Wednesday, October 27, 2010

THE POWER OF THE BARANGAYS

There is so much frenzy and campaigning now in all of the barangays in the country. Why is the position of the Barangay kapitan and Kagawads so hotly contested? Do you know that there are quite a number who would kill for this position. In the past, I had never participated in the barangay elections and so many of my friends and colleagues too; not knowing that these kapitan and kagawads play a very critical role during the national and local elections. They can make a Mayor or even a President win or lose in their barangays. These people are the ones who get and deliver the votes of their areas. When I run for congress in the last elections; it is always the kapitans that you go to first when you enter their area as a sign of respect to their position. Most of the kapitans that I met were courteous and really helped me get around but of course delivering the votes was another issue.

So it is no wonder why so many local officials from the Congressmen down to the Mayors and their Councilor support the campaign of kapitans and kagawad candidates who can help them get the votes in future elections. I know that this electoral process must be “non political” and so national and particularly local officials. However this is not the reality on the ground and we all know that.

The barangay system is what makes the Philippines the community oriented country of the world. The core LGU (Local Government Unit) of the Philippines is the barangay and they are governed by the Kapitan and kagawads (council) who are elected into office every three years by popular vote of the registered voters.

Barangays are further subdivided into smaller areas called Puroks or Zone. A sitio is a territorial enclave inside a barangay, especially in rural areas. As of today , there are around 48,000 barangays all over the country.

Powers of Barangay
What are the powers of the barangay? The 1991 Local Government Code is one of the landmark legislations ever passed in Philippine Congress during Pres. Cory Aquino's term. Basically, this decentralization law has three features: it devolves power, authority, and growth (in a grand effort to restore democracy lost during the Marcos years). 


Decentralization among different levels of local gov’t units (LGUs) from provincial to barangay varies to certain degrees. On the whole, the barangays implement municipal ordinances.

The Code also gave the following responsibilities to the barangays. These Barangays are responsible to provide
 support services for agricultural through a distribution system for agricultural and fishery inputs and the operation of agri and fishery produce collection and buying stations; and health and social welfare services, through the maintenance of barangay health and daycare centrers. These will also include service and facilities related to general hygiene and sanitation, and solid/ garbage waste collection. They are also tasked to administer the barangay court. They are on top of the maintenance of barangay roads, bridges and water supply systems and infrastructure facilities such as multi-purpose halls, pavements, plaza, sports complex; satellite public market. Their power may also include maintenance of barangay peace and order from doing though they are not allowd to carry fire arms.


Sources of Revenues of Barangays

Where do barangays get their revenues or sources of income? They have 
 the power to collect collect taxes and this includes
 : taxes on stores or retailers with fixed businesses with gross sales receipts of P50,000 or less 
; service fees or charges for services rendered in connection to regulation or use of barangay owned properties such as dryers; 
 fee for issuance of barangay clearance for any business located or 
conducted within the barangay ; fees for commercial breeding of fighting cocks 
cockfights and cockpits 
; places of recreation with admission fess 
; billboards and signboards 
 and community tax (P5.00)
Local governments have their shares in the national internal revenue taxes, representing 40 per cent of the total internal revenue collections, based on the third preceding year . However, there is at present a bill pending in congress to increase these shares to 50 per cent. The regional distribution of the Internal Revenue Allotment to local governments is as follows: Provinces (23 per cent), Cities (23 per cent), Municipalities (34 per cent) and Barangays (20 per cent).

The barangay share is 15 per cent of the total Real Property collection in cities and municipalities. The barangay likewise are empowered to receive contributions from the private sectors, financial institutions and the like.

The Barangay Elections is Important
Knowing all of these; it is very important that we should all go out and vote on Monday, October 25 since this is the barangay election. The leader of this smallest political unit in the communities that we live in is as important as the leader of our city. So let us all go out and vote!

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

BUILDING A SUSTAINABLE MINDANAO ECONOMY

Late post


The recently concluded Mindanao Business Conference (MinBizCon) held last Sept. 12-14, 2010 at Cagayan de Oro City had a huge turn-out of businessmen and women from all over Mindanao. The Philippine Chamber of Commerce and Industry (PCCI) Board headed by President Francis Chua, Atty Mike Varela, Sergio Ortiz Luis, Donald Dee and Ed Lacson; together with the new Cabinet Secretaries came in full force to support Mindanao. Edwin Capili, the current Vice President for PCCI Mindanao ably chaired the whole event showcasing his own brand of leadership in enabling Mindanao to sustain its vibrant economy. My congratulations to Edwin together with the current Regional Governors of PCCI Mindanao.

This is an indication that PCCI Mindanao is still the only business organization that can truly boast of a real business constituency representing all the regions of Mindanao and thus is the only real voice of business.

At the end of every MinBizCon; it has been a tradition to present a set of Mindanao resolutions which was a result of a series of round table discussions and consultations all over Mindanao. These are the important points which we think government must prioritize in order to boost businesses in Mindanao.

The success of businesses and investments is largely dependent on the policy environment of both the national and local government. Businessmen may have the capital to invest but if the environment is not conducive for doing so; then you will have very little economic movement.

The most important resolution that was brought forward was the immediate formulation of a comprehensive energy plan for Mindanao to address the energy crisis. This will call for various measures that will not only provide alternative sources of power; but also address the growing concerns on the rising cost of electricity and reforms in the energy sector.

In hindsight, I am glad to know that the new Mindanao Authority Chair Lou Antonino had made this her priority agenda. This will really affect our desire in Davao to be the call center and Business Process Outsourcing center (BPO) in Mindanao. The lifeblood of BPO is a steady supply of power and skilled manpower.

Our Mindanao will always remain an agriculture based economy and so there is a need to prioritize this sector by addressing the perennial concerns on lack of access to financing and technical support and more investments in post harvest facilities. It seems that the support given to the agriculture has not been sufficient enough despite the huge budget allocation. With all the talks about the re-alignment of budget in agriculture for other purposes; it is not a wonder why we always have the same concerns year in and year out. I hope that the new leadership will be able to fill in this glut the soonest.

Mining has always been a controversial issue that will always spark a debate. But the Mindanao business community is fully supportive of responsible mining and this can only be attained through the strengthening of multi sectoral partnerships in the area where there is an investment in mining. There is a call to clarify the role of government in the protection of environment and management of natural resources and also to streamline the processes and procedures in getting permits and other needed clearances.

A resolution to further develop an integrated transport logistics from shipping to road network for the efficient movement of the Mindanao’s product from one island to the other was also presented.

We continue our advocacy for the capacity building of the micro, small and medium entrepreneurs (MSME’s) since they are still the backbone of the economic momentum of businesses in the countryside. There are many smaller provinces and cities in Mindanao that do not have a single multi- national or big corporations doing business in their areas; so economy is really locally funded from the small businesses. The Magna Carta for MSME’s has not yet been fully implemented until today, particularly on its provisions of credit allocations by lending institutions.

Education has always been a significant part of the Mindanao business agenda, The call is for the development of a comprehensive approach to human resource through quality literacy and cognitive and practical skills integrated with ethical and social resources for a competitive workforce. The technical vocational sector is also asked to integrate Information, communication technology (ICT) and English courses in their curriculum to meet the current and future demands of the BPO businesses in Mindanao.

Tourism is one of Mindanao’s key drivers and so there is a need to maximize the potential of Mindanao tourism industry through implementation of needed infrastructure and encourage stronger community engagement in the promotion of tourism.

In one unified voice, we are all calling for a renewed focus on peace and order as key to Mindanao development. The GRP-MILF negotiations must be continued towards achieving lasting peace in the island.

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I arrived in the Davao International airport yesterday straight from Nagoya from attending the APEC Women Entrepreneurship Summit and I was confronted with the arrogance of one of the Customs people. There was this lady customs officer without a name plate and was not wearing any uniform who was so rude and kept on asking irrelevant and intimidationg questions as if everyone was a suspect of mis-declaring what was inside their luggages. I really pity the overseas workers and the Japanese tourists who were ahead of me. This came as a surprise to me because this was the first time that I had my baggages cleared in the Davao Custom. I am used to getting down in Manila everytime I am out of the country which is almost every month. The Custom personnel in Manila whether at the PAL terminal or at the Terminal 1 NAIA old airport are all so very courteous. This is a great stumbling block to our efforts to develop tourism here in our city and I hope the the Customs Directors will look into this.



(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

Monday, September 27, 2010

A Different Kind of Invasion

My husband and I took the time off to visit Paris after we were sure that my daughter, Nikkie was perfectly adjusted in her new school in Switzerland. It would also be a good time to do the usual R & R/ rest and recreation and take time off from my busy schedule.

While in Paris we were invited to dinner by a classmate of mine from the University of the Philippines (UP) who now works in the Sales Department of the plush Four Seasons Hotel in France. Dinner was a get together of former classmates from UP who are now staying in Paris happily married or enjoying a successful management career in the big hotels there. Seeing my classmates in such high management positions was indeed over whelming. Our conversations ranged from where our classmates now and what are they doing; the government of P-Noy and the UP people we knew who are now members of his government team and to Mindanao affairs. One of my friend who works in a food distribution company in Paris said that Halal food is very popular now in Europe. That really caught me off guard!
What Halal? Popular in France? Halal is not even so popular here in Mindanao. How many of us look for halal food in restaurants or in groceries or in the markets?

In my advocacy with our Muslim businessmen especially those in agriculture and food; I would always encourage them to look into the opportunities of halal food and I would cite that our neighbors with big Muslim population is a huge market. Never did I think that halal food would be popular also in France.

Halal foods are foods that are allowed under Islamic dietary guidelines. According to these guidelines gathered from the Qu'ran, Muslim followers cannot consume the following: pork or pork by products animals that were dead prior to slaughtering animals not slaughtered properly or not slaughtered in the name of Allah blood and blood by products alcohol carnivorous animals birds of prey land animals without external ears these prohibited foods and ingredients are called haram, meaning forbidden in Arabic. Halal is One of the Most Humane Methods of Animal Slaughter Muslims are taught through the Qu'ran that all animals should be treated with respect and well cared for. The goal is to slaughter the animal, limiting the amount of pain the animal will endure. When an animal is slaughtered, the jugular vein is cut and the blood is allowed to drain from the animal. Remember, Muslims are prohibited from consuming animal.

France has the largest population of Muslims in Europe, about six million and the market for halal is twice the volume of the market for organic food which is also a hit in Europe. Halal market is growing nearly 10 percent a year and is estimated to reach about $ 5 .7 billion this year.

Halal foods are not only found in the usual small neighborhood stores but are now already found in french food industries, supermarkets and even restaurants. There are a good number of restaurants that serve Halal in traditional French dishes like boeuf carottes and cervelas de volaille; cans of foie gras; and bottles of Night Orient, an alcohol-free champagne made from grape pressings.

This is a far cry from the situation here in Mindanao where we seldom could halal food in our groceries or even halal good in fine restaurants

I visited a major French supermarket and I found an entire aisle devoted to halal food products, including chicken sausage, paella and lasagna. My friend told me that one supermarket chain called Auchan, carries a total of over 100 certified-halal cured meat products, along halal frozen goods and precooked halal meals.

Évian (the bottled water) has even placed a halal stamp on some of its bottles to reassure its Muslim clientele that the bottles had never been in close contact with alcohol, which would render the water haram, or unclean.

Our businessmen in the ARMM should pursue now with greater aggressiveness their capacity to produce Halal products that are internationally accepted . There should also be a move to introduce halal menus in our restaurants all over Mindanao not only as a support to our Muslim brothers but as well as for its health benefits.


(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

Sunday, September 05, 2010

The Business of Hospitality

In the Philippines, the term hospitality courses has not really gained wide acceptance as compared to the term hotel and restaurant management courses. Many of us still wonder why in the world are people now start using hospitality as a term closely related to tourism.

For one whose main business is focused in the delivery of many levels of hospitality education; there are times that I laugh because people would always relate the term to hospitality girls (a word which has a rather not-so-good connotation in Filipino culture since it means women whose occupation is to entertain the opposite sex) or even at times to the hospital /health business.

I take time to tell people; most especially our students and their parents to use hospitality course instead of the usual Hotel and Restaurant Management / terminology since this is a more acceptable term in the international and global arena .
Hospitality management studies provides focus on management and operations of hotels, restaurants, food establishments and service institutions, cruise ships, resorts, amusement parks, conventions and events , country clubs and may also include travel and tourism. The now growing Culinary Course or Chefs’ education is also part of the Hospitality program.

There are hotels and restaurants of all classes and standards all over the world and so you can just imagine the need for highly skilled hospitality managers and workers. In fact in the Philippines alone; you can see many hospitality schools and training centers sprouting left and right all over the metropolis.

A career in hospitality is very promising all over the global market. People think that graduates of this course can only work in hotels and restaurants. Industries such as casinos, theme parks, airlines, entertainment businesses, travel and tour agencies. Airlines, canteens, institutional food service centers may also be a good source of employment. This course is also ideal for those who wants to put up their own hotel. restaurant and catering businesses.

All these and more are included in the category of hospitality. As you can see, most of these are what you may call the “essentials” in the realm of tourism. And for sure, you know how important tourism is in whatever place or country you may be. Thus, you can expect that an industry like this could definitely bloom even in the coming years.

However, it is not only tourists that these jobs serve. Even locals alike are served too. For sure locals also dine in restaurants and go to casinos and even stay in hotel during the holidays and the week ends. This factor makes the whole industry more stable. Even if it’s not the peak season of tourists, locals are still there to keep the industry alive and kicking!

I am now writing this article sipping cappuccino and enjoying the view of Lake Geneva here in Montreux Switzerland which is the home of the two best hospitality schools in the world – Glion and Hotel Institute de Montreux (HIM) which is a subsidiary of the Swiss International Hotel School of Management .My youngest daughter Nicole will be starting her Post Graduate Course in Hospitality Management in HIM and will stay here for the next six(6) months. I took time out from my busy business schedule to bring my daughter here and help her get settled in her new school. I feel as if I am again brining my daughter to her first pre school where just like any mother – you take the time to check the school; talk to the teachers; get a look at the classrooms and the facilities making sure that you made the right choice.

I also took it as an opportunity to network and forge possible linkages with HIM and work for a cross accreditation of my schools; the Joji Ilagan College of Business and Tourism (JIB) and the Institute of International Culinary and Entrepreneurship (ICHEF) in Davao City and the International School of Hotel and Tourism Mgt (IS-HTM) which will soon open in the bustling city of Gen Santos next year. Today, students in all of my school are given the opportunity to gain Australian qualifications, credentials and diploma through our partnership with TAFE New Southwales Southwestern Sydney Institute (TAFE NSW SWSI) and the Australian Trade College North Brisbane in Australia. The Australia qualification is recognized all over the world and so our students have better access to international careers and employment. It would be great to bring the Swiss qualifications to the students of Davao City, This may seemed to be an ambitious endeavor; but I am crossing my fingers that it can be done. It took me two(2) years and four (4) visits to the TAFE Australia before the educational agreement between our schools was signed. Nothing is impossible with perseverance and patience.

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I am saddened by the sudden death of Mindanao Times Foodie Columnist, Noel Castro whom I had the pleasure of meeting a month ago. He interviewed me for a feature of ICHEF and we immediately found a common ground which is food. I personally took him for a tour around ICHEF where he met our students and Chef Mike Oberle in one of our kitchens. We even tasted the wonderful pasta that they made with the different sauces and he was all praises for our students. I invited Noel again to visit our Chefs’ Kitchen Student Training Restaurant where I ask his comments/recommendations about the menu that our students prepared. In an email from him that I received here in Switzerland, he shared with me so many ideas and I emailed him back that I am so excited to be back in Davao already and have coffee with him. I opened my email last night when I came back in my hotel room and there I got the message from my office that Noel had passed away. My prayers and condolences to his family. I thank God for the joy of knowing Noel even for just a brief moment!

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

Wednesday, July 21, 2010

INVESTING WISELY AMIDST THE GLOBAL CRISIS

Rumors of an impending global crisis always makes businessmen jittery and uneasy. Earlier this year the markets were affected by the fears of a European crisis. I remembered at that time, my British friend urged us to pay our Tumble Tots (British Pre School Franchise) royalty earlier than the due date since the pound was weaker and that it would be advantageous for us to do this. We made some quick computations and paid the royalty earlier as what my friend suggested. True enough, we were able to saved a significant amount which we used to re paint our building.

This is what I call good timing – really good timing. Many of my friends in Manila who were well diversified in their trust portfolios also enjoyed positive returns.

A good number of financial experts says that these types of investments are more stable than shares of stocks. This is because your money or investment is being managed by professional fund managers who make it their business to make your money grow. And by consolidating your money with other investors; you now have greater access to a wide range of assets. This way you diversify your investments and you spread your risks.

But nothing in life is free. You have to pay a fee for the professional managers to invest your money in bonds, stocks and other instruments to get the returns consistent with the fund’s stated objectives. The minimum investment will depend on the requirement of the Fund Managers. I know that it can be as low as USD 1,000.00 or P 50,000.00. Your money may reach double digit figures. It would be good to know that (just like in any ordinary investments ) there are corresponding risks and capital may be lost also.

But their popularity had grown these past years. I know of many young businessmen who are putting their money in various trust portfolios. Personally, I think it is called “Trust” because it is really a question of trust. How much do you trust your chosen fund managers to handle your hard earned or extra money? Do you trust their promises that they can make your money earn higher than putting it in the bank?

We had often been confronted with nothing but depressing news for the Philippines. Yesterday, there was big fire in Quezon City and the firemen lamented that they could not do so much because there was no adequate supply of water. On the other hand, when I opened the TV to listen to the news; I saw people lining up for water. Today, on my way home from a meeting, I heard over the radio that there are more people who are hungry now than last year.

So it is really a refreshing news to know that single country funds like Philippines, Indonesia, Thailand, Malaysia performed very well in the trust market. For instance the JF Philippines and Indonesia USD funds achieved 23.5 % and 22.4 % respectively.
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MEETING FRIENDS. I was walking at Eastwood City to go to Citibank and I was surprised to see Jason Magnaye and Bert Barriga at Cybermall having coffee. Bert called me and it is always a pleasant surprise to see colleagues in Manila. I am glad to know that Jason is now the new Investment and Promotions Director for Davao. He is young and his dynamism would be good for the city. Bert who is now the top man of the ICT (information, communication, technology) has his hands full promoting Davao as an ICT hub for BPO‘s ( Business Process Outsourcing). Congratulations to Bert and to the ICT advocates because Davao is now the top city for BPO investments.

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AUSTRALIAN BUSINESS DELEGATES. I received an invitation for a cocktail at the Traders Hotel in Manila hosted by the Philippine Australia Business Council (where I used to sit as a member of the board) for the CCIAP (Chamber of Commerce and Industry Australia Philippines) delegates last Tuesday, 20th of July 2010. Unfortunately I was not able to attend due to an important previous commitment which was on the same day and time. I would had wanted to attend that because I do business with Australia where two(2) of my schools; the Joji Ilagan Foundation and the International Culinary and Hospitality have educational cooperation agreement with Australian schools . There were ten (10) delegates from Queensland representing various businesses: Mrs. Connie da Cunha - President, CCIAP;Mrs. Adriana Shepard - Partner, Adna Living Water ;Mr. Allan Shepard - Senior Lecturer, Griffith University;Mrs. Gina Luck - Managing Director and Owner Luxe Care Collection Pty Ltd ‘;Mr. Jachin Navarro - Managing Director, Navarro Enterprises Pty Ltd; Mrs. Kay Ganley - CEO, Charlton Brown; Mrs. Luz Sheppard - Director and Owner, LD Sheppard & Associates Pty Ltd;Mr. Peter Shepard - Partner, Adna Living Water; Mr. Wayne Harrison - Managing Director, Australian Immigration Visas and Australian Trades; Mr. Manuel Paneda - Principal, Mell Accounting Plus . Let me know if you are interested to touch base with any of the delegates

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CHAMBERS OF COMMERCE.The Philippine Chamber of Commerce and Industry (PCCI) will be holding a Chamber Management Workshop on Friday, July 23, 2010 at the Apo View Hotel and these will be attended by the Officers of the Chambers of Commerce of Region 11; Davao del Norte (Tagum and Compostela) , Davao del Sur (Digos)and Davao Oriental (Mati). Mr. Cris Frianiza, the Executive Director of PCCC together with Mr. Edwin Capili- PCCI Vice President for Mindanao will be heading the team who will visit Davao.

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HUMAN RESOURCE SUMMIT.The Mindanao Technical Vocational Schools Association will be holding its annual Human Resource and Skills Development (HRSD) Summit in Butuan City on Aug. 11, 12, 13, 2010. The new TESDA Director General Joel Villanueva ( son of Eddie Villanueva and former member of Congress as party list representative) is expected to attend the event.

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“The key is not to prioritize what is on the schedule, but to schedule your priorities.” ~Stephen Covey

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation (www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

Tuesday, September 22, 2009

WILL THERE BE A POWER CRISIS IN MINDANAO?

Each and every businessman who recently attended the 18th Mindanao Business Conference in Koronadal City last week expressed serious concern over the truthfulness as to whether there will be a power crisis in Mindanao. The Department of Energy (DOE) confirmed this in a statement and further revealed that if the government and companies concerned will not provide a solution by the end of the year, the problem might get worst.

Certainly, there is a shortage and the critical period has been known to the government especially from the DOE’s point of view as early as 2007. The critical period had already started this year and we are facing an uncertain situation. The officials of the Davao Light and Power Company (DLPC) admitted that Mindanao is inevitably headed towards a crisis of very serious proportions. Mindanao’s major cities—Davao, Cagayan de Oro, General Santos, Butuan and Zamboanga will experience darkness, if no concrete actions to avert the power crisis will be done.

You can just image what will happen to cities like Davao, Cagayan and Zamboanga who have been heavily selling their cities as the future “ICT (information Communication Technology) Hubs for BPO’s (Business Process Outsourcing). BPO businesses thrive best in areas where there is assurance and permanence of sufficient power supply. What will happen to the tuna canneries in Gen. Santos and to the sardine plants in Dipolog without continuous supply of power?


The entire Mindanao will expect to have long hours of brownout if the power crisis cannot be averted on time. Power supply is crucial to the existence of businesses and investments in the island. We will all suffer tremendous losses; more so with the small and medium sized businessmen who may not be able to afford the cost of expensive generators. This scenario may further result to scaling down of enterprise activities which can lead to unemployment and eventually an increase in poverty


Power Demand of Mindanao
The present demand of Mindanao’s five key cities is put at 484MW while the peak demand of power users is expected to hit an average of 5.76 percent in the next five years. A strategic approach as proposed by the DLPC presented a 13.1 percent reserve capacity in order to enable the Mindanao grid to supply the total power demand of the island. This approach is based on the theory that the grid must maintain a reserve capacity equivalent to the capacity of the biggest generating plant so that in the event that a single plant fails, there would still be enough to supply 100 percent of the requirement of the power users.

Moreover, the DLPC projects that the gap between the requirement and the reserve capacity of 13.1 percent will gradually deteriorate over the next five years. Mindanao is now feeling the crisis since the 13.1 percent power reserve during off peak to ensure continuous supply of power has already dropped to one percent.

Contradicting Statements

On the contrary, the Freedom from Debt Coalition (FDC) said that research shows there is no power crisis in Mindanao. In fact, the Philippine Energy Plan 2004-2014 report of the DOE indicated a total surplus power of about 373 megawatts for the Mindanao grid. The report also indicated that there is enough power supply for the deficits of both Western Mindanao (62MW) and Southern Mindanao (233MW) which comes from the surplus power of 670MW in Northern Mindanao. FDC also found out on its own research that there is, in fact, a low demand for energy because of the current economic turmoil that is being experienced on a global scale. Most industries are slowing down operations due to the slowing down economy, thereby reducing demand for power.

Action Agenda to Avert the Crisis

However, the government identified an immediate solution by putting up three new power plants but it would take about three years to get all of them done. Among the three projects are the Sibulan Hydro, which is currently being completed, the Mindanao 3 located at the peak of Mt. Apo which is almost done and the Kabulig Hydro which is experiencing some problems. Even if these guaranteed power plants are completed, they will still project a shortage of around 400 megawatts (MW). In addition to these three plants, the Conal Holdings Corporation, owned by the Alcantaras, has unveiled a $450 million coal-fired power plant in Sarangani Province to be up by 2013. This plant is expected to generate up to 200MW of power which would be enough to sustain the requirement.

There’s another theory that this looming power crisis is caused by “transmission constraints” which is already being addressed by the National Grid Corporation of the Philippines. And that, as of April 2008, there is a 382.1MW reserve which is enough to supply whatever imbalance that may occur in power supply and demand. We are being supplied with 1,933.4MW as total installed capacity of power generating plants in Mindanao while 1,682.1MW is the dependable capacity. Plus Hedcor Sibulan and Conol Holdings in Sarangani Province supply an additional capacity of 242MW. We actually have more than enough, if this is the case.

Clearly, power shortage is a looming threat. This is the time that business, government and the various groups of the civil society should work together to avert this crisis NOW before it is too late!

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

Tuesday, September 08, 2009

NEW AND VIABLE AGRI-BUSINESS VENTURES IN MINDANAO

If you can notice, in almost all of my articles I always present the vastness and the great growth potential of the Agriculture& Fishery industry in Mindanao. If I remember it right, on my last article I presented the resolutions established by the Mindanao Technical Vocational Education and Training; and one of them is giving more emphasis and focus on developing the Agricultural Tech-Voc.

One of the main reasons why I am fond of sharing with you the agricultural prowess of the Mindanao region is obvious great potential of the industry to pull up our economic status. Mindanao’s climate is better than any other region in our country. We, in Mindanao do not experience typhoons. Another fact is that Mindanao is 474% percent larger than Central Luzon which is has the largest plain in the country and produces most of the country's rice supply, earning itself the nickname "Rice Bowl of the Philippines". If Mindanao’s Agriculture Industry is well developed, the scarcity of food in our country will be eliminated.

GOAT CAPITAL OF THE PHILIPPINES
Business opportunities continue to grow in Southern Mindanao amid the spillover of the global financial crisis as businessmen continue to diversify and search for new investments. The Department of Trade and Industry (DTI) in Southern Mindanao slated a new investment opportunity in Davao del Sur -- goat rising.

Goat raising is now become a niche for enterprising entrepreneurs who want to try a relatively new but viable business ventur. And Davao City, our largest city and home to the majestic Mt. Apo, will soon become the goat capital of Southern Philippines and probably in the whole country.

Goats are very popular among Filipinos because they require low initial capital investment, fit the small hold farm conditions, and multiply fast. About 10 native goats can be fed on the feedstuffs sufficient for one cattle. And about 6-7 purebred dairy goats can be fed on the feedstuffs adequate for one dairy cow. Although a goat is small, it can produce as much as four liters of milk a day if it is purebred and is given a ration to meet all of her nutritional requirements.

Our neighboring countries in the East Asean Growth Area like Brunei also requires a high volume of goat meat for daily consumption.

If an investor is to engage in sale of breeders, investments include pure or upgraded Nubian, Toggenburg or Boer buck which costs P7,500 – P12,000/head plus native or upgraded does which cost P1,500 – P4,000/head. An investor could sell his produced upgraded breeders at P3,000 – P12,500/head.

For investors who desire to engage in the sale of goat meat, there is a need to invest in one upgrade Boer for every 25 does. Live goat for sale commands a price ranging from P120 – P180/kilo or minimum of P4,500/head.

To raise goat for commercial milk production, pure or upgraded goats of the Anglo Nubian or Saanen breed is recommended as breeder buck. Goat of this breed could produce 0.7 – 2 liters daily in 215 – 250 days of milking.

Goat-raising is highly profitable. With minimal capital investment of P67,250 for 25-doe level; P174,500 for 50-doe level; or P349,000 for 100-doe level, positive net income and return on investment (ROI) are realized, even as early as the first year. The ROI for five year is 67 percent from a 25-doe level operation under semi-confinement scheme and 60 percent from 50-doe and 100-doe level operations under pure confinement system. Payback period is two years.

As goat production requires low initial investment and small risks compared to other livestock, it is therefore an attractive undertaking among resource-poor families.


SEAWEEDS GALORE

Mindanao’s seaweed exports have almost doubled in 2008. From January to October 2008, exports of processed seaweeds reached 5,085 metric tons (MT) valued at US$12.6 million. This is a 92 percent increase in volume and 114 percent increase in value over exports for the same period in 2007

Eucheuma and kappaphycus seaweed varieties, which are grown in the Philippines, are used for the production of carrageenan, a thickening and stabilizing agent used worldwide in many processed foods and in products such as toothpaste, shampoo, paints, and pharmaceuticals.

Marine products of the many species of seaweed, the most commonly developed and cultured species in Zamboanga city is the EucheumaCottonii seaweed because of its numerous uses. It enjoys the heaviest demand in the market, both here and abroad. In addition, Eucheuma can be farmed commercially almost anywhere in the city’s coastal areas. Eucheuma seaweed has been commercially introduced in various method of propagation, after extensive experimentation. It was disclosed that eucheuma seaweeds grow faster on reefs than other areas which prove that seaweed farming is viable in this city. When the study of Eucheuma seaweeds propagation was initiated, its technical advancement was transferred to the private sectors, thus making the seaweed industry one of the leading ventures in the country today

The country produces most of the world’s carrageenan in 14 processing plants located in Cebu, Southern Luzon, and Zamboanga. And the top regional supplier of raw materials for these plants is Mindanao, which produces 75 percent of the country’s eucheuma and kappaphycus seaweeds, which mostly come from Zamboanga peninsula and Sulu archipelago.

The country’s processing plants alone need a minimum of 134,000 MT of dried seaweed annually, yet the total Philippine seaweed output decreased from 95,600 MT in 2004 to 74,650 MT in 2007 due to weather conditions. rising energy and transport costs, and other factors.


(JojiIlagan Bian is a strong and respected advocate for the development of the region. She is Chair of JojiIlaganFoundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

NEW AND VIABLE AGRI-BUSINESS VENTURES IN MINDANAO

If you can notice, in almost all of my articles I always present the vastness and the great growth potential of the Agriculture& Fishery industry in Mindanao. If I remember it right, on my last article I presented the resolutions established by the Mindanao Technical Vocational Education and Training; and one of them is giving more emphasis and focus on developing the Agricultural Tech-Voc.

One of the main reasons why I am fond of sharing with you the agricultural prowess of the Mindanao region is obvious great potential of the industry to pull up our economic status. Mindanao’s climate is better than any other region in our country. We, in Mindanao do not experience typhoons. Another fact is that Mindanao is 474% percent larger than Central Luzon which is has the largest plain in the country and produces most of the country's rice supply, earning itself the nickname "Rice Bowl of the Philippines". If Mindanao’s Agriculture Industry is well developed, the scarcity of food in our country will be eliminated.

GOAT CAPITAL OF THE PHILIPPINES
Business opportunities continue to grow in Southern Mindanao amid the spillover of the global financial crisis as businessmen continue to diversify and search for new investments. The Department of Trade and Industry (DTI) in Southern Mindanao slated a new investment opportunity in Davao del Sur -- goat rising.

Goat raising is now become a niche for enterprising entrepreneurs who want to try a relatively new but viable business ventur. And Davao City, our largest city and home to the majestic Mt. Apo, will soon become the goat capital of Southern Philippines and probably in the whole country.

Goats are very popular among Filipinos because they require low initial capital investment, fit the small hold farm conditions, and multiply fast. About 10 native goats can be fed on the feedstuffs sufficient for one cattle. And about 6-7 purebred dairy goats can be fed on the feedstuffs adequate for one dairy cow. Although a goat is small, it can produce as much as four liters of milk a day if it is purebred and is given a ration to meet all of her nutritional requirements.

Our neighboring countries in the East Asean Growth Area like Brunei also requires a high volume of goat meat for daily consumption.

If an investor is to engage in sale of breeders, investments include pure or upgraded Nubian, Toggenburg or Boer buck which costs P7,500 – P12,000/head plus native or upgraded does which cost P1,500 – P4,000/head. An investor could sell his produced upgraded breeders at P3,000 – P12,500/head.

For investors who desire to engage in the sale of goat meat, there is a need to invest in one upgrade Boer for every 25 does. Live goat for sale commands a price ranging from P120 – P180/kilo or minimum of P4,500/head.

To raise goat for commercial milk production, pure or upgraded goats of the Anglo Nubian or Saanen breed is recommended as breeder buck. Goat of this breed could produce 0.7 – 2 liters daily in 215 – 250 days of milking.

Goat-raising is highly profitable. With minimal capital investment of P67,250 for 25-doe level; P174,500 for 50-doe level; or P349,000 for 100-doe level, positive net income and return on investment (ROI) are realized, even as early as the first year. The ROI for five year is 67 percent from a 25-doe level operation under semi-confinement scheme and 60 percent from 50-doe and 100-doe level operations under pure confinement system. Payback period is two years.

As goat production requires low initial investment and small risks compared to other livestock, it is therefore an attractive undertaking among resource-poor families.


SEAWEEDS GALORE

Mindanao’s seaweed exports have almost doubled in 2008. From January to October 2008, exports of processed seaweeds reached 5,085 metric tons (MT) valued at US$12.6 million. This is a 92 percent increase in volume and 114 percent increase in value over exports for the same period in 2007

Eucheuma and kappaphycus seaweed varieties, which are grown in the Philippines, are used for the production of carrageenan, a thickening and stabilizing agent used worldwide in many processed foods and in products such as toothpaste, shampoo, paints, and pharmaceuticals.

Marine products of the many species of seaweed, the most commonly developed and cultured species in Zamboanga city is the EucheumaCottonii seaweed because of its numerous uses. It enjoys the heaviest demand in the market, both here and abroad. In addition, Eucheuma can be farmed commercially almost anywhere in the city’s coastal areas. Eucheuma seaweed has been commercially introduced in various method of propagation, after extensive experimentation. It was disclosed that eucheuma seaweeds grow faster on reefs than other areas which prove that seaweed farming is viable in this city. When the study of Eucheuma seaweeds propagation was initiated, its technical advancement was transferred to the private sectors, thus making the seaweed industry one of the leading ventures in the country today

The country produces most of the world’s carrageenan in 14 processing plants located in Cebu, Southern Luzon, and Zamboanga. And the top regional supplier of raw materials for these plants is Mindanao, which produces 75 percent of the country’s eucheuma and kappaphycus seaweeds, which mostly come from Zamboanga peninsula and Sulu archipelago.

The country’s processing plants alone need a minimum of 134,000 MT of dried seaweed annually, yet the total Philippine seaweed output decreased from 95,600 MT in 2004 to 74,650 MT in 2007 due to weather conditions. rising energy and transport costs, and other factors.


(JojiIlagan Bian is a strong and respected advocate for the development of the region. She is Chair of JojiIlaganFoundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)

Friday, July 03, 2009

WHILE YOU WERE SLEEPING…

On July 06, 2009, United States Agency for International Development through their Growth with Equity in Mindanao Program will launch two of its projects that legitimize Mindanao in the Cyber-world Map. They would be launching WiMax and JEEP program which aims to help boost the BPO industry in Mindanao.

The BPO industry has been making its great leap and now being considered as one of the top economy-pushers just within the last few years which started around 2009.

Last week, my call center was invited to take part in a public hearing regarding an ordinance that would require all call centers in Davao City to provide special quarters for the use of their employees. The idea sounded generally nice but not generally wise.

Most of the call centers in Manila spare a room or two for ther employees comfort. The idea is for the employees’ use to rest and probably sleep since that they are working in wee hours of the day. Wonderful isn’t it? The companies try to find ways to holistically take good care of their employees.

But then, that is Manila. The quarters for them are more of a necessity rather than of a luxury. Call center agents based in Manila can come as far as Rizal, Laguna or Batagas. Going home right away after a long and tiring shift and sleeping at the comfort of your own room does sound very enticing but it won’t be that easy.

Let see how 24 hours spent is being used up. Working for a call center means that you have to be in the office for 9 hours, that 8 hours work plus 1 hour for your meal break. Consider someone who works in a call center in Ortigas who happens to live in Laguna. It would take them at least (note the word AT LEAST) 3 hours just to get to or from your work site. It would take roughly another 3 hours for the other two meals that you’ll have for the day. And about 2 hours max for you to dress up and get ready for to work. And since call centers are very strict with time you have to be on site at least 30 minutes before work.

Doing the math, 8 hours work plus 1 hour meal break plus 6 hours travel time plus 3 hours for lunch and dinner plus 2 hours personal care plus 30 mins. before shift is equal to 20.5 hours. This leaves you with 3.5 hours at most for your sleep every day.

So really, it is a necessity for them. However, here in Davao City the farthest can go up to Toril or Sasa or Tibungco which is at most, would take an hour. But most of the call center agents live within a 15 min travel radius from their work place. If I am the agent, I would think twice or thrice staying in the special quarters and sharing it with 3 or more strangers to sleep when I could go home within a matter of minutes.



Allocating special quarters may not also be cost-effective and wise. If the ordinance is enacted, I being an entrepreneur would allocate funds to build and maintain these special quarters. Building them and maintaining them can’t be covered up by petty cash funds. A special funding would really be needed.

My 200-seat call center is currently on the development stage. We are currently expanding our capacity to cater to more foreign clients needs. Allocating another room would be means losing at least 50 seats and consuming about a chunk for expenses on maintenance. And about only 2-3% of my employees would avail of this privilege. So if I spent Php 500,000 for the construction and maintenance of the special quarters for a year, only about 20 of my employees would be able to enjoy the quarters. But if I spent that amount and equally divide them to the number of employees we have and allocate it as salary raise, all of my employees would benefit and all of them would really appreciate what they received.

The ordinance would force the call centers particularly those operated by small entrepreneurs like me in Davao City to divert funds from much need employee benefits or facility/equipment upgrade to building and maintaining these special quarters.

I applaud the law makers of Davao City for such initiative to take care of the welfare of the BPO professionals within the city. But there is no necessity to regulate them .

To make matter worst, the proposed ordinance says that if there is no “napping quarters” found in the call centers, our business permit may be cancelled. These will just be an added cost to doing business and may even be another layer of bureaucracy that may just result to petty corruption.

We as entrepreneurs are always in a look out of better benefits that our employees would really appreciate. Dictating us what to give would not do any good for us or even for the employees.

It is always nice to benchmark things as we could see our pros and cons of every institution. Comparison also gives us the ideas and facts to check projects if it would be feasible or not. But then again, let us always remember everything is unique and what may be best for them may not be the best for us.


(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)