Biz buzz: The promise of a million jobs
How does one solve a multimillion-peso problem of bandits regularly blowing up one’s far-flung—and difficult to secure—facilities using improvised explosive devices?
Such is the problem faced by National Grid Corporation of the Philippines (NGCP) with regard to thousands of its transmission towers up in the mountains, some of which are bombed whenever the company declines to give in to extortion (not to mention scavengers who want to pilfer scrap metal).
But NGCP president Henry Sy Jr. has what could be a long-term solution to this issue.
“Big Boy,” as he is known to his friends, recently launched a P50-million skills training program meant at alleviating poverty in communities located near or around NGCP’s valuable transmission towers in remote areas of the provinces.
To be administered by the various campuses of the University of the Philippines nationwide, the program will train local residents in the art and science of construction work—the right way with the right equipment, with an emphasis on safety—so that these unemployed people will be more productive.
The idea is for the local residents to be able to improve their economic conditions, not turn to scavenging of (NGCP’s) valuable metal equipment and, hopefully, gain the trust and confidence of the local community in helping protect the power transmission assets.
But if one thinks P50 million is too small, that’s just the start of it.
Big Boy’s stated goal—which he announced during the program’s launch, making NGCP officials gulp in surprise—is to create no less than one million jobs for the country’s unemployed.
That ambitious goal, if achieved, will surely cost more than just P50 million and will benefit not just NGCP but also go a long way in boosting the national economy.
Now the challenge is executing. Is it realistic? Can it be done? “Watch me,” says Sy. Keep your eyes on this promise, folks. —DAXIM L. LUCAS
PH-China trade litmus test
Investors—particularly importers of Chinese-made construction materials—are keeping a close eye on how the Duterte administration will resolve the current impasse involving 20,000 metric tons of imported reinforcing steel bars being held in Subic on orders of the Department of Trade and Industry (DTI).
The importer, Mannage Resources Trading Corp. (MRTC), has appealed to the Office of the President to help expeditiously resolve its dispute with DTI over the latter’s alleged violations of the firm’s right to due process. After complying with the rules and paying some P43 million in taxes for its steel importation, MRTC claims it is being unfairly singled out by DTI on the alleged egging of “unseen hands” who want to stifle free competition. A final Import Commodity Clearance (ICC) issued in favor of the firm was unilaterally withdrawn by DTI sans any notice of violation or hearing, which, the company claims, are blatant violations of its right to due process.
Even MRTC’s Chinese partner, Shanghai-based SIICGM Development (Hong Kong) Ltd., has sought the help of the Chinese Embassy in Manila to coordinate with Philippine authorities to swiftly resolve all issues preventing the release of MRTC’s steel shipment.
Though the dispute involves a relatively small volume of steel bars, the issue is an important litmus test of Philippine-China trade relations, which is just warming up since President Duterte assumed office. In fact, some say it puts to the crucible trade and investment commitments signed during the President’s recent State visit to China. This includes the $200-million SIICGM-MRTC partnership for a steel plant and trading of construction materials.
How this issue will eventually pan out is of interest not only to aspiring importers, but also to future investors in the Philippines. Watch this space for more of this unfolding saga. —DAXIM L. LUCAS
From BCDA to Aecom
Former Bases Conversion and Development Authority (BCDA) president Arnel Casanova is back in the infrastructure sector as the newly appointed chief executive officer of Aecom Philippines, a unit of American multinational engineering firm Aecom.
Aside from running the Philippine business of the world’s biggest fully integrated infrastructure company, Casanova will be part of Aecom’s growth and strategy team for Asia-Pacific. He will take over the post held by Alma Madrazo, deemed one of the country’s top environmental engineers, who will stay on as head of the environment business. At 61, we heard that she had requested for a lighter load to focus on health and wellness.
In the Philippines, Aecom acquired URS, which built the San Roque Dam, and also acquired EDAW, which designed Ayala Land’s Nuvali and Anvaya estates. Aecom, with annual revenues of $18 billion globally, is into construction services, masterplanning and design, architectural design, environmental engineering, quantity survey and even cybersecurity. Elsewhere in the world, Aecom has done infra projects for the Beijing and London Olympics.
Under Casanova’s leadership, BCDA’s remittances to the national treasury averaged P2.9 billion for the period 2011-2015 (reaching a record-high P4 billion for 2015 alone), marking nearly a three-fold increase from the 2006-2010 average of P1 billion a year. Total remittances to government coffers reached P14 billion during the Aquino regime, of which P12.9 billion benefited the AFP modernization program.
Under his term, the BCDA also recovered prime landbank that some unscrupulous generals appropriated for themselves, including a 35-hectare property at Jusmag and 47 hectares at the Navy Village, by scoring legal victory at the Supreme Court. —DORIS DUMLAO-ABADILLA
