The Cabinet Committee of the Investment Coordinating Council granted first-pass approval to the Carmen Water Supply Project in its meeting on April 29.

The P1.9-billion Carmen Water Supply Project proposes to supply an average of 50,000 cubic meters per day to the Metro Cebu Water District (MCWD) from Luyang River in Carmen, Cebu. A consortium of Ayala and Stateland, Inc. submitted the unsolicited Build-Own-Operate (BOO) proposal.

The Carmen project is expected to boost Cebu’s supply level by as much as 35 percent. Cebu currently receives about 275,000 cubic meters of water per day from MWCD and private deepwells.

Said MCWD chairman Ruben Almendras, “The Carmen project will increase MCWD’s water supply by 26 percent and address the underserved demand for water connections, which we receive at the rate of 1000 applications per month.”

Metro Cebu is expected to benefit most from the project. Experts familiar with Metro Cebu’s water situation observe that the Carmen project can stem the demand on Cebu’s battered aquifer, which provides 90 percent of the total water supply. The aquifer is overmined by an estimated 95,000 cubic meters per day, or more than a third of its current production, resulting in increased water salinity. At this rate, Cebu may experience dry taps in 10 years and irreversible ecological damage by 2025.

Almendras noted that after studying available options, the Carmen project was identified to have the shortest timetable in terms of delivery and most cost-effective means in developing sources of surface water. The project, if approved, is expected to be operational in 2007.

Analysts see the project as part of Ayala’s expansion in the water business. Ayala is the biggest shareholder of Manila Water Company (MWC) which is the current the concessionaire of the East Zone in Metro Manila. Since it won the concession a privatization bid in 1997, MWC has decreased systems loss from 68 percent prior to privatization to 51 percent in 2003. It also increased connections to 515,000 households. From only 26 percent in 1997, about 83 percent of its households now enjoy uninterrupted water flow 24 hours a day. In 2003, MWC’s net income rose to P1.2 billion due to improved billed volumes and cost efficiencies.

Ayala managing director Antonino T. Aquino said, “The additional supply addresses a very frequent complaint of Cebu’s business sector which is lack of water. It will enhance development of Cebu’s economy as the project reduces overmining by 50 percent and buys Metro Cebu time to develop other sources of water. In addition, having connections to MCWD will allow the less fortunate sector to save on water expenditure as they cut off dependence from ambulant vendors.”

Following the ICC’s first approval, the consortium of Ayala and Stateland, Inc will finalize its agreement with MCWD through a draft contract. MCWD will then conduct a public hearing and will subject the contract to a review by the ICC and the Presidential Legal Team. Once approved, the agreement will be subjected to a price challenge before the final award.


It’s a way of thinking encouraged throughout the Ayala Group: to be a truly successful business house, one must give back to the community that sustains it.

Guests at the recently concluded annual stockholders’ meetings were given a glimpse of this corporate citizenship. Globe Telecom Inc., the Bank of the Philippine Islands (BPI), Ayala Land, Inc. (ALI) and Ayala Corporation held exhibits describing their various social development projects to enlighten the public about the social commitment of Ayala companies.

Building the nation for the future
This commitment is chiefly expressed through the Ayala Foundation, Inc. (AFI). Now on its 40th year, AFI continues to look for innovative ways to develop communities, the arts and culture, and the youth. AFI’s flagship programs such as the Center of Excellence in Elementary Education (Centex), the Solid Waste Management Campaign, Project Youth Tech, and neighborhood alliances in Cebu, Mindoro, and Laguindingan in Northern Mindanao have been making positive differences where needed. Moreover, the Ayala Museum and the Filipinas Heritage Library have both been cited for their role in preserving and nurturing pride in the country’s cultural heritage.

Ayala Corporation itself spearheads programs aimed at creating a lasting impact on Philippine society. The Ayala Young Leaders Congress this year held its fourth assembly of student leaders from all over the country with the purpose of encouraging them to be citizen leaders in their own communities. Ayala Corporation also led the group in supporting and sending thousands of volunteers to activities such as Habitat for Humanity’s World Leaders Build and the La Mesa Watershed Reforestation.

Company strengths
Ayala companies draw on their particular strengths to express their corporate social responsibility. Globe’s exhibit highlighted the Globe Telecom Academic Achievement Awards (GTAAA), now on its seventh year of recognizing excellence in electronics and communication engineering, electrical engineering, and high school math and science. Globe supports similar projects that harness the potential of the youth such as Centex, the book reading program Sa Aklat Sisikat, the Globe-Isla-CITE Technical Scholarship Program, and ConnectEd.ph, an initiative of the government and private sector to provide Internet laboratories for public high schools. Apart from these education and youth-oriented programs, Globe also provides medical assistance and relief operations in the Bicol region through its Disaster and Emergency Response Program.

BPI Foundation’s booth emphasized its role in encouraging the youth to pursue careers in science and engineering through the BPI Science Awards. More than 300 students from the country’s top universities have been recognized for various achievements in their field. BPI Foundation also provides scholarships to deserving students of science and engineering.

BPI Foundation is particularly proud of mobilizing employees to volunteer for its programs. In the past year, BPI employees have participated in Habitat for Humanity builds, medical missions in Pasay, Marikina, Quezon City, Cagayan de Oro, and Tanauan, Batangas, and relief assistance to victims of calamities. Employees themselves even organized exposure trips on solid waste management and environmental conservation for public school children.

Meanwhile, Ayala Land’s exhibit focused on programs that enrich its host communities. The country’s largest property developer is actively involved in river rehabilitation and water resources conservation in Calamba, Laguna, anti-flood measures in Makati, Pasay, and Paranaque, traffic management in Muntinlupa, Las Pinas, and Laguna, and dental and medical missions Metro Manila and Southern Luzon. It is also a benefactor of schools such as Putatan Elementary School in Muntinlupa and the Centex campuses in Tondo and Bauan, Batangas, as well as organizations for the differently abled like the Elsie Gaches Village and the Earthsavers’ Dream Ensemble.

Stockholders get involved
The corporate citizenship exhibits seemed successful in encouraging stockholders to get involved in the Ayala companies’ projects. While some had knowledge of these projects through brochures and features in the newspapers, others were pleasantly surprised to discover that the company they invested in are giving back something to society.

Observed Teresita Basilio, an ALI stockholder, “I’m glad you have projects such as day care centers, schools, reforestation, and the like. It’s good to know that Ayala Land is a very good corporate citizen.”

Some stockholders expressed interest in participating in the projects. Said retired captain Rogelio Rodillas, a Globe stockholder: “Maganda yung La Mesa Reforestation kasi grabe na ang pollution sa Maynila. Yung sa Habitat for Humanity okay din kasi kulang tayo sa mass housing. Kailangan mabigyan din ang mga mamamayan ng mga bahay. I’m willing to volunteer for these projects para makatulong ako sa mamamayan at para may legacy din ako ng pagtulong.”

They even suggested other projects that the companies could be involved in. Basilio says she would like to see ALI teach farmers to grow herbs and provide them seedlings for fruit trees and other alternative crops. BPI stockholder Engr. Alma Manalili, wanted to see more values-oriented programs for the youth and programs for street children.

As the Ayala Group embarks on another year of fulfilling its role as good corporate citizens, it may just find a supportive partner in the stockholders who put their trust on its companies.


Grosvenor Place, a joint development of Grosvenor, Asia Standard International and Ayala International, was awarded the 2004 MIPIM (The International Property Market) Award for Residential Developments at the 14th MIPIM Awards Ceremony on March 11 in Cannes, France.

The 29-storey Grosvenor Place in Repulse Bay, Hong Kong, was the first residential development in Asia to receive the MIPIM Award, often referred to as the “Oscar” of the international property industry. The MIPIM Awards recognizes the world’s most remarkable property developments in five categories: business centres, shopping centres, residential developments, refurbished office buildings, and hotel and tourism resorts.

An independent, international jury selected Grosvenor Place and 14 other finalists from among a hundred projects, a record number since the awards were created in 1990. Around 15,000 participants in the MIPIM fair then cast their votes and chose five winners and a special jury awardee.

Managing director of Ayala International Pte Ltd, Charles Cosgrove noted, “Grosvenor Place is the first Asian residential development ever to be awarded such recognition. The whole project speaks of the leadership and the commitment of the venture–Asia Standard, Grosvenor Group and Ayala International–to conceiving and completing a real estate product representing value and timeless quality.”

Lau Cheng Soon, Ayala International’s executive director overseeing Asia, further added, “The recognition affirms Ayala’s commitment to excellence and to quality performance benchmarked against international standards.”

Grosvenor Place bested Armada Housing in the Netherlands and the Arkadien Asperg in Germany in the category, Residential Developments. Designed by Paul Davis and Partners of London, Grosvenor Place is a development of Weststar Enterprises Limited, a joint venture of Grosvenor, Asia Standard International, and Ayala International.

Grosvenor is an international property group with operating companies in the United Kingdom, Ireland, the Americas, Europe, the Australia Asia Pacific region. Asia Standard is involved in properties, hotel operations and restaurant chains in both Hong Kong and China. Ayala International is the regional investment arm of Ayala Corporation, a Philippine-based business house whose core industries are real estate, banking, and telecommunications.

Another Ayala development, Ayala Center’s Greenbelt 3, was also a finalist in the shopping centres category. It was the only Philippine entry to make it to the final round this year.

“The MIPIM Awards are the most prestigious distinctions in the property world. It is the ‘Oscars’ the property industry,” noted Werner Welter, former managing director of DB Real Estate Investment GmBH (Germany) and president of the jury of this year’s awards.


Globe Telecom and other members of the Ayala group of companies received a total of 11 Gold Quill and Anvil Awards in separate awarding ceremonies hosted by the International Association of Business Communicators (IABC)/Philippines and the Public Relations Society of the Philippines (PRSP).

IABC/Philippines’ Gold Quill Awards and the PRSP’s Anvil Awards are two of the highest distinctions given to excellent business communication and public relations programs in the country.

IABC/Philippines bestowed five Gold Quill Awards of Excellence and three Gold Quill Awards of Merit to Ayala companies in recognition of communication initiatives in community relations, publication and publication design, audio-visual presentation, marketing communication, and electronic and interactive communication. These projects were recognized by their respective management teams as adjunct tools of successful businesses and were judged at par with international standards of quality.

Collaborative effort

Given the Gold Quill Awards of Excellence were Globe Telecom’s Globe Spectrum Magazine(Publication Design); the Ayala group of companies 2002 Unified Annual Reports (Publication and Publication Design); Ayala Foundation’s Text2Teach: A Bridgeit Project (Community Relations); and Ayala’s corporate video What Makes a Company Great? (Audio-Visual).

Globe Spectrum Magazine communicates industry issues and corporate news and developments to Globe’s external publics. It is a collaborative effort of Globe’s public relations division and lead design agency ArtOne Design, Inc. headed by Dopy Doplon.

The Ayala group of companies 2002 Unified Annual Reports focused on the concept of stakeholder trust. Using a single design template, the reports highlighted the conglomerate’s diverse business interests and shared business principles and values.

Ayala’s five-minute corporate video, developed together with K2interactive, Inc., reiterated the concept of responsible stakeholder relations with the tagline: “What makes a good company great? What makes a country great? The people who stand by it.”

Also given Gold Quill Awards of Merit were AFI’s Text2Teach (Marketing Communication, in tandem with EON, Inc.); Globe Telecom’s Icon: The Globe Employee Portal (Electronic and Interactive Communication); and BPI Foundation’s Steering Infanta Onto the Road to Progress (Community Relations).

Text2Teach is part of a global program designed to improve community life by using text messaging to download educational videos via satellite into classrooms.

Globe Telecom’s web-based employee portal Icon facilitates fast and effective communication among the company’s more than 4,000 employees in 80 corporate offices, business centers and technical offices in over 20 cities nationwide.

Meanwhile, BPI Foundation was awarded for its project, Steering Infanta Onto the Road to Progress.

Tradition of excellence

Ayala companies were also recognized at the PRSP’s 39th Anvil Awards for their tools of publications and institutional and corporate programs. The Zobel & Zen Calendar 2003, which featured select artworks of Jaime Zobel and released for Globe Telecom’s 75th anniversary, garnered the Anvil Award of Merit in Tools of Publication. Ayala’s 2002 Unified Annual Reports also received the Anvil Award of Excellence in the same category.

Meanwhile, Manila Water Company received an Anvil Award of Merit for Institutional and Corporate Programs for its entry, The Randy Diaz Incident: Crisis Communications at Work.

The 11 Gold Quill and Anvil Awards received by Globe Telecom and other members of the Ayala group of companies reflect the conglomerate’s high standards of quality in communications and public relations as in its business operations. This tradition of excellence helped make Ayala, over the course of its 170-year history, one of the largest and most respected business houses in the Philippines today.

For Reference:

Cynthia H. Evidente / Jones T. Campos
Globe Telecom
Tel 730 2629 / 730 2624