Anflocor- Ayala Center Rising in Davao City

DAVAO CITY—It is the single, largest investment ever in the city.

The construction of the P5-billion Ayala Center on a 10-hectare property along J.P. Laurel Avenue here has started and is expected to be fully operational by 2011.

Jaime Ayala, president of Ayala Land Inc. , said it took six months of discussions to finalize a partnership deal with the Antonio Floirendo Corp. (Anflocor) for the project, known as Abreeza.

The entry of ALI here is seen as a positive indicator by the local business chamber.

“It’s a welcome development. It will bring many livelihood and business opportunities for Dabawenyos. It will complete Davao’s claim as the Philippines’ third major city and queen city of Mindanao,” said Simeon Marfori, president of the Davao City Chamber of Commerce and Industry Inc.

Ayala said the city’s stable peace and order situation and the positive performance of retail sales pushed the group to finalize the joint venture, which he called “a gargantuan project.”

Davao City is only 60 hours from Digos City, the site of a series of bus bombings, the latest one on Sept. 1, which killed six people and injured 30.

Based on the Abreeza fact sheet, ALI will invest 67 percent of the total development cost while Anflocor will contribute 33 percent.

The mall itself will occupy 61,000 square meters while a business process outsourcing (BPO) center will cover 18,000 square meters.

During a press conference at the Pearl Farm here on Tuesday, Ayala said that the first phase of the mall’s construction will be completed by 2010 but the BPO component can already operate by 2009.

“The project’s total cost is estimated at P4 billion to P5 billion,” he said.

Corporate social responsibility

Ayala vowed the company would fulfill its corporate social responsibilities.

He repeated its stance on the nondisplacement of the communities at the back of the property, saying the company would provide road access in the area.

Ayala said facilities would be open as indoor venues for various activities of the communities as other malls elsewhere.

Maria Christina Brias, Anflocor director, said that the project would employ at least 11,000 people from the construction phase until full operation.

“We are optimistic that the number will grow given the multiplier effect, which the BPO center stands to create when it fully operates,” Ayala said.

Officials of both companies said aside from jobs to be offered by Abreeza, businesses that would be put up near the mall could also generate local employment.

Residential, commercial

At least three hectares of the entire property will be sold for residential or commercial purposes.

“Both companies will also step up marketing promotions to lure both local and international investors to locate in the area,” Ayala said.

This early, local and foreign companies have started inquiring about the possibility of locating at Abreeza, according to Marivic Añonuevo, senior vice president and group head of Ayala Malls.

Good mix of companies

“The queries are indicators that the city is more than ready to host new labels, shops, and stores that have not yet located here,” Añonuevo said.

She said the interest from this “good mix” of companies that offer higher-end and quality products was very encouraging since the marketing strategies for the project was still being developed.

On concerns that traffic would worsen in the area, Emilio Tumbocon, ALI senior vice president, said the company would construct a loading and unloading bay for passengers so that the main road would not be congested and alternative routes would be opened.

Davao City -Smoke free

By official health numbers, it’s been a success. Davao City was recently awarded by the US-based Global Smokefree Partnership for its exemplary leadership and commitment to a smoke-free environment. Davao was the only city awardee along with countries Turkey, Colombia, Guatemala and India.

Since the ordinance was implemented in November 2002, Davao City has recorded a decreasing number of cases of lung cancer, said Dr. Domilyn Villareiz of the Anti-Smoking Task Force, Monday (Jan. 4) at the Kapehan sa SM.
Mortality rate from lung cancer dropped from 118 in 2008 to 38 in 2009. Ninety percent of them were heavy smokers, smoking one to two packs a day, said Villareiz, while 10 percent were non-smokers. In 2008, 153 got sick of lung cancer, while 104 were recorded in 2009.
These numbers show the direct effect of the smoking ban on improving people’s health, which, after all, is the intent of the law. The ordinance cannot be expected to stop people from smoking, but it protects non-smokers.
In seven years, 9,244 violators have been apprehended. From 1,500 in 2008, 1,193 were apprehended last year.

But as anyone who has partied in Torres St. will tell you, there are still many violators – establishments and people. This despite the required posting of restaurants of signs warning against smoking and a maximum penalty of P10,000. Establishments can apply for a smoking room, as some coffee shops and hotels have done. The task force has approved only nine smoking rooms in the city because “we discourage putting [them] up,” says Villareiz. But there have been no closures of establishments that violate the anti-smoking ordinance. “They comply if we give them the notice of violation,” she said.

Still, she admits they can’t monitor all establishments. There are only 18 of them in the task force, which is why they need the help of Davao City police. But they can only do so much.
Says Davao City Police Office chief Sr. Supt. Ramon Apolinario, “Though we have regulations on smoking, drinking, and loud noise, we still respect the rights of entrepreneurs to make money. Torres St. is the converging point of those who want to see and be seen. It is booming, especially on weekends.”
Villareiz doesn’t see a conflict between business and anti-smoking. “The ordinance is not a threat to business or tourism. It’s for public welfare,” she says.


In fact, Davao City has become a tourist destination for orientations on a smoke-free city. Villareiz says visitors from Manila, Hanoi, and Bangkok have come here to witness how a city implements the anti-smoking policy.
“It’s the in thing now for cities to be smoke-free,” she says. And Davao, as its lawmakers and people will tell you, was first.