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DOE awards coal exploration contracts to Semirara

Economy

Jun 032013

DOE awards coal exploration contracts to Semirara

MANILA, Philippines – The Department of Energy (DOE) has awarded coal exploration contracts to Semirara Mining Corp. of the Consunji Group covering two parcels of coal-bearing land in Mindoro Oriental. In a disclosure to the Philippine Stock Exchange (PSE) yesterday, Semirara Mining said the contract for coal-bearing land in the municipality of Bulalacao covers two phases – the exploration phase and the development and production phase. Under the exploration phase, Semirara Mining has two years to commence and may extend this for a maximum of two years. The exploration phase will terminate automatically unless coal reserves in commercial quantity are delineated. The DOE said Semirara Mining may proceed with the development and production phase for up to 10 years if coal reserves exist in commercial quantity. “Thereafter a term for a series of three-year periods, the total of which shall not exceed 12 years,” Semirara Mining said in its disclosure. The company has committed to spend no less than P148 million for its work program for the first two years in the conduct of geological investigation, geodetic survey and sub-surface exploration for the coal contract area. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Semirara Mining, owned by DMCI Holdings Inc., is a publicly listed company that has significant coal resources and reserves to supply a growing demand for clients in various areas including Cebu and Panay.

Moody’s hints of upgrade for Phl

Economy

Jun 032013

MANILA, Philippines – The country’s third investment grade rating may be forthcoming as Moody’s Investors Service has lauded the Philippine economy’s robust expansion, the Aquino government’s record budget surplus, and the conduct of generally peaceful elections. Moody’s is the only global credit rating agency that still rates the Philippines one notch below investment grade or BA1. The country obtained its first, investment grade upgrade from Fitch Ratings Services in March. Standard & Poors’ followed suit in May. In a statement issued yesterday, Moody’s said the Philippines’ first quarter GDP (gross domestic product) and record budget surplus are “credit positive,” a sign that that an upgrade may be in the offing. National Treasurer Rosalia De Leon said officials from Moody’s are expected to arrive in the Philippines next month. Last week, the government announced that it posted a P36.8-billion budget surplus in April, the highest monthly surplus it achieved, largely due to a 28.9- percent year-on-year increase in income tax receipts. “The improvement in tax receipts demonstrates that the government’s efforts to bolster tax compliance are gaining traction and helping to boost revenue generation, one of the key weaknesses of the Philippines’ credit profile. The relatively moderate year-to-date fiscal deficit also suggests that a degree of spending restraint in the run-up to the midterm elections held last month and that the government’s spending decisions are increasingly driven by long-term economic objectives rather than short-term political ones,” said Moody’s senior analyst Christian de Guzman. Business ( Article MRec ), pagematch: 1, sectionmatch: Read More …

Phl to stop issuing permits to foreign airlines

Economy

Jun 032013

Phl to stop issuing permits to foreign airlines

MANILA, Philippines – The Philippines is temporarily imposing a moratorium on the issuance of permits to foreign airlines planning to mount flights to Manila due to the limited capacity of the Ninoy Aquino International Airport (NAIA). Sources said the Civil Aeronautics Board (CAB) has denied the application of Oman Air and Jet Airways of India to fly to Manila due to constricted infrastructure at the 30-year-old international gateway. “We are denying foreign airlines such as Oman and Jet Airways. It’s not that the market is becoming less vibrant. It is due to the infrastructure,” one of the sources said. The sources pointed out that aside from the congested NAIA, other airports in different parts of the country could not accommodate night flights. “Most airports in the country are not night rated and are limited to day time operations in many airports. Most of the domestic flights are connecting to Manila,” the source added. Both Oman Air and Jet Airways have filed separate applications with the CAB for the issuance of Foreign Air Carrier’s permit (FACP) to operate international scheduled air transportation services. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The CAB issued FACP to foreign airlines allowing them to operate in the country and also issues Certificate of Public Convenience and Necessity to local airlines allowing them to mount flights in the country. As of end of last year, the CAB has granted FACP to 39 foreign airlines allowing them to operate in the Philippine. Oman Air – Read More …

SMC secures $1-B loan to pay debts

Economy

May 302013

MANILA, Philippines – Diversified conglomerate San Miguel Corp. (SMC) has secured a $1-billion loan from five banks to pay off its existing debts. Another $200 million will be tapped to maximize available funding under a $1.3-billion, five-year loan agreement, SMC said in a disclosure yesterday. “The company availed of a $1.3-billion facility loan agreement, which includes a greenshoe option,” SMC said. “To date, of the total amount available under the facility, the company has drawn $1 billion to pay in full and refinance its existing $1-billion loan,” it added. SMC earlier tapped Australia and New Zealand Banking Group Ltd., DBS Bank Ltd., Deutsche Bank AG, Bank of America Merrill Lynch and Standard Chartered Bank for a loan agreement. “The company intends to avail of an additional $200 million through the exercise of the greenshoe option under the facility,” SMC said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The diversified conglomerate has been paring its debts through new loans that offer better terms. In April, SMC generated $800 million from the largest issuance of a dollar-denominated bond by a Philippine company. It forms part of a $2-billion medium-term notes program of SMC. The holding firm is undergoing a five-year, $34.83-billion investment program that will make it the largest investor in the Philippines. The conglomerate said it will spend an average of P283.52 billion every year until 2017. From its core brewery and food business, SMC has expanded into power production (SMC Global Power Corp.), downstream oil sector (Petron Corp.), Read More …

Erap must revive Manila

Economy

May 302013

Many have observed that becoming mayor of Manila is Erap’s last hurrah. It may well be just that and because of it, there is a lot at stake in terms of legacy issues in the next three years of Erap reigning supreme at Manila City Hall. Winning the election was the easy part, even if the homestretch proved to be more of a cliffhanger than most people thought. But as Dolphy once said, what do we do after we have won? For someone like Erap who had once been president of the country, vice president, senator and mayor of San Juan for the longest time, there should be nothing more to prove. But the abbreviated term of Erap in Malacañang and the corruption trial and eventual conviction and instant pardon make it necessary for Erap to prove himself all over again. If Erap failed to be the best president we ever had, he now has the opportunity to be the best mayor Manila ever had. If he manages that, maybe all will be forgiven, so to speak. He would have shown the world that what happened during EDSA 2 was undoubtedly a big and terrible mistake. Making something out of this opportunity to revive the City of Manila is a chance of a lifetime for Erap. Not many politicians are given a second chance in this grand manner. The challenges of reviving Manila can be as difficult and complicated as running the country, but maybe not as impossible. The basic Read More …

Motorola to make first US-assembled smartphones

Economy

May 302013

Motorola to make first US-assembled smartphones

AUSTIN, Texas (AP) – Cellphone pioneer Motorola announced Wednesday that it’s opening a Texas manufacturing facility that will create 2,000 jobs and produce its new flagship device, Moto X, the first smartphone ever assembled in the US. The company has already begun hiring for the Fort Worth plant. The site was most recently unoccupied but was once used by fellow phone manufacturer Nokia, meaning it was designed to produce mobile devices, said Will Moss, a spokesman for Motorola Mobility, which is owned by Google. “It was a great facility in an ideal location,” said Moss, who said it will be an easy trip for Motorola engineering teams based in Chicago and Silicon Valley, and is also close to the company’s service and repair operations in Mexico. The formal announcement came at AllThingsD’s D11 Conference in Rancho Palos Verdes, Calif., from Motorola CEO Dennis Woodside. Texas Gov. Rick Perry’s office administers a pair of special state incentive funds meant to help attract job-creating businesses to the state, but Moss said the Republican governor did not distribute any money to close this deal. “Motorola Mobility’s decision to manufacture its new smartphone and create thousands of new jobs in Texas is great news for our growing state,” Perry said through a spokeswoman. “Our strong, healthy economy, built on a foundation of low taxes, smart regulation, fair legal system and a skilled workforce is attracting companies from across the country and around the world that want to be a part of the rising Texas Read More …

SMC, Lamco groups pay appeal fee for MRT-LRT ticket project

Economy

May 302013

SMC, Lamco groups pay appeal fee for MRT-LRT ticket project

MANILA, Philippines – The Department of Transportation and Communications (DOTC) is set to look into the appeal filed by diversified conglomerate San Miguel Corp. (SMC) and Lamco Consortium that were disqualified from the bidding of the P1.72 billion automated and contactless single ticketing system for the Metro Rail Transit (MRT) and Light Rail Transit (LRT). Michael Arthur Sagcal, spokesperson of DOTC, said SMC and Lamco paid the appeal fee amounting to P8.6 million each as stated under the implementing rules and regulations of the Build Operate Transfer (BOT) law. The non-refundable appeal fee is equivalent to 0.5 percent of the total project cost as provided under the BOT law. Sagcal said Lamco paid the appeal fee last May 27 while SMC settled the amount last May 28. The DOTC has issued Special Bid Bulletin 05-2013 giving disqualified bidders of the Automated Fare Collection System (AFCS) project 15 days from the receipt of the notice of disqualification that were issued last May 7 to file an appeal and pay the non-refundable fee of P8.6 million. Another losing bidder, the MTD-PRLM consortium, failed to pay the appeal fee. The Mega Lucky United Consortium was also disqualified by the DOTC. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 SMC submitted qualification documents to the DOTC last April 12 through San Miguel Transport Solutions Consortium composed of Optimal Infrastructure Development Inc., Catchweight Holdings Inc., Deltacrest Holdings Inc., and Allcard Plastics Philippines Inc. to bid for the project. Its partners include Petron Corp., Philippine Read More …

Growth report fails to lift stock market

Economy

May 302013

Growth report fails to lift stock market

MANILA, Philippines – Massive selldown by fund managers, surprisingly following the announcement of robust first quarter Philippine economic growth, weighed down heavily on the main index, which recorded its largest single-day loss in history. The benchmark Philippine Stock Exchange index (PSEi) suffered a bloodbath yesterday, plunging 3.81 percent or 275.22 points to 6,953.35. It is the largest single-day loss in the bellwether index, eclipsing the 263.84-point drop on Feb. 28, 2007. “Concerns about US Federal Reserve scaling back its quantitative easing overshadowed the surprising gross domestic product (GDP) data,” Freya Natividad, analyst at online brokerage firm 2TradeAsia.com, said in a phone interview. Philippine GDP surged a higher-than-expected 7.8 percent in the first quarter, driven by the construction and manufacturing industries. “A string of negative leads sent global stocks on yet another tailspin only a day after it posted a strong comeback off a four-session slump,” said Justino Calaycay Jr., analyst at Accord Capital Securities. He said there were also questions over European and China’s growth, adding to the gloomy sentiments. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the US, Wall St. succumbed to worries that the Fed will pull out its stimulus program given an economic recovery. The Dow Jones industrial average declined 0.69 percent or 106.59 points to 15,302.80 while the broader Standard & Poor’s 500 index slipped 0.7 percent or 11.70 points to 1,648.36. Asian stocks such as Japan’s Nikkei 225 that sank 5.15 percent or 737.43 points to 13,589.03 were also sold down by Read More …

Peso up from 11-mo slump

Economy

May 302013

MANILA, Philippines – The peso recovered yesterday from its 11-month slump against the dollar as investors cheered the better-than-expected first quarter economic growth rate. The local unit closed 42.32 against the dollar, 12 centavos stronger than the previous day’s 42.44, which was the weakest since June 2012. Dollars traded reached $1.112 billion, up from Wednesday’s $1.057 billion. “Basically, the strength was due to local story of a strong GDP (gross domestic product) growth that was well above market expectations,” a trader at a local bank said in a phone interview. Driven by consumption and investments, the economy grew by a surprising 7.8 percent for the first three months, the fastest in three years, and beating market consensus of just about six percent. The result was also well-above the official six to seven-percent growth goal for the year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Emilio Neri Jr., an economist at the Bank of the Philippine Islands, said investors would likely continue purchasing the peso, thereby boosting its strength versus the US dollar, “in the near-term.” “The Philippine peso may see some appreciation pressure in the near-term after its sharp slide in the past week as dealers were likely surprised by the strong GDP print,” Neri said in a research note. The peso, Asia’s second best performer last year, has lost more than three percent since the end of last year. This was the second straight day it traded at 42-level versus the greenback this year. While good news Read More …

Phl jumps 5 places in competitiveness

Economy

May 302013

MANILA, Philippines – The Philippines saw its competitiveness ranking move up by five places to reach the 38th spot in this year’s IMD (International Institute for Management Development) World Competitiveness Report from the 43rd place last year due to improvements in terms of its economic performance, government efficiency and business efficiency. Citing the IMD World Competitiveness Report which covered 60 countries, the National Competitiveness Council (NCC) said the Philippines’ improved ranking was due to gains seen in three out of four major factors being monitored by the report. In particular, the Philippines made improvements in terms of economic performance (from 42nd to 31st), government efficiency (from 32nd to 31st), and business efficiency (from 26th to 19th). The report noted that the improvement in economic performance could be attributed to big gains in real Gross Domestic Product growth, expansion in export of goods and international trade. In terms of government efficiency, gains in fiscal policy and institutional framework were noted. While the Philippines showed progress in its rankings in three factors, its place in the infrastructure factor dropped to the 57th spot this year from last year’s 55th spot. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Despite the drop in the ranking for the infrastructure sector, the NCC said the government’s move to implement infrastructure projects is expected to result in an improvement in the ranking moving forward. “Increased infrastructure rollouts and improved efficiency in the PPP (public private partnership) rollouts are expected to improve performance in infrastructure,” it Read More …

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