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DOE eyes 5,905 MW from new RE projects

Economy

Aug 112013

An example of a renewable energy project. MANILA, Philippines – The Department of Energy (DOE) expects an additional 5,905 megawatts of potential capacity from 347 new projects under the Renewable Energy law. These projects will have an installed capacity of 2,334 MW, according to the DOE. Of the 347 renewable energy projects, 177 are hydropower projects, 39 are geothermal ventures and 37 are wind farms. There are also 34 solar projects, 29 biomass projects and three projects that would utilize ocean energy, the DOE said. There are also 249 pending projects under the RE law, with a potential capacity of 3,301 MW and 20.75 MW of installed capacity. The Energy department is focused on solving the short-term power supply problem in Mindanao. The Mindanao Development Authority (MinDa), has been urging renewable energy investments in the region to help address the current power supply crunch. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The government has been encouraging players in the renewable energy sector through feed-in-tariffs. The FIT regime is a form of incentives for renewable energy players. Feed-in tariffs offer cost-based compensation to renewable energy players among other perks.

PLDT completes P2.5-B fiber optic project

Economy

Aug 112013

PLDT completes P2.5-B fiber optic project

MANILA, Philippines – Dominant carrier Philippine long Distance Telephone Co. (PLDT) has completed a P2.5-billion expansion project involving the installation of over 5,000 kilometers of fiber optic cables to support the aggressive roll-out of high-speed data services on its fixed and mobile networks. PLDT president and chief executive officer Napoleon Nazareno said the PLDT Group’s fiber optic network is now over 71,000 kilometers including 7,200 kilometers of submarine-international fiber, over 4,000 kilometers of submarine-domestic fiber, and 4,000 kilometers of wireless access network. The PLDT managed to expand its domestic fiber optic network (DFON) to over 60,000 kilometers as of end-June this year from 54,000 kilometers as of end-2012. “If we include our international fiber optic links and leased facilities, the PLDT Group now has more than 71,000 kilometers of fiber assets. This fortifies our already formidable network advantage as we cover more areas, increase data speeds and provide enhanced redundancies for improved resiliency,” Nazareno stressed. The project that was completed ahead of schedule is accelerating the deployment of PLDT’s fiber-to-the-home (FTTH) service and the fourth-generation mobile data service called Long Term Evolution (LTE) of its wireless subsidiary Smart Communications Inc. “We have built early and we continue to expand as the demand for broadband heavy applications continues to surge. This is what we call future-proofing our network. We want to make sure that the capacity, speed, and reliability are there when our customers need them,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For his part, Read More …

DTI pushes higher Northern Mindanao exports to Asean

Economy

Aug 102013

DTI pushes higher Northern Mindanao exports to Asean

MANILA, Philippines – The Department of Trade and Industry (DTI) aims to promote growth in Northern Mindanao through increased merchandise exports from that region to the Association of Southeast Asian Nations (ASEAN). In a statement, the DTI said it wants to encourage exporters in the region to increase their merchandise shipments to Southeast Asia by informing them of trade opportunities available there. To encourage greater trade between Northern Mindanao and Southeast Asian countries, the DTI will conduct information sessions focused on the upcoming ASEAN Economic Community (AEC) under the Doing Business in Free Trade Area (DBFTA) program next week in Cagayan de Oro City, Iligan City, and Ozamiz City. The DBFTA is a series of business information sessions to be conducted nationwide to increase exporter awareness of the country’s trade agreements. The information sessions to be held in Northern Mindanao will discuss how businesses there could increase trade with Southeast Asian countries. Through the information sessions, the DTI wants businesses, the academe and other stakeholders in Northern Mindanao “to increase their awareness as well as foster appreciation for the benefits of free trade agreements, and (learn about) how they could avail of these benefits.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Among the benefits offered by free trade agreements are preferential tariff rates and harmonized standards. The DTI noted that as of the end of 2012, Northern Mindanao’s merchandise exports amounted to $1.17 billion. The region’s exports include fresh and processed fruits, marine products, beverages, food products, coconut Read More …

Ind’l spaces to remain abundant – CBRE

Economy

Aug 102013

MANILA, Philippines – Despite interest from foreign firms to invest in manufacturing facilities in the Philippines amid the country’s impressive economic performance, supply of industrial spaces is expected to remain abundant given the high power and labor costs here, property services firm CBRE Philippines said. “While renewed interest in the country’s industrial sector is evident, investments in these types of projects may take some time before it materializes, with supply of industrial properties to remain abundant in the short to medium term,” CBRE Philippines said in its Metro Manila MarketView report for the second quarter. Supply of industrial spaces is seen to remain healthy over the short to medium term as it noted that foreign firms are concerned over the country’s power and labor costs. “The manufacturing sector continues to be challenged by relatively high labor and power costs compared to its neighboring nations,” the CBRE report said. But while high power costs are preventing foreign firms from making investments here at the moment, the development of new power generating plants is expected to benefit companies that will locate in the country in the future. It noted that investments in the power sector have increased with foreign and local firms vying to set up power plants throughout the country. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The development of new power generating plants is anticipated to produce enough energy to address the demands of the general population and the ongoing industrialization of the economy. It is also expected Read More …

Asean countries urged to comply with EITI global standards

Economy

Aug 102013

Asean countries urged to comply with EITI global standards

YANGON – ASEAN countries including the Philippines can help protect their oil, gas and mining industries by complying with the Extractive Industries Transparency Initiative (EITI), a global standard that calls for disclosure of payments and receipts, a leading anti-corruption advocate yesterday said. Erry Riyana Hardjapamekas, former chief executive officer of Indonesia’s Tambang Timah PT, the world’s largest tin producer, estimates that in ASEAN countries, at least 10 percent of government revenues from extractive industries are likely lost to corruption. “One measure to prevent corruption is the EITI because one basic thing in combatting corruption is transparency,” he told Southeast Asian journalists here. He said that without proper disclosure, revenues from extractive industries such as oil, gas and mining, may not be maximized and instead are lost to corruption. “It’s difficult to measure how much corruption there is in each country but we can feel it. It could be reflected on the quality of public services,” Harjapamekas said. Governments could show they are serious in combatting corruption through the EITI. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “It shows how serious governments are in combatting corruption in their extractive industries,” he said. In the region, EITI is becoming a big issue with Indonesia, the Philippines, Myanmar and Vietnam which are all making efforts to hold companies and governments accountable for the revenues they make from extractive industries. Marie Gay Alessandra Ordenes, the national coordinator of Philippines-EITI said in an article posted on the Philippines-EITI website that efforts to join Read More …

JP Morgan sees further SDA rate cut

General

Aug 102013

MANILA, Philippines – JP Morgan Chase Bank NA expects the Bangko Sentral ng Pilipinas (BSP) to cut interest rates on special deposit accounts (SDAs) by another 50 basis points (bps) this year. JPMorgan Chase economist Matt L. Hildebrandt said another 50 bps cut in SDA rate looms, on top of the successive 50-bps rate cuts this year, even if the timing is uncertain. “This would leave the SDA and the repo rates each 200 bps below and above the reverse repo rate (currently 3.5 percent),” Hildebrandt said in a report. He explained that consumer prices rose 0.3 percent month-on-month in July, leaving them up 2.8 percent quarter-on-quarter from 1.7 percent in June. Despite the higher sequential rates, prices rose only 2.5 percent in July compared to 2.8 percent in June, he said. “This leaves the consumer price index (CPI) below the BSP’s four percent plus-minus one percent target range for the fourth straight month,” the bank economist said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Core prices (excluding food and energy) rose 0.2 percent month-on-month and up 1.1 percent quarter-on-quarter. Core prices were up just 2.3 percent compared to 2.9 percent in July, leaving them at their lowest rate since the global recession, Hildebrandt said. Price pressures were concentrated in food and transport. Food rose 0.4 percent month-on-month, for the third straight month leaving prices up 3.6 percent quarter-on-quarter, after more benign readings in prior months. Transport prices rose 0.7 percent month-on-month, following a 0.8 percent gain in Read More …

Pagcor sees revenues rising to P45.47B in ‘14

Economy

Aug 082013

Pagcor sees revenues rising to P45.47B in ‘14

MANILA, Philippines – The Philippine Amusement and Gaming Corp. (Pagcor) sees its gross revenues rising to P45.47 billion in 2014 from the projected P42.9 billion this year, largely due to the opening of the first integrated resort in Entertainment City as well as improving operations of existing casinos. Pagcor president and chief operating officer Jorge Sarmiento said the state gaming regulator remains bullish on the local gaming industry’s prospects given significant contributions from Solaire, which turned in a net profit of P22.7 million in the second quarter, a reversal of the P126.9 million loss incurred in the same period last year. In the first half, Pagcor generated a net income of P1.4 billion or just five percent shy of its P1.476 billion target for the period. Revenues amounted to P21.06 billion, slightly lower than the P21.32 billion recorded in the same period in 2012. The amount, however, exceeded the state-run gaming regulator’s revenue goal of P20.97 billion during the period. The government’s share from Pagcor’s revenues amounted to P6.97 billion. Under RA 7656, Pagcor is mandated to remit at least 50 percent of its annual revenue to the government. Pagcor likewise contributed P1.345 billion to the Office of the President’s Social Fund. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Revenues from gaming operations reached P14.73 billion or 3.17 percent higher than agency’s target. Income from other related services, on the other hand, amounted to P5.7 billion while other income stood at P636.22 million. Pagcor expects to remit around Read More …

Purisima urges retailers to source materials locally

Economy

Aug 082013

Purisima urges retailers to source materials locally

MANILA, Philippines – Philippine retailers should source materials for their products locally in order to contribute to economic growth through improved income of more people and stronger domestic consumption, a cabinet official said. Speaking at the 22nd National Retail Conference, Finance secretary Cesar Purisima said retailers have a role to play for the country to sustain its strong economic growth. He said that while the country has seen economic gains during the past three years, it now faces the challenge of sustaining the strong investor confidence and positive economic performance in the coming years. “Instead of doing the easy way by ordering from China or importing from abroad, (you retailers should) start looking at how you can engage Filipino suppliers,” he said. For instance, Purisima said those in the food business should source their vegetables locally by engaging with Filipino farmers and telling them to produce according to their requirements. By sourcing locally, retailers could help local suppliers by providing them a market, as well as helping them earn more. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Helping them earn more in turn would enable them to consume more goods, which would also be beneficial to retailers. Purisima said that to encourage retailers to engage with local suppliers for their products, the Department of Finance (DoF) is open to providing perks or assistance such as duty-free importation of capital equipment as well as building infrastructure, making credit available and providing training. The DoF however, does not support providing Read More …

Tales of a frequent flyer

Economy

Aug 082013

In my seven decades of going around the world, I have had more than my fair share of experiences in multiple airlines and airports. Allow me to recount some which you may find interesting and helpful. My first experience was in March 1945 when my family was airlifted together with the family of President Sergio Osmeña to the United States. Manila was not yet completely liberated and there were Japanese snipers on the way to the airport. I remember taking off from what is now Makati Avenue. The plane was a US Army Air Force C-47 (DC-3). It was neither comfortable nor fast. We must have landed in every Pacific island on the way to San Francisco. Fast forward to the 1950s: I flew Philippine Airlines for summer vacation a couple of times. There was no distinction between first or economy class. The service was excellent and the stewardesses were well trained, charming and very pretty. Today, PAL is different and it needs substantial improvement particularly because of its old fleet going to the United States. I look forward to the future when the ban is lifted and the new planes ordered by Ramon Ang are utilized on this popular leg. However, I am constrained to draw attention to the uncompetitive pricing structure. My granddaughter had an economy ticket Toronto-Manila-San Francisco. I decided to give her a treat and upgraded her to business class on the flight back to the US. I was astounded that it would cost me $2,900 Read More …

UK eyes more investments in infra, energy and retail sectors

Economy

Aug 082013

UK eyes more investments in infra, energy and retail sectors

MANILA, Philippines – The British government is looking at increasing investments in the infrastructure, energy and retail sectors in the Philippines as part of strengthening the economic ties of both countries. “Infrastructure, energy and retail, these are the areas the United Kingdom is interested to invest in (here),”newly appointed UK Trade and Investment director for Manila Iain Mansfield told reporters yesterday. He said British firms are interested in infrastructure projects under the public private partnership since they have expertise in building rails as well as airports. Some British companies, he noted, are part of the consortia which have expressed interest in the proposed P17.5 billion Mactan Cebu International Airport passenger terminal project. The UK, he also said, sees opportunities in the area of infrastructure in the country since the Philippine government is moving to hike its investments to address the lack of infrastructure here. Apart from infrastructure, he said British firms are interested in wind, hydro as well as energy efficiency projects since they have been involved in similar projects in the past. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The UK is also interested in bringing more retail brands here given the big market. Among the British retail brands active in successful franchising here are Debenhams, Marks & Spencer, Topshop and Burberry. Mansfield said as part of efforts to encourage British firms to invest in the Philippines, the UK government is planning a trade mission in September to present available opportunities here, particularly in the energy sector. Read More …

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