MANILA, Philippines — Fitch Solutions Country Risk & Industry Research now expects slower growth for the construction industry in the Philippines amid the coronavirus disease 2019 (COVID-19) pandemic.
In its latest outlook on the Philippines’ construction sector, Fitch Solutions lowered the growth projection for the industry this year to 3.6 percent instead of 5.8 percent.
“The ongoing COVID-19 outbreak in the Philippines will reduce construction activity in 2020, which leads us to make a further downward revision of growth of the sector,” it added.

The construction industry grew by 4.1 percent last year.
Like many other countries around the world, the research arm of the Fitch Group said the Philippines is currently in the midst of a battle against COVID-19, which has upended normal business activity and forced the government to implement drastic measures in order to contain the virus. Luzon was placed under an enhanced community quarantine in the middle of March.

“As a result, works on numerous construction projects across Luzon have been temporarily halted, and hence, project timelines will be stretched and overall construction activity is expected to be reduced in 2020. Moreover, even as worksites gradually resume work, after the quarantine is lifted, certain projects will face supply chain challenges, as the flow of construction materials and equipment will be disrupted, especially if sourced from foreign markets,” it said.
Fitch expects projects to encounter delays in delivery due to logistical challenges and shortages in supply due to disrupted business activity.
Investment in residential, commercial, and industrial real estate sector are also seen to take a hit this year due to a deteriorating business and consumer sentiment not just in the Philippines but around the world.

Private developers could delay the launch of new projects and businesses could withhold their investments until business and consumer sentiment improves, Fitch said.
Fitch said the enhanced community quarantine would have further reduced construction activity n March and April.
“With strict quarantine measures imposed on Luzon, a large proportion of projects would have experienced stop work orders, leading to our bearish outlook for the Philippine buildings sector for 2020,” it said.
Fitch Solutions said healthcare infrastructure would remain a bright spot for investment over the short to medium term, providing a slight boost to growth of the non-residential buildings sector.
The research unit expects the country’s infrastructure sector to book a slower growth of 5.4 percent in real terms, contributed by a 5.1 percent expansion of the transport sector and a 5.6 percent growth of the energy and utilities sector.
“Similar to projects in the buildings sector, work on infrastructure projects in Luzon have also been halted due to the enhanced community quarantine, hence dragging growth of the sector,” the Fitch unit said.
The government is set to ramp up its Build Build Build program even if the Duterte administration has diverted some of the funding for its cash assistance program.

Lawrence Agcaoili (The Philippine Star ) - April 26, 2020 - 12:00am
Link:  https://www.philstar.com/business/2020/04/26/2009771/fitch-unit-sees-slowdown-construction

SANTA ANA, Cagayan – The Cagayan Economic Zone Authority (CEZA) has unveiled multi-billion projects in Cagayan as it celebrated its 24th anniversary last Monday.

Secretary Raul Lambino, the CEZA administrator, and chief executive officer said that six big projects totalling P1 billion and the $4.5 billion (P234 billion) satellite city (Polaris) kicked off in a series of groundbreaking ceremonies.

Other projects include the P301-million warehouses at Port Irene in Casambalangan village, the P426-million corporate and commercial centers in Rapuli village, P100-million Ropali Point Development in Pozo Robo, the P155-million wharf in San Vicente village, and the P17-million sanitary landfill in Diora-Zinungan village, all in Sta. Ana town.

“These projects are realized as Port Irene is envisioned to become the premier international port of Northern Philippines, capable of accommodating panamax and cape-sized vessels catering to the Asia Pacific Region markets,” said Lambino.

“Port Irene be developed as a major international seaport that will serve as a gateway for exports and imports from neighboring East Asian countries to the US West Coast, among others,” he said.
The development of Port Irene involves the construction of four units of warehouses with offices within the one-hectare property for Phase 1, expandable up to three hectares.

“The rehabilitation and expansion of the Port San Vicente Wharf and Causeway will serve as the take-off point to tourism destinations in the Cagayan Freeport, such as Palaui Island, according to CEZA Deputy Administrator Raymundo Roquero.

Roquero said the project aims to accommodate leisure fishing boats, sail boats and luxury yachts, and further advances the claim of the Cagayan Freeport as a premier game fishing destination

The sanitary landfill in Diora-Zinungan will address the waste disposal requirements of the Cagayan Freeport in Santa Ana town.

The corporate and commercial center in the 11.40-hectare land in Sitio Punti, Barangay Rapuli will have institutional areas, retail areas, conference hall, dining hall or restaurant, office spaces, and CEZA Corporate Center Services.

Polaris City in Sitio Mapurao, San Vicente, includes the CEZA Township Project, a 2013-hectare property with an ocean view and open for business spaces for IT-BPO companies, commercial and residential areas, health, wellness, leisure and recreational facilities.
​
Meanwhile, the 238.48-hectare projects in Pozo Robo in San Vicente village include the Marina Yacht Club, beach club and commercial areas, casino and entertainment, the residential resort villas, high-end resorts, spa and wellness center, parks and open space, forest reserve, and roads and utilities.

Published February 28, 2019, 5:50 PM
​By Freddie Lazaro

Pasig River To Be Cleaned Up With The Use of Blockchain and IoT
​Source: https://bitpinas.com/news/philippines-pasig-river-use-blockchain-crypto-aid-rehab/

The Pasig River Rehabilitation Commission (PRRC) is proving that blockchain and cryptocurrency are not only useful in finance but can also improve rehabilitation. The PRRC recently inked a memorandum of understanding (MOU) with Cypher Odin, a local blockchain company, in helping the commission achieve a cleaner and greener Pasig river.

This article is originally published by BitPinas on October 2, 2018.

With the MOU signed, the two will work hand in hand in rehabilitating the 25-kilometer long river back to its glory. It will link both networks and will also have regular meetings to assess, identify, and provide solutions to Pasig river-related problems.

Mr. Mariano Villafuerte IV, CEO of Cypher Odin, hopes that the distributed ledger technology (DLT) from his company8 will help bring back the former Pasig river. A river where people can enjoy swimming, fishing for livelihood, dine and cruise with friends, travel, and a place where couples can hold their wedding ceremonies. The dream is to make the place lively and make it sustainable even for dolphins to visit.

Mr. Villafuerte proposes to deploy modern Internet of Things (IoT) and Internet of Underwater Things (IoUT) in order to monitor the amount of garbage, water quality, tide levels, and other relevant data. The information gathered will be relayed by a trusted, peer-to-peer, and inter-agency platform. A form of blockchain technology that will provide transparency and accountability for all stakeholders.

In addition, Cypher Odin will also launch its own cryptocurrency to help save the river. The token will be called BOTcoin. It is a token that will help reward communities and companies that would help in the cleanup. He said that putting incentives and rewarding people to stop polluting are initiatives that will quickly adapt to a positive change.

“This initiative will be funded by cryptocurrency. Through BOTcoin, we plan on building SMART Islands, which will be centralized through blockchain initiatives to clean up the islands and alleviate poverty as well. BOTcoin is also running the Smart River Initiative (SRI), the world’s first SMART Rivers program, which will be the pilot program used to create the framework we need to clean out the pollution from every river, bay, and ocean.” – Mr. Mariano Villafuerte IV, CEO, Cypher Odin

Cypher Odin’s CEO also wants to tap on the Laguna Lake Development Authority (LLDA) and relevant agencies under the Department of Environment and Natural Resources (DENR) to have an involvement in protecting the country’s bodies of water.

“As the saying goes, you cannot clean the sink if the faucet is still running,” – Mr. Mariano Villafuerte IV, CEO, Cypher Odin
​
Notable people present during the MOU signing were Cypher Odin’s Director for Environmental Innovations,  Mr. Alfredo Lorenzo Roa; Cypher Odin’s CEO, Mr. Mariano Jose Diaz Villafuerte IV; PRRC’s Director, Mr. Jose Antonio Goiti; and Deputy Executive Director for Operations, Mr. Anshari Lomodag Jr.

​https://www.dof.gov.ph/pta/index.php/salient-features-of-ra-10143/

The passage of the Tax Amnesty Law on July 23, 2018 under Republic Act 11213 created numerous thoughts and raised so many questions in my mind.  Will it bring goodwill or chaos?  Will it be a vessel of freedom or corruption?  

The tax amnesty for me is very timely to clean up the messy records of the BIR on uncollected and unpaid taxes of any form.  This law will somehow help in the clean up but I am just anxious if this will not lead to more corruption both on the side of the government and the stakeholders.  

If this will be fully implemented and followed, we might benefit from it.

Let's take a look at its important provisions:

Title:  Tax Amnesty Act RA 11213
An act enhancing revenue administration and collection by granting an amnesty on ALL UNPAID internal revenue taxes imposed by the National Government for taxable year 2017 and prior years with respect to:

1. Estate Tax (Title II)
2. General Tax (Title III) -- Collected by BIR
   1. Income Tax
   2. Withholding Tax
   3. Capital Gains Tax
   4. Donor's Tax
   5. Value-added Tax (VAT)
   6. Other percentage taxes
   7. Excise Tax
   8. Documentary stamp tax 
3. General Tax (Title III) -- Collected by the Bureau of Customs
   1. ​VAT
   2. Excise Taxes
4. Tax Amnesty on Delinquencies (Title IV)
5. Confidentiality and Non-Use of Information and Data, and Amendment to the Statement of Total Assests and Statement of Assets, Liabilities, and Networth

​Source:  www.officialgazette.gov.ph

MANILA, Philippines — Aboitiz Power Corp. has taken in partners for its Fly Ash Brick Project, a community-based initiative that will produce high-value construction products made from fly ash, a by-product of its coal power plant, as well as plastics.
AboitizPower said its unit Therma South Inc. (TSI) has signed a memorandum of agreement (MOA) with project collaborators Green Antz Builders Inc., United Kaibigan Cooperative (UKC) and Income Credit Cooperative for the project.
Under the partnership, TSI will provide the facilities, fly ash and training support to the communities while social enterprise Green Antz will provide the technology on how to produce the bricks.
Fly ash is one of the naturally-occurring products from the coal combustion process and is a material that is nearly the same as volcanic ash.
Its most common use of fly ash is as a replacement for portland cement used in producing concrete. Concrete made with fly ash is stronger and more durable than traditional concrete. Fly ash concrete is easier to pour, has lower permeability, and resists alkali-silica reaction, which results in a longer service life.
“The realization of this project is a delivered promise. We have made this commitment to our community back during our pre-construction days. This project will not only create livelihood for the community. It will also support the company’s thrust towards environmental stewardship,” TSI vice president and plant manager Valentin Saludes III said.
TSI is the owner and operator of the 300-megawatt (MW) Davao Baseload Power Plant along the borders of Davao City and Davao del Sur.
For workforce, UKC will recruit members solely from TSI’s host communities, Barangays Binugao and Inawayan, and manage day-to-day operations. Income Credit Cooperative, in turn, will provide financial support to set up the business.
Using technology from Green Antz, the bricks produced from the fly ash and plastics are around six times stronger than the typical hollow block. TSI’s fly ash has cementitious properties which makes it a durable material while the shredded plastics act as a thermal insulation.
Aside from being more durable and insulated, fly ash bricks also cost less than hollow blocks per square meter. Average construction cost using the traditional hollow blocks is around P1,300 per square meter while fly ash bricks cost only around P900.
“The Philippines is the third biggest source of plastics in the ocean. We wanted to create something useful out of these wastes, and that’s where these bricks come in. Each brick contains up to 100 sachets,” Green Antz president Rommel Benig said.
Green Antz is a social enterprise that has been made eco bricks for various sites in the Philippines, including NET Park and the De La Salle University Campus at Bonifacio Global City, Taguig City.


By Danessa Rivera (The Philippine Star) | Updated December 22, 2017 - 12:00am

THE housing backlog continues to influence developers with their residential projects despite the seemingly flat market price, based on Pinnacle Real Estate Market Insight report for the second quarter of 2017.

Citing data from Bangko Sentral ng Pilipinas (BSP), the country’s residential property values slightly grew by 1.1 percent in the first three months of this year, from the same period in 2016.

The Residential Real Estate Price Index edged higher by 1.3, from 115.9 in the January-to-March period last year to 117.2 in the similar quarter in 2017. Comparing it from the base level of “100” in the first three months of 2014, residential property prices grew by 17.2 percent.

While the increase is substantial, the slight increase from the first quarter of 2016 means that prices are ‘plateauing’. Nonetheless, the big players are still building due to the huge housing backlog. Approximately, half of the 6 million with housing needs ‘can afford to buy.

Study estimates that the units of residential condominium projects in Metro Manila could aggregate to 240,000 by December 31.
It is noted that major player, SM Prime Holdings Inc., the pioneering homegrown company with P1 trillion in market capitalization, will launch residential units anywhere between 15,000 and 18,000 this year as regards its housing development.
The Ayala Land Group, with P100 billion worth of projects this year, has set the launch of Alveo brand’s P40 billion worth of housing inventory, consisting of 16 new projects.
Megaworld Corp, which comes third at P146.36 billion, will be developing a P30-billion 35.6-hectare township in San Fernando, Pampanga in the next 10 years, combining residential towers, office buildings, a mall, retail hubs, school, ampitheater and events venues.
Banking on stronger-than-expected market demand, Vista Land Group upgraded its target offering to the property market from P30 billion to P42 billion worth of real-estate projects this year, including P12-billion property developments in the first quarter.
“The top developers have been leveraging their sizes to achieve an economy of scale. While most of them would be offering attractive rents and prices for their products, one of their eyes would be watching on the quality of their offerings. Buyers and tenants will remember unpleasant turnover conditions. In addition, efficiency of operations and maintenance are, likewise, viewed highly by occupiers,” Salas noted.
Small and medium players, on the other hand, are waiting for the implementing rules and regulations to get a green light, as well as the price ceiling for vertical socialized projects.
The BSP, likewise, reported the total loans released by both universal and commercial banks to the property sector.
According to latest figures, a total of P1.31-trillion loans were extended to borrowers during the first quarter ending March 31, 2017. This represents an increase of 21.5 percent for the same period last year.
“Again, this substantial increase shows that there are more people buying, and they are being financed by the banks,” said the director of research and consulting of Precsi.

By:  Roderick Abad, Business Mirror