MERALCO POWERCLUB 1 AUGUST 2017

A MERALCO PUBLICATION | SPECIAL LUMINARIES EDITION | AUGUST 2017

celebrating a future of possibilities 2 MERALCO POWERCLUB MERALCO POWERCLUB 3 AUGUST 2017 AUGUST 2017 Inside MESSAGES A MERALCO PUBLICATION

MERALCO POWER CLUB MAGAZINE VOLUME 7 ISSUE 3 eralco launched its Luminaries and open access to keep them PUBLISHER: SUMMIT MEDIA Look Back, program six years ago, when competitive. We enable their pursuit of Analysis A joint project with Meralco’s Mthe Philippine economy was green initiatives with renewable energy 4 CAN WE AFFORD TO SAVE Corporate Business Group, Marketing, Move beginning to take off. Inspired by Meralco sources or electric-vehicle and charging THE CLIMATE? Customer Solutions and Product Chairman Manuel V. Pangilinan, our systems. And to serve them and their The Paris Agreement compels even V20 members to tap renewable energy Development. Published four times a Forward vision for the Luminaries is to showcase local communities, we build large-scale year for key officers of Meralco businesses that make a difference in the electric infrastructure for their real-estate Electric Capital Projects corporate accounts. lives of Filipinos across the country. projects. 7 ENERGIZING THE ASEAN AT 50 Our pioneering Luminaries As the economy continues to Meralco makes sure the ’s hosting of the Asean Summit goes at full power EDITORIAL TEAM were already household names in the soar, we anticipate more positive Edna T. Belleza Publisher electronics, food manufacturing, and real- changes. Small businesses become large Industry Trends estate sectors; companies like Samsung enterprises. Established businesses 8 COLD COMFORTS Estrellita Faustino Editor-in-Chief Companies in the air conditioning business look Electro Mechanics Philippines, Universal diversify into non-core activities such Creative Director/ forward to a promising business climate Dondi Limgenco Robina Corp., and Inc. as energy, water distribution, transport, The winners of the 6th Meralco Luminaries Awards: Associate Editor Saffron Philippines Inc. President Kennan Lao; We had focused on Meralco’s and smart urban planning. Likewise, we Corporate Industrial Luminary Century Properties Group Inc. Chairman JANE KRISTINE CRUZ Art Director traditional services: early energization, aim to constantly innovate and better Jose E.B. Antonio; The Net Group Co-president 16 PRECISION, PEOPLE AND Tina Samson; Swedish Match Philippines Inc. right-sizing energy contracting, and empower our customers with simpler, EMPOWERMENT Esmi Barrera Copy Editor Managing Director Leo Obias; Melco Crown Phils. Amkor Technology Philippines ensures Chairman and President Clarence Chung; Amkor assistance for customers shifting away faster, and more convenient services. its future by investing in its workforce Project Manager Technology Phils. President Norberto Viera Joey Anciano from power self-generation. Over time, Our Luminaries Awards are a our featured partnerships grew more recognition that good practices and MONICA SAPUTIL Production Artist sophisticated. close collaboration between Meralco Bubbles Salvador Editorial Assistant Alfredo S. Panlilio Today, we offer long-term energy and the country’s leading businesses planning to support our customers’ contribute to the betterment of the Senior Vice President and Head, CONTRIBUTORS Customer Retail Services and expansion projects. We help them make Philippines. We hope these stories will Corporate Communications Arlene Adto, Dakila Angeles, Christian Bitoon, the most of energy retail competition inspire others to aspire. Vincent Coscolluela, Ma. Melin C.Y. Doria, Toto Labrador, Jing Lejano, Lio Mangubat, Ryan Ong, Cai Ordinario, Joyce Pañares, Jun Pinzon, Cherrie Regalado, Mari-An C. Santos, Fennie Tan, Bernard Testa, Victoria Vizcarra

t matters little how rich you are, or how more than minimize our carbon footprint. Events Pursuing a Businesses obviously benefit from Corporate Industrial Luminary MERALCO EDITORIAL ADVISERS well your economy performs, when LIGHTING UP THE NIGHT typhoons, floods, droughts and other reduced energy overhead costs, which can Top business leaders and CLICKING WITH THE MARKET Customer Retail Services I Swedish Match taps the services of Spectrum low-carbon regular calamities get progressively worse translate into cost-competitive products. innovators are recognized at Meralco’s Alfredo S. Panlilo 12 6th Luminaries Awards night 22 for solar-energy sources future from global warming. These disasters Savings can yield broader profit margins, Corporate Business Group affect everyone without discrimination. investments into company expansion, and Victor S. Genuino This is what makes the Paris Accord incentives to keep manufacturing here in Elenette M. Uy on Climate Change so vital, even for the the Philippines. Marketing Philippines and other countries that are Reduced energy consumption also Corporate Industrial Luminary 19 Jose Antonio T. Valdez means more power can be made available THE COLOR OF SUCCESS not major producers of greenhouse gases. Innovation, expansion and Edeliza T. Lim The Accord underscores the problem to other users, reducing the risk of energy smart investments keep Saffron Nina V. Posadas Philippines’s business sparkling and urges everyone to find effective shortages that can disrupt the economy. Quinnie G. Blanco solutions. Granted, not all these energy efforts Precious K. Almendras Corporate Commercial Luminary Meralco actively helps its customers are easily implemented. Nor are RE or 25 WORLD-CLASS PLAYTIME Ness G. Ramos seek answers to global warming through green energy technologies cheap. Nonoy City of Dreams raises the bar on what our subsidiaries: MSERV, providing Oplas, of Minimal Government Thinkers, having a good time looks like says we cannot transform ourselves into Meralco, , City energy-efficiency services; and Spectrum, Corporate Commercial Luminary delivering renewable-energy (RE) a completely RE-dependent country 28 PERSONALizing BUILDINGS Telephone: (632) 632-8771 solutions. Our engineering-services overnight. Green turns into gold for property Fax: (632) 632-8771 developer, The NET Group subsidiary MSERV works to deliver However, I believe that a balance must www.meralco.com.ph lower operating costs for customers be struck if we want a future that everyone Subsidiary Profile To learn more about Meralco Power Club, with power-hungry facilities such as air can look forward to. It’s not an easy nor Corporate Commercial Luminary 34 contact the Meralco Corporate Partners at: Victor S. Genuino HOT TECH, COOL SERVICES conditioning. painless thing to do, but we must find a BUILDING THE NEXT GLOBAL CITY The search for energy-efficient air Vice President and Head, Century Properties Group redefines the “modern city” conditioning is keeping Meralco (02)16210 Achieving energy efficiency does way to do it. 31 [email protected] Corporate Business Group subsidiary MSERV in demand www.meralco.com.ph/corporatepartners 4 MERALCO POWERCLUB MERALCO POWERCLUB 5 AUGUST 2017 AUGUST 2017

ANALYSIS 'The Philippines is not a major emitter to the Senate, which ratified the agreement unanimously. The of greenhouse gases at only 0.38 Paris Agreement took effect in the country on April 22, Earth percent. But we are the fifth most Day, the annual worldwide celebration for environmental vulnerable country. The impact of protection. climate change on us is so much more.' Ants leading elephants Vernice Victorio Commissioner Climate Change Commission Legarda urges the Philippines and other member- By BABE Pañares countries of The Vulnerable Twenty Group (V20) to push for more resilient, efficient, inclusive, and sustainable economies. She is chairperson of the Senate Oversight Committee on the Can We Afford to Save the Paris Agreement. “We are the ants leading the elephants,” she declares. “But our nations bear the brunt of climate change. If the V20 cannot pull the world along with us, we will have no chance of keeping the global temperature increase limit within 1.5 degrees Celsius.” Businesses, she contends, must look at climate-change adaptation as programs that spur economic growth, and not just environmental-protection activities. Other industry As a Paris Climate Agreement signatory, the Philippines must make smart choices to power its economy. players agree. (See “A Future Renewed,” in the Q2 2017 issue.)

To examine the issues surrounding the For these reasons, the Philippines is constrained to pursue RE developing world that address climate change. Senator Loren as part of a balanced energy mix that still requires cheaper, carbon- “That 70 percent reduction,” she qualifies, “is just an Legarda Philippines’s participation in the Paris Agreement Chairperson on Climate Change, Power Club’s Joy Pañares based fossil fuels like coal. indication; we have since changed that. We want to be realistic, Senate Oversight Committee on the Paris speaks with Commissioner Vernice Victorio of the so we are hoping to encourage businesses to make their own Agreement Climate Change Commission, Bienvenido Oplas Jr., Commitments made commitment, instead of shoving a fixed number down their president of the think tank Minimal Government throats.” Thinkers Inc., and Senator Loren Legarda, an Despite the constraints, the country is committed to President Rodrigo R. Duterte initially labelled the environmental campaigner. contribute to international efforts to reduce carbon emissions. agreement “unfair,” but transmitted the Instrument of Accession There’s no question that many in the Philippines – In 2015, 175 countries, including the Philippines, crafted government, business and individual citizens – are keen on the Paris Agreement on Climate Change. The Agreement reducing the country’s carbon footprint, which contributes seeks to slash carbon emissions and limit the global average to global warming and climate change. The latter subject is temperature increase to below 2 degrees Celsius above pre- By investing very much in the national consciousness, after super typhoon industrial levels, ideally at 1.5 degrees Celsius. more in energy Yolanda (international name: Haiyan) devastated parts of the With the country averaging 20 typhoons annually, the efficiency and renewable Visayas in 2013. Philippines remains one of the world’s most at-risk nations to energy, we can create almost Yet our efforts to blunt global warming cannot compare natural calamities. with those of wealthier, more technologically-advanced countries. “We are the fifth most vulnerable country,” Victorio Ranking only 36th globally in gross domestic product, the Philippines reveals. “Climate change may be a global issue, but it is very can’t afford to make massive investments in renewable energy much felt on a local scale.” (RE), nor pass these on to consumers. Such a move can disrupt our She reports the country initially pledged a 70 percent economic growth and even bankrupt the nation. Even if we were carbon-emission reduction for a share of the Green Climate to completely go RE, our country only accounts for 0.38 percent of Fund (GCF). Developed countries pledged to put up US$100

global carbon emissions, according to Victorio. million annually for the fund, to finance projects in the Arlene Adto by Grooming Jun Pinzon by Photography more70% jobs as early as 2030. 6 MERALCO POWERCLUB MERALCO POWERCLUB 7 JULY 2017 AUGUST 2017

ELECTRIC CAPITAL PROJECTS 'You need cheap energy resources, and renewables Gross domestic are unstable.' United States product 2016 18,569,100 (in millions of US dollars)

by MC Santos

European Union 16,397,979 Philippines Energizing the 291,965

India 2,263,522 AThere’s a lotsean at stake each time the heads underground at cables. 50 France 2,465,453 of the 10 member-states of the Association of “It was only a matter of coordination with the networks Bienvenido Oplas Jr. United Kingdom China Southeast Asian Nations (Asean) come together. group to maintain the reliability of service throughout the President 2,618,885 Germany 11,199,145 There are economic matters, of course. Regional entire Asean Summit,” he recalls. Minimal Government Thinkers Inc. 3,466,756 Japan 4,939,383 security. Territorial issues. Immigration. The Santiago acted as the nexus between national Source: World Bank environment. government agencies, local government units, and several “With greater investments in energy efficiency and in-tariffs for solar, wind, biomass, and hydroelectric power, and As such, the Philippines was privileged to host the 30th Meralco teams. The latter includes the Central and South renewable energy, we can create almost 70 percent more jobs increases in generation and distribution charges, contribute to Asean Summit, which also celebrates the regional bloc’s 50th Distribution Services (, Pasig, and Parañaque sectors); by as early as 2030,” Legarda points out. “Off-grid renewable the significant price impact of renewable energy. year of advancing “One Vision, One Identity, One Community.” the System Control Center, and the Substation Group. energy solutions will be indispensable to V20 economies like “The overriding concern for developing economies like Working with the theme, “Partnering for Change, The Asean Summit opening ceremony took place at ours, where a national grid system for over 7,000 islands is ours,” he insists, “is how to hasten and maintain economic Engaging the World,” the summit, which ran from April 26 the Philippine International Convention Center (PICC) simply impossible.” growth in order to sustain job creation and poverty alleviation. to 29 this year, was an opportunity for the host country to and at the nearby for the Leaders' Retreat. But others caution against an abrupt shift to renewable Forcing expensive and unstable energy sources to ‘fight climate showcase its economic progress. It was also a rare privilege for To ensure operations remained seamless for services and the Manila Electric Co. (Meralco) to provide power and support power supply, Santiago worked closely with the Meralco energy simply to meet the country’s climate-change change’ contradicts this goal.” for international events that contribute to sector heads of Manila, Pasig, and commitments. nation-building. Parañaque city. Meralco assisted Balance of power The challenge was made less the PICC in the installation of new Economy or environment? daunting thanks to Meralco’s learnings generators, providing advice on the ideal For Victorio, it is imperative to strike a balance between from the visit of Pope Francis in January placement of the units, as well as the Oplas descibes the climate pact as “a lousy agreement.” fossil-fuel energy resources and more climate-friendly 2015 (see “The Power Behind the Pope” in settings on the transfer switches. “If you want to industrialize, you need stable and cheap renewables. Power Club’s Q1 2015 issue). This is the Dedicated equipment and energy resources,” he argues. “You can have renewables, but “The Paris Agreement allows us to determine our energy view of Jojo Santiago, Meralco relationship personnel were on standby around the those are unstable energy resources.” security,” she clarifies. “It does not have to counter efforts 'It was only a matter manager for Government-Owned and- of coordination with clock before, during, and after the event. He warns against tying the hands of the Department of toward poverty alleviation and social development. We are not Controlled Corporations (GOCCs) and the networks group to Santiago reveals updates were sent Energy by disallowing additional base load power plants that saying that we should shut down our coal plants, but we need to a member of the National Organizing maintain the reliability at every shift. Personnel and vehicles run on coal and fossil fuel. He sees the Philippines as having the see how much is too much.” Committee of the 30th Asean Summit. of service throughout the dedicated to the substations were made second-highest electricity price in Asia, next to Japan, with a She concedes that the administration must provide cheap All the events were set for the entire Asean Summit.' available. very low per-capita electricity output of 690 kilowatts per hour. energy, and fast, and expects renewable energy to become Cultural Center of the Philippines Jojo Santiago Its advanced preparations and “Renewables are being forced upon us even if cheaper cheaper in the long run. complex. This made it easier to contain, Meralco relationship manager experience helped ensure a smooth for GOCCs energy is available,” Oplas asserts. “Those who demonize fossil “We still need a base load of fossil-fuel energy, but we Santiago asserts, because they already run at the 30th Asean Summit, but it fuels do not ride skateboards to work. It is plain hypocrisy: they should still push for renewables,” she underscores. “There knew the tapping point of services for also makes Meralco better prepared to still ride their cars and airplanes.” should be awareness, but also a sense of urgency. The earth may all the venues. Thanks to work done during the 2015 papal manage the power needs of the upcoming Asean meetings

He notes factors such as the 20-year guaranteed feed- survive climate change, but would the Philippines?” Arlene Adto by Grooming Jun Pinzon Santiago) , (Jojo Testa Bernard (ASEAN) by Photography visit, he notes, the team was acquainted with the system of in November, and even bigger events in the future. 8 MERALCO POWERCLUB MERALCO POWERCLUB 9 AUGUST 2017 AUGUST 2017

INDUSTRY TRENDS president & managing director of LG Electronics Phils. Inc., credits the solid growth of the Philippines’s “packaged products” market to the thriving activity in private construction, particularly of high-rise condominiums, commercial offices, and shopping malls. This building boom also leads both CIC and Daikin Airconditioning Philippines to expect the annual demand for A/C units to grow by around 20 percent. COLD HVAC manufacturers may do well to anticipate a sales boost, but they all recognize the need to provide greater COMFORTS Inkwun Heo President / Managing Director value to their customers. Rising temperatures mean hotter opportunities for the LG Electronics Philippines Inc. country’s manufacturers of home and office air conditioners

by Cai Ordinario Meralco works closely with HVAC manufacturers and their customers in the design, installation, and efficient operation of Even those who deny global so aircon is really a part of the office and industrial A/C systems. warming can’t ignore Metro development of any economy.” Manila’s rising temperatures. The administration projects On May 2017, the Philippine a seven- to eight-percent annual Atmospheric Geophysical growth rate. This growth is Building on opportunities 'Clean your and Astronomical Services fueled by a young workforce, A/C units regularly Administration recorded Metro rapid urbanization, rising levels Rising consumer affluence isn’t the Manila’s top heat index at 45.4 of household ownership, public only bright spot for the HVAC industry. and set your degrees Celsius. It was 43 infrastructure development, and strong KMC Savills Research data indicates thermostat one degrees in April 2016, and 41 consumption. It is also fed by remittances added about 162,200 from about 10 million overseas Filipino degrees in May 2015. Meralco’s Orange Tags on home appliances guide square meters (sqm) of new office degree higher It’s bad news for an economy that is workers, and by higher domestic incomes buyers by estimating average energy usage, along with the corresponding peso equivalent. space within the first quarter of 2017; than usual.' taking off. Scorching days can adversely from jobs created by business process 781,800 sqm more are expected by affect equipment, and hot evenings can outsourcing firms and other locally based Filipino household ownership of TV sets year’s end. Raul Joseph Concepcion foreign companies. rose to around 77 percent, and of washing CEO mean sleepless nights and underslept, According to LG Electronics Phils. Concepcion Industrial Corporation less-productive workers. The fast-growing economy clearly puts machines, to 36 percent. Inc.’s own projections for Metro However, this also spells plenty of more money in the pockets of Filipinos, Purchases of so-called luxury goods Manila, 2.1 million square meters opportunities for the country’s heating, according to a CIC-commissioned study. also multiplied. In 2015, 12 percent of of new office space are being built ventilation and air conditioning (HVAC) The nationwide income level vis-à-vis the Philippine households, about 2.5 million between 2015 and 2017 and up industry. country’s gross domestic product was out of 23 million families, have installed air to 25,000 condominium units are pegged at US$2,947 (P149,044) in 2016. conditioning (A/C) units. expected to be completed over the A hot economy Of the 23 million Philippine households According to CIC, that market next two years. in 2015, the study also shows, the was worth about P26 billion The same projections also see at “You would all be out of a job if you annual income ranged from P100,000 last year, comprising around 1.4 least 15,741 new hotel rooms in the don’t have air conditioning in this country,” to P250,000 for 45 percent of them, and million A/C units. “Twelve-percent pipeline between the last quarter of declares Concepcion Industrial Corp. exceeded P250,000 for 35 percent. penetration sounds low,” Concepcion 2015 and 2020. (CIC) Chief Executive Officer Raul Joseph The earnings increase shows up in acknowledges, “but it indicates the The LG report, says Inkwun Heo, appliance purchases. From 2009 to 2013, market’s potential for growth.”

Concepcion. “Computers will not work, Tan and Fennie Arlene Adto by Grooming Jun Pinzon by Photography 10 MERALCO POWERCLUB MERALCO POWERCLUB 11 AUGUST 2017 AUGUST 2017

Cool innovations running a single-horsepower conventional roughly 78 kilograms of carbon. information is displayed on easy-to-read orange labels A/C unit at about P25 if electricity is at P15 Each instance of electricity use affects the environment or orange tags and attached to the appliances of select To address concerns over carbon per kilowatt-hour. The Manila Electric Co.'s through carbon emissions, since power plants utilize fossil fuels, manufacturers that are being sold in the market. emissions due to higher power (Meralco) Power Lab tests show the use of coal and alternative energy sources such as nuclear, wind, water With said program, Meralco is not only able to generate Number of Household and Income Class consumption (see “Can We Afford to an inverter A/C unit can cut this down to as 1.3 and solar energy. This creates a carbon impact. We must face awareness for energy-efficient innovations, but is also able Save the Climate?” on page 4), the HVAC low as P5. 2.1 facts: carbon footprint is the climate-change metric of our times. to share practical tips to its customers on the efficient use Annual 3.3 Household industry engages in a never-ending race In fact, Concepcion credits the growth Income Meanwhile, global sales of A/C units continue to surge in of home appliances through social media, TVCs and flyer 2.4 4.1 to introduce state-of-the-art products in the use of inverter A/C units as a factor 60K emerging economies, many of which, like the Philippines, India inserts in the monthly bills. below 3.7 that deliver comfortable cooling while in helping the country avert an energy 4.1 and Indonesia, are in warm climates. A recent Berkeley National Meralco also works closely with HVAC manufacturers 60K to 99K consuming less energy. crisis a few years ago, by helping ease the 4.1 Laboratory study estimates the world will have about 1.6 billion and their customers in the design, installation, and efficient A key breakthrough in A/C systems is energy demand. 10.3 A/C units by 2030. operation of office and industrial A/C systems(see “Hot 9.1 100K to the introduction of inverter technology. 250K 7.6 Even the operation of so many A/C units clustered in one Tech, Cool Services” on page 34). Compressors in conventional A/C units The price of progress 6.3 location can have immediate effects. Other Green Footprints recommendations include the

run at full capacity to reach the desired 250K 3.3 4.4 6.2 7.9 “The more cooling you have, the more heat A/C systems replacement of currently installed appliances to dispose of above room temperature, then shut off. As the Inverter technology does not come 2006 2009 2012 2015 release into the urban environment,” declares Afshin Afshari, a outdated HVAC units without harming the environment.

room temperature rises, the compressor cheap, however. Daikin President Lee addressable market Source: Philippine Statistics Authority professor with the Abu Dhabi research team at Masdar Institute. Concepcion expects some folks may find such advice a kicks in again at full speed. In contrast, Wai Kok admits inverter A/C units are “This elevates the ambient temperature and further increases the bitter pill to swallow: “The challenge in any green program inverter A/C compressors run at a high up to 20 percent more expensive than cooling demand. It’s a vicious cycle.” is in convincing people to spend a little more, to pay a little speed to cool the room quickly, then slow conventional models. The use of copper the inverter unit’s maximum cooling and premium, to be earth-friendly. Surveys show that people down to maintain a constant temperature. pipes and drain systems for inverter units, energy-savings potential. “If you buy a unit Smaller footprints want to be green, but don’t want to spend any green.” This low-speed compressor setting keeps and the professional installation service it from us, we’ll install it at a reduced cost.” In any case, Metro Manila’s soaring temperatures will inverter A/C units quieter and 50 to requires, further adds to the price tag. The invisible cost of air conditioning The environmental impact of A/C use is why CIC subsidiary, only harden the resolve of a population, in an increasingly 60 percent more energy-efficient than “Most suppliers today offer installation is measured, not in pesos or kilowatts, Concepcion-Carrier Air Conditioning Co., launched The Green prosperous economy, to acquire more and better A/C conventional models. services for their customers,” Lee notes, but in carbon. An American Journal of Footprints Movement: to raise awareness on the environmental systems. Thanks to smarter innovations from the HVAC Concepcion pegs the hourly cost of insisting on proper installation to ensure Engineering research paper estimates impact of lifestyle choices, explains Concepcion. It also offers easy industry, homeowners and businesses can feel good about the annual carbon footprint of a standard and practical steps for consumers to shrink their carbon footprint. keeping their carbon footprint down even as they save window A/C unit is about 1,400 kilograms. The simplest tips? “Clean your A/C regularly,” he advises, “and energy, and money. Using a carbon calculator by the Center set the thermostat one degree higher than your normal setting. for Sustainable Systems, a passenger These can reduce your household’s energy car ride from Manila to Baguio produces consumption by as much as six percent.” The Green Footprints Movement Philippine 98 also fosters cooperation between and Consumer Appliance 'Proper inverter- among the private sector and the national 80 government. Concepcion quotes studies Market 68 A/C installation that show buildings take up about 40 59 percent of the world’s total power 52 maximizes its 42 consumption, of which air conditioning 42 cooling potential accounts for 60 percent. and energy Through partnerships with companies like the Meralco and the savings.' Department of Energy, the movement Lee Wai Kok is able to inform consumers regarding President energy-efficiency ratings for various 2010 2011 2012 2013 2014 2015 2016 Daikin Airconditioning Philippines Inc. appliances. This is the objective of Meralco’s Orange Tag program, which extensively tests for the estimated energy usage and cost per kilowatt-hour of home appliances A an Air Conitioner itchen aunr erierators Source: Euromonitor International & Internal Estimates like refrigerators, A/Cs and TVs. This 12 MERALCO POWERCLUB MERALCO POWERCLUB 13 AUGUST 2017 AUGUST 2017 EVENTS: Victor Genuino LLUMINARIES with Midland Steel AWARDS NIGHT Corp. President The Meralco Richard Lin Luminaries is a program that honors customers who collaborate with Meralco for improved business efficiencies that drive the nation’s development and Oscar S. Reyes; Amkor Technology Phils. President Norberto “Bing” Viera; Saffron Phils. Inc. progress. President Kennan Lao; Swedish Match Phils. Inc. Managing Director Leo Obias and Al Panlilio

“A few years from now, children growing up today—even my kids—will recognize Meralco not as a logo on a paper bill, but as an app on their mobile Lighting Up phone,” said Alfredo S. Panlilio, senior vice president and head, Customer Retail Services and Corporate Communications at the Night the Manila Electric Co. (Meralco). Panlilio’s welcome remarks set At the 6th Luminaries Awards, innovation took the spotlight off the 6th Luminaries Awards, by Lio Mangubat held last March 9 at the Grand Ballroom in Shangri-La at the

Fort in BGC, . An all-star cast lights up the evening’s performance

The Net Group CEO CARLOS RUFINO and co-president RAYMOND RUFINO flank Meralco president and CEO OSCAR S. REYES

Swedish Match Phils. Inc., Managing Director Leo Obias

D.M. Wenceslao and Associates, Inc. CEO Melco Crown Phils. Chairman and President Clarence Chung (second) Meralco VP and Head, Corporate Business Group, Delfin Wenceslao; Solaire Resort and and Victor Risma (far right), with officers: Vice VICTOR S. GENUINO; Saffron Phils. Inc. President Casino, Board Director Donato Almeda; Meralco rm rick panes, De La Salle University President President for Public Relations Charisse Chuidian, Vice President for Kennan Lao with wife Minervia; Meralco Relationship Meralco Senior Vice President and Head, Br. raymundo suplido fsc, Meralco Utilities Industry Legal Affairs Marissa Tomacruz-Academia, and Director for Public Manager Rolan Mercado; Meralco Head, Private Sector Customer Retail Services and Corporate Team Lead-Private Sector CBG joy mendoza Relations Romina Gervacio Relationship Management Victor Risma IV Communications ALFREDO S. PANLILIO for Foreveryday Photography Foreveryday for Bitoon and Christian Magic Liwanag, Ong, Shampoo Padilla, Dakila Angeles, Ryan Jun Pinzon, Photos: Tejada Design: Coni Production Lee Corazon Hairstyling: Arlene Adto and Grooming: Makeup 14 MERALCO POWERCLUB MERALCO POWERCLUB 15 AUGUST 2017 AUGUST 2017

Classic met modern during the evening’s inspiring opening number, featuring lead singers from popular reality shows Voice of the Philippines, Pinoy Dream Academy, and Star in a Million, with music from the Manila Symphony Orchestra, under the baton of no less than maestro Ryan Cayabyab. Inspiration and resilience as drivers for world-class innovation was a major theme Meralco VP and Head, Marketing, Oscar S. Reyes; The Net Group CEO Carlos Rufino; Melco Crown Phils. Chairman and Zensho Holdings Co., Ltd. General Manager- in this year’s Luminaries Awards, Customer Solutions and Product President Clarence Chung; Century Properties Group Inc. Chairman and Special Envoy to the Global Operations Division Nobuyasu Watada; Development, JOSE ANTONIO T. Valdez US Jose E.B. Antonio; Al Panlilio Development Corp. Commercial which celebrate collaborations and Ripple8 Managing Director, Operations Head Manny Blas; Meralco RM between top corporations and Timmy Jayme Darryl Francisco government agencies in business, energy, and public service. The Meralco Luminaries is a program that honors customers that collaborate with Meralco for improved business efficiencies that drive the nation’s Cyberzone Properties Inc. President Joseph Yap; Filinvest Land Inc. development and progress. Director, President and CEO Josephine Gotianun-Yap Six outstanding corporate partners were honored: The Net Group, Century Properties Group Inc., and City of Dreams Manila for the commercial category; and Amkor Technology, Saffron AL PANLILIO and Cemex Phils. President Philippines Inc., and Swedish Pedro Palomino; with Managing Director Robbie Antonio and Chairman Jose E.B. Match Philippines Inc. for the Antonio of Century Properties Group, Inc. Styrotech Corp. VP and COO industrial category. JIMMY TING and wife Lynn

Videos showcasing the Amkor’s BING VIERA and VICTOR GENUINO challenges that faced each Luminary were also shown during the ceremonies, narrated by one of the hosts, David Celdran. The key takeaway? In an era marked by boundless innovations, it takes hard work, passion, and the determination of each person in Meralco Electronics and Automotive Industry Team Lead-Private Sector the organization to achieve global CBG Marvin Jovero; Integrated Microelectronics Inc. Deputy CFO and Meralco RM Joy Senga; Teresa Marble Corp. Meralco Real Estate Industry Team Lead, Private Sector Group Controller Jaime Sanchez; Meralco Marketing-Corporate Business Assistant Manager Paul Edward Dee; CBG Rene Sua; Cathay Pacific Steel Corp. President Social Security System Vice President, success. Group Head Nina Posadas; Integrated Microelectronics Inc. VP and Head, Ascott General Manager David Chua; Carlos Rufino; Capitol Steel Corp. Nestor Sacayan with wife Olive; Philippine Operations MARIO BernARDO Santos Joanne Gomez President Alvin Cheng Meralco RM Gina Magno 16 MERALCO POWERCLUB MERALCO POWERCLUB 17 AUGUST 2017 AUGUST 2017

CORPORATE INDUSTRIAL LUMINARIES

The ATP enjoyed considerable On the rebound Technopark growth. Expanding from its first facility produces production facility in Cupang, Staying focused on its core , it established another automotive and industrial applications, close to a billion in Laguna Technopark that produces the company experienced a strong close to a billion units a month, resurgence in 2016, when demand semiconductors employing 9,000 workers in from the automotive industry monthly. Precision, 1.3-million square feet of rebounded. “A lot of our products manufacturing space. Viera credits are in the MEMs (Micro-Electro-

much of the organization’s success to Mechanical Systems),” Viera explains, A microelectromechanical systems a culture that encourages proactive “such as accelerometers, bracer (MEMS) chip, used for communications and inertial sensing. People and innovation. He explains, “We don’t sensors, and microphones.” want our workers to come in, leave As such, the last two quarters their brains at the door, and say, ‘come showed significant growth with back later.’ We want them to be part a 10-percent sales spike from of Amkor, to feel good when they do 2015 figures. Buoyed by these Empowerment things differently.” developments, Viera is Amkor Technology Philippines This individual empowerment is confident this upward balanced with a disciplined compliance trend will continue adds a personal element to to well-defined processes; he insists for the next few years, new technologies this is crucial. “Everybody knows what and not just because they’re supposed to do, because every orders are coming in by Jing Lejano step is process-defined.” for Amkor’s products. Jun Pinzon and Vincent Coscolluela and Vincent Jun Pinzon Photos:

The smartphone in your pocket and the car in your driveway are each the agglomerations of thousands of components from dozens of countries. Glass and plastic. Iron and rubber. Copper and aluminum. All brought to light – and 'We don’t want our life – by square chips of silicon. workers to come in, Contributing to this global chain is Amkor Technology, one of the world’s leading providers of semiconductor assembly and test services. In 1989, it leave their brains at preferred the Philippines over other countries as the site for one of its biggest the door, and say, production facilities. This, says Amkor Technology Philippines (ATP) President Norberto "Bing" "come back later." Viera, is because of the country’s abundance of resources and a pool of highly We want them to be competent workers. Its strategic proximity to growing Asian markets also allows it to make deliveries within the shortest possible time. part of Amkor, to feel

Process and empowerment good when they do things differently.' The timing couldn’t have been better. The semiconductor business was exploding in the late ’80s, and Amkor reaped the benefits of being an industry Norberto Viera President pioneer, snagging various customers worldwide. Amkor Technology Philippines 18 MERALCO POWERCLUB MERALCO POWERCLUB 19 AUGUST 2017 AUGUST 2017

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“Amkor has all the offerings,” he states, “while some of our competitors don’t. We have the breadth when it comes to the kinds of products our customers require, and we have the resources to support them through ‘continuity supply.’” He adds Amkor also provides the technical expertise for very specialized product requirements.

Expanding power

So confident is Amkor Technology of this uptrend that it seeks to expand its production facilities By Cherrie Regalado in the next five years. “We’re just finalizing the timing,” confides Viera. “The building design is complete; it’s just a

matter of pulling the trigger, to start the construction.” A Flip Chip Ball Grid Array Helping ATP make it happen is the Manila Electric Co. (fcBGA), for use in workstations and devices with high internet and (Meralco). bandwidth communications needs. the In 2014, Amkor Technology had to build a mirror of its Korean facility here in the Philippines, with no downtime. That it entailed a number of sensitive machines to be up and running in record time proved an extra challenge. Amkor Technology Close coordination between ATP and Meralco, along built a mirror of its Korean with proper and meticulous planning, allowed for the facility in the Philippines, and its sensitive machinery went online in record time. A program of expansion keeps coloSaffron Philippinesr in the black facility’s early energization, and led to the seamless transfer of success of the entire assembly line. “Meralco also dedicated an operations and maintenance team to ensure the reliability and quality of power for our two plants,” describes Viera. Picture major local apparel brands like in Carmona, can process up to 240,000 shirts a day. “They regularly patrolled and secured the electrical Bench and Penshoppe offering strictly white Producing at capacity, admits Saffron President Kennan infrastructure from external elements that could affect our garments. Or, imagine the world of Disney, Pixar Lao, means simply sustaining the output. “We’ve been full operations.” and Marvel fashions without color. since we expanded,” he explains. Without new capital input, The facility went online last year, and Viera is confident What gives these brands the brilliant hues and shades “We cannot accept new customers anymore.” Meralco will continue to provide the same kind of reliability that attract buyers and boost sales are the colors provided when ATP embarks on another expansion. by Saffron Philippines Inc. Although hardly a household A dyeing business “They have dedicated resources that support us,” he name, the Cavite-based textile dyeing and finishing shares. “As a matter of fact, last year, we moved our power manufacturer is the partner of choice to some of the country’s Today’s successes belie the company’s many struggles. source from a different supplier to MPower.” MPower biggest apparel brands. “You could say we’re in the ‘dyeing’ industry,” Lao wryly recalls. is Meralco’s local retail supply arm, offering contestable A leader in the garment industry, Saffron offers textile “About 15 years ago, we were really dying.” customers secure, reliable and affordable power sources. dyeing and finishing, as well as washing and printing services. The devastating Asian financial crisis of the late ’90s Founded in the 1990s, which might make it look like a forced the biggest local textile mills to close. “We wondered, Meralco Relationship “We have a very good working relationship with Manager Erwin Esteban Meralco,” Viera affirms. “Their dedicated resources give us latecomer in the textile-finishing business, Saffron is now how can we survive without the producers of the raw and Norberto Viera

womb-to-tomb service. What we have is not a supplier- Arlene Adto Grooming: Coscolluela and Vincent Jun Pinzon Photos: regarded as the company to beat. Its 3.6-hectare (ha.) facility materials?” customer relationship, but a partnership.” The influx of imported apparel at the turn of the The 20 MERALCO POWERCLUB MERALCO POWERCLUB 21 AUGUST 2017 AUGUST 2017

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The influx of imported apparel at the turn of the century clothing brands. “We had to offer them something that’s of compounded their difficulties. “Ten years ago we were better quality at lower cost.” surviving,” Lao recollects, “but in 2006, we almost With this goal in mind, Saffron chose to partner with closed down.” Kennan Lao MPower, Meralco’s local retail supply arm, to meet and President Rather than succumb to these pressures, Saffron Saffron Phils. Inc. manage its energy needs. The firm depends on MPower decided to take a more proactive approach. for a reliable electricity supply and for services such as cost management and risk management consultancy. A quick turnaround Power quality Doing even better affects the To avoid the fate of its competitors, in 2007 Saffron dyeing, finishing, embarked on a program to upgrade its equipment and washing The drive to provide “something better” prompted and printing engineered a dramatic reversal of fortune within a year. processes. Saffron to upgrade its dyeing equipment in 2015. “These “It wasn’t about power consumption, but the energy machines, the latest inverter-type models, are very to run our machines,” elaborates Lao. “We need steam, and Tons of fabric sensitive,” Lao shares. “Even a brief outage will mean tons can be spoilt we need to generate heat. Everyone was using diesel, which from just a of fabric ruined, and money wasted. With reliable power brief power cost too much. But there’s coal technology. Shift to coal outrage. from Meralco, we are able to pass on 5 to 10 percent of the boilers, and you cut 60 to 70 percent of your energy costs. cost savings to our clients.” “It was a big investment,” he admits. “When we decided The year 2017 will be another big one for Saffron, not to sell the business, we immediately switched to coal as it expands its washing division by adding new washing boilers." machines for garments and denim. “We’ll be the first ones The capital-intensive undertaking paid off. “We moved using machines like these here,” he says proudly. “We can do from losing money one year to making money the next,” Lao things others aren’t doing yet.” reveals. “That was the biggest turnaround.” While the world of fashion is notably fickle, its need Saffron’s winning streak continued; annual sales for color and innovation never abates. With Meralco’s growth over the past decade began to average 20 to 25 continued support, Saffron plans even further expansions percent. With healthy bottom lines, the company opened a to feed this appetite. This is why Lao continues to see washing section in 2010, and added printing in 2012. growth and opportunities ahead: “We will become the These expansions raised the firm’s ranking in the biggest; that’s our goal.” industry. “We became among the top three in 2010,” Lao declares. “We became number one in terms of size or volume of production. In 2014, we became the biggest in can’t be any interruptions. A few minutes’ fluctuation would terms of capacity.” kill us.” Estimates place the cost of potential losses due to a Saffron didn’t stop there: in 2015, the company power fluctuation at P500,000. acquired an additional 1.1-ha. property adjacent to their Lao describes how the company sought the 2.5-ha. facility in Carmona, Cavite. The dyeing house assistance of Meralco before upgrading its needed space to expand its washing division. machinery 10 years ago. “We used to experience frequent voltage Competitive with stable power fluctuations, then Meralco came in Heeding Meralco’s and did an extensive power recommendations, Saffron rehabilitated The quality of power is crucial to the business, says quality audit.” its electrical facilities, which Lao says more than Lao. Thanks to its confidence in its partnership with Manila solved the company’s energy woes. “The result,” he Electric Co. (Meralco), Saffron has no qualms bringing in underscores, “was improved reliability, lower cost of top-of-the-line and expensive machinery and equipment. services, and increased sales.” He assures that their “Our capital expenditure in equipment is very high, revenue figures are gratifyingly healthy. and our machines are expensive and sensitive,” the Saffron Keeping costs down is particularly critical, he Meralco Technical Services Engineer Dean Sempio and Relationship Manager chief points out. “We need reliable power, because there stresses. A majority of Saffron’s clients are local clothing Rolan Mercado (third and fourth from left) are joined by Saffron Philippines Electrical Section Supervisor Ricardo Pacomio and Assistant Supervisor Teodoro manufacturers struggling against the influx of global Macugay (second and far left) as they inspect the plant’s electrical facilities.

'We need reliable power, because there can’t be any interruptions. A few minutes’ fluctuation would kill us.' 22 MERALCO POWERCLUB MERALCO POWERCLUB 23 AUGUST 2017 AUGUST 2017

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Clicking by Ma. Melin C.Y. Doria with the Market Expanded home use drives Cricket sales

“Does anyone have a light?” to 140 countries. This accounts for 60 percent of all Cricket This first Laguna Technopark It’s a question frequently raised at special lighters sold worldwide. facility to go solar could save occasions celebrated with cake – events such as weddings, Production shows steady growth, especially in Asia, birthdays, and anniversaries – and whenever brownouts which brings in almost 70 percent of sales, says SMPI nearly a million pesos annually strike. More often than not, the reply comes in the form of a Managing Director Leo Obias. “Asians were very dependent with self-generated power. Cricket lighter. on ordinary matches, but Cricket products have penetrated their market and changed their habits,” he observes. “We Leo Obias Decades since the launch of this popular brand, its Managing Director disposable lighter continues to find its way into homes and converted match users to switch to lighters, and those using SMPI pockets here and around the world, and much of other lighters to switch to our high-quality lighters.” it is made by Swedish Match Philippines Inc. (SMPI). High quality, high utility Based in the Laguna Technopark, SMPI produces Product quality, durability, and reliability keep the The expanded market base came at no significant SMPI is justly proud of the factory’s safety record. In about a million lighters brand reputable, says Obias, but broad utility makes Cricket markup to the company’s minimal advertising budget. “Media 2009, the facility achieved zero accidents for one million everyday, 94 percent lighters good value for money. A box of 48 matchsticks for advertising is too expensive,” chuckles Obias. “We just make man-hours of work, a feat recently surpassed with zero of which are P2 is very cheap, but a P30 lighter that can light up more sure we are visible where our customers are – supermarkets, accidents for two million man-hours. exported than 2,000 times is a much more attractive proposition. grocery stores, convenience stores – and they find uses for Obias asserts the close participation of the Manila “Customers now see our product as a very useful item our product!” (See “Light It Up!” in the Q3 2016 issue of the Electric Co. (Meralco) is crucial to maintain plant and to have in their homes,” Obias adds. “It's no longer just for Meralco Power Club.) production safety, keeping machines properly installed and lighting cigarettes; people use it to light candles, gas stoves, facilities correctly earthed. “Meralco is here, every step or the barbecue grill.” Safety first of the way,” he shares. “It sets up the right designs for our The product’s broad usage keeps SMPI’s structure, and provides fixes to energy fluctuations that production running at full tilt. The output is Of course, safety is key to the success of Cricket affect our highly sensitive equipment.” expected to meet requirements for the next lighters worldwide. Obias says this is embedded in the very three years, but the company keeps fabric of the company’s culture and consciousness, and Efficient energy in each flame a close watch on shifting market accounts for the emphasis on product quality. trends in the Asia Pacific That’s because Cricket lighters use butane, a very Meralco and its various subsidiaries pitch in numerous region. combustible material. This requires extreme caution contributions to keep SMPI’s production costs down and and painstaking thought in every step of its design and its carbon footprint small, Obias notes. production. "We always consult with Meralco, with their A Cricket lighter, confides Obias, is deliberately over- technology know-how, engineers, and experience,” he built, using more nylon in its construction than is needed. states. “We recognize that we can always learn from them.” This ensures there’s zero chance of it exploding if left on a The distribution utility performed a power-quality audit car dashboard under the heat of the sun. by conducting a monitoring and electrical-systems survey.

Grooming: Arlene Adto Grooming: Coscolluela and Vincent Labrador Toto Photos: Safety goes all the way back to the production floor; Meralco’s recommendations called for replacing fluorescent 24 MERALCO POWERCLUB MERALCO POWERCLUB 25 AUGUST 2017 AUGUST 2017

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lights with more energy-efficient headquarters to shrink its carbon installed a 100-kilowatt-peak solar LED bulbs, and switching to inverter footprint. It took its partnership with photovoltaic power system that World-Class technology air-conditioning units. Meralco to a higher level when it became operational in July. SMPI is Efficient usage notwithstanding, secured the services of Spectrum, the expected to generate 140MW of its SMPI sources its reliable electricity utility’s subsidiary that provides solar- own energy through this installation, supply from MPower, Meralco’s local energy solutions. (See “The Sun Rises on thereby reducing its dependence on by Cherrie Regalado retail-supply arm, to further reduce Solar Power” in the Q2 2017 issue of the sourcing power from the grid. its costs. As a contestable customer, Meralco Power Club.) This is projected to annually save Playtime SMPI turns to MPower to meet and SMPI is the first company within the company P950,000 and reduce its manage its energy needs, and for good the Technopark to go solar. Spectrum carbon footprint by 80,000 kilograms. City of Dreams Manila gets serious with the business of fun value in the retail-competition open- access market. Generating its own renewable For decades, the standard paradigm to energy is SMPI’s current objective, build up developing economies called for export from a directive of its Stockholm processing zones and industrial parks, where row upon row of factories churn out cars, comestibles, TV screens, and T-shirts, and provide jobs for thousands in nearby towns. 'A box of 48 Yet other paths to prosperity have opened up, very matchsticks much evident in the glamorous, glittering buildings rising in the 44-hectare (ha.) , located in Parañaque City, for P2 is very cheap, and owned by the Philippine Amusement and Gaming Corp. but a P30 lighter that One of these, the 6.2-ha. City of Dreams Manila (COD Manila), is an integrated resort and casino complex that opened can light up more late in 2014. It is developed by Melco Crown Philippines Resorts than 2,000 times is a Corp. (MCP), a subsidiary of the Hong Kong-based Melco Resorts and Entertainment (MRE), the company that owns and operates much more attractive Cricket lighters are hotels, entertainment venues, and casinos in Macau, including over-built with more nylon than needed for City of Dreams Macau. proposition.' safety purposes. Something for everyone

With a burgeoning market and “We’ve provided exceptional entertainment experiences new technologies on the horizon, for patrons in Macau,” declares Clarence Chung, chairman and the opportunities for SMPI continue to grow, as do the challenges. Obias remains optimistic that with thoughtful planning, innovative new products and canny store displays, the prospects for his company will always be hot.

Meralco Relationship Manager Rolan Mercado shakes hands with SMPI Engineering Manager Edgar Zulaybar as SMPI Quality Assurance

Manager Nelson Solis looks on. Arlene Adto Grooming: Coscolluela and Vincent Labrador Toto Photos: 26 MERALCO POWERCLUB MERALCO POWERCLUB 27 AUGUST 2017 AUGUST 2017

president of Melco Crown Philippines. Around the World.” 'Our performances “We’d like for guests in Manila to also The customers certainly agree; in gaming and experience our incomparable brand of 2016 was a very profitable year. MCP’s luxury and thrills.” net revenues reached P23.4 billion, and non-gaming sectors The second casino complex to casino sales shot up by 79 percent. Non- were very positive, operate within the Entertainment City, gaming revenues from the hotels, food City of Dreams Manila is MRE’s first major and beverage outlets, and entertainment driving the high foray outside Macau. It operates roughly operations rose by 16 percent, adding occupancies and 264 gaming tables, 1,535 slot machines P2.1 billion to the pot. and 114 electronic table games. By It’s clear that Filipinos are spending revenues that catering to high-rollers as well as the mass more on entertainment (see “More Fun support the growth in tourism.'

Clarence Chung, Chairman and President Melco Crown Philippines

The Pagcor-1 substation is among the most technologically advanced power infrastructures in the country.

for Everyone” in the Q3 2016 issue of the Chung says, “boosting our visitor traffic.” consideration the future needs of other market, it aims to seize a lion’s share of 'We operate ’round-the-clock, and our power Meralco Power Club). Along with the He underscores the critical role gaming and luxury complexes like the the Philippine gaming and entertainment government’s strong tourism program, this of power to keep the luxury resort nearby Solaire Resort and Casino, and crowd. requirements are substantial; obviously, our keeps Chung optimistic that COD Manila complex running at full tilt: “We operate , which opened in December The luxury complex also boasts of guests’ pleasure and enjoyment are will keep earnings buoyant. ’round-the-clock, and our power 2016. Crown Towers, a luxurious five-star hotel, “Our performances in gaming and requirements are substantial; obviously, Chung doesn't consider alongside the upscale and modern Nobu our topmost priority.' non-gaming sectors were very positive,” our guests’ pleasure and enjoyment are competition from these casinos a threat. Hotel, and Hyatt, a business hotel. Twenty Chung explains, “driving the high our topmost priority.” “New competition will definitely draw eclectic dining outlets share space with occupancies and revenues that support Key to ensuring this is COD Manila’s more tourists to Entertainment City,” he the world’s first Dreamworks-inspired the growth in tourism.” partnership with the Manila Electric Co. guarantees, “and support robust growth interactive play space, DreamPlay. (Meralco), which worked closely with the in the industry.” “Our guests are out with family Infrastructure is key entertainment company even during its With the country’s stellar and friends, or spending some quality construction stage. Meralco’s beyond- economic growth forecast and strong personal time,” Chung explains. “There’s The management of COD Manila the-meter energy solutions subsidiary, government support for tourism, he always a variety of popular attractions for anticipates a sustained impressive MServ, was brought in to make continues to see a promising future everyone.” performance, as continued infrastructure fundamental adjustments to the resort’s for City of Dreams Manila. spending drives higher tourism growth. power infrastructure and ensure that all its “Our economy is the fastest- A jackpot year Take the new gridlock-busting expressway requirements were met. growing in Asia,” he believes, “and leading to and from the Ninoy Aquino Meralco also runs a dedicated state- our brand of hospitality is world- All these pieces play well together International Airport (Naia). of-the-art substation to service the energy renowned. Tourism arrivals from for COD Manila: international travel and “The Naia Expressway helped to requirements not only of COD Manila, multiple markets are growing year-on- lifestyle travel magazine Town & Country Clarence Chung (third from left) with men from Meralco: Relationship Manager Arnold de Guzman; dramatically improve travel time from the but also of the entire Entertainment City. year. We intend to be in this market Meralco Leisure and Entertainment Industry Team Lead, Private Sector-CBG, Joey Santos; and Private listed it among “The 23 Fanciest Casinos Sector Relationship Management Head, Victor Risma IV airport terminals to Entertainment City,” The new substation’s design takes into for a long time.” 28 MERALCO POWERCLUB MERALCO POWERCLUB 29 AUGUST 2017 AUGUST 2017

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Place yourself back in 1999: it’s the second year of the Asian financial crisis, and a populist president in Malacañang struggles to quell fears from multiple 'For each building, hammer blows to the Philippine economy. we try to be creative. With few property developers having the stomach for risky ventures, the nascent (BGC) remains We try to see by Ma. Melin C. Y. Doria mostly barren land. what is in the This was the climate that greeted visionaries Jacques Dupasquier and Carlos Rufino, chairman and chief market.' executive officer respectively of The Net Group (TNG). But rather than succumb to the uncertainty, they bravely invested in BGC as a vast proving ground for testing their ideas about boutique office buildings.

Personal and premium

The family of French-Filipino Dupasquier owns a number of boutique hotels in Europe. He envisions the boutique office building as a work space where service is highly personalized, segmented according to individual needs. Each tenant is known to the staff by name, and treated as a special guest. However, the boutique service is just a part of it. TNG also seeks to improve the total lifestyle experience for its tenants by creating environmentally sustainable workplaces. Tina Samson Achieving this calls for taking the roads less traveled, admits Co-president The Net Group lawyer Tina Samson, co-president of TNG. “We are not followers,” she declares. “We are innovators, but not rebels.” For example, she reports that other industry players aspire to adopt This concept is a clear winner. the company meets head-on. Leadership in Energy Environmental Design (LEED) standards. These are Other developers still focus on Smart power usage is another a set of criteria developed by the United States Green Building Council to constructing bigger and bigger buildings, hallmark of TNG’s properties. It’s not promote green and sustainable development. but TNG makes its boutique office just about keeping energy costs down, In contrast, TNG aligns its vision with that of the Philippine Green Building buildings and properties attractive to Samson clarifies. “For each building, we PERSONALizingCouncil (PhilGBC), formed in 2007. The PhilGBC established its own rating system, more than 90 Fortune 500 companies try to be creative,” she explains. “We try Building for Ecologically Responsive Design Excellence (Berde), which is attuned and top corporations. to see what is in the market.” to the Philippine environment because it takes into consideration local seasons, Today, TNG’s seven edifices For instance, there is a two-bay temperatures, and humidity. dot BGC: Net Lima, Net Plaza, Net charging station for electric vehicles (EV) “The Berde Program can be good for us,” Samson adds, “even if the majority of other Quad, Net Cube, Net Square, Net at Net Lima, the country’s first five-star Buildings Group sets industrydevelopers standards do for not ‘green’ go for office it.” spaces One Center, and Net Park. TNG is the Berde-certified building. The charging What is more important, she continues, is that the public appreciates the organization’s district’s leading office developer and a station, the first of its kind in BGC, is built Net activities and projects to promote green and sustainable ideas. prime resource for eco-friendly office in cooperation with the Manila Electric leasing. It offers over 270,000 square Co. (Meralco). TNG aims to promote the The Breathing spaces meters of gross leasable (GLA) office use of EVs by offering free charging to space, which accounts for 54.5 percent the general public. (See “Going Green for The results are modern, intelligent buildings, with interiors flooded with natural light and offices of BGC’s total GLA. Bluer Skies” in the Q1 2015 issue of the that literally breathe. Technology that condenses water from air-conditioning units and harvests rain Operating these buildings in a Meralco Power Club.) water used for landscape gardening lets TNG buildings feature spaces for greenery within the premises. sustainable yet economical manner “Initially, we thought of building it

Studies prove these elements improve worker productivity and well-being. Arlene Adto Grooming: Coscolluela and Vincent Labrador Toto Photos: creates another set of challenges that ourselves,” recalls Samson. “But Meralco 30 MERALCO POWERCLUB MERALCO POWERCLUB 31 AUGUST 2017 AUGUST 2017

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Building the Next by JING LEJANO

GlobalRising prosperity fuels a boom in luxury living City spaces

A group on Facebook, called “Memories of Old Manila,” consists of members who post photos Meralco Utilities Industry Team Lead, of Metro Manila as it used to be: less congested streets, smaller buildings. The page frequently Private Sector-CBG, Joy Mendoza; Tina Samson and Net Lima Building reminds visitors of how much has changed over the years. What can’t be seen, however, are the Manager Eric Nicholas changes the metropolis must still undergo. Those images are reserved for the few leading property developers, in whose hands lie the future of the National Capital Region (NCR). One of these is the Century Properties Group. A trailblazer in the fields of design, architecture, and innovation, its roster of projects reads like a “Who’s Who” of prime real estate. There’s Essensa East Forbes in BGC, the first ultra-luxury residential development in the country designed by internationally renowned architectural firm Pei, Cobb, and Freed. Acqua Livingstone in is the first property in the world designed Free charging, for now, aims to promote by global design purveyor Missoni Home. In Makati, Trump Tower EV use within the community. at Century City, one of the most recognizable brands in the world, stands to become the Philippines’s has the expertise, the experience and the capability to design most amenitized residential high- and implement these facilities, so we left it to the experts.” rise.

Greener possibilities This plug-in hybrid Mitsubishi Outlander PHEV SUV is just one of many e-vehicles that can take advantage of the EV charging station at Net Lima. The charging station was designed and built by MServ, a Meralco subsidiary that specializes in beyond-the-meter energy services. “For now,” Samson adds, “the Net Lima Samson goes on to emphasize that TNG's partnership charging station’s service is free, to encourage everyone in our with Meralco has become important to their operations, “and community to use electric vehicles. more so in developing ideas for energy consumption.” TNG not “We’ve just completed the construction of our second only pushes its green agenda with its Berde compliance, but charging station at Net Park; that one is coin-operated.” enables the BGC community to participate in its own way with She confirms that TNG’s collaboration with Meralco electric transport. stretches out over several years. A 2013 strategic planning “We recognize that our cities need to be more session with key Meralco executives helped TNG identify sustainable,” she states. services that would “not only meet our growth targets, but Calling itself “an evolving revolutionary venture,” TNG’s further push our green agenda. position at the heart of the country’s new boom city places it “Meralco helped us open our developments right on squarely at the forefront of property development. Whether it target through early energization. Its power-quality audits is with personalized service, earth-friendly building design, or enabled our Net Quad building to increase efficiencies in advanced technology, the company’s willingness to engage in its power operations, especially since most of our tenants innovation shows it has its finger on the market’s pulse, and its

operate 24/7.” eye on the future. Arlene Adto Grooming: Coscolluela and Vincent Labrador Toto Photos: 32 MERALCO POWERCLUB MERALCO POWERCLUB 33 AUGUST 2017 AUGUST 2017

Azure Urban Resort “We firmly believe that it’s high time we establish new approaches to solving age-old problems, such as electricity consumption daily. Since Meralco’s prepaid Residences features the country’s first Metro Manila’s place among the world’s leading global high power costs. Antonio notes: “We collaborate with electricity service uses smart meters, customers are able to man-made beach. cities,” declares Jose E.B. Antonio, chairman of the Century progressive, forward thinkers, and our ties with Meralco budget their expenses, to earn savings of up to 20 percent Properties Group. He was also recently appointed by (The Manila Electric Co.) is one such thriving partnership. off their electric bill. (See “More and More Go Prepaid” in the President Rodrigo R. Duterte as Special Envoy to the We’ve continuously looked to Meralco when it comes to Q2 2017 issue of the Meralco Power Club.) United States. introducing new and creative energy solutions to power our “Smart technology is the future,” Antonio muses. growing number of properties.” “But here and now with Smart Metering, our residents in Changing the skyline One such energy solution is an upcoming substation Azure are not only able to keep track of and monitor their for Acqua Residences, scheduled to be completed by 2020. electricity consumption, but they’re also empowered to Referring to Century Properties’ collaborations with Antonio also points to the Azure Urban Resort make smarter decisions about electricity needs. It is the first international brands and architects, Antonio believes these Residences in Parañaque, which features the country’s first of its kind in residential developments.” serve to drive the organization towards the highest levels of man-made beach, as the pioneering urban-resort residences To further raise the bar in customer convenience, Azure quality. “These are creative, revolutionary thinkers,” he notes. in the Philippines to subscribe to a Smart Metering set-up. has its own touch-pay machine provided by Meralco's Bayad “Having them in the conceptualization stage enables us to Smart Meters allow customers to monitor their Center. This means Azure residents can reload their prepaid not only elevate quality standards but introduce novel ideas and innovations to the residential property market as well.” These luxury projects certainly serve as veritable feathers to the cap of the property conglomerate, which celebrated its 30th year in the industry last year. The 'We firmly believe that occasion, Antonio recalls, gave them the opportunity to show it’s high time we establish their appreciation for their stakeholders, investors, clients, and the media. Metro Manila’s place But rather than look back, Century Properties is excited among the world’s to move forward in an industry that remains bullish across all segments in the market. For starters, Antonio reports, leading global cities.' the low-interest regime continues to be attractive to the Jose E.B. Antonio residential real-estate market. Chairman, Century Properties Group, Inc. accounts and take care of other utility bills onsite. and Special Envoy to the US “As far as the commercial and office segment is Also getting in on the act is MServ, a Meralco concerned, it continues to be very buoyant,” he notes, subsidiary specializing in beyond-the-meter energy services. “especially in the central business districts of Makati, MServ supplied and installed electrical equipment, and Ortigas and BGC. The occupancy rates are as high as 90 provided design value engineering for the company’s flagship to 92 percent. We forecast that this trend will continue, project, Century City, the location of . considering the strong fundamentals of the economy.” Confidence building Places for innovation While the lack of roads, airports, and seaports may Not one to embrace drab conformity, Century serve as stumbling blocks to the country's continued growth, Properties is keen on seeking new markets and concepts. Antonio has high hopes for the government’s P8-trillion “We are going into tourism with two maiden projects,” infrastructure program. “This bodes well for expansion,” announces Antonio, “one in and the other one in Antonio states, “not only for the real-estate industry, but San Vicente, Palawan. For these projects, we hope to attract also in helping people reach markets in a shorter time. That’s both domestic and foreign tourists.” why infrastructure development should be one of the biggest Given a housing backlog of roughly 5.7 million houses, goals of this present administration.” “we are also expanding our platform to include affordable His certainty, and the optimistic outlook for the housing; the first project will be announced very soon.” Philippine economy in general, means Century Properties will The conglomerate’s efforts at innovation are not continue reshaping the skyline of the NCR and other cities all restricted to creating physical spaces. It consistently seeks over the country for many years to come. 34 MERALCO POWERCLUB MERALCO POWERCLUB 35 AUGUST 2017 AUGUST 2017

SUBSIDIARY PROFILE

deliver more than operational savings. Energy-efficient real estate can command higher property values and, as a result, by VICTORIA VIZCARRA higher lease rates. Dexter Lee “Installing greener equipment, such tech, President and Chief Executive Officer as a magnetic chiller, can help you get MSERV Leadership in Energy and Environmental Design (LEED) certification for your building,” advises Lee. “These buildings 'HVAC services can charge a premium for their clients, can consume up to Keeping temperatures–and costs–down open up more opportunities for MSERV because there’s a market for that.” 60% of a Those who think the summer of 2017 was to keep their premises comfortable, they’re also keen to keep Apart from retrofits, the company also building’s electrical load. the most insufferable in living memory may soon overheads down. assists clients during the design phase But we guarantee our suite look back on this year with fond nostalgia. Trending Heating, ventilation and air conditioning (HVAC) systems can of new construction projects. This can of energy solutions can data, from the US National Aeronautics and Space represent a major capital investment for building owners. Yet take more time to complete, since HVAC cut power consumption Administration and the National daily use means the system will continue systems are installed in a later phase of by at least Oceanic and Atmospheric to incur expenses, both through power a building’s construction. “Clients call us 20%.' Administration, show that consumption and replacement parts. directly to do it for them, or ask us for a average global temperatures are This is where MSERV, the energy- second opinion.” predicted to continue rising right solutions subsidiary of the Manila Electric through to 2020. Co. (Meralco), steps up to the plate. solutions can cut power consumption by chiller replacements; the latter has since Hot prospects That’s not a comforting prospect to at least 20 percent.” averaged an annual savings of P2.2 people in latitudes where global warming Advice and understanding million, slashing its power consumption by For 2017, MSERV plans to is a daily, not seasonal, experience. But it Millions of pesos saved a whopping 60 percent. strengthen both its core business does augur brisk business for companies “One of the things that we are actively Each HVAC system eventually reaches as well as its ties with its partner- that design, manufacture, and service air trying to grow in MSERV is our HVAC MSERV’s successful HVAC-related its end-of-life phase, but this endpoint can contractors, Makati Development conditioning and ventilation systems (see services,” says Dexter Lee, president and energy conservation measures and be delayed for decades if the facilities are Corp. and Megawide Construction “Cold Comforts” on page 8). Engineer Mark John Custodio chief executive officer of MSERV. optimization audits helped Meralco regularly serviced and future-proofed with Corp. Since its acquisition of Torque checks the control unit for the Just as offices and businesses try chiller performance data. MSERV’s multi-level audit process customers save tens of millions of pesos in up-to-date technology. Builders, MSERV has added low- begins with a walk-through of a 2016 alone. voltage electrical services to its ever- customer’s facilities. The current HVAC system is first measured These savings include the P27 million Out with the old growing range of offerings. against an energy utilization index, a barometer of the building’s for the towering Insular Life Corporate These additional services couldn’t consumption efficiency. For the next step, a Level 2 audit, Center in Muntinlupa. The Robinson’s “We’ve had a lot of successes recently be made available sooner. With MSERV thoroughly calculates the savings it can promise the Magnolia mall in City saved P7 with our projects,” Lee recounts, “and over 2.1 million square meters of customer and validate its recommendations. A Level 3 or million within 20 months of contracting a lot of these have been retrofits or new office space in Metro Manila’s Investment Grade audit features a combination of energy MSERV. modifications.” development pipeline from 2017 to measurement, data gathering, and engineering calculation. Making the switch to oil-free Retrofitting is tricky and involves a bit 2020, the need for newer, bigger, and Even buildings still in the works can spring surprises, like magnetic chillers accounts for the bulk of deduction, he reveals. “You need to more extra-efficient HVAC systems an oversized HVAC system, or over-powered pumps and air- of these savings, explains Lee. Unlike its work within the confines of the way the can only increase. handling unit motors. Customers want to play it safe, Lee points conventional counterparts, these next- system was designed,” he notes. “There’s Whether the mercury in the out, by outfitting a building with a bigger air-conditioning system gen chillers are more reliable and low- only so much modification you can do thermometer rises or falls, it’s clear than needed. “This approach involves a lot of unnecessary costs. maintenance, free from issues like noise, if it’s not properly installed or designed.” that things are definitely heating up You’re not only paying for a more expensive cooling system, you’ll vibration, and other electrical and physical He says this is why it’s best to have the for MSERV. “Meralco has never been also be shelling out more for its maintenance and operation. constraints. HVAC system configured properly from afraid to be at the forefront of looking “HVAC can consume up to 60 percent of a building’s electrical Meralco’s own Lopez Building and the outset. at and implementing energy-efficiency The chiller plant was installed in October 2014 on top of the Business Solutions

Center at the Meralco Compound. load,” he continues. “But we guarantee our suite of energy Tan Fennie Grooming: Labrador Toto Photos: its Business Solutions Center spent on A well-planned HVAC system will programs,” Lee declares. 36 MERALCO POWERCLUB AUGUST 2017

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