A big change is coming to this foreign bank this month after its big bosses overseas decided to finally put a Filipino in charge of local operations.
According to our sources, the decision has been made a few days ago that, in line with the banking giant’s thrust of “localization,” it would finally appoint a local to run its large Philippine business.
This is, of course, a major landmark for the bank considering that no Filipino has ever run it despite having been in the country for more than a century now.
It has not always been smooth sailing for the soon-to-be-named country manager though. He’s had his fair share of challenges on his way to the top of the corporate ladder and also has his fair share of detractors (most of whom are, no doubt, envious of the mega-deals he always seems to bag, whether from the government or the private sector).
The icing on the cake for Mr. Big Bold Banker, however, was his most recent deal, which he managed to pull off successfully, despite having a slew of would-be underwriting allies spreading adverse rumors about the deal (while collecting nice underwriting fees on the side, of course).
We’re told that Mr. Big Bold Banker’s appointment will be made public in exactly two weeks, while the incumbent foreign head of the local operations will get another post in his home country.
Expect Mr. Big Bold Banker’s “frenemies” to make nice comments all of a sudden in the coming days as word of his appointment makes its way into the market.—Daxim L. Lucas
Rockwell’s ‘high drama’ development
If you are wondering who Carlos Ott is and why his face is splashed on billboards along Edsa, ask upscale developer Rockwell Land Corp.
Ott—an Uruguayan architect who designed the L’Opera de la Bastille in Paris—is working with the Lopezes’ real estate firm to develop the former Philippine headquarters of Colgate Palmolive into another “ultra-luxury” mixed-use development dubbed the “Proscenium.”
The story behind the curious name? Proscenium means “in front of the scenery,” which, officials say, emphasizes the high drama that many are expecting from what Rockwell claims is another pioneering development.
Ott’s first project in the country is set to rise on the 3.6-hectare site adjacent to Rockwell Center and is expected to address the “intense demand for more of their units in Makati,” officials say.
The only tidbit that has been leaked so far is that the project will consist of five ultra-luxury residential towers, commercial and retail space, as well as a 600-seater performing arts theater.
No news yet, however, as to when Rockwell will formally unveil its latest creation. I guess we’ll just have to wait for the invitations.—Amy R. Remo
Jack the power newbie
Chinoy industrialist Jacinto “Jack” Ng may debut in the power generation business as the third party in a triumvirate being formed with Ayala Corp. and A. Brown Inc. to undertake a P12.5-billion coal-fired power plant project in Iloilo. This is a 135-megawatt project targeted to start operations by 2015, expandable by another 135 MW and aims to ease the tight power supply in the Panay and Visayas grids.
Project proponent Brown is keen on harnessing not just the Ayalas’ but the Ngs’ financial muscle as well, obviously to diversify risks in the capital-intensive undertaking.
A source familiar with the discussions told Biz Buzz that Ng wanted to acquire a 30-percent stake in the project. Brown will retain 40 percent while Ayala, through AC Energy Holdings, will get 40 percent. Ng’s buy-in deal may be finalized within this month, our source said.
The Iloilo project is scheduled to break ground in the fourth quarter of this year. Brown, for its part, has done all the preliminary work and investments during the past two years. The project—now in an advanced stage of predevelopment—is ready to take off. The engineering plans are ready and important regulatory approvals have been secured. It’s the moolah that’s now being finalized.
With the prospective partnership, the cash-awash Ng hopes to learn the ropes of the power-generation business that he can scale up in the future to add to his biscuit manufacturing (Rebisco Group), banking (Asia United Bank) and hotel (Oakwood Ortigas Center) crown jewels.—Doris C. Dumlao
Intra-Cabinet debates
The Department of Transportation and Communications has shot back at the Department of Public Works and Highways in the never-ending debate over issues affecting the connector roads espoused by the country’s most famous “frenemies.”
To recall, the DPWH had questioned before Malacañang the Department of Justice’s decision to recognize the exclusivity of the expressway franchise of the state-owned Philippine National Construction Corp. (the tollway project partner of Citra) as well as the DoJ’s failure to recognize that the DPWH had the power to enter into infrastructure contracts pursuant to the Build-Operate-Transfer (BOT) law, notwithstanding the PNCC franchise.
The appeal is what is preventing the Toll Regulatory Board, an attached agency of the DoTC, from processing the road alignment of PNCC-Citra (and now in partnership with San Miguel Corp.) for its North-South Luzon connector road project.
In a manifestation against the DPWH’s appeal to Malacañang, the DoTC said the DoJ’s ruling in the case was “final” as well as “conclusive and binding” upon all parties. The department argued that the secretary of justice—being the ex-officio legal adviser of all government corporations and entities—had legal authority on cases involving only questions of law. It also noted that appeals from DoJ decisions were limited to those involving offenses punishable by reclusion perpetua to death (gloomy!)—Doris C. Dumlao
Shifting tectonic plates
The shift from traditional to online advertising is going to get a kick in the pants this week with the plan of a “fast-moving consumer goods” giant to shift more of its advertising budget to new media platforms.
According to our sources, Proctor and Gamble has decided to make a “gradual but sure” shift to marketing and advertising in online platforms.
The firm has commissioned a study for this and the results have come back showing that spending for online and new media platforms are steadily becoming more cost-effective than traditional forms.
More importantly (and perhaps a little alarmingly for traditional media platforms), the shift will begin in countries with high online platform penetration like … *gasp* … the Philippines.
We’re told that Proctor and Gamble and its third-party research outfit will make the findings of their study public this week. Brace yourselves. –Daxim L. Lucas
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