Maniolas

MANILA, Philippines – Despite less budget being released to agencies by August, state offices fast tracked their spending, recovering from a slump the previous month. A total of P1.27 trillion in notices of cash allocations (NCA) were converted into checks and disbursed during the first eight months, data from the Department of Budget and Management (DBM) showed. The figure accounted for 92 percent of existing allocations worth P1.38 trillion during the same period, up from 91 percent last year and 77.9 percent in July. NCA is the last document agencies need to secure to get checks from the Bureau of the Treasury to pay for their obligations. Once checks are received and encashed, they are deemed spent. “I think this is still part of calibration which means they are spending what they already have in their hands,” said Alvin Ang, economist at Ateneo de Manila University. “If this becomes the norm, then that is good since this means more budget getting spent,” he said in a phone interview. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The previous administration had been criticized for its persistent underspending that slowed down growth, which it blamed on agencies being slow in disbursing funds. Allotment means funds may now be used to enter into contracts to purchase goods and services. Once agencies do so, they become obligated and then secure an NCA from DBM. But Emilio Neri Jr., lead economist at Bank of the Philippine Islands, said it is likely that agencies had Read More …

MANILA, Philippines – Clark International Airport Corp. (CIAC) can now expand with an additional runway after Clark Electric Distribution Corp. (CEDC) was cleared to relocate its substation facility in the area. The Energy Regulatory Commission (ERC) approved CEDC’s application for an emergency capital expenditure (capex) project called Development of Roxas 50 MVA, 69 KV-13.8 KV Substation. The project involves the relocation of the Diamante Substation to the Roxas district and the replacement of the old 25 MVA 69 kV-13.8 kV power transformer with a higher capacity 50 MVA, 69 kV-13.8 kv power transformer. In its application, CEDC said the relocation is due primarily to the CIAC’s plan to construct an additional runway that involves the dismantling of the existing Diamante Substation. The ERC also approved the project considering the existing substation is expected to be critically loaded at 100 percent by 2020. “The expansion of a vital piece of infrastructure such as an airport involves the development of industrial, commercial and even residential establishments leading to socio-economic growth and progress. The ERC approved the application of CEDC to enable it to fulfill its mandate of providing reliable service connection to existing and new consumers and ensuring the safe operation of electric facilities”, ERC chairman and CEO Jose Vicente B. Salazar said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The ERC said opportunity to up-rate the power transformer together with the relocation is a wise strategic engineering practice and that would prove advantageous to CEDC and its customers. The Read More …

MANILA, Philippines – First Gen Corp. will start commercial operations its 97-megawatt (MW) Avion natural-gas fired power plant in Batangas City after securing a regulatory clearance. In a disclosure to the Philippine Stock Exchange, First Gen said its wholly-owned unit Prime Meridian Powergen Corp. (PMPC) received yesterday the certificate of compliance (COC) issued by the Energy Regulatory Commission (ERC) for the Avion power plant. “The certificate on the change of status of the Avion plant to commercial operations is under process with the Philippine Electricity Market Corp., operator of the Wholesale Electricity Spot Market (WESM),” the company said. A COC is required before any generating company can start operating a power project. The Avion plant, located within the First Gen Clean Energy Complex in Barangay Bolbok, Batangas City, was supposed to deliver power during the summer months of 2015. However, the project faced delays after IstroenergoGroup (IEG) and its Philippine branch company Energy Project Completion Ltd. (EPC), contractors for turnkey engineering, procurement, and construction, failed to comply with their obligations. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Thus, PMPC terminated the contracts. Slovakian firm IEG was tapped in August 2014 to construct and commission the Avion plant. Since then, the Avion plant has been undergoing commissioning and testing until the COC was issued. The commissioning and testing phase of the power facility helped in boosting First Gen’s first half income this year, which rose 19 percent from $95 million in 2015 to $113 million.

THE DUTERTE administration said it remains intent in scrapping rice import restrictions that will lapse in June next year, as such non-tarriff barrier clouds prospects for the Philippines’ inclusion in the Trans-Pacific Partnership (TPP) deal.

Stocks, bonds and most everything in between have delivered strong returns the last seven-plus years, helping to inflate retirement nest eggs and college-savings funds. But don’t expect a repeat, says Richard Turnill, global chief investment strategist at BlackRock, the world’s largest asset manager. Philstar.com/File NEW YORK — Everything’s awesome for investors, but how much longer can it last? Stocks, bonds and most everything in between have delivered strong returns the last seven-plus years, helping to inflate retirement nest eggs and college-savings funds. But don’t expect a repeat, says Richard Turnill, global chief investment strategist at BlackRock, the world’s largest asset manager. Turnill forecasts big U.S. stocks over the next five years will return maybe a third of what they did over the last five years, for example. For bonds, simple math means he’s anticipating long-term Treasurys to lose a modest amount over that time. Bond yields have sunk, hitting a record low this summer, limiting the income they pay out. And when, or if, interest rates rise from that low base, it will mean drops in their price. Turnill recently discussed his outlook for the markets. Answers have been edited for clarity and length. Q: Stocks are at a record high. Bonds have delivered strong returns this year. Is this nirvana for an investor?  A: You’re in a sweet spot for financial markets, created by a combination of low-but-steady global economic growth and very accommodative monetary policies around the world. That is supporting prices now and dampening volatility. And even Read More …