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Meralco hopes to end 2015 with 5% sales growth

Economy

Dec 202015

Meralco hopes to end 2015 with 5% sales growth

MANILA, Philippines – Manila Electric Co. (Meralco) expects to end 2015 with over five percent growth in sales volume compared to a year ago, the highest growth seen by the company, its top official said. However, the country’s largest power distributor sees softer sales in 2016 due to higher base. “On a year to date basis, we’ll see 5.3 to 5.4 growth (in sales volume in 2015),” Meralco president Oscar S. Reyes said. He noted this projection is ahead of the historic growth rate of three to four percent of power sold by the company. In November in particular, sales volume reached eight percent growth from the same month in 2014. Reyes said there are a number of factors which have helped drived the electricity sales and demand higher. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Number one, inflation has been at an all time low, resulting in consumers having a disposable income affecting the purchasing power of customers,” he said. Even businesses, because of the low inflation, the cost of doing business is lower.” November inflation was at 1.1 percent, up from a record low of 0.4 percent in October. But while the November rate increased from a record low, year-to-date inflation averaged 1.4 percent, still lower than the 4.3 percent rate from the same period last year. Reyes also highlighted the higher temperature starting June, which drove stronger demand for electricity. “It’s very peculiar but from June to November, temperature has been warmer. This is the Read More …

Motherland

Economy

Dec 202015

LOS ANGELES – It’s that time of the year when I take a vacation from Metro Manila’s traffic jams to join family on the other side of the Pacific Ocean. Due to their work requirements, my kids can only take a week off for Christmas and going home seems too much an effort to take for too little vacation time. It is easier and cheaper for me and my wife to go here instead. One of my daughters is a public school teacher and she opts to go home between June and September when school here is on vacation. The usual Christmas reunion of my extended family of cousins has also moved to Rancho Cucamonga, a bit of a drive from downtown Los Angeles. There seems to be more of my immediate Chanco cousins on this side of the pond than back home. This year’s visit here is also special because my 92-year old mother-in-law agreed to travel. With the exception of my wife, all her children and all of her grandchildren and great grandchildren are in the Greater Los Angeles area. I figured she may be getting a bit lonely to be away from everybody except us and while she can still travel, she might as well do that. We got here middle of last week. From some conversations with Fil-Ams, there appears to be a lot of interest on what is going on back home. Many are amused, many more are concerned about recent political developments. Thanks to Read More …

Manila Water sets P30-B capex for 2016-17

General

Dec 202015

Manila Water sets P30-B capex for 2016-17

MANILA, Philippines – Ayala-led Manila Water Company Inc., the water concessionaire for Metro Manila’s east zone, has allocated an estimated P30 billion capital expenditures for the next two years as it commences a “catch up year” in 2016, a ranking official said. In an interview with The STAR, Manila Water chief finance officer Luis Juan Oreta said the company has set aside P15 billion for its 2016 capex and “very likely the same amount” for 2017. Of the P15 billion, P12 billion would be set aside for the east zone and P3 billion for non east zone project. “This year, we’ve finally settled our differences with MWSS so next year is a catch up year. Previously, we had no approved plans because we were in dispute with MWSS,” Oreta said. The MWSS slashed by 29.47 percent the East Zone water concessionaire’s basic charge of P25.07 per cubic meter, a reduction of P7.25 per cubic meter for the rate rebasing period of 2013 to 2017. This prompted Manila Water to dispute the rate reduction before the International Chamber of Commerce (ICC). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 However, ICC slashed Manila Water’s basic water charge by 11. 05 percent, equivalent to a decrease of P2.77 per cubic meter. A reduction of P1.66 per cubic meter would be implemented in 2015, then P0.55 per cubic meter in 2016 and finally P0.55 per cubic meter in 2017, according to the ICC. Oreta said the dispute stalled the company’s projects thus Read More …

Asia stocks rise, Europe flat as investors count down to Fed

Economy

Dec 202015

Asia stocks rise, Europe flat as investors count down to Fed

A man walks past Nikkei stock index displayed on an electronic board at a securities firm in Tokyo Wednesday, Dec. 16, 2015. Asian stocks posted strong gains Wednesday ahead of a widely expected decision by the Fed to raise interest rates from near zero in a vote of confidence in the U.S. economy. AP/Shuji Kajiyama HONG KONG — Asian stocks surged while European markets were tentative Wednesday as investors waited to see whether the Fed raises interest rates for the first time in nearly a decade. KEEPING SCORE: European stocks were mixed in early trading. France’s CAC 40 dipped 0.2 percent to 4,604.86 and Germany’s DAX gained 0.1 percent to 10,464.89. Britain’s FTSE 100 climbed 0.2 percent to 6,029.76. U.S. stocks were poised to open higher. Dow futures were up 0.2 percent to 17,494.00. Broader S&P 500 futures increased 0.2 percent to 2,040.60. THE FED, FINALLY: Investors around the world will be watching the Fed, which is expected to announce that it will raise interest rates from record low levels. Fed Chair Janet Yellen and other officials at the U.S. central bank have signaled well in advance that they are likely to raise rates for the first time in nearly a decade. They’ve also strongly hinted that they’ll keep the pace of any further increases gradual, as they try to avoid roiling financial markets that have become accustomed to easy credit. The decision highlights the world economy’s two-speed nature. As the U.S. economy comes back to full strength, other big Read More …

Meralco plans to bid out 250-MW peaking power

Economy

Dec 192015

Meralco plans to bid out 250-MW peaking power

MANILA, Philippines – Manila Electric Co. (Meralco) is eyeing to conduct a competitive bidding for nearly 250-megawatt (MW) of capacity to augment peaking power supply in its franchise area in time for summer of 2016. The country’s largest power distributor has received three proposals for peaking power supply, which will be put for a price challenge, Meralco president Oscar S. Reyes told reporters in an informal briefing. “We’re publishing a price challenge for an interim power supply agreement in the order of about 245 MW,” he said. The three power firms that submitted unsolicited proposals are Toledo Power Corp. for 28 MW, Panay Power Corp. for 45 MW and 1590 Energy Corp. for 170 MW, for a total of 243 MW. Meralco will publish an invitation for price challenge and will be accepting offers until Dec. 28. The supply will cover the February to July period, specifically the trading intervals 10 a.m. to 9 p.m. from Mondays to Saturdays. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Whoever gets it, we will enter into interim PSA,” Reyes said. The agreement will commence once the Energy Regulatory Commission (ERC) approves the deal and will expire on Feb. 27, 2017, which can be extended for up to three years. The auction is part of the distribution utility’s way of complying with the Energy department’s directive of conducting competitive selection process (CSP), the company’s top official said. “We try to work within the [CSP] framework to see if it works,” Reyes said. Read More …

More tariff-free ICT products Philippines sees huge benefits from new WTO deal

Economy

Dec 192015

More tariff-free ICT products Philippines sees huge benefits from new WTO deal MANILA, Philippines – The Philippines is poised to benefit substantially from a tariff free trade of information and communication (ICT) products following a landmark expansion of the Information Technology Agreement (ITA). A group of 53 WTO members, including the Philippines, finalized the agreement to expand the product coverage of the ITA last Dec. 17 during the 10th WTO Ministerial Conference in Nairobi, Kenya. The Department of Trade and Industry (DTI) said the agreement now covers the elimination of tariffs for new generation semi-conductors, global positioning system (GPS) navigation equipment, and medical equipment such as magnetic resonance imaging products and ultra-sonic scanning apparatus. Trade Secretary Gregory Domingo said the ITA expansion represents a huge step forward for innovation and economic growth globally. “It will deliver huge benefits to the Philippines in terms of improved productivity and market access, particularly for the electronics and semiconductor industry. The agreement makes our country more attractive to potential foreign direct investments particularly from key ICT players such as US, Japan, and EU,” Domingo said. The 201 products covered by the expanded ITA have annual trade worth over $1.3 trillion, and currently account for about 10 percent of total global trade. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Under the terms of the agreement, the DTI said the 53 WTO member-participants agreed to reduce tariffs on covered goods beginning July 1 next year, with around 65 percent of these tariff lines eliminated Read More …

ERC going paperless

Economy

Dec 192015

MANILA, Philippines – The Energy Regulatory Commission (ERC) plans to implement paperless transaction to speed up the process and improve operational efficiency. “We intend to put in place a system so all submissions will be done electronically,” ERC chairman Jose Vicente Salazar said. He noted work on upgrading the system is already in progress. “This is transparency. Our intention is to have a new image of the ERC and that we should be able to do something about access,” Salazar said. He said the ERC is working with the World Bank, which will provide technical assistance to upgrade the system. The ERC asked the World Bank to send their people, composed of an IT expert, procurement expert, regulatory expert to form a technical working group together with their internal personnel. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “If that will happen in January, hopefully we will be able to finish this in three to four months. This team will come up with a study for this,” he said. Putting in place an electronic system will complement the increase in manpower of the power regulator. Salazar said the ERC hopes to double its manpower to 508 from the current 220. A study on this was approved by the power regulator, which will be submitted to the Office of the President (OP) for clearance. The ERC is currently undergoing a validation process for over 2,700 unresolved cases as part of efforts to reduce the huge backlog. Salazar said the agency Read More …

Philippine Red Cross helps energize disaster-hit communities

Economy

Dec 192015

Philippine Red Cross helps energize disaster-hit communities

MANILA, Philippines – Two years after the devastation wrought by Super Typhoon Yolanda, more than 66,000 houses have been built through the help of the Philippine Red Cross, as it continues efforts to aid in the recovery and renewal in nine provinces and countless municipalities affected by the calamity. While the Philippine Red Cross embarked on massive rescue, rehabilitation and renewal operations that have been one of the most successful worldwide as attested by the International Federation of the Red Cross and Red Crescent (IFRC), it said the Yolanda experience is not just about providing shelter, medical assistance and other basic services. With the assistance of French NGO Electricians Without Borders, the Philippine Red Cross provided energy through a 33-kilowatt photovoltaic solar power plant that allows households to access electricity at half the cost of traditional sources and powers several establishments including day care centers, barangay health stations and livelihood centers. “The Yolanda experience has transformed the Philippine Red Cross into a full service Red Cross. No longer is the Philippine Red Cross just a provider of first aid and assistance in the midst of natural calamities and disasters; it has become a partner in providing basic services and continuing assistance in giving back not only what the people have lost but more importantly helping them get back their lives and dignity,” Philippine Red Cross chairman Richard Gordon said.

For vice president no more

Economy

Dec 192015

President Aquino himself said during an interview at the APEC Summit not to expect fireworks from candidates until after the Christmas season. He said the season brings goodwill and the candidates will be feeling kind and magnanimous, but expect an all-out war among them as we usher in 2016. He may just be right about the Christmas mood despite the duel challenges that no one took seriously. The duel challenges started with a challenge against a candidate’s résumé. What I veer to however is not what candidates voluntarily disclose but what they do not, as they are considered not legally obliged to do so even by implementers of the law. What is the true state of health of an individual running for president? The current school of thought is that the Commission on Elections is only mandated to implement election laws and there is nothing in the law that requires aspirants for public office to submit validated information about their state of health. After all, individuals in general have a right to privacy and one’s medical circumstances is about as private as it could get. What election history has shown us is that, at least in the relatively recent past, two losing candidates succumbed to illness soon after the presidential election. Loneliness that a lost presidential bid can bring is a killer. One died of a stroke, but one died from the big C (God bless their souls). They could have won. The current presidential lineup, already unfortunately marred by Read More …

SBMA names top 15 locators

Economy

Dec 192015

Subic Bay Metropolitan Authority (SBMA) logo MANILA, Philippines – The Subic Bay Metropolitan Authority (SBMA) has named its biggest locators to date with the top 15 firms pouring in a combined investment of $3 billion and generating over 40,000 jobs for the economy. Korean shipbuilder Hanjin Heavy Industries Inc. remained as Subic’s largest investor, pumping in over $2 billion and creating a total of 33,863 jobs. Philippine Coastal Storage and Pipeline Corp. was the second biggest investor, contributing P3.4 billion in investments in fuel terminal and storage tank farm that is capable of holding 4.6 million barrels of petroleum and petroleum-related products. Sanyo Denki Phils. Inc., manufacturer of electric machineries, appliances and computer and electronic wares, came in third with its P3.2 billion contribution along with some 3,500 workers. Tong Lung Philippines Metal Industry Co. Inc., which has over P2.1 billion in investments and over 2,100 workers for the manufacture of residential and commercial locksets and door closer, ranked fourth followed by the Subic Bay Town Center Inc. and Royal Duty Shops Inc. which invested P1.6 billion each. Subic Bay Town Center operates the Harbor Point Mall while Royal Duty Shops engages in the retail business. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Other major investors cited were the Subic Bay International Terminal Corp.(a P906 million company that manages and operates the New Container Terminal 1), Subic Bay Freeport Grain Terminal Services. for its P683 million investment in bulk grain handling for Central and Northern Luzon grain importers, Read More …

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