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Mindanao faces critical power situation by Aug

Economy

Jul 222013

Mindanao faces critical power situation by Aug

MANILA, Philippines – The Mindanao Development Authority (MinDa), part of the government committee monitoring the power situation in Mindanao, has warned that the power situation in the island could go back to critical levels by next month as some plants shut down for scheduled maintenance activities. “After seeing capacity improvements in recent months, Mindanao’s power supply is expected to revert to precarious supply scenario by August to October, when some major power plants go on scheduled maintenance shutdown,” said MinDa director for investment promotion and public affairs Romeo Montenegro. Mindanao experienced rotating outages during the summer months, lasting up to 10 hours, depending on the area. Montenegro said the issuance of Executive Order 137 mandating the implementation of the Mindanao Modular Generator Sets Program would help avert another critical power situation in the region. He said the EO would firm up and fasttrack the process of assisting electric coops through the Association of Mindanao Rural Electric Cooperatives (Amreco). Under the EO-mandated program, electric cooperatives would generate the capacities they need either via rental or acquisition option. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Mindanao Power Monitoring Committee (MPMC), co-chaired by MinDA and the Department of Energy, early this year backed the proposal to tap modular generator sets as an immediate measure for electric cooperatives in bridging supply gap for the next two years. The MPMC is the interagency committee tasked to monitor the power situation in Mindanao. “This latest directive manifests the strong commitment of President Aquino Read More …

SMC taps DM Consunji for P10.5-B eng’g proj

Economy

Jul 222013

SMC taps DM Consunji for P10.5-B eng’g proj

MANILA, Philippines – D.M. Consunji Inc., the construction unit of the Consunji family’s listed investment arm DMCI Holdings Inc., bagged a P10.5 billion engineering and construction contract for the NAIA (Ninoy Aquino International Airport) expressway phase II project. In a disclosure to the Philippine Stock Exchange, DMCI said D.M. Consunji has signed an agreement with Vertex Tollways Development Inc., a wholly-owned subsidiary of San Miguel Holdings Corp., for the engineering, procurement and construction contract for a project that will link the capital’s main airport terminals to Entertainment City along Roxas Boulevard. When asked for comment, DMCI Holdings chief financial officer Herbert Consunji said the contract is worth around P10.5 billion. The contract involves about 2.2 kilometers of at grade works within the Entertainment City area and about five kilometer four-lane elevated and viaduct connecting to the existing Skyway. DMCI said the phase II works comprise the design and construction of the viaduct extension from the existing phase 1 to Roxas Boulevard, Diosdado Macapagal Boulevard and NAIA terminals 1 and 2 over the existing roads of Sales Road, Andrews Avenue, domestic airport road, NAIA road and Imelda Avenue and includes on and off ramps, connection ramps and provision of toll plazas. San Miguel had been given by the government until the end of the year to complete the detailed engineering for the toll road, which is estimated to cost around P15.52 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Construction is expected to take approximately two years with full Read More …

Opportunities or bust?

Economy

Jul 202013

Opportunity knocks on your door but once, we’re told. So how do you know when it’s the right opportunity for you? How do you know if you should take it or let it pass? I’ve had so many opportunities pass me by. I let those pass, for one or more reasons: the time wasn’t right, the economy wasn’t doing very well, and I had more important things to do. And then the familiar feeling would grip me. Maybe you’re familiar with it too – the feeling of regret. And then there are those rare moments when an opportunity came, and I responded in the positive; I grabbed it! It was really scary. I remember being offered the opportunity to invest and host the very first Dr. John C. Maxwell Conference in our country some eight years ago. The investment was great; I was at the lowest point of my life – I had to leave a business I helped started, and was deprived of commissions, profits and earnings – so I had to sell a piece of property. And I bet all the money in this venture. And it paid off! We filled Araneta Coliseum up to the bleachers section and the PICC Convention Hall the next day with people eager to learn leadership lessons. When the license to the training program was offered to our team, again, I grabbed the opportunity, which made me a professional business trainer and speaker. From an entrepreneur in the garments industry, I shifted Read More …

Biz groups urge gov’t to honor contracts with water firms

Economy

Jul 202013

Biz groups urge gov’t to honor contracts with water firms

MANILA, Philippines – The government must adhere to contracts entered into with water concessionaires as doing otherwise may discourage the private sector from participating in the Public-Private Partnership (PPP) program, business groups said. In a joint statement, the Employers Confederation of the Philippines, Foundation for Economic Freedom, Management Association of the Philippines and the Philippine Chamber of Commerce and Industry expressed concern over calls for changes as well as cancellation of contracts with water concessionaires that have been aired, including by government agents. “Such statements, if accepted, could reinforce perceptions that there are risks to investing under the Philippine PPP program,” the groups said. The groups said they are of the view such scenario is not something the government intends to happen. “We, therefore, urge Philippine authorities to faithfully adhere to the terms of the concession agreements, including following the provisions on dispute settlement that call for international arbitration in the event of differences,” the groups said. They added that demands for tariff adjustments need to be framed strictly within the agreements, and be mindful of the public’s need not just for reliable clean water, sewage and sanitation services but also for other necessary infrastructure. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Water concessionaires Manila Water Co. Inc. and Maynilad Services Inc. are both seeking adjustments in water rates. Manila Water is seeking a P5.83 per cubic meter increase in its basic charge while Maynilad wants an P8.58 per cubic meter rate hike for 2013-2018. Earlier, advocacy group Read More …

Unfair competition

Economy

Jul 202013

The end will never justify the means. How can some sectors even suggest that the government turn a blind eye on the illegal act of dumping Turkish flour into our territory and then threaten to increase bread prices if anti-dumping duties are imposed on Turkish flour. Two lobby groups of bakers have warned that they will increase the price of pandesal from P3 to P3.50 per piece if government decides to impose a 20 percent dumping duty on Turkish flour, which the bakers apparently have been using. They have in fact already petitioned the Department of Agriculture and the Tariff Commission not to impose the dumping duties. Aside from entering the country at dumped prices, this is the same Turkish flour which in the past has been pestered by health and safety issues. Dumping, a special case of price discrimination, is a situation in which the price a firm charges for its goods in a foreign market is lower than either the price it charges in its home market or the production cost. Dumping thus is the sale of surplus output of a firm on foreign markets at below cost price. Dumping also occurs when a firm sells its products at a higher price in the home market and at a lower price in the foreign market. (http://www.economicsconcepts.com/dumping.htm) In 2012, Turkish flour was sold to the Philippines at $340 per metric ton while their domestic price in Turkey was $470 per ton. In 2011, the export price of Turkish flour Read More …

Del Monte denies Suntory takeover

Economy

Jul 202013

MANILA, Philippines – Newly-listed Del Monte Pacific Ltd. of condiments king Joselito D. Campos Jr. said it is not in negotiations with Japanese beverage giant Suntory Beverage & Food Ltd. for a takeover. “Neither Del Monte Pacific nor its controlling shareholder, NutriAsia Pacific Ltd., nor its representatives, are in discussions with Suntory, its shareholders or representatives,” the company said in a disclosure. Shares of Del Monte Pacific, which implemented a temporary trading suspension, hit an intraday high of P27.05 on Friday before easing to P26.80, still up P1.13 compared with Thursday’s closing price. Several reports came out that Suntory, the maker of Boss coffee and Orangina soda, is planning to acquire Del Monte Pacific. Last month, Suntory completed Asia’s largest initial public offering so far this year. The softdrinks unit of conglomerate Suntory Holdings Ltd. raised nearly $4 billion, beefing up its war chest for a $5-billion acquisition spree that is seen to help double sales by 2020. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Del Monte Pacific, for its part, is the first company to list in both the Philippine and Singapore bourses. It is banking on increasing the footprint of its branded business here and abroad. The 23,000-hectare plantation of Del Monte in Mindanao is the world’s largest fully-integrated pineapple operation with a 750,000-metric ton processing capacity. It was set up in 1926 by the US government because of the widespread pineapple disease in Hawaii. Del Monte Pacific produces, markets and distributes food, beverages, and related Read More …

DOTC sees delivery of new MRT-3 trains by May 2016

Economy

Jul 202013

DOTC sees delivery of new MRT-3 trains by May 2016

MANILA, Philippines – The Department of Transportation and Communications (DOTC) expects the delivery of the additional 48 new trains under the P3.8-billion Metro Rail Transit (MRT) Line 3 expansion project a month before President Aquino steps down in 2016. Transportation Secretary Joseph Emilio Abaya said in a press conference that the prototype of the new trains is expected to be delivered by December next year and would be tested on the rails of MRT 3 along EDSA. Abaya said the new trains would be delivered by batches and the last batch of delivery of the 48 new trains is scheduled in May 2016. He said the agency’s Bids and Awards Committee (BAC) is now conducting post qualification procedures on the lone bidder that qualified for the bidding. He added that China’s Dalian Locomotive & Rolling Stock Co. CNR Group qualified for the bidding and submitted a bid of P3.759 billion or P10 million lower than the approved budget for the contract of P3.769 billion. Another Chinese firm CSR Zhuzhou Electric Locomotive Co. Ltd. was disqualified by the BAC due to lack of certain technical requirements. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The DOTC chief declined to comment on how long the evaluation process would take. Abaya said he would review the terms of reference for the bidding and would order a rebidding if he discovers that the terms favor a certain company or if any wrong doing is involved. He said a total of five groups bought Read More …

Plunge in Meralco stocks dampens index

Economy

Jul 192013

MANILA, Philippines – Profit taking and discounted sale of blue chip Manila Electric Co. (Meralco) dragged down the Philippine Stock Exchange index (PSEi) yesterday. The PSEi retreated 0.41 percent or 27.33 points to settle at 6,621.02, while the broader all shares index dropped 0.48 percent or 19.26 points to 4,032.08. Most active stock were mixed but the main index was dampened by the plunge in Meralco’s share price. Diversified conglomerate San Miguel Corp. (SMC) trimmed its 32.8-percent stake in the country’s largest power distributor. SMC sold 64.33 million Meralco shares at P270 apiece, representing a steep 10.71-percent discount compared with the previous closing price of P302.40. Top-traded Meralco lost 8.2 percent to end at P277.60 yesterday amid the heavily-discounted sale. Given the run-up of the benchmark index past the 6,600 level, some investors opted to book gains. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The local stock market bucked another record high in Wall Street, which was driven by strong corporate earnings. The Dow Jones industrial average climbed 0.5 percent or 78.02 points to 15,548.54 while the broader Standard & Poor’s 500 index rose 0.5 percent or 8.46 points to 1,689.37. Closer to home, Asian shares were mixed, with Japan’s Nikkei 225 shedding 1.48 percent while Hong Kong’s Hang Seng inched up 0.03 percent. Locally, most counters were in the red, led by financial firms that slipped 0.98 percent or 15.72 points to 1,595.30. Mining and oil added 0.57 percent or 81.52 points to 14,369.94.

Ayala Land starts P15-B bond offer

Economy

Jul 192013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has started tapping the bond market, marking its largest fundraising in the capital market thus far. In a disclosure, ALI said it kicked off yesterday the public offer of P15 billion worth of bonds due 2024. “It is ALI’s largest debt issue for a single tenor to date,” the company said, adding that the bonds carry a coupon rate of five percent. The public offering will run until July 25, which will be followed by the issues listing on July 30. “The issue size is inclusive of an additional P5 billion oversubscription due to strong investor demand,” ALI said. “Proceeds of the offering will be utilized to partially finance the company’s capital expenditure program for the year in support of its aggressive growth plans,” it added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last week, the property firm secured the Securities and Exchange Commission’s approval for the issuance of as much as P21 billion worth of bonds in different tranches. In June, ALI’s board approved the sale of up to P21 billion in long-term, fixed-rate corporate bonds through a general public offering. It will be the largest fundraising of ALI thus far, eclipsing the P15 billion it secured from a retail bond offering in April last year. ALI hired BPI Capital Corp., BDO Capital & Investment Corp., China Banking Corp., ING Bank N.V. Manila branch and Standard Chartered Bank as joint lead underwriters and bookrunners while First Metro Investment Read More …

DA bans birds, poultry products from S Africa

Economy

Jul 192013

DA bans birds, poultry products from S Africa

MANILA, Philippines – The Department of Agriculture (DA) has temporarily banned the importation of wild birds, poultry and poultry products from South Africa because of an outbreak of low pathogenic avian (LPAI) influenza there. The ban issued on July 8, 2013 is meant to protect the health of the local poultry population and of consumers. In a memorandum, Agriculture Secretaray Proceso Alcala said the outbreak was confirmed by the Office Internationale Epizooties (OIE). Presence of LPA serotype H7N7 was seen in a commercial ostrich farm in Oudtshoorn, Western Cape Province. The LPAI virus was confirmed through real-time polymerase chain reaction conducted by the Agricultural Research Council-Ondersteproof veterinary Institute National Laboratory. Also covered by the ban are day-old chicks, eggs and semen from the Land of Lower Saxony. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The government has suspended the processing and issuance of veterinary quarantine clearance for such products. All shipments of such commodities, with the exemption of heat treated products will shall be confiscated at major ports.

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