PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY PCA January GMM: ILO,CO-Manila Director Khalid Hassan Editor’S Note: on Green Jobs and the Just Transition

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Philippine Constructors Association, Inc. February 2017 Inside this Issue: PHILFFEX : Where the fit-outs fit in The interior and fit-out construction Aside from a diverse selection of industry has found a new furnishings and fixtures for Industry News: rendezvous —- the Philippine bathrooms, bedrooms, kitchen, and Finishing and Furnishings Expo living room; lighting solutions; luxury  PRA tags 96 reclamation ventures (PHILFFEX) happening this March 9 lifestyle; surfaces and finishes  Cemex net sales up by 2.2 %, sets to 11, 2017 at the SMX Convention (walls, floors, ceilings); innovative air 2017 capex to P2-B Center Manila. cooling and ventilation solutions will  DPWH-7 officials faces possible also be showcased in the event. charges - COA ‗Fit-out‘, a term describing the  ALI allocates P88-B capex for 2017 process of making interior spaces ―A big part of our role in PCA as a  38 contractors in CIAP‘s consolidated suitable for occupation, will be the trade organization is to stay in touch blacklist as of January 31 2017 centrepiece of the upcoming show. with trends – both local and global –  DTI investigates China‘s steel cargo so that we can steer our members ―What we envision is not a simple and the rest of the industry to where showcase of products but a platform business opportunities are,‖ PCA Updates: for businesses and professionals to expressed Jorge Consunji, past connect, share knowledge, and president of PCA and incumbent  PCA January GMM: Khalid Hassan establish partnerships so that we chairman of Philconstruct Events, on Green Jobs and the Just Transition can elevate the standards of fit-out Exhibitions, and Conferences Corp.  PCA inducts Flowcrete Construction construction in the Philippines,‖ (PEECC). Equipment as new Associate Membe shared Wilfredo Decena, Overall Event Chairman of PHILFFEX and Also to be held alongside PHILFFEX  CCA to host PCAB E-Filing Training 1st Vice President of PCA. is PHILVAC (Philippine Venti- page 4

PHILFFEX is organized by the veterans behind the no.1 construction show in the country, the PHILCONSTRUCT Series. L-R: Jorge Consunji ,Chairman of PEECC; Will Decena, 1st Vice President of PCA; Levy Espiritu, Director of PEECC; Cezar Punsalan, Convention Chairman of PSVARE; Danilo Duya, Past President of PSVARE; Eduardo Zuluaga, President of Chamber of Furniture Industries of the Philippines; Jeffrey Sosa, President of Philippine Association of Building Administrators; and Dante Abando, President of PCA. 1 PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY PCA January GMM: ILO,CO-Manila Director Khalid Hassan Editor’s Note: on Green Jobs and the Just Transition

Pasig City - International Labor Organization (ILO) Central Office Manila Director Khalid Hassan graced the General Membership Meeting of the members of the Philippine Constructors Association (PCA), Inc. last January 31, 2017 at Discovery Suites, Ortigas Center Manila.

In his guest speaker speech, Hassan raised awareness on how climate arm greetings and welcome to change can impact the working W the second issue of the PCA environment of today as he tackled newsletter, our monthly supplement about ―Green Jobs and the Just designed for readers who want to Transition.‖ know what is happening in the construction industry both private ―There is no escaping from the and public not only here in the climate change, it is affecting the Philippines but in other countries as Mr. Khalid Hassan during his guest economic growth and employment well. speaker speech before the members of the today,‖ Hassan said pointing out the Philippine Constructors Association Inc. threat posed by climate change on While our country is pushing for the the sustainability and prosperity of can still be done in order to counter golden age of infrastructure, PCA is the society. its detrimental effects. Which is why, here to help, support and prepare as Hassan expressed, switching to our local contractors. However, He further identified the risks posed green jobs and embracing decent every favorable opportunity comes by climate change on jobs and work is essential. with challenges. In the midst of different opinions and advices, the incomes as 1) Job losses, 2) PCA newsletter aims to cut through Damage to business assets, 3) “A just transition means that the the confusion and give you clear, Impacts on productivity, and 4) burden of change that benefits sensible and reliable news, updates Forced migration. As an example, everyone will not be placed and features. Hassan recounted the 2013 tragedy disproportionately on a few,” Hassan caused by Typhoon Haiyan in the stated. “A just transition for all implies Philippines which affected over 5.9 that responses to climate change We envision this newsletter to be informative and insightful. Now is the million workers. should maximize opportunities for time to work together on improving decent work creation and ensure and developing ourselves and have social justice, rights and social a ―Filipino first‖ attitude. Thus, we are protection for all leaving no one welcoming members who would like behind.” to feature their company, products, events or promotions in our next According to Hassan, construction is issue. You can contact our Content among the 8 key sectors who are Director Cyril Abocado through PCA. expected to play a central role in We are also inviting our members to shaping a greener economy. While join the editorial team as writers and the sector contributes greatly to contributors for our regular column. global GDP, it also contributes the most to global GHG emissions. Mr. Khalid Hassan receives his token of I hope you enjoy this February issue appreciation from PCA 3rd Vice President However, Hassan said the industry and do let us know if there are any Gwen Cua (2nd from right) and PCA 1st also possesses the greatest potential topics you‘d like to see covered in Vice President Wilfredo Decena. in reducing it. the future. The Just Transition: Leaving no In 2007, the ILO launched the first one behind green jobs initiative. In the Philippines, there now have GWEN COBANKIAT-CUA While climate change is an inevitable Philippine Green Building Code and Editor-In Chief part of urban development, the ILO Philippine Green Jobs Act. xxx Director urged that specific actions

2 February 2017 Volume I, Issue 2 PCA inducts Flowcrete Construction Equipment ALI allocates P88-B capex Philippines Inc. as new Associate Member for 2017 Ayala Land Inc. (ALI) is allocating P88 billion for capital expenditures Mina, the newly-inducted (capex) this year, an increase of 3.04 associate member pledged to percent from the P85.4 billion capex uphold the values of PCA, Inc. as last year. well as to actively participate in the association‘s thrust on nation ―As the property market continues to building. maintain a generally robust outlook, with steady interest rates, flow of The induction of the new member OFW remittances driving was held on the sidelines of the consumption, and a thriving BPO Philippine Constructors January General Membership sector, Ayala Land looks forward to Association (PCA), Inc. 1st Vice Meeting (GMM) of the Association. introducing new projects in 2017 to support its growth targets and President Wilfredo Decena As of February this year, PCA, Inc. sustain contributions to the local inducted the Flowcrete has a total of 128 regular economy,‖ said ALI President Construction Equipment members and 73 associate Bernard Vincent Dy. Philippines Inc., as a new members. xxx associate member of the This 2017, 47 percent of ALI‘s capex Association last January 31, 2017 will be used for residential segment, at Discovery Suites in Pasig City. 12 percent for land acquisition, 13 percent for malls, 11 percent for Established in 1992, Flowcrete offices, 5 percent for hotels and Construction Equipment resorts, 6 percent for estate Philippines Inc., is a leading and development and the rest for other exclusive distributor of concrete expenditures. pumps product. In 2004, it became an authorized distributor of Junjin Furthermore, ALI targets to complete products. In addition, the company seven shopping centers this year is committed to maintaining with a total gross leasable space of 224,000 square meters including the adequate stocks of the product From Left to Right: PCA Board of Director throughout the Philippines thereby recently opened Ayala Malls The Regino Cruz, PCA 2nd Vice President Mr. 30th in Pasig, as well as Ayala Malls meeting demand on time including Morris Agoncillo, PCA Executive Director Ibarra Paulino, PCA 1st Vice President Vertis North in the Quezon City CBD, stocks of replacement parts, Ayala Malls Feliz in Cainta, and facilities, and qualified mechanics. Wilfredo Decena, Ms. Claudia R. Mina, PCA 3rd Vice President Gwen Cua, Mr. Pal Ayala Malls One Bonifacio High Represented by Ms. Claudia R. Bolivar, and PCA Treasurer Rey Villar. Street in BGC. xxx TMT Philippine Construction Cemex net sales up by 2.2 %, sets 2017 capex to P2-B Highlights Today Listed cement manufacturer Cemex and tight market competition, the Editorial Board Holdings Philippines Inc. (CHP) company is optimistic of 2017 better reported a 2.2 percent increase in performance to be driven by Gwen Cobankiat-Cua their 2016 net sales to reach P25.36 ―renewed public construction activity Editor-in-Chief billion inclusive of cement revenues in the second half of 2017‖ and Barry Paulino (94 percent), insurance revenues (4 ―greater confidence that should Associate Editor percent) and other sources of enable robust private corporate revenues (2 percent). spending.‖ Jing Cristobal Creative Director Based on the firm‘s report to ―We remain confident in the Philippine Stock Exchange, the multiplier effect of government Nicole Warren increments was driven by the investment in infrastructure and Business Director increase on the improved prices, government‘s ability to support it Cyril Abocado volumes and cost efficiencies. from the current fiscal program,‖ Content Director Despite the weaker performance for CHP said, noting the Php 2 billion the fourth quarter last year propelled CapEx they allotted for this year. xxx Ina de Ramos by the lower infrastructure activity TMT Design Editor

3 PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY PHILFFEX: Where fit-outs fit in….. CCA to host PCAB E-Filing Training From page 1 Cebu City — The Cebu is accessible through the CIAP Constructors Association (CCA) Inc., website. It enables contractors to has once again partnered with the register and create their respective Philippine Contractor‘s Accreditation accounts as users of the E-Filing Board (PCAB) in instructing System, take online Authorized contractors on how to access and Managing Officer (AMO) maneuver PCAB application through examination, accomplish electronic the internet. application forms, submit license In a training seminar to be held this and/or registration applications, and February 24 and 25 at the Citi Park conduct status verification of filed applications. Hotel, Mabolo, Cebu City, In a press conference at the Bayleaf participants will be enlightened with Pursuant to PCAB Board Resolution Intramuros last Tuesday, organizers of the basic information on PCAB E- No. 194 Series of 2016, all Double A PHILFFEX and PHILVAC gathered in filing as well as the newly (AA), Triple A (AAA) and Quadruple full force to brief the industry of the much- implemented Contractors Licensing A (AAAA) contractors are mandated awaited event this March. and Registration System (CLiRS). to use CLiRS effective CFY 2017- lating and Air-conditioning Expo) 2018.xxx CLiRS has an on-line interface which organized by the Philippine Society of Ventilating, Air-conditioning, and Refrigerating Engineers, Inc. PRA tags 96 reclamation ventures (PSVARE). Metro Manila — The Philippine continues to grow, pressure on the PHILVAC, also unique on its own, Reclamation Authority (PRA) has land assets will continue to rise,‖ would be the country‘s only trade identified 96 reclamation ventures said Dominguez. expo to feature top-of-the-line air- in varying stages of evaluation or conditioning and ventilating solu- approval. ―We have hundreds of thousands tions for high-end residential and of Filipinos residing in hazardous office developments. During the 40th anniversary areas. These are areas along ―The practice and business of HVAC celebration of the PRA, Finance steep slopes, riverbanks, and & R has evolved significantly over Secretary Carlos Dominguez III shorelines vulnerable to flood the years. We believe PHILVAC is said the agency has already given surges and landslides. We urgently going to be an exciting new venture the go-signal to 20 of the 96 need new and safer areas to be for many of us in the industry,‖ said projects, which could potentially developed for habitation,‖ he Cezar Punzalan, Convention Chair- generate hundreds of billions of added. man of PHILVAC and PSVARE Past pesos worth of public assets and President. xxx help modernize some of the The PRA, formerly the Public country‘s most vital ports. Estates Authority, was created 40 years ago to serve as a The PRA, he said, is also open to clearinghouse for the disposal of unsolicited proposals to enable the idle public lands and the private sector proponents to reclamation of key areas. As a self- partner with the government and liquidating body, the PRA has share their innovations and produced assets and revenues for technologies to help build the government by reclaiming land ―economically and environmentally and converting these into valuable sustainable property real estate. The 1,500-hectare developments.‖ Manila Bay Reclamation Project is considered as the PRA‘s foremost ―We cannot overstate the importance of growing our land to support our nation‘s development. March 9-11, 2017 Being an archipelago, we actually have less land between mountainside and shoreline for cultivation and habitation than it might seem. As our population

4 February 2017 Volume I, Issue 2 INDUSTRY UPDATES

DPWH-7 officials faces DTI investigates PCAB upgrades possible charges - COA China’s steel cargo licensing services

Cebu City - Officials from the De- Quezon City - The Department of Makati City—Pursuant to the partment of Public Works and High- Trade and Industry (DTI) is currently Philippine Contractors Accreditation ways in Central Visayas (DPWH-7) investigating the safety of the Board (PCAB) Board Resolutions may face possible charges for en- 20,000 metric tons of steel cargo and license requirements, the agency tering into a Php 54.94 million con- from China worth P500 million has released an upgraded version of tracts without going through public pesos at the Subic Bay Metropolitan contractors license forms for bidding, the Commission on Audit Authority. Contracting Fiscal Year (CFY) 2017- (COA) 2-page audit report said. 2018. Despite its ICC cancellation in In September 2006, DPWH-7 and December 8 last year, truckloads of With the updated version, registrants Gampik Construction and Develop- steel cargo were still released and can now enjoy user-friendly forms ment Inc., procured 660 lampposts sold to the public prompting the DTI which are also downloadable from for the cities of Cebu and Mandaue to take authoritative action. the online Contractors Licensing and in preparation for the Association of Registration System (CLiRS). Southeast Asian Nations (Asean) United Filipino Consumers Council Summit in January 2007. (UFCC) president Rodolfo Javellana In addition to the e-application forms Jr., warned the public that unless and e-filing system, members can Deemed as excessive and 10 times stopped, the use of substandard also take the online Authorized more than its actual cost, the con- construction materials could lead to Managing Officer (AMO) tract was done through negotiated disaster and loss of lives. examination, conduct status procurement, a procedure allowed verification and submit their license only in case of imminent danger and “While science cannot stop quakes, and registration applications through where the procurement does not fall there are ways to minimize the CLiRS‘ online system. Meanwhile, A under Shopping in Section 52(a) of damage to properties and [loss of] corresponding six percent (6%) the IRR-A and amounts to Fifty lives through the strict prohibition on increase in the regular licensing fees Thousand Pesos (P50,000.00) and the use of substandard building were also implemented. xxx below. xxx -Philippine Daily Inquirer materials,‖ he said.xxx – PCAB-CIAP -Business Mirror

38 contractors in CIAP’s consolidated blacklist as of January 31 2017

At least 38 contractors have been Sustaining Technical Employee. Construction; blacklisted by the Construction Industry Authority of the Philippines The blacklisted contractors are as MRRM Trading and Construction, R2D (CIAP) as of the end of January this follows: P. Torres, B.J. Contractors, Construction & Supply, R. T. Katigbak year, effectively blocking them from Al-alamiah Construction, Alpha Trine Construction Corporation, Ramona participating in all government Motors Corporation, ANA Construction, Mining and Development Corp., RHR procurement opportunities during AQA Global Construction, ARPEE Construction, River Concrete period of disqualification. Construction & Supply, B.E. Construction and Development Corp., Construction, Constructive Builder, Ruby Lim Construction and Supplies Inc., RVRU Builders and Trading; In a list posted in the (Government Inc., Dowsers Trend Construction, E.S.

Procurement Policy Board) GPPB Almuete Construction; S & W Construction and Gen. website, the 38 contractors were Merchandise, Sarbet Builders, Square blacklisted by various government F.N.A. Construction, Fatima Ask Construction and Enterprises, Francis 'R' Builders and Development Corp., infrastructure agencies due to one or Lim Construction, Four Brothers Stern Builders Corporation, Suzuka more of the following Hardware and Construction Service, Construction Co., Ltd., Transpower grounds/offenses: misinterpretation Geety Realty & Development Corp., Builders and Development Corp., of financial qualification, submission Infra-Structural Construction, J. R. Wismon Construction and of spurious contractor‘s license, Maliwanag Trading and Construction, Development Corp., Villcruz submission of spurious or false JM Yalung Construction Inc., Jonice Construction and Supply, VIRLO documents or misinterpretation of Engineering Construction, Lime Light Construction. xxx

5 February 2017 Volume I, Issue 2 February 2017 Volume I, Issue 2 PUBLIC-PRIVATE PARTNERSHIP

New Nayong Pilipino PPP deal attracts top infra investors Makati City - The country's top Parañaque. Based on the infrastructure investors have flocked conceptual plan, it will include a in Makati Shangri-La Hotel on main loop, lagoon, amphitheatre, Thursday, February 9, for the project parking, nature district, and historical conference of New Nayong Pilipino, district. a Php 1.47-billion ($32.75 million) cultural theme park to be Contract will be awarded to bidder constructed in a 9.5-hectare lot in who will 1) submit the highest Parañaque City. government share in gross operating revenue from main parks and More than 14 companies were recreation facility; or 2) at the option present in the conference. Among The New Nayong Pilipino conceptual of the IAs and as communicated to them are Ayala Corporation (AC) design. Photo by PPP Centre the bidders during bid proper, lowest Infrastructure Holdings Corporation, one-time milestone lump sum Ayala Land Incorporated, DM Corporation, SM Prime Holdings payment after construction. Consunji Incorporated, DM Incorporated, and Travellers Wenceslao and Associates International Hotel Group The winning bidder will build, Incorporated, Filinvest Development Incorporated. operate and maintain the project for Corporation, JG Summit Holdings 23 years, inclusive of a three-year Incorporated, Lafarge Holcim Infused with Filipino brand, heritage construction phase The PPP Center Limited, Macquarie group, and culture, the theme park is seen targets the bid submission for the Megawide Construction Corporation, to boost tourist arrivals and to project December of this year, with Megaworld Corporation, Okada generate 450,000 new jobs, construction completion set on Manila, Robinsons Land according to the local government of October 2021. xxx

SMC’s P700B Bulacan int’l airport Projects in the Pipeline Status as of February 15, 2017 Metro Manila - San Miguel Corp. accommodate even the largest (SMC) plans to spend about P700 passenger aircraft. New Bohol (Panglao) For Bid billion for its proposed international Airport Submission airport to be located in Bulacan. Proposed under a build-operate- (P4.57 B ) Based on the details revealed by transfer scheme, SMC would be Laguindingan Airport For Bid Department of Transportation (DOTr) operating the airport under a 50-year (P14.62 B ) Submission Undersecretary Roberto Lim, the concession.xxx Davao Airport For Bid SMC‘s unsolicited proposal is being Submission pushed as a potential alternative to (P40.57 B) the congested Ninoy Aquino Bacolod Airport For Bid International Airport. (P20.26 B) Submission The ―aerotropolis‖ project will cover 2,500 hectares, of which 1,168 Iloilo Airport (30.40 B) For Bid hectares will be an airport complex Submission while the remaining 1,332 hectares will serve as a city complex spanning Road Transport IT Infra- at least 2,000 hectares ―near‖ Manila structure Project (Phase For Procurement Bay in Bulacan inclusive of at least II) (P0.298 B) SMC’s proposed P700-billion Bulacan Airport. four runways which can New Nayong Pilipino at Entertainment City Project For Procurement Philippine Construction Highlights Today (1.47 B ) The Official Publication of Philippine Constructors Association Inc. 3rd Floor, Padilla Building, Francisco Ortigas Jr. Road, North-South Railway For NEDA Board Ortigas Center, Pasig City Project- South Line Aproval Tel (632) (632) 6312778 / 6313135 Fax No. (632) 6312788 Philippine Travel Center Complex Project For NEDA Board Facebook: philippine.constructors approval Website: www.pcainc.org

6 PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY

Australian companies keen ‘Not bullet train Construction of on Ph’s PPP projects but medium speed train MRT-LRT common station for Sangley-Clark railway link’ begins December 2017 Quezon City — At least eight (8) Metro Manila — The planned Australian companies have shown railway, which will connect Clark interest in participating in the International Airport in Pampanga government‘s public-private and the Ninoy Aquino International partnership (PPP) projects. Airport(NAIA) in Manila should have a

medium speed train and not an In a Public-Private Partnership (PPP) ambitious bullet train, says Roundtable Discussion between Former Finance Secretary Roberto Philippines and Australia held last de Ocampo. January 27 at the PPP Center,

Australian companies sought updates De Ocampo, who served as chairman and new developments in the and CEO of the Development Bank of country‘s PPP program especially the Philippines (DBP) in 1989 and with the installation of the new The proposed design of MRT-LRT Station. has been an Independent Director of government last year. EEI Corp., said the issue should not After being delayed for nearly eight focus on airports or transportation ―They [participants] are keen to years, the construction of the alone. ―If you look at it as only about participate in PPP projects from common station which will link Metro airports and look at it as only about various implementing agencies. They Rail Transit Line 3 (MRT-3), Metro traffic, you may just miss the bigger also suggest to improve the current Rail Transit Line 7 (MRT-7), and the picture.‖ PPP bidding process to encourage Light Railway Transit Line 1 (LRT-1) more competitions and fast-track the will finally proceed starting December ―This is about urban congestion and PPP projects implementation,‖ the this year. our chance in a lifetime to solve it to PPP Center said. enable to disperse the city outward To be located at the at the North and to create a new megalopolis that Aside from the opportunity to raise Avenue station of the MRT-3the would be the main magnet of their concerns and provide common station is a P2.8 billion economic activity for the rest of the recommendations on how to improve project under the government‘s nation. You simply had to disperse the PPP process, the companies Public-Private Partnership program. the city outward,‖ he said. were also informed about the projects in the pipeline. On January 18, 2017 a The Manila-Clark railway, which was Memorandum of Agreement (MOA) approved by the Bases Conversion The eight companies include include between the Department of and Development Authority (BCDA) Transportation (DOTr), the Indra, GHD Philippines, Macquarie and the Department of Transportation Infrastructure, Ashurst, Aurecon, Department of Public Works and (DOTr) in April 2015, is among the Highways (DPWH), San Miguel BMD Constructions, Macquarie and big-ticket projects of the Duterte ANZ. xxx Corporation (SMC), North Triangle Administration to decongest the Depot Commercial Corporation traffic-ridden Metro Manila. xxx (NTDCC)-Ayala Corporation, Light Rail Manila Corporation (LRMC), and SM Prime Holdings, Inc. (SMPHI) was signed.

The new MRT-LRT common station will have 3 essential components: Area A where the platform and concourse for LRT1 and MRT Line 3 (MRT3) are located; Area B where the two concourses connecting Areas A and C are located; and Area C where the platform for MRT Line 7 (MRT7) is located.

Construction of the station is expected to begin this December, while the target for commercial operations is April 2019. xxx

7 February 2017 Volume I, Issue 2 CALENDAR OF EVENTS 2017| CALENDAR OF EVENTS 2017

PHILIPPINE CONSTRUCTORS ASSOCIATION INC. ASSOCIATION OF CARRIERS & EQUIPMENT LESSORS INC.

MARCH 9-11 PHILFFEX @ SMX Manila 2nd General Membership Meeting/ May 10 51st ACEL Anniversary APRIL 7 ACF Meeting in Indonesia 17,18 & 19 PCA-ACCI-EEGC Tripartite Golf Tournament in Tagaytay June 6 ACEL Presidents‘ Cup Golf MAY 30- IFAWPCA Convention in Tournament JUNE 2 Seoul South Korea 8-10 Philconstruct Visayas JUNE 8-10 PHILCONSTRUCT VISAYAS in Cebu City August 10 3rd General Membership Meeting 16 or 23 2nd PCA Bowling Tournament @ E-Lanes Greenhills September Philconstruct Mindanao SEPTEMBER 8-10 8-10 PHILCONSTRUCT Davao in Davao City ACEL‘s 14th Badminton 16 Tournament 29 PCA GMM with Dice Game OCTOBER 12 2nd PCA Oktoberfest November Philconstruct Manila 8-12 NOVEMBER 7 PCA Inter-Chapter Golf Tournament ACEL Election of 8-12 PHILCONSTRUCT Manila 16 Board of Directors DECEMBER 5 5th Constructors Cup December ACEL Christmas Party 6 PCA Christmas and Induction Party 13