Tuesday, October 8, 2013

Bosch opens Davao hub





Bosch officially marked its foray in Mindanao as it opened the Bosch regional business hub along Roxas Avenue in Davao City Monday. This is the first hub for Bosch in Mindanao. It opened its Cebu business hub last May to serve the Visayas market.

"Davao has strengthened its position as the financial and services hub of Southern Philippines and this presents new market opportunities for Bosch's diverse portfolio of solutions," Bosch Philippines Managing Director Joseph Hong said.

A local presence in Davao, he said, will enable us to effectively serve our customers across the Mindanao region including the provinces of Cagayan de Oro, Surigao and Butuan.

Hong said the new business hub will serve as a showroom for various Bosch products including their power tools, security and safety systems. It will also serve as a technical training facility for their distributors and other stakeholders.

Bosch is also set to open today its second Bosch Diesel Service in Bajada. Bosch has two Bosch Car Service workshops and two Bosch Diesel Service centers in Davao City and Davao del Norte.

Coffee for peace, and business too

What started out as an effort to promote peace in Mindanao eventually turned into a lucrative business both for the peace builders but also for the thousands of indigenous people in the island as they strive to meet the increasing demand for Arabica coffee in the world market.



“We went to the insurgency areas with the intention of teaching them about peace but we found it difficult to teach them about peace without first addressing the basic needs of the people,” Coffee for Peace, Inc. Marketing Manager Dawn Albert Pates told BusinessWorld.

Since 2008, Coffee for Peace has been providing training to the tribal communities at Mt. Matutum in Polomolok, South Cotabato, Mt. Apo in Kidapawanm North Cotabato and Mt. Kitanglad in Bukidnon.

Almost all of the coffee trees in the said areas have been wiped out by the Coffee Leaf Rust in the 1800s but to their surprise, the peacebuilders saw coffee trees still growing in the mountains of Mt. Matutum in 2008. They got some samples and sent it for cupping to one of Canada’s biggest coffee companies.

“They were not even aware we had Arabica Coffee in the Philippines but they liked the sample so much as it was of high quality,” Ms. Pates said. She added there is actually no coffee variety native to the Philippines although “we can create our own flavor depending on the soil where it is grown.’

There are four major varieties of coffee including Arabica, Robusta, Liberica and Excelsa. The Kapeng Barako from Batangas falls under Liberica variety. Mindanaoans however refer to any coffee produced in the mountains as “native” regardless of the variety.

Majority or 80% of the coffee being produced in Davao and in the country is Robusta since this is the variety being bought by companies like Robina and Nestle for their 3in1 coffee products. While Robusta is good for blending, she said, we are encouraging farmers to plant more Arabica since it is premium quality coffee that has less caffeine, less acidic and has a high 70% demand in the global market.

“We have an estimated 1,300 hectares of Arabica coffee from our trained farmers,” she said. Coffee for Peace now has trained a total of 27 tribal communities mostly from the B’laan tribe and 972 farmers.

“But we do not buy coffee from the farmers unless they have undergone peacebuilding training because we do not want development to cause disintegration.” The training includes coffee plantation management, peace and reconciliation and financial management. The trainees are not allowed to graduate unless they can produce quality coffee, preferably following the wet process as it is cleaner and more flavorful.

She said the country has not been exporting Arabica Coffee for the past 27 years but they had a breakthrough last 2011 when they exported Arabica from Mt. Matutum to Canada. “But Level Ground (importer) from Canada wanted 50 tons a month and we could only deliver 600 kilos,” she said.

Ms. Pates admitted that they could not even supply the local demand, much more the huge demand from the international market. They also have inquiries from Japan and Europe but they could not commit as of now until they see the first harvests beginning this year.

Coffee for Peace started training the communities in 2008 and they started planting only in 2009. With a gestation period of three years, she added, we hope to see their harvest by 2013 and 2014. She said there are existing coffee areas already so what they do is just rejuvenate the areas so that they produce better quality and yield. Following the correct process, each tree can produce 3 to 5 kilos; otherwise, it would only produce less than a kilo of coffee.

“The good thing about Arabica is that it can be intercropped with strawberry and carrots so the farmers have other sources of income while waiting for the coffee trees to bear fruit,” she said. And since the Arabica variety requires only 25% of sunlight, they also encourage the farmers to plant more trees and contribute to reforestation.

She said the crops planted alongside the coffee trees will influence the taste of coffee. They have buyers who ask them if their coffee was planted next to strawberries since they had a fruity taste, she added.

Ms. Pates said research and development is very crucial for the development of the coffee industry. As of now, the government has no model farm for coffee intercropped with other fruit trees. However, Dr. Rafael T. Mercado of the Department of Agriculture said coffee now has the government’s full attention due to recent developments. It is now considered one of the sunrise industries because of the emergence of coffee shops and the increasing demand in the local and world market.

She said since most of our coffee farms are in the mountainous areas we can easily match Ethiopia which is the top producer of coffee and the top producer of coffee for Starbucks. However, she said, we have to start right and teach our farmers to plant coffee the right way.

What makes Coffee for Peace unique is that it uses the business of coffee to promote peace in the communities. More importantly, it buys coffee at fair trade prices which means the farmers are actually paid the price of coffee that is prevailing in the market.

“As of 2012 the market price of Arabica was only P80-P90 per kilo but we were already buying from our farmers at P150 per kilo which is the fair trade price,” she said. We also train them how to sort their produce since it gets a higher market price. If they know how to price their products “hindi sila maloloko nga mga traders and middlemen.”

Coffee for Peace teach the coffee farmers to become businessmen and they do not give dole outs. Instead, they help tap government and other support when it comes to the provision of seedlings for the farmers.

She said that since the trainings, the communities are more motivated but they do not impose on them. Their houses have improved a lot, from light to heavy materials and they now have more initiative in seeking ways to develop the community, she said.

“Through our trainings the coffee farmers learn how to negotiate, mediate and solve problems,” Ms. Pates said. Our peace is profound—we do not seek to convert them but we do not hide the fact we carry the cross, she added.

The company’s aim is to make coffee an iconic product of peace so that when people drink coffee they are conscious where it came from and how the coffee was grown. Coffee for Peace has been operating a showroom for five years now and aside from its popularity as a source of organic coffee, the shop has also become a gathering place for missionaries and development workers. After all, Coffee for Peace is a product of the peacebuilding efforts of two Filipino missionaries from Canada who has since relocated to the Philippines.

The next time you drink your next cup of coffee, ask yourself if this coffee was bought following the fair trade concept. But if it came from Coffee for Peace, then you are assured that your coffee was grown not only for business but to establish peace in Mindanao as well.

Monday, October 7, 2013

SM to bring Science Discovery Center to Jinjiang, China by 2014

SM Prime Holdings, Inc. is set to bring the Science Discovery Center to Jinjiang, China by 2014. This will be the third SM Science Discovery Center in the country and the first outside the Philippines.


Science Discovery Center head Arturo C. Carballo said this is part of SM Prime’s plans to have 10 malls in China by 2014. There are six SM Malls occupying a total space of 797,545 square meters in China with specific locations in Xiamen City in Fujian, Jinjiang City in Fujian, Chengdu City in Sichuan, Jiahe Road in Xiamen City, Suzhou City in Jiangsu and the latest in Chongqing City which opened in December 2012.

The first SM Science Discovery Center opened at the SM Mall of Asia in Manila in 2007 while the second Center opened in Davao City’s SM Premier this month.

“This is one of the most modern science centers with a Planetarium powered by the Digistar 5 projector system; the full-dome Planetarium alone costs P700,000,” Mr. Carballo said. This is even more modern than most Science Centers in the United States which only uses the Digistar 3 system, he added.

The Davao Science Discovery Center occupies a 2,000-square meter space but compared to the 158 seating capacity for MOA’s Planetarium, Davao’s Planetarium can only seat up to 80 people. But while the Center in Manila has only 9 galleries, Davao has up to 10 interactive galleries on geology, Biology, the Body, Climate, Energy, Transportation, Technology, Engineering and The Future.

“The Science Discovery Center in Davao is expected to cater not only to Dabawenyos but also to the whole of Mindanao,” he said.  Based on their studies on the Mindanao market, they have decided to lower down the entrance fees from P330 for walk-ins in Manila to only P250 for walk-ins in Davao City.

Mr. Carballo said they have met with officials of the Department of Education as well as Vice Mayor Paolo Z. Duterte and they agreed to provide a special rate for public schools. He said Pasay City exempted the Discovery Center in MOA from the amusement tax so they were able to provide public school students there with a low rate of P180.  We are trying to get a much lower rate for Davao public school students, he added.

Department of Tourism XI Regional Director and Assistant Secretary Arturo P. Boncato, Jr. said the Discovery Center brings with it more opportunities for the city as it will provide educators with a unique, tech-based platform when teaching the youth about concepts in science, technology and other related topics.

“It will help the city sustain its advantage not only in business and tourism, but also in education,” he said. The investment came at a most opportune time, he said, given the recent economic boom brought about by the influx of investments and tourism.

Wednesday, October 2, 2013

Amreco-supplied areas in Mindanao assured of 300MW supply by 2017

The different provinces in Mindanao relying on the different electric cooperatives for their power supply are assured of a 300-MegaWatt supply by 2017 but are at a quandary as to where to source power from now up to 2015.

“We have already contracted with GN Power and the Amreco-PSAG (Association of Mindanao Rural Electric Cooperative- Power Supply Aggregation Group) for our projected 300-MW demand for 2017,” Amreco President Sergio C. Dagooc told BusinessWorld Tuesday.

Amreco is composed of 33 electric cooperatives, six of which are considered SPUG or Small Power Utilities Group located in different Mindanao islands such as Jolo, Sulu, Tawi-Tawi, Dinagat and Basilan. The six cooperatives have their own generators while the 27 others rely on the National Grid Corporation of the Philippines (NGCP).

All the six electric cooperatives are under the National Power Corporation (NPC) as per Republic Act 9136 which mandates the NPC to operate power plants in isolated islands in the country.

He said Amreco accounts for 60% market share or an estimated 1,941,554 residential consumers in Mindanao. The rest of the market is accounted for by private electric companies like the Davao Light and Power Company (DLPC) and the Cagayan Electric Power and Light Company, Inc.(CEPALCO).

Mr. Dagooc said 80% of their member cooperatives are Triple A cooperatives which means these are “financially, technically and institutionally stable.” However, he added, 20% of its members are hard-up electric cooperatives located in the Autonomous Region in Muslim Mindanao (ARMM).

Among the top cooperatives are servicing the Davao Region namely Davao del Sur Electric Cooperative (Dasureco), Davao Oriental Electric Cooperative (Doreco) and the Davao del Norte Electric Cooperative (Daneco) which used to be a top-performing cooperative before it got embroiled in its present controversy.

Twenty-seven of the member coops are hooked up with the island’s transmission grid while another six operate in the off-grid islands surrounding the main island of Mindanao.

“While most of our member cooperatives are doing good we have to unify our resources to help ailing members such as those in the ARMM,” he said.
Amreco-PSAG Executive Director Clint Django Pacana said these cooperatives are non-stock, non-profit organizations that rely on the P6,000 monthly dues of its members for its continued operation. This is mainly the reason why PSAG was formed and do business in the power industry, he added.

Amreco recently conveyed to Energy Secretary Carlos Jericho Petilla its opposition to the Price Determination Methodology (PDM) of the Philippine Electricity Market Cooperation (PEMC) which will be used by the Interim Mindanao Electricity Market (Imem).

Mr. Dagooc said while they are not against Imem’s implementation, they are protesting some of its provisions. The Energy Regulatory Commission (ERC) approved last September PEMC's Pricing and Cost Recovery Methodology (PCRM) which allows the use of the PDM in the establishment of power rates. He said they are protesting the rule which states that “the Imem Day-Ahead Price (Idap) shall correspond to the highest offer price fully or partially scheduled for the particular Imem trading interval."

Mr. Dagooc said this will leave the power distributors with no choice but to pay for the highest power rates no matter their choice of power generator and its previously offered rate.

Monday, September 9, 2013

Tun Fun Run kickstarts


General Santos City-The 2013 Tuna Fun Run kickstarted in General Santos City on Sunday, September 7, 2013.

The Run officially started at 4:30 A.M but there was another gunstart at 5:30 A.M. for the other categories.

The Fun Run, which is sponsored by the Notre Dame of Dadiangas “One Damean” Batch 87 as part of their silver jubilee celebration and the Order of Demolay of General Santos, is part of the Tuna Festival held every September of the year.

“We hope to surpass the 1,900 runners last year considering that fun runs are becoming popular these days,” Tuna Run Chairperson Ma. Lourdes L. Libres said. Also acting as Tuna Run chairperson is Bernadette B. Ruivivar.

The Tuna Run 2013 has four categories namely 3K, 5K, 10K, 21K and the 1.6K for parents-and-kids tandems. Among the expected participants are amateurs, professional runners and health buffs. Registration fees are from P200 to P450 with singlet and from Pp50 to P150 without singlet depending on the category (Elementary, College/Adult, Half Marathon and Adult and Child Tandem).

“All runners are expected to be at the Starting Line by 4:30 A.M.,” Libres said. The Fun Run will start and end at the Robinsons Place Gensan Parking Lot.

One Damean President Architect Elwyn Banares said they are determined to make the Tuna Fun Run a yearly event not only to raise funds for a cause but also to promote running as a lifestyle. Two Free Run Clinic lecture and practicum sessions were conducted by the organizers on August 23 to 24 and August 30 to 31. Marathoners Allan C. Delima and Jessie A. Lozada gave the hopeful runners an overview of the benefits of running and some running tricks and tips.

Proceeds of the Tuna Run will go to the Marcellin Foundation, Inc. a halfway home for children in GSC being maintained by the Marist Brothers. The program also provides residential care to the abandoned, neglected, and abused children, and those in conflict with the law. Other beneficiaries are the Notre Dame Holy Rosary Chapel and public schools in Brgy. San Jose, GSC.

Friday, September 6, 2013

4th PhilConstruct opens at SMX Lanang

The 3-day 4th PhilConstruct Mindanao opened its doors to the public at the SMX Convention Center on September 5, Thursday, with 285 booths, putting into perspective the impact of the construction industry on Mindanao’s economic growth.

“We have 700 contractors registered with the Board and 60% are based in Davao,” Department of Trade and Industry (DTI) Davao City Director Teolulo T, Pasawa said Thursday. The distribution of wealth is not trickling down, he said, so it is pulling its resources to the construction industry since it has a bigger multiplier effect.

Event Chairperson Engr. Ramon F. Allado said there may be a similar number of contractors not registered so it is possible that we have at least 2000 contractors here with close to half a million workforce. Mindanao, he said, is the single biggest producer of construction workers who are trained here and are sent to other parts of the country and of the world.

“The construction industry provides money for the local economy with a 15 times minimum multiplier effect in terms of suppliers, workers, lodging establishments and other support facilities,” he said.

Allado said there is a boom in Mindanao construction industry today, especially in Davao. There are two 300-MW coal-powered plants in full construction in the Region today, he said, with Therma South’s project 40% completed and SMC Global Power Holdings Corporation’s project in Malita just starting out. Two more coal-powered plants in Misamis and South Cotabato will start constructing soon, he added. “That’s only the power sector eh yung mining sector pa.”

He said the tourism sector is another big user of the construction industry with various tourism construction projects going on and many that are yet to be developed.

Allado said the Department of Education (DepEd) has completed the public-private partnership (PPP) bidding for 20,000 classrooms in Mindanao. Sector, which comprises almost the other half of Mindanao with 10,000 classrooms to be built in one and a half years.

“All of these spell at least P40 Billion for Mindanao alone,” he said.

The booming construction industry is one of the reasons why the organizers have decided to make PhilConstruct Mindanao a yearly event every September. With more than a hundred innovative suppliers of equipment, technology suppliers, materials and tools, the stakeholders of Mindanao’s construction industry need not go to Manila or Cebu to get the latest in construction technology, he said.

Pasawa said “Davao is a very good market for the construction industry with a 2.4% growth per annum, 1.5 million people and vast availability of land that is seven times larger than Cebu and three times larger than Metro Manila.”

He said the city has a very reliable 24/7 power supply which is also among the country’s cheapest at P6 per kilowatt-hour (kwh) (beaten only by Lanado del Sur) compared to the almost P8 per kwh in Cebu. The city has also consistently ranked at the top of the Most Competitive Cities Survey by the Asian Institute of Management (AIM), he added.

Davao City has a very vibrant construction industry, he said, that DTI has established desks and officers for regulatory purposes including the Philippine Contractors Accreditation Board which handles registration and the Construction Manpower Development Authority which handles arbitration cases.

Tuesday, September 3, 2013

WFP expands disaster program in Mindanao to include Climate Change Adaptation

The lack of preparedness for disasters as serious and widespread as typhoons Sendong and Pablo has resulted to massive devastation and to make sure it does not happen again, the World Food Program (WFP) has expanded its Disaster Preparedness and Response (DPR) Programme in Mindanao by adding the Climate Change Adaptation Component (CCA).

“This new focus complements WFP’s aim of strengthening the resilience of local government and communities,” WFP Representative and Country Director Praveen K. Agrawal said Tuesday. He said this also supports the provisions of Republic Act 9729 or the Climate Change Act as well as the priorities of the national Climate Change Action Plan (NCCAP).

The CCA component of the DPR Programme will be piloted in three cities in Mindanao and one city in the Visayas including Davao, Butuan, Cagayan de Oro and Iloilo.

WFPA has launched in June 2013 a one year CCA project in Davao City on “Utilizing Upland Micro-Catchment Water Harvesting Technology” in order to stabilize the slopes and catch rainwater for upland agriculture.

Mr. Agrawal said 10 Micro-Catchment Water Harvesting Systems will be set up in 20 hectares of sloping farms in Davao integrating the Sloping Agricultural Land technology. Under this technology, multi-cropping and riverbank development will be used as comprehensive approaches to ensure the protection and management of the upland environmental ecosystem.

“This is a joint activity with the local government and we are now in the preparation and development stage where we identify the priorities as needed by the communities,” he said. When asked about the total cost of the CCA project in Davao, he said the cost is not important because it can always be adjusted to reflect what the communities really need.

Mr. Agrawal said “We can say the project is worth $100 but what if what is needed is really $1000? Let’s see what the communities really needs and then we will support it.”

The city, which has continuously experienced its own share of flooding in the past years, is also enhancing its flood monitoring system. Davao City Disaster Risk Reduction Management Office Chief Pepito Capili said eight water measurement equipment has been installed last month through the Department of Science and Technology’s (DOST) Project Noah. The equipment were installed along the Suawan River, Tamugan, Davao River, Pangi Bridge, Mintal Bridge, Wangan Bridge and Wangan Bridge. Also included are two rain gauges to be installed in Biao which contributes to the Pangi Water System and Baguio Proper.

The city is also in the process of constructing the wireless telemetry system and upgrading the installation of cameras in the city’s major bridges which will provide the Disaster Operations Center with a visual electronic monitoring system to monitor the condition of the rivers.

In Butuan City, Sago Palms and other indigenous trees and shrubs will be used to establish a 10-kilometer long buffer zone or ecobelt along the waterways of the Lower Agusan River to cover three flood-prone barangays. Sago Palms are known to withstand intense typhoon winds, drought and prolonged flooding. These plants can also prevent soil erosion as it has a root system that can trap silt.

WFP plans to raise the level of awareness in the community on the importance of planting Sago Palms to combat the ill effects of climate change in order to ensure the continuity of the initiative.

Cagayan de Oro City, one of the hardest hit cities during typhoon Sendong, is also one of the beneficiaries of the CCA project.  The project will specifically answer the city’s unique problem as it is not only faced by flooding problems but it is also faced by water scarcity during droughts.

WFP will also install 80 community-based roof catchment rainwater harvesting units in 40 duplex dwellings in the city. Up to 160 families are set to benefit from the domestic water source to be provided under the CCA project.

“While improving access to water, the systems will also help reduce rainfall surface run-off,” WFP’s project primer said. The Technical Education and Skills Development Authority (Tesda) will be asked to certify community members for the construction and maintenance of the rainwater harvesting systems.

WFP will join forces with the Ateneo Innovation Center in Iloilo City for the construction and installation of “community-based sustainable solar-powered rainwater harvesting facilities in public locations to improve storage and treatment of rainwater for potable use during periods of excess rain and emergencies.”

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