire 210-hectare property with a capital expenditure of P5 billion in the next 10 to 15 years.
Despite the termination of Genvi’s partnership with Landco, Villalon assured property owners, and prospective buyers of Monterrazas de Cebu to fast track the project. The targeted completion of the phase one of the project was delayed due to drainage and environmental problems, among others.
Villalon said Monterrazas de Cebu will now become Genvi’s biggest real estate project, as the company had only been developing small low-cost housing projects in Cebu.
Although the company has not been known as developer of big residential and high-end projects, the Villalon family committed to continue the original masterplan. In fact, it has readied a P300 million budget to move the development faster in the next 30 months.
“We are laying our company on the line here. We have to fulfill what is expected from us,” said Marga Villalon, Genvi’s vice president and treasurer.
In an official joint statement, Villalon and Landco Pacific Corporation president and chief executive officer (CEO) Alfred Xerez-Burgos III said they have agreed for Genvi to take over as developer and landowner of Monterrazas de Cebu.
Villalon reiterated the Genvi’s commitment to pursue Landco’s original vision for the project, while Landco agreed to be a consultant in the next several years to ensure smooth transition.
Early last year, the Metro Pacific Investment Corporation (MPIC) trimmed down its stake of Landco from a majority 51 percent to 30 percent, after agreeing to sell part of its shareholdings to AB Holdings for P220 million.
AB Holdings acquired P500-million loan to MPIC, an earlier report said that AB Holdings used Landco’s shares in three mall corporations to pay up the loan exposure.
Landco is one of the country’s biggest real estate developers. The Monterrazas de Cebu could have been the company’s flagship showcase in its first entry in the Visayas.
Villalon, who is a well-known architect in the country, assured that the phase I of the project, which is composed of two cluster lots, is scheduled to complete in the next three years, and land owners can already build their houses by the end of this year.
Upholding their good name as Cebuanos, the Villalon family erased impressions on the project’s uncertainty, instead vowed a much faster completion of the development.
“We know there will be market apprehensions, it is expected. But the proof is our delivery. We have a fantastic team that is very experienced in this kind of development,” Marga Villalon said.
Landco and Genvi inked the joint venture agreement in December of 2006, to start the Monterrazas de Cebu project, which is one of the largest integrated residential development projects, being built in Cebu in the last few years. It is located in the huge 220-hectare prime hillside estates which covers several barangays in Cebu City Labangon, Sapang Daku, Guadalupe and Buhisan.
 The development, which will build complete line of real estate products, such as chic home address, townhouses, condominiums, commercial/lifestyle facility is targeted to complete in the next 10 to 15 years.

Source: The Freeman Cebu

Aboitiz Equity Ventures acquires Cebu thrift bank for P1.36 billion

MANILA, Philippines - Aboitiz Equity Ventures Inc. (AEV) is acquiring indirect full ownership of Cebu-based thrift bank City Savings Bank (CSB) for P1.36 billion.
In a disclosure to the Philippine Stock Exchange, AEV said its board approved the purchase of up to 60 percent of CSB with the remaining 40 percent to be acquired by its wholly-owned unit Pilmico Foods Corp.
AEV, which currently owns 34 percent of CSB, said the acquisition of the additional stake is still subject to approval by regulatory authorities.
According to AEV, the acquisition would provide CSB with greater access to resources to sustain its high level of growth and to drive further expansion. 
‘The support that AEV can give CSB is vital to catapult the bank to its ambitious growth plan in the years to come,” said AEV president and chief executive officer Erramon Aboitiz.
CSB currently has over 300 employees serving over 90,000 borrowers and more than 53,000 depositors. It has 12 full branches and 11 extension offices in the Visayas and Mindanao areas.
CSB has total capital funds of over P700 million and total resources of over P6 billion.
As a thrift bank, CSB is primarily engaged in offering loans to school teachers under the Department of Education’s Automatic Payroll Deduction System. Teachers have been the main market of CSB since it began operations over 40 years ago.
The bank’s other products include salary loans to government and private sector employees, home mortgage and home improvement loans, as well as small business loans.
CSB has one of the best operating efficiencies in the thrift banking industry with a low past-due ratio and among the highest capital adequacy ratios.
For the last five Bangko Sentral ng Pilipinas (BSP) examinations, covering a period of 10 years, CSB has received an average CAMELS rating of “4”, which indicates its ability to withstand unfavorable outside influences.
In March 2009, CSB issued P1 billion worth of five-year peso-denominated corporate fixed rate notes via a private placement to primary institutional lenders. Proceeds from the issuance were used to augment the bank’s funding base and support its long-term asset growth objectives.
AEV is the publicly listed holding company for the Aboitiz Group’s investments in power, financial services, food and transport.

Source: The Freeman Cebu

Microsoft eyes iCafes as IT training ground

CEBU, Philippines - After implementing a nationwide campaign of offering the lowest software license fees exclusively for Internet Café owners, Microsoft Philippines is bent on pursuing its plan to make iCafes as training ground for Information Technology (IT) related courses.
Microsoft Philippines Inc. License Compliance Manager Fortune Abelo-Magsadia said that through its Microsoft iCafe Program, the company will soon introduce a program that will allow iCafe shops to offer short training programs to add value to its services, aside from generating revenues from internet gaming and surfing.
Abelo-Magsadia said that putting mini-training center facilities in iCafes in the Philippines will not only provide the proprietors the opportunity to earn more, but it will also provide more Filipinos the opportunity to learn IT skills.
The iCafé program is Microsoft's response to one of Internet café customers' unmet needs: secure and dependable computing experience in a shared PC space.
In an earlier announcement, Microsoft is going to build an online network access to authorize net cafés to accept consumers interested to avail of an online training.
This is a computer based and online training. Internet Cafes will provide the dedicated PCs for this purpose.
This program, will provide Internet Cafes another revenue channel, while any individual regardless of age, can get easy training access to different Microsoft programs.
Aside from partnering with the iCafe owners, by encouraging them to enroll in the Microsoft iCafe Program, the company will also forge stronger relationship with key government agencies, like the Technical Education and Skills Development Authority (TESDA), as well as the local government units (LGUs).
Empowering iCafe shops to offer educational services to consumers is part of Microsoft’s bid to make iCafes as one of the channels to push its program ‘bridging digital divide’, offering easier eLearning access to Filipinos.
Abelo-Magsadia said that this particular program will come later as phase-2 implementation of the long term Microsoft iCafe Program.
Recently, Microsoft rolled out the lowest prices for software products and licensing for the first time in history.
As an introduction to the program, Microsoft announced the major slash of Windows 7 (Operating Software) from P9,000 to P2,000 (plus) until May of this year
Microsoft Office on the other hand, is now pegged at P999 including rental rights fee.
The Bill Gates-owned company has picked Cebu as its pilot area for the national launching of this program
“There are a lot of benefits that an iCafe can take advantage of, once they will enroll in the program,” Magsadia said.
Aside from slashed prices, the program offers value added services for free, such as billing and metering tools, PC help tools, among others.
“We are trying to provide them [iCafe owners] value added services and products,” she explained.

Source: The Freeman Cebu