NCR construction materials retail price growth hits 34-month high

Retail price growth in construction materials in Metro Manila rose 2.1% year on year in October, the largest increase in almost three years, the Philippine Statistics Authority reported Monday.

According to preliminary PSA data, the rise in the October construction materials retail price index (CMRPI) accelerated from 2% in September and 1.4% a year earlier.

The 2.1% reading in October was the largest since December 2019, when retail construction materials prices grew 2.5%.

In the year to date, the CMRPI was up 1.4%.

The October result was driven by faster growth in plumbing materials (1.8% from 1.3% in September), tinsmithry materials (3.6% from 3.1%), and miscellaneous construction materials (2.8% from 2.5%).

Retail price growth in electrical materials was unchanged at 1.3%.

“(The increase) in construction retail prices may be due to the resumption of many construction activities as the pandemic situation improves,” Asian Institute of Management (AIM) Economist John Paolo R. Rivera said.

Mr. Rivera noted that even with increased demand, the supply of construction materials “may be slow to catch up” due to disruptions in the supply chain brought by the Omicron variant of the coronavirus disease 2019 (COVID-19).

“If the Omicron variant is contained and supply constraints from abroad are managed, we might see improvements in retail construction prices,” he said.

BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas concurred, adding that the supply chain bottlenecks are “still being felt in the prices.”

“Prices will continue to be elevated,” Mr. Ravelas said.

The Department of Health announced on Dec. 15 the detection of the first two cases of the Omicron variant in the Philippines. As of Monday, four cases have been detected.

Source: PSA and BusinessWorld

Hello, IKEA Philippines!

The world’s biggest IKEA store is finally open at the SM Mall of Asia Complex! Three years after its announcement, the Swedish home furnishing megastore is ready to welcome shoppers at its four-storey complex. Worth P7 billion ($133 million), IKEA Philippines drew an estimated 1,000 eager shoppers (according to a member of the security team) on opening day on Thursday, 24 November.

The venture is a partnership with SM Prime Holdings Inc. and occupies a massive space of 65,000 sqm, roughly the size of 150 basketball courts.

Shoppers have to be fully vaccinated and need to register before entering the shopping area. As the festive beats of a Mindanao band enlivened the welcome ceremony, IKEA customers navigated their way through the store offering diverse homeware.

The IKEA experience isn’t just about shopping for exquisite Swedish furniture known for its spare but stylish design, but also about trying out Swedish cuisine at the fourth floor restaurant, second floor café and ground floor bistro. As long lines marked the first day, the store was quick to deploy 30 ushers reminding everyone to practice social distancing by noontime.

At 7 p.m., the restaurant ran out of Swedish meatballs, which disappointed netizens who posted on their social media sites and even became a trending topic. But not to worry, Ikea Philippines is here to stay.

Philippines, Korea Firm-Up Infrastructure Partnership for PGN Bridge

The government of Republic of Korea is ready to extend financial support in the conduct of engineering services for the much-awaited inter-island bridges project of the Department of Public Works and Highways (DPWH) in Western Visayas.

DPWH Acting Secretary Roger G. Mercado said that moving forward soon following the completion of supplemental feasibility studies by the Koreans is the detailed engineering design (DED) of the Panay-Guimaras-Negros (PGN) Bridge Project.

The soon to be longest bridge in Region 6 will be the fastest way by land where people can leisurely cross Iloilo, Guimaras, and Bacolod for commerce, tourism, and other essential travels, added Secretary Mercado.

The minutes of discussion for the financial support on engineering services including preliminary and detailed engineering design and procurement assistance required prior to the construction of the bridge was signed on Thursday, October 28, 2021 by DPWH Undersecretary for Unified Management Office Operations (UPMO) Emil K. Sadain and Country Director Jae-jeong Moon from Manila Representative Office of the Korea Export-Import (KEXIM) Bank.

The signing ceremony was also attended by Deputy Director Soohhyung Han and Ana Labella of KEXIM Bank, and Project Director Benjamin A. Bautista of DPWH UPMO Roads Management Cluster 1 (Bilateral).

Undersecretary Sadain said that the Koreans has committed official development assistance (ODA) loan to the Philippines through the KEXIM Bank - Economic Development Cooperation Fund (EDCF) to finance the DED of this immense flagship bridge project. The loan will be formalized with the signing ceremony scheduled in December 2021.

The proposed island bridges connecting Panay Island, Guimaras Island and Negros Island has two (2) components.

These are the 13 kilometers Panay-Guimaras or Section A that will have a sea-crossing bridge length of 4.97 kilometers; and Guimaras-Negros or Section B or with a total length of 19.47 kilometers including sea-crossing bridge length of 13.11 kilometers.

The supplementary feasibility study report and engineering service provision for the project was approved by the NEDA Board’s Investment Coordination Committee-Cabinet Committee in August 2021.

The 32-kilometer bridge is a large and complex project which requires comprehensive and high-standard engineering works that service by consultants who have extensive experience in long-span bridge will help DPWH prepare the construction in an efficient and timely manner, Undersecretary Sadain added.

Despite the challenges posed by the Covid-19 pandemic, the DPWH Korean government-funded flagship infrastructure projects are steadily moving forward.

KEXIM Bank-EDCF is presently supporting civil works on the Integrated Disaster Risk Reduction and Climate Change Adaptation Measures (IDRR-CCA) in Low-Lying Areas of Pampanga to boost disaster resilience; Samar Pacific Coastal Road Project connecting the Pacific towns in Northern and Eastern Samar and bolster the agricultural and fishing industry in Eastern Visayas; and Panguil Bay Bridge connecting Tangub, Misamis Occidental and Tubod, Lanao Del Norte.

Source: DPWH