philstar.com – Business – Page 188

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San Miguel takes over Aleco

Economy

Oct 272013

MANILA, Philippines – Diversified conglomerate San Miguel Corp. formally takes over ailing Albay Electric Cooperative (Aleco), Energy Secretary Carlos Jericho Petilla said over the weekend. The two parties will sign the agreement tomorrow, Oct. 29, in a formal ceremony at San Miguel’s headquarters in Ortigas. “The takeover is merely a formality because they’re already assessing right now. I don’t know how many people they have in Aleco but they are now doing the inspection works. The signing is for me, just ceremonial or formality,” Petilla said. Under the agreement, San Miguel Corp., through SMC Global Power Holdings Corp. would be spending at least P250 million to pay off Aleco’s debts. This is just the minimum, Petilla said. Albay Governor Joey Salceda has said that San Miguel also needs to spend for the plant’s rehabilitation, which could cost up to P1 billion. Aleco’s system loss is 24 percent compared to the cap of 13 percent. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Salceda attributed Aleco’s situation to its failure to collect from its customers and also to systems losses stemming from its obsolete equipment. Once rehabilitated, however, Salceda said San Miguel would be able to generate revenues of about P600 million annually. San Miguel will manage the operations of Aleco for 35 years, with the option to extend this for another 25 years. Last July, Aleco had been disconnected from the main grid because of mounting debts, plunging Albay into darkness. It was reconnected the following day upon Read More …

MPIC unit allots P6 B for 2014 capex

Economy

Oct 272013

MANILA, Philippines – Metro Pacific Tollways Corp. (MPTC), a unit of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC), has earmarked P6 billion for its capital expenditures next year to bankroll major road projects. MPTC chief finance officer Christopher Daniel Lizo said the bulk of the budget next year would be for the construction of two road projects known as Segments 9 and 10 that would connect to the North Luzon expressway (NLEX). The Segment 9 which has a cost of P1.6 billion is a 2.4-kilometer road linking NLEX to MacArthur Highway while Segment 10 valued at P10 billion is the 5.65-km road from MacArthur Highway to Circumferential Road 3 (C3). Of the total amount for next year, Lizo said MPTC would spend P5 billion for Segment 10 while the balance of P1 billion would be used for Segment 9. “We are completing Segment 9 next year and we are hoping we can start Segment 10 which is about P10 billion,” he added. According to him, construction of Segment 10 is expected to start in the second quarter next year and would be completed after two years. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Lizo said the company is spending close to P1 billion for its capital expenditures this year. MPTC is the largest toll road operator in the Philippines operating 64 percent of the total 300 kilometers of toll roads in the country including the 85-km NLEX, the 94-km Subic-Clark-Tarlac expressway (SCTEX), and the 13.75-km Manila Cavite toll Read More …

Phl gets support of 3 countries to keep rice import restriction

Economy

Oct 232013

Phl gets support of 3 countries to keep rice import restriction

MANILA, Philippines – Three countries have endorsed the Philippines’ bid to keep its special restriction on rice imports until 2017. The National Food Authority (NFA) said China, India and Indonesia have supported the country’s petition to continue imposing its quantitative restriction (QR) on rice during a meeting of the World Trade Organization (WTO) Committee on Trade in Goods (CTG) in Geneva. Rice is the only commodity in the Philippines that enjoy a special restriction. “The outcome of the CTG (meeting) has reinvigorated and boosted the country’s efforts in pushing the initiative into positive conclusion by early next year,” Agriculture Assistant Secretary Romeo Recide, chief negotiator of the Philippines, said. The country’s petition will be tackled again in the special CTG meeting in March, during which a general consensus on the matter is expected to be arrived at. “If this goes well, we may get the general concensus by March,” said NFA administrator Orlan Calayag, adviser to the negotiating panel. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This corresponds to the final approval of the Philippines’ petition on the QR extension. Participating in the negotiations for the country’s bid for QR extension are Australia, China, Canada, India, Indonesia, El Salvador, Pakistan, Thailand, US, and Vietnam. Also included in the negotiations are European Union, Japan and Korea. “What is important is that we get the consensus of the countries we are negotiating with,” said Calayag. The European Union, Japan and Korea have also shown support for the country’s petition.

Semiconductor firm plans $8-M expansion

Economy

Oct 232013

MANILA, Philippines – On Semiconductor Philippines Inc. is investing a total of $8 million next year to purchase equipment and upgrade technology for production of new products at its plant in Cavite. On Semiconductor president and general manager Sunil Banwari said in a telephone interview yesterday the investment would come in two phases. The first phase, which would amount to $4.5 million, would be made in the first quarter of next year. The second phase, which involves $3.5 million, is expected in the third quarter. “The investment will be made to buy equipment for automotive products which we are not producing now,” Banwari said. The firm is investing in production of automotive products amid sustained strong demand seen for such items. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Banwari said the investments would also be used to upgrade technology for other existing products. “The technology expectation is always getting higher so we need to invest for better quality,” he said. With investments to be made for new technology to be used, the firm will also be taking in new employees. Banwari said the investments would involve hiring 20 to 30 employees. At present, the firm has 3,000 employees. On Semiconductor is engaged in the manufacture of products such as IC surface mount packages as well as logic or analog test being used in consumer electronic products.

Conglomerates renew interest in LRT 1 expansion

Economy

Oct 232013

Conglomerates renew interest in LRT 1 expansion

MANILA, Philippines – The country’s top conglomerates have expressed renewed interest in participating in the country’s largest Public-Private Partnership (PPP) project to date following the government’s move to revise the concession deal. San Miguel Corp. (SMC), Metro Pacific Investments Corp. (MPIC), DMCI Holdings Inc. and Ayala Corp. are now looking to bid for the previously failed auction of the P60-billion Light Rail Transit Line 1 (LRT 1) Cavite extension project, executives said. “We will look at what the conditions are but the revised terms look good,” DMCI chief finance officer Herbert Consunji said in a phone interview. “Yes, we would,” MPIC chief finance officer David Nicol said in a text message when asked if the Pangilinan-led infrastructure conglomerate will join the LRT 1 bidding anew. SMC president and chief operating officer Ramon S. Ang said the diversified conglomerate is also interested in the LRT 1 project. Early this week, Transportation Secretary Joseph Emilio Abaya said the agency revised the concession agreement for LRT 1. The changes addressed five major issues: real property tax, power rates, warranty on the structure, fare adjustments, and the negative bid. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We’re just waiting for government to reissue the new bid documents,” Noel Eli Kintanar, executive vice-president of the Ayala conglomerate’s AC Infrastructure Holdings Corp., said yesterday. “I think [the revision] addresses many of the issues that led the bidders not to put in a bid,” Kintanar said. In August, only MPIC submitted a bid without partner Read More …

Cavite, Laguna toll road project attracts 4 groups

Economy

Oct 232013

Cavite, Laguna toll road project attracts 4 groups

MANILA, Philippines – Four groups led by conglomerates Metro Pacific Investments Corp. (MPIC), San Miguel Corp., Ayala Corp., are set to slug it out for the P35.4-billion Cavite-Laguna Expressway (CALAX) project, the Department of Public Works and Highways (DPWH) said yesterday. Public Works Assistant Secretary Eugenio Pipo Jr. said a total of four groups submitted prequalification documents for the CALAX project yesterday afternoon. “All the bidders submitted their prequalification documents before the 2 p.m. deadline,” Pipo stressed. He pointed out that Alloy MTD Philippines Inc. was the first to submit at 11:04 in the morning. AlloyMtd is the merger between MTD of Malaysia and Alloy with a long established track record in civil engineering and construction, manufacturing, infrastructure concessions, energy, port operations, real estate and property development. It completed the 36 kilometer portion of South Luzon Expressway. The group led by conglomerate Ayala Corp. through Team Orion followed at 12:15 p.m. It is led by AC Infrastructure Holdings Corp. that tied up with Cebu-based Aboitiz Group, Macquarie Infrastructure Holdings Philippines as well as contractors Bouygues Travaux, Egis Road Operations, and Korea Expressway Corp. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Pipo said the third to submit at 12:39 p.m. was the group of businessman Manuel V. Pangilinan through MPIC’s Metro Pacific Tollways Development Corp. and partner Leighton Contractors (Philippines) Inc. The tandem formed MPCALA Holdings Inc. Diversified conglomerate San Miguel Corp. through Optimal Infrastructure Development Inc. submitted prequalification documents for the project at 12:58 p.m. Prior to the Read More …

Samsung launches Partner Portal

Economy

Oct 232013

MANILA, Philippines – Realizing the need to find solutions not only for their retail customers but also for businesses, Samsung Electronics Philippines Corp. (SEPCO) launches the Samsung Partner Portal, a web-based communication channel aimed to help pursue business growth by creating mutually beneficial relationships between Samsung and its corporate reseller partners. Launched at the SM Aura, Samsung’s corporate business partners now have a place to go where they can check their incentives, updates, and have access to Samsung marketing collaterals and the like. Through the Partner Portal, Samsung will be able to closely monitor its partners’ performance, and at the same time, provide its partners the opportunity to be part Samsung Team of Empowered Partners (STEP) Program. As a member of the STEP Program, partners receive numerous benefits, which includes sales incentives, access to marketing collaterals, exclusive corporate reseller programs, and special corporate events. Members of the STEP Program will be categorized into three program tiers – Silver, Gold, and Platinum. Each partner tier has specific performance criteria and associated benefits. As partners advance to higher partner tiers, they receive increasing levels of opportunity for growth and rewards. To join the Samsung Partner Portal, you may register at: https://partnerportal.samsung.com/portal/app/main

Gov’t debt swells to P5.46 T

Economy

Oct 222013

MANILA, Philippines – The outstanding debt of the government slightly rose as of July this year as the government continued to borrow to boost the economy. Data from the Department of Treasury showed that the outstanding debt amounted to P5.46 trillion as of July this year, slightly up from the P5.156 trillion recorded a year earlier. The latest figure was also up 0.2 percent or P9 billion from the end-June level. A big chunk of the debt or P3.5 trillion came from domestic sources while the remaining P1.96 trillion was sourced from foreign lenders. Local debt declined 0.1 percent or P2 billion as the government redeemed more local debt papers compared to the volume that was issued. Debt guaranteed by the government likewise went up 0.3 percent to P492 billion. Of the total, 70.7 percent or P348.1 billion are external guaranteed obligations while 29.3 percent or P144 billion are domestic guaranteed debts. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The net appreciation of third currencies caused an increase in the peso value of external guaranteed obligations. The net appreciation of third currencies caused an increase in the peso value of external guaranteed debt while domestic guaranteed debt remained unchanged over the previous month’s level. Aside from loans extended by multilateral lenders and official aid from foreign governments, the Philippines also borrows through the issuance of bonds.

IPOPHL creates Bureau of Copyright

Economy

Oct 222013

MANILA, Philippines – The Intellectual Property Office of the Philippines (IPOPHL) is setting up a new agency which would be responsible for the accreditation of organizations which would collect royalties for copyrighted works used for commercial purposes in line with the amended IP Code. IPOPHL director general Ricardo Blancaflor told reporters during the 3rd Philippine Anti-Counterfeiting and Piracy Summit yesterday that under the amended IP Code signed by President Aquino earlier this year, the IPOPHL could create a new agency, the Bureau of Copyright. “It (amended IP Code) gives us the right to create the Bureau of Copyright. We are just waiting for the go-signal of DBM (Department of Budget and Management),” he said. The new bureau, which the IPOPHL expects to be in place by early next year, would be responsible for promoting awareness of IP rights and the accreditation of collective management organizations (CMO) or those which would collect royalties of copyrighted works being used in public places. He noted that while the Filipino Society of Composers, Authors and Publishers (FILSCAP) already collects fees for the usage of works of composers, authors and publishers, many establishments would want to pay royalties to CMOs which are accredited by the government. “What mall owners want is for government to regulate them (CMOs),” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Performer’s Rights Society of the Philippines corporate secretary John Lesaca explained that while the FILSCAP has been collecting royalties for copyrighted works, collections have been small as Read More …

Binay pushes revitalization of mining, mfg sectors

Economy

Oct 222013

Binay pushes revitalization of mining, mfg sectors

MANILA, Philippines – The government needs to revitalize the mining and manufacturing sectors to create more jobs and achieve economic growth according to Vice President Jejomar Binay in his speech at the opening of the 39th Philippine Business Conference and Expo yesterday. Binay is pushing for the revitalization of both the manufacturing and mining sectors as these are seen to support economic growth. Attracting investments in both sectors, the VP said would not only provide jobs but also give individuals higher incomes. “On the latter, the Philippines is one of the most mineralized countries in the world and given the value of metals in the world, this sector can boost our level of economic development several notches higher, so long as we put in place proper environmental safeguards, and ensure that working conditions meet decent work international guidelines and activities in the Investment Priorities Plan (IPP) for 2012 and beyond,” he said. He noted that mining could be accepted provided that there is responsibility, accountability and sustainability. “With many experiences from the outside world, the Philippines certainly can learn from the best mining practices that creates a balance in economic development through harnessing natural resources and protecting the environment,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 While there is interest from mining firms to invest in the country, they have been on a wait-and-see attitude as the government has yet to come up with a new revenue sharing scheme. The Chamber of Mines of the Philippines Read More …

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