COMPUTER Innovations in PC Motherboards and Chips, Invented by a Filipino Engineer

If you’re looking for the Filipino version of Bill Gates, one name comes to mind: Diosdado (Dado) Banatao. Both come from a technical background, introduced technologies that transformed the computer industry, and built hugely successful companies from the ground up. Gates may be the co-founder of the biggest software company in the world and the richest man in the planet, but Banatao might just have a better track record as an innovator and entrepreneur. Banatao is widely considered a true Silicon Valley visionary. As an engineer, he is credited with developing several key technologies. His new chip set design produced ten times more power at a thousandth of the cost, ushering in the era of the PC - personal computer, making it more powerful and at the same time affordable to millions of people worldwide. He also invented a new graphics accelerator that is now being used in nine out of ten PC’s. Moreover, he developed the first Ethernet controller chip that enabled computers to link up to and communicate with one another, hastening the spread of networking computing. But Banatao is not just a prolific inventor, he’s also an entrepreneur. He co-founded three technology startup companies: Mostron, which made motherboards; Chips and Technologies which developed chip sets; and S3 which produced graphics chips. In 1997, he was honored with the prestigious “Master Entrepreneur of the Year Award” by Ernst & Young, Inc. Magazine and Merrill Lynch Business Financial Services. Forbes Magazine has often put him on its “Midas List.” Today, Banatao has proven to be a master inventor and venture capitalist as well. He is one of the few venture capitalists or VCs, that were veteran entrepreneurs. That sets him apart from many other VCs who never ran a business. As the founder and managing partner of Tallwood Venture Capital, he invests, oversees, and sells several technology companies, including Cyras Systems, acquired by Ciena; Newport Communications, acquired by Broadcom; Acclaim Communications, acquired by Level One; Stream Machine, acquired by Cirrus Logic; Marvell Technology Group and New Moon Software.

Cagayan Valley to Silicon Valley Who would have thought that the man hailed as one of the most successful technology entrepreneurs and venture capitalists in Silicon Valley was actually born in Cagayan Valley, Philippines? Born two years after the Japanese occupation in the Philippines during World War II, Banatao was raised by a rice farmer and housekeeper parents. He grew up in the sleepy town of Malabbac in the farming town of Iguig in Cagayan Province. As a kid, Banatao used to walk barefoot to school along dirt roads. He later went to Ateneo de Tuguegarao, where he was encouraged to pursue engineering, thanks to his grades in math and science. He went to Manila to attend college at the Mapua Institute of Technology (MIT), where he graduated cum laude with B.S. Electrical Engineering degree. The first job he got was a pilot trainee at Philippine Airlines (PAL) which offered better salary package compared to working with Meralco and NPC – then top choices companies for new graduate engineers. But his career as a pilot was put to a halt when Boeing recruited him as a design engineer and brought him to the U.S. That proved to be the turning point of his career. Banatao realized he enjoyed engineering much more. He once said that when you like to do things, you usually end up good at it. But you also have to be trained properly. So when he discovered he needed more training, he pursued his Masters in Electrical Engineering and Computer Science at Stanford University, which he completed in 1972.

Computer Breakthroughs Banatao then worked with some of the leading-edge technology companies, including National Semiconductor and Commodore International – where he designed the first single-chip, 16-bit microprocessor-based calculator and Intersil. In 1981, while working at Seeq Technology, the inventor of the Ethernet asked the company to look for a more efficient way of linking computers. Banatao was asked to collaborate, which led to his breakthrough discovery. Instead of using big boards, he was able to put the Ethernet controller on a single chip. That was the first 10-Mbit Ethernet CMOS with silicon coupler data-link control and transreceiver chip. At that point, Banatao decided it was time to set out on his own. He went out on a limb and with US$ 500,000, mostly from friends, he started Mostron in 1985 to develop chip sets. As the owner of a struggling startup, Banatao had to be more resourceful. He could not even afford to buy reference manuals, so he debugged chips by using equipment from another company that wasn’t used on weekends. His perseverance soon paid off. Mostron came up with the first system logic chip set for the PC-XT and the PC-AT, which lowered the cost of building the personal computer and made it much more powerful. About the same time, Banatao launched his second startup, Chips and Technologies (C&T), which created enhanced graphics adapter chip sets. In just one quarter, the company generated sales of US$ 12 million. And in less than a year, without any venture capital funding, C&T went public, one of the fastest IPO (initial public offering) listings in the history of the U.S. stock market. In 1996, semiconductor Intel bought out C&T for a reported US$ 430 million. But even before this, Banatao had already made his millions. Earlier, his third startup, S3, pioneered the local bus concept for the PC in 1989 and introduced the first Windows accelerator chip in 1990. In 1993, S3, estimated to be the world’s most profitable technology company, had an IPO worth US$ 30 million.

Awarding of the 10 Most Inspiring Filipino Technopreneurs (Techno Negosyo Expo Philippines, September 2008) 1. Diosdado Banatao (Computer Chips- Mostron and S3) 2. Nonoy & Ben Colayco (Online Gaming- Level Up) 3.Joey Gurango (Software Development- Webworks OS) 4. Danilo Manayaga (Biotechnology- Servac Philippines) 5.Dennis Mendiola (Wireless Technology- Chikka Asia) 6. Manny Pangilinan (Telecommunications- First Pacific, PLDT) 7. Dr. William Torres (RP Internet Pioneer- Mozcom) 8. Peter Valdes (Software development- Vinta Systems ) 9. Orlando Vea (Mobile Communications/New Media - SMART founder, MediaQuest) 10. Jaime Augusto Zobel de Ayala II (Diversified IT investing-iAyala) Multimillionaire Investor Like the famous inventor Thomas Edison, he believes that genius is one percent inspiration and 99 percent perspiration. Now a multimillionaire, Banato invested privately in several networking companies that were eventually sold, making him a very rich man when he joined the well respected venture capital firm Mayfield Fund in 1998. When Mayfield after two years offered to promote Banatao to general partner, Banatao said no. Used to being his own man, he left Mayfield to start his own fund in Palo Alto, California, called Tallwood Venture Capital, with his own money, all US$ 300 million of it. Today, Banatao continues to fund and incubate companies that are making breakthrough technologies. His philosophy is to build businesses and the money will just follow. True enough, his companies are creating value. His Cielo Communications is developing the vertical cavity surface emitting laser, or Versel, which speeds the transmission of data along optical lines. His SiRF Technology is designing a chip for global positioning system (GPS), which utilizes satellite to locate objects. All the Silicon Valley stress is well worth it. He may have sacrificed his social life, but now he enjoys a great family life with his wife – an educational psychologist, as well as his two sons, and a daughter. Banatao has more than three homes in the U.S., including resort properties. He travels all over the world and has often visited the Philippines, where he continues to be esteemed by the government, the academe, and the business community. He owns luxury cars, including a Porsche and he flies his own jets. More than a life of luxury, Banatao contributes money, time and experience to companies and institutions in the Philippines and the U.S. His Banatao Filipino American Education Fund assists high school students of Filipino heritage in pursuing a college education, particularly to promote rewarding careers in the field of engineering. As for his childhood town in Cagayan Valley, he went back to build a computer center at his grade school, probably the only public elementary school in the Philippines with the most modern computers on a network. From walking barefoot along dirt roads to riding luxury cars and flying fast jets, Banatao has really come a long way. Acknowledgement: NEGOSYO – Joey Concepcion’s Inspiring Entrepreneural Stories, ABS-CBN Publishing, Manila, Philippines

pinoy stories- blog #10

CHIKKA: World's First Mobile Instant Messenger Developed by a Filipino Engineer

Chikka is a pioneer in wireless applications services development, the world’s first mobile instant messenger (IM) that runs on Short Message Service (SMS), having created in 2001 by Dennis Mendiola, a Filipino engineer-cum-businessman by profession. Filipinos love to talk, especially small talk. We even coined a term for it: “chikka”. We chat, we e-mail, and we send text messages. In fact, we send 150 million text messages every day. No wonder we are the SMS capital of the world. Mendiola knows this very well as the founder, former chief executive officer and currently chief imagination officer of Chikka Holdings Ltd., the company behind the success of Chikka. This company has since developed multi-platforms, including mobile-interactive TV, SMS-enabled auction sites, mobile matchmaking, and mobile versions of Internet Relay Chat (IRC). Chikka leads in bringing innovative mobile applications in the country. And more and more foreign carriers and mobile content providers are looking at the Philippines for consumer-friendly applications that they can adopt and deploy, making us probably the world’s most advanced texting nation. Management and Strategic Planning Expert Mendiola was only in his mid-thirties when he started Chikka. Certainly, his educational background and work experience are impressive. Mendiola graduated summa cum laude in B.S. Economics from the University of Pennsylvania (Wharton). He also completed B.S. Electrical Engineering (Moore) and MBA (Harvard Business School) where he graduated with honors. He began his career as a management consultant at McKinsey & Co. in New York. Then he went into investment banking at Bankers Trust in Singapore and Morgan Stanley in Hong Kong. At the time when the Philippines was touted as the next Asian tiger during the administration of President Fidel Ramos, Mendiola went home to try to make a difference, enlisting with Richard Gordon’s brigade of volunteers trying to revitalize the abandoned U.S. naval station in Subic. He was tapped to head corporate finance and strategic planning at the Subic Bay Metropolitan Authority. In 1996, he decided to set up his own venture capital company, becoming the managing director and founding partner of Next Century Partners, Ltd., a private equity fund manager that channels funds from investors like American billionaires Roger Sant and Edward Bass for investment in profitable enterprises in Asia.

Birth of Chikka Text Messenger In the late 1990s, Next Century Partners rode the internet wave and got involved in e-commerce in 2000, investing in Ajonet Holdings. But there was another trend developing, one that appeared to eclipse the Internet in the Philippines: “mobile technology.” Mendiola and his partners started talking about their idea of enabling messaging between online Filipino communities anywhere in the world using their mobile phones. It made a lot of sense as the number of mobile phone subscribers was outrunning the number of internet users in the country. But at the same time, overseas Filipinos – contract workers and immigrants in more advanced countries have greater access to the internet. There has to be a way to connect the wired and wireless. Quickly, Mendiola and his partners formed a new company that would build the backend and mobile interface that will allow Filipinos to use their SMS-enabled GSM phones to communicate with internet users. Code development began immediately the same year. The new company was called Chikka Holdings, Inc., named appropriately after the Filipino slang for small talk. The holding company was incorporated in the British Virgin Islands in 2000. It is 40 percent owned by the employees and 60 percent by institutions such as venture capital firms Sitestar Corp. of the U.S., Pacific Northstar, and Discovery Fund Venture Capital. Chikka Asia, Inc. was set up as the regional operating arm based in the Philippines. Soon, it developed the world’s first mobile IM, dubbed Chikka Text Messenger. The application unified the users GSM phone number and Internet IM account, allowing instant messaging via the cellphone. The idea caught on, and it also quickly became popular among overseas Filipinos, who were now able to send text messages from the internet to any Globe or Smart mobile phone. Chikka has since positioned itself as a Wireless Applications Service Provider (WASP). In just three quarters from its commercial launch, Chikka had already achieved cash flow and accounting breakeven levels, ahead of schedule. Today, Chikka has sustained profitability and is now expanding internationally. Chikka’s Affiliate Technology-Based Consumer Services

Meanwhile, Mendiola began investing in and launching other technology companies. He founded the Incredibly Fast Internet Company, a holding company for several internet-based businesses. In June 2000, eRegalo was formed to tap into the billion-dollar remittance and gift market by overseas Filipinos. Crushcow.com, on the other hand, introduced mobile matchmaking, which was previously limited to an internet application. Another company, Bidshot.com, lets mobile auctioneers bid on items via SMS and be alerted on the status of their bid, all done anonymously. It is the world’s first SMS-enabled auction site. It also pioneered SMS-interactive TV in the world, enabling any cable system operator to launch their own mobile interactive cable channels with the option to link or open their communities to each other. Mendiola subsequently launched other affiliates, including Sagent, a leader in “natural language,” or the SMS counterpart of “artificial intelligence.” It features a technology it calls M-brace, which is the usual 1-800 number, except the numeric digits are text or SMS short codes. The company is also behind Paysetter International, which pioneered the “virtual wallet,” sending and receiving actual cash via SMS with one’s GSM number linked to his bank account. Paysetter has partnered with Globe Telecom to give the country its first variable peer-to-peer (P2P) secure credit reloading system dubbed “Share-a-Load, now commonly referred to as “Pasa Load” or Pass-a-Load. Chikka to the World Chikka is primed for an international rollout. Its strategy for international expansion involves the licensing of its mobile instant messaging technology to carriers or content providers and partnerships with foreign companies licensing other mobile applications for Chikka. The company has already launched Lounge, a mobile version of IRC, with Chinese carrier Unicorn in China, plus selected countries in Southeast Asia, Europe and the U.S. It will launch its mobile instant messaging service in China, called Chikka China. And it is talking with local partners in India. In the U.S., it has partnered with Cingular and is testing its mobile instant messaging service with T-Mobile and AT&T. It licensed its mobile instant messaging technology to Thailand’s DTAC and Indonesia’s Indosat. It extended its SMS-based newsletter service to SingTel in Singapore and SmartTone in Hong Kong. Chikka may mean small talk, but for Mendiola, it’s big business.

Acknowledgement: NEGOSYO – Joey Concepcion’s Inspiring Entrepreneural Stories, ABS-CBN Publishing, Manila, Philippines

pinoy stories- blog #9

PETRON Offers Free Service Checks to Motorists

Petron service stations throughout the Philippines offer free service checkups to help motorists during Holy Week travel, from March 1 to April 12, 2009 as part of its trademark “Petron Lakbay Alalay” motorist assistance program. Now on its 23rd year, this is the largest “Petron Lakbay Alalay” ever staged, with 88Petron stations participating nationwide. For the first time, Petron has expanded this program beyond Luzon, with 13 stations in the Visayas and 10 stations in Mindanao adding to the complement of 40 Metro Manila stations, 14 Northern Luzon stations, and 10 South Luzon stations offering free service checkups. Participating Petron stations offer free service checks on tire pressure, oil and radiator water level and brakes inspection. Motorists are encouraged to avail themselves of the free service checks to ensure their vehicles are roadworthy for safe and worry-free travel. During the Lenten season, “Petron Lakbay Alalay” also offers roadside assistance inside the major tollways including the North Luzon Expressway (NLEx), Subic-Clark-Tarlac Expressway (SCTEx), South Luzon Expressway (SLEx), Star Tollway and Coastal Road.

Acknowledgement: Petron, Philippine Daily Inquirer 

pinoy stories- blog #8

Nissan URVANs: Vehicles Helping Small and Medium Enterprises in the Philippines

Ms. Elizabeth Lee, EVP of Universal Motors Corp. (UMC) and president of the Chamber of Automotive Manufacturers of the Philippines (CAMPI), lives, breathes and stands by the motto that “no man can become rich without himself enriching others.” Inspired by this principle that the only way to get ahead in life is to help others get ahead as well, this remarkable young executive and entrepreneur has certainly made her mark in the Philippine automotive industry. UMC is the Philippine distributor of Nissan auto vehicles. CAMPI is composed of Philippine distributors of global auto manufacturers such as Nissan, Audi, Chevrolet, Honda, Hyundai, Isuzu, Kia, Mitsubishi, Toyota, Porsche, Subaru, Volvo and Suzuki among others. As an MBA degree holder from the United States, Elizabeth previously worked for SGV-Arthur Andersen’s Business Consulting Group and Merrill Lynch’s Private Client Group in California. She returned to Manila and then moved on to work for Universal Motors Corp . (UMC) to be its SVP in 1999. It was during this time that she was able to turn things around after the company’s sales slump due to the economic crisis then. With Elizabeth at the helm of marketing, UMC’s sales drop was reversed by a significant 17 percent gain in revenues. The following year, she score a coup of sorts with a 55 percent jump in revenues and saw sales surge by 51 percent, a new record before sales stabilized in the following years. Elizabeth’s most remarkable feat happened in 2006, she boosted sales with her pioneering program dubbed “Ur Van, Ur Business (UV-UB)” where the van is used for number of ways - as service van for office employees, school van for students, delivery van for merchants, and rental van for any company, organization or family’s special events or out of town trips.

The program used the venerable Nissan Urvan as a vehicle for small and medium enterprises, under a self-liquidating, mobile business program linked to changing Filipinos’ lives by way of uplifting the poor through donations to a microfinance foundation that assists start-up micro-entrepreneurs. “The idea was to do something that’s never been done before. I wanted the result to benefit both our customers and the poor at the same time. The program is a first in the industry where a vehicle is directly tied to and committed to poverty alleviation.” Elizabeth says of her UV-UB program. Being the first of its kind in the country, this program goes further than just selling consumers their vehicles. It offers easy payment terms, teaches buyers the elements of entrepreneurship via a free roving school called “Asenso Negosyo Academy” (“Business Prosperity Academy”) – another first in the country, and also, this program helps small and medium enterprises ensure their success. Since their conception, UV-UB has helped countless Filipinos reach their goals and even more to dream big again. Elizabeth’s UV-UB program has such been a success, in fact, that not only have their competitors tried to copy it, Nissan Global has approached her to replicate the program in the other countries in which it operates. “Apart from gender, there is not much difference between a man and a woman especially since the bottom line is – it is the results that matter,” Elizabeth says. She also stressed the fact that for her, success is measured by one key thing – significance, making a difference in the world. “I’ve learned that extraordinary, remarkably successful people, both men and women alike, reached success by helping others,” she adds. She also firmly believes that success knows no gender or age and to be able to make it big, one must stand out and never settle for the status quo. Elizabeth has always been told to believe in herself and to never settle for less than her full potential. Her role models include first - her grandfather Robert, who encouraged her to learn about business at a young age by supporting her ideas; second - Carlos Ghosn, CEO of both Nissan Global and Renault of France, who lives and shares wisdom of the principles of learning and passion in everything he does; and third but definitely not the least, her mother Helen. Elizabeth stresses that it was her mother’s encouragement that UV-UB was formulated, and for that she is eternally grateful. To this day, Elizabeth continues to excel in her field and persists in the search for fresh, new ideas to not only make a profit for her company, but to make an invaluable change in the world. Elizabeth strongly believes “in all things, to do what is right.” It is the only way, she insists, that one can be a blessing to others and truly enjoy God’s blessing in return. Elizabeth also believes that, “everything is possible,” knowing that even if not everything happens right away and even if things aren’t easy, one can do anything they set their mind on doing. “Aim high and don’t be afraid to fail. Just give it your best shot,” she adds. Finally, Elizabeth believes that everyone can make a difference. “No one can prevent you from choosing to be exceptional and most importantly, helping other succeed creates enduring success. Successful people seldom climb to the top, they are carried there.” What about her plan for the next 5 to 10 years? “To make the most positive impact,” Elizabeth said. Driven by the spirit of giving back, the CAMPI she also headed has recently donated to the Philippine General Hospital (PGH) part of the proceeds raised from last year’s highly successful motor show that drew some 60,000 visitors. The donation will be used to buy a vehicle for PGH’s mobile blood donation program that will travel around the metropolis to augment the state-run hospital’s supply of blood. Acknowledgement: NEGOSYO – 55 Joey Concepcion’s Inspiring Stories of Women Entrepreneurs Philippine Center for Entrepreneurship, Philippines '

pinoy stories– blog #7

"Hapee Toothpaste" - Philippine-Made, World Class: Pedro's Faith Leads to Success!

Mr. Cecilio Pedro, chief executive and president of Lamoiyan Corporation believes that periods of crisis also provide numerous opportunities; it really just depends on how one chooses to view the situation. Lamoiyan is actually the Cantonese name of Pedro’s grandmother. Born of Filipino-Chinese descent, Mr. Pedro knows what it’s like to be in such a dire situation. For 8 years since 1977, his former company – Aluminum Containers, Inc. – was raking in as the major supplier of aluminum collapsible toothpaste tubes to multinational consumer goods giants Colgate-Palmolive and Philippine Refining Company - now Unilever Philippines. Hope after aluminum phaseout But products, especially those peddled to mass consumers, are constantly in a state of evolution. And in 1985, one of these major shifts occurred in the toothpaste segment when both companies junked their aluminum packaging for plastic laminated tubes. Almost in an instant, Aluminum Containers’reason for being ceased. But Pedro wasn’t about to give up. After all, he still had the equipment, which could still be utilized somehow. “I had to find a business that would make use of my existing facilities,” Pedro recalls. The most logical option he thought was to make his own toothpaste. Still, this proved to be easier said than done. “Initially, my capital was very small, and you need a lot of resources to compete,” he admits. Pedro thought of forming joint ventures with other companies from abroad, but found the royalties to be too expensive. “I was forced to create my own brand locally,” he says. To accomplish this, he knew he had to find a source or a supplier that could help him with the technical expertise of producing toothpaste. He found one through a friend: a company that was making toothpaste for hotels in Japan who agreed to assist him with the technical know-how. Branding and pricing The knowledge may have come from Japan, but Pedro wanted a product that was unmistakably Filipino. He wanted to use local flavors, and he and his team researched and tested close to 200 formulations until they found what they thought to be the most ideal. The whole process took two years, and in 1987 he opened Lamoiyan, better known in the market as the makers of Hapee toothpaste. To sell Hapee – against well-entrenched foreign brands like Colgate, so strong a brand name that many Filipinos at the time used it almost generically to refer to all kinds of toothpaste – Pedro had to come up with an effective marketing strategy to attract consumers by first pricing his product at around 30 percent lower than the leading brands and by coming up with an effective advertising campaign that had strong recall. The result? Lamoiyan now has the No. 3 toothpaste brand in the Philippines. Lamoiyan is 100% Filipino-owned company. Most importantly, the confidence gained by the company from this initial success has allowed Lamoiyan to diversify its product line, which now includes Dazz dishwashing paste and liquids, Tenderly fabric enhancer, Fash liquid detergent, and Gumtect, a special gum-formula toothpaste. For his accomplishments, this Business Management graduate from the Ateneo de Manila University has received numerous awards and citations, including the Ten Outstanding Young Men award for business entrepreneurship. Link up and conquer After nearly two decades of local success, he is now focusing on bringing his fight against the multinationals to the regional arena. As foreign markets increasingly open up due to globalization and free trade, Pedro notes that “the only way to be competitive in the world is you have to be big.” “Unless you compete globally, you can’t survive the onslaught of the giants,” he warns. Just like when he was put into a corner with the phaseout of aluminum tubing. “I am now forced by the economic environment to go international,” he says. The first step in the direction, he says, is to begin exporting Lamoiyan’s products through simple distribution agreements. Pedro has identified Vietnam to become his first overseas market. Pedro says the Vietnamese consumer market is still underdeveloped – but with a significant population of around 80 million. Moreover, Vietnam’s economy is growing very fast, he points out. “We’re just going to export first,” Pedro clarifies, adding that he is not yet looking at setting up factories abroad. This is why Lamoiyan is also set on going public. While Pedro has no definite timetable as yet, he says this initial share offering will happen in the next few years. “That’s another venue to raise money to be able to compete with the giants,” he points out. Faith and blessings of God For all the logic and deliberation that went into building Lamoiyan, Pedro acknowledges another important factor to his success: faith. Indeed, Lamoiyan’s factory complex along South Superhighway is imbued with uncharacteristic calm that borders on serenity. Its simple office is far removed from the corporate hurly-burly as employees are constantly reminded of the things that truly matter in life. Pedro isn’t ashamed to embrace his faith and urges others to be, at the very least, more comfortable in acknowledging the role of God in their lives. “We always put emphasis on the role of the CEO, the COO, the CFO, and the so called framework of technology and human capabilities in moving companies forward,” he says. “You will find few books on CEOs who would tell you that their success is attributed to God and not from their capabilities.” And this, according to Pedro, is what really set Lamoiyan apart. “We attribute our success to the blessings of God and not divine intervention,” he states, adding that this vision is disseminated among all employees of the company. “It’s very difficult to compete with the multinational companies,” he says. “That’s the bottom line. That’s why you also got to have faith.” Making profits and helping others A longtime Christian, Pedro has made Lamoiyan an instrument in helping him spread the Good News. “People who get close to God introduce the gospel to other people,” he notes. As such, his employees attend Bible studies every week and the company, on top of providing the expected personnel benefits, also sees to the spiritual growth of its people. “We are careful in choosing people who in certain ways will be working with Lamoiyan,” he adds. “They have to principally believe in God.” In fact, Lamoiyan’s corporate motto is “To make a difference for the glory of God.” Apart from his strong spirituality, Pedro has also won the admiration for his work in helping people with disabilities, particularly the hearing-impaired. As chairman of the Deaf Evangelistic Alliance Foundation, Inc., he has helped bring free education to hundreds of dead-mute Filipinos, some of whom are also employed at Lamoiyan. “They’re given priority to work in this company,” Pedro says, adding that his foremen and supervisors can communicate in sign language. 20% of Lamoiyan's workers are deaf-mute. For Pedro, success really boils down to grabbing opportunities, both in terms of making profits and helping others. Acknowledgement: NEGOSYO Book - 50 Joey Concepcion’s Inspiring Entrepreneurial Stories ABS-CBN Publishing, Philippines 

pinoy stories - blog #6

San Carlos Bio-Energy Plant in Negros Occidental, Philippines: Clean and Green Energy

San Carlos Bio-Energy Plant, the first ethanol distillery and power cogeneration plant in the Philippines was supported by China Bank together with other government and private institutions. In solid support to the country’s National Bio-ethanol Program, these groups extended a loan to fund the construction of the San Carlos Bio-Energy Plant.

Shown in above photo are the executives of San Carlos Bio-Energy Inc. (SCBI), China Bank and the representatives of the other industry participants.

The Philippine Energy Regulatory Commission (ERC) has granted San Carlos Bioenergy Inc. a certificate of compliance (COC) for its new power plant facilities. A COC is issued to a power generation company found compliant to technical, financial and environmental standards that are specified in the ERC guidelines. The issuance of which paves the way for the start of a company’s operations using bio-gas energy as a renewable resource for electricity power generation.

SCBI is a company incorporated in May 2005 to construct, own and operate an integrated ethanol distillery and power cogeneration plant located in the San Carlos Agro-Industrial Economic Zone on the eastern coast of Negros Occidental - the first in the Philippines and the Southeast Asian region. The plant has the capacity to mill 1,500 tons of sugarcane to produce 30 million liters of ethanol annually and approximately 8.3 megawatts (MW) of renewable power.

SCBI's developer, Bronzeoak Philippines, provided unique and valuable expertise in biomass power plant engineering while its principal sponsor, Zabaleta and Company, provided sugar-based agricultural experience. Equity capital was raised both domestically through San Julio Realty Inc., Valmayor Ventures Inc., National Development Company, the Majent Group, as well as internationally through FE Clean Energy of New York.

This strategic partnership brings forth a purpose-built facility using new and state of the art equipment, fully integrated and designed to ensure optimum energy efficiency. It includes a cane mill, distillery, cogeneration plant, carbon dioxide recovery plant, anaerobic digestion plant, and fuel ethanol storage and loading facilities.

The distillery will process a feedstock of mixed juice from sugar cane crushed on-site and the cogeneration plant will utilize the residual sugar cane pulp known as bagasse as its primary fuel. The methane produced during anaerobic digestion will be used as supplemental fuel for the boiler. By-products include food grade carbon dioxide which is captured for sale as well as fertilizer produced from the liquid effluent and solid waste, which will be recycled for the use of cane farmers supplying the plant.

SCBI’s bio-fuel generator units have a combined 8.3 megawatt (MW) installed capacity, while its two-black start diesel engine generator sets have installed capacities of 1.6 megawatt (MW). SCBI has a pending application for a power supply agreement with the VMC Rural Electric Services Cooperatives, a power distributor in the Visayas. SBCI is a welcome addition to the list of power generators that use clean and green energy. Power generators are vital components of the electric power industry.

SCBI announced in mid-March 2009 that locally produced ethanol could be rolled out in Luzon and the Visayas within the next coming weeks, in time for the government’s 2009 mandate of a 5% ethanol-blend in gasoline as provided by the Biofuels Law of 2006. SCBI said it delivered the first shipment of 1.6 million liters to Petron on March 16, 2009.

The project will displace approximately 15 percent of the country’s imported petroleum, based on the 5-percent mandate to be implemented from 2009 to 2011. The construction of the facility started in the last quarter of 2006, prior to the passage of the Law.

With only less than a fifth of the ethanol requirements to be sourced locally at the start of the mandate, oil companies may import from foreign suppliers at least until 2011, the Department of Energy (DOE) said. “As estimated, the country would need at least 200 million liters of ethanol for the year,” DOE estimated, which admitted that, “unfortunately, the country’s current production capacity is only 39 million liters.”

“The balance between the requirements and what the country can only produce would have to be imported elsewhere. DOE said importing some of the ethanol requirements is allowed until 2011, since the ethanol plants have yet to be fully constructed. “So, come 2011, importing ethanol is no longer possible,” DOE added. Acknowledgement: San Carlos Bioenergy, China Bank, Philippine Daily Inquirer, Business Mirror

pinoy stories blog #5

Bangko Kabayan: Champion-Rural Bank of Small & Medium Entrepreneurs, Merchants, Farmers and Traders in the Philippines

“Ibaan in Batangas, Philippines is a trading town where selling is a major source of livelihood. This is why we have a lot of peddlers here,” says Teresa M. Ganzon, managing director of Bangko Kabayan, Inc. (BK), which is based in the town. “Capital plays a big role in the selling business, and my father, being an entrepreneur, had clearly seen this.” Indeed, this was why her father, Bienvenido M. Medrano, and her maternal grandfather, Manuel M. Agregado, established the Ibaan Rural Bank Inc. way back in 1957. The forerunner of the present-day Bangko Kabayan Inc., the Ibaan Rural Bank had made its objective to provide reasonably priced credit particularly to the community’s small merchants, farmers and traders. In 1977, however, Bangko Kabayan went through a financial crisis that forced Ganzon and her husband Francis to get deeply involved in its operations. It took the couple almost nine years to turn the bank around. But then, in 1989, Ganzon’s father ultimately decided to sell his interest in the bank. “At this point, my husband and I offered to buy out the rest of the family’s share in the bank,” Ganzon recalls. “Our offer was accepted and this gave us the freedom to pursue the vision that we had for Bangko Kabayan.” That vision, then as now, is to make Bangko Kabayan a leading rural financial institution that foster’s God’s presence in the community” by efficiently delivering personalized financial services to the small and micro entrepreneurs in Batangas. Ganzon explains, “As a rural bank, we have a social goal to spur development in the countryside. While some entrepreneurs aim only to achieve their business objective, we at Bangko Kabayan have made it a point to go further down to the rural areas that we are servicing. We have made it our main objective to serve the poor.”

This goal was inspired by the “Economy of Communion,” a project conceptualized by Chiara Lubich, the Italian founder of the Focolare Movement, an international religious organization of which the Ganzon couple are members. Through this project, Focolare challenges its entrepreneurs-members to carry out this vision by helping the poor until they can fend for themselves and are no longer in dire need. The couple anchored Bangko Kabayan on this philosophy, designing its deposit products, loan products, and microfinance services to inculcate the value of savings and promote entrepreneurship among the poor. An initial deposit of only one hundred pesos (PhP 100) is required to open a BK interest-earning savings account. To convert into a current account, the depositor simply needs to deposit an additional five thousand pesos (PhP 5,000). This current account is interest-bearing and can be monitored through a passbook. Time deposits in BK have a minimum term of 90 days, and require a minimum placement of ten thousand pesos (PhP 10,000). Among Bangko Kabayan’s major microfinance offerings is the “Kabayan loan”, an individual lending program that caters to SMEs, providing them with working capital and facilitating their acquisition of fixed assets. Another BK microfinance offering is the “Kapitan loan”, a group lending program for women in the rural areas. Aside from lending, this program facilitates seminars and discussions on credit management and discipline, business management, health care, leadership and values formation. These microfinance programs began in 1996 when Bangko Kabayan established its social development foundation. Four years later, the bank offered them as regular bank products to a clientele that had by then grown to 500 borrowers. Form that tine onwards, this number has further grown to 8,000. Today, BK has a total of 11 branches in Batangas – in Batangas City, Calaca, Cuenca, Ibaan, Lemery, Mabini, Nasugbu, Rosario, San Jose, San Juan, and San Pascual. With current resources totaling over PhP 1 billion, its services more than 50,000 clients. For its rural banking performance, BK has received various awards – including five Eagle Awards from the Rural Banking Association of the Philippines for excellent performance in managing microfinance operations – and currently ranks among the top 3 percent of all rural banks in the Philippines.

Acknowledgement: Entrepreneur Bookazine, Philippines 

pinoy stories blog #4

Habitat Rent-to-Own Houses for Underprivileged Filipino Families

Habitat for Humanity Philippines (HFHP), popularly known as Habitat, is a non-profit housing ministry that helps build responsible and self-reliant communities by helping poor and middle-class Filipino families in need to acquire affordable, decent and durable homes. It partners with government and private organizations, institutions and individuals in transforming lives and promoting people’s dignity through building homes and conducting community development programs. Through volunteer labor and donations of money and materials, Habitat builds and rehabilitates simple, decent houses with the help of homeowner families. Habitat houses are sold to partner families at no profit, financed with affordable, inflation-adjusted mortgage loans. Habitat houses are considered as “rent-to-own houses.” The homeowners’ monthly mortgage or rental payments go into a local revolving fund and are used to build more Habitat houses. In addition to monthly payments, homeowners invest their own labor – “sweat equity” – into building their Habitat house and the houses of others, increasing the pride of ownership and fostering the development of positive relationships within a community. Over the years, Habitat has helped rebuild the lives of over 24,000 families and built over 200 school classrooms nationwide. Its latest project is the Habitat Pasig Project located at the Government Lot F, Bernardo Compound, Caliuag Street, Barangay Pinagbuhatan, Pasig City. Dubbed also as the “Habitat’s Pasig 1 Medium Rise Project,” it aims to serve Pasig constituents who live in danger areas along both sides of Pasig river who wish to have a better quality of life. To realize this mission, the office of Pasig Mayor Robert Eusebio has spearheaded the construction of 2 four-storey medium-rise buildings with the use of Habitat’s core competency and appropriate technology. The vision of Pasig City’s Local Government Unit (LGU) in partnership with Habitat, is to provide homes for families who live along the danger zones of Pasig river and low-income families in other Pasig “barangays” who are not capable of obtaining decent and quality homes through commercial means. Habitat’s technology allowed the construction of decent, durable and affordable housing units for 120 families, thus giving poor residents of Pasig City a chance to improve their quality of lives. Each unit is 20 square meters in size, with a provision for a loft, built with concrete interlocking blocks. Pasig LGU provided the land, approximating a lot area of 1100 square meters. Last week, as headed by Madame Stella Araneta, chair of Bb. Pilipinas Charities Foundation, 27 pretty ladies – comprising 24 Bb. Pilipinas 2009 candidates together with 3 reigning beauty queens of Bb. Pilipinas-Universe, Bb. Pilipinas-International and Bb. Pilipinas-World - volunteered to join the house building activity, donned their hard hats, put on their work gloves, and worked tirelessly together with the homeowners and other LGU volunteer workers to build the much needed homes at the Habitat Pasig project. The Bb. Pilipinas beauties transported 179 pails of gravel, cut 176 rebars, bended 138 rebars, and fabricated 27 concrete interlocking blocks. The beauty queens turned builders also donated dust masks, towels and gloves for use by the skilled homeowners and other volunteer workers. The homeowners and other construction volunteers who got to mingle with the stunning ladies not only appreciated the contribution of Habitat and Bb. Pilipinas groups, but took to heart the fact that complete strangers have committed to helping them rise from their plight. It is this spirit of “bayanihan” that often helps them to surge on and make better lives for themselves despite the hard comings they often have to face. Pinoy Tenant salutes the Habitat and other concerned government and private organizations through this Urban Renewal Project, a very worthy pro-people undertaking that involves building new communities and transforming existing communities so that underprivileged Filipino families will have decent homes and have equal opportunity to live and work in urban center in dignity. Acknowledgement: Habitat for Humanity Philippines Pasig City-Local Government Unit (LGU) Bb. Pilipinas Charities Foundation

pinoy stories- blog #3

Pier One Manila - Best Dorm for Rent for Filipino OCW's and Seamen

A business can be both profitable and have a positive impact on people. This is proven by Pier One Corte Real Dorm – a budget friendly transient home in Manila for rent and dedicated to serve the country’s unsung heroes – the Filipino overseas contract workers (OCW) and seamen. The facility is the first of its kind to provide decent and budget-friendly accommodations to the thousands of OCW’s and seafarers who troop to various land-based recruitment and shipping agencies – mostly based in Manila – looking for a chance to work abroad as OCW’s or to board an overseas vessel as seafarers. Before Pier One, thousands of Filipino OCW’s and seamen – majority coming from middle class and poor families in the provinces – were in sad plight as they are forced to make the streets of Manila, particularly in Intramuros and Ermita areas – their home because of the absence of affordable but decent and safe transient living space. If the Philippines is known in the international recruitment industry as the recruitment capital of the world in Manila and also in the international shipping industry as the crewing capital of the world, Intramuros and nearby Ermita district is the hiring capital of the Filipino OCW’s and seamen. It is where most of the country’s overseas recruitment agencies, international shipping, crewing agencies and companies hold office. Each day, thousands of OCW’s and seafarers from all corners of the country converge here, hoping to land a job abroad for land-based OCW’s or to await an international vessel assignment for seamen. On any given day, the Manila streets of Intramuros and Ermita are filled with these desperate men, waiting patiently under the searing sun for departure details to board their designated planes or ships. The nights are even worse. To save on costs, as many as ten OCW’s and seafarers would squeeze themselves into a tiny, dingy motel room or apartelle in Quiapo, or Sta. Cruz, or Mabini. These are the fortunate ones. Other OCW’s and seafarers would sleep in grassy areas of Luneta, also known as the Rizal Park and others under a bridge, exposed to the elements and to frequent muggings by criminals. Now, these sad plights of OCW’s and seamen are already things of the past. Thanks to Mr. Illac Diaz, one heroic Filipino entrepreneur who believes making money and social responsibility are two sides of the same coin. Mr. Diaz was responsible for building the Pier One Dormitory – providing affordable, clean, decent and safe transient home not only for Filipino seafarers but to land-based OCW’s as well. It is located in a 2,500 square meter lot at the corner of Corte Real and Solana Streets in Intramuros, Manila. Pier One Corte Real’s Dorm has 700 beds, 500 are available in Intramuros and 200 of them housed in a smaller dorm in Ermita. While the accommodations are Spartan, it is a definite improvement over the rat-infested apartelles and small hotels in Quiapo, Sta. Cruz, and Mabini areas in Manila that seafarers and OCW’s from far-flung provinces used to rent. Pier One facility provides OCW’s and seafarers a choice of accommodations depending on their resources. Guests can choose an air-conditioned room, a naturally ventilated room, or a mat area. There are 10 bunk beds to a room (5 double-deckers with Uratex foam mattresses). There is also enough space for a cabinet and a small locker to keep their belongings. In the non-airconditioned area, screened metal mesh walls provide ventilation. The mat area is equipped with plastic "banig" or mat. Monthly prices range from 1,650 Philippine pesos for a bed in an air-conditioned cabin, 1,000 Philippine pesos for the naturally ventilated rooms, and 800 Philippine pesos for the matted beds. Daily rates vary accordingly but still comparatively cheaper than the daily rates of budget-cost apartelles and small motels in Manila. For relaxation and exercise, there is a small gym with some worn-out bench presses, free weights and a secondhand Nautilus. There is a study area, as well as a common area where Sunday Mass and pre-departure seminars conducted by various non-government organizations (NGO’s) are held. To all Filipino seamen and OCW’s, this is definitely your safe, clean and cost-friendly home away from home. Pinoy Tenant salutes and highly recommends the “Pier One Dorm” – so far the best seamen and OCW’s dormitory in Manila to date! Acknowledgement: NEGOSYO Book - 50 Joey Concepcion’s Inspiring Entrepreneurial Stories ABS-CBN Publishing, Philippines

pinoy stories blog #2

Review of "Property, Product and Service for Rent!"

Filipino expatriates and overseas contract workers are popularly called by their foreign counterparts as "Pilipino" or "Pinoy." The tenant is a person who rents land or property from his landlord. The tenant is the master of a place he does not own but occupies based on lease agreement with the owner. The tenant may also be a paying customer of any service or product provided to him by other person, groups or establishments – with contract done verbally or in written agreement. Whether the tenant leases a certain property or product, or avails a distinct service, he is otherwise known as the renter.

In the Philippines, majority of its people - specially the middle class and the poor do not own their own houses or lots. They live in apartment lots, or houses and lots, and some live on shanties with monthly rental payments. Almost everything a person needs—if you cannot afford to buy it, you can rent it. Need a vehicle to pick-up an arriving OCW family member or relative at the airport? Rent a jeep or an FX van. There's a family celebration but you do not own nice TV and sound system at home? Rent a videoke machine with TV. Need also additional tables and chairs on family occasions with many invited guests? Rent monobloc tables and chairs.

Need to attend the wedding of a close friend or relative but do not have fine dress? Rent a barong or a gown, and even shoes and jewelries if you desire. Need to fix something in your house? Hire a skilled tradesman. Or do you want some savings in hiring tradesmen because you have the skill and know-how in carpentry, or plumbing or electrical but do not have the tools? Rent them. Even to people looking for some personal entertainment and leisure, they can avail the services provided by malls, movie houses, theatres, sports clubs, recreation centers, night clubs, discos, massage parlors and spas. Through this blog, Pinoy Tenant will share his experiences and views, thoughts and feelings on anything that can be availed for a fee, or on anything for rent in the Philippines – and even abroad.

Pinoy Tenant proudly presents this blog as a consumer's review page of anything cool and interesting to rent, or buy, or avail, or simply admire - whether property, product, or service, or be inspired by the people and the stories behind the success of such property, product or service as successful project, undertaking or business.

pinoy stories- blog #1