Peso weakness won’t last long – BSP exec

 Economy
Aug 262013
 
Peso weakness won’t last long – BSP exec

MANILA, Philippines – The peso’s continued weakness against the dollar is not expected to last for long as this has been driven by market reactions to recent developments, a Bangko Sentral ng Pilipinas (BSP) official said. “I’m not sure if that is going to be for the long haul because as I have always indicated… we have a balance of payments and current accounts surpluses that should drive the firmness of the peso moving forward,” BSP Deputy Governor Diwa C. Guinigundo told reporters late last week. The local currency closed at 44.26 to a dollar last Friday, its lowest level since Jan. 31, 2011. Analysts attributed the depreciation to last week’s US Federal Reserve minutes which signified support for tapering stimulus due to an improving US economy. Moreover, the peso tracked other regional currencies, which weakened because of disappointing economic indicators reported by some emerging markets. “What we’re seeing is market reaction… so this is something that is driven more by market sentiment than by fundamental factors,” Guinigundo said. “It’s bound to correct in due time and when that happens… it means that that should go back to fundamentals and the fundamentals means that peso should be firm because of the balance of payments and current accounts position,” he continued. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The country’s balance of payments surplus amounted to $3.677 billion in the seven months to July. The BoP, which shows a country’s transactions with the rest of the world, tallies investments, Read More …

MPTC on track to hitting 2013 traffic growth target

 Economy
Aug 262013
 
MPTC on track to hitting 2013 traffic growth target

MANILA, Philippines – Metro Pacific Tollways Corp. (MPTC), the largest toll road management firm in the Philippines, said it is on track to hitting its full-year traffic growth target despite the recent harsh weather that disrupted operations. The tollway unit of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) is also waiting for government approvals for new projects and higher toll rates, a company official said. “The good thing is, we were ahead for the first seven and a half months. We should still meet target in terms of traffic (growth),” MPTC chief financial officer Christopher Lizo said. “Traffic growth target was three percent for the entire (toll road) network,” he said. From January to July, MPTC recorded a 6.5-percent increase in traffic for its portfolio, which is composed of the 94-kilometer  Subic-Clark-Tarlac Expressway (SCTEx), the 84-km North Luzon Expressway (NLEx) and the 14-km Manila-Cavite Expressway (Cavitex). However, Lizo said Typhoon Maring, the first major tropical storm this year, badly affected operations of MPTC. Maring and a southwest monsoon poured heavy rains in Luzon, resulting in flooding and the collapse of the Pasig-Potrero Bridge along SCTEx. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “To some extent when we do the budget, we incorporate the impact of extreme weather conditions,” Lizo said. To jack up revenues, MPTC is hoping to receive government approval for a 12-percent rate increase for NLEX. “In revenues, we are behind target but we’re still up against last year,” Lizo said. “We’re waiting for the tariff Read More …

Megawide eyes SEAsia markets for pre-fab exports

 Economy
Aug 262013
 
Megawide eyes SEAsia markets for pre-fab exports

MANILA, Philippines – Megawide Construction Corp., one of the country’s top building contractors, is tapping the Southeast Asian market as it ventures into exports of pre-fabricated construction materials. Local infrastructure projects and exports will form part of the company’s plan to diversify its revenue stream in the long run, a company executive said. “We’re considering regional expansion, particularly supply of our pre-cast (materials),” Megawide chief financial officer Oliver Tan said. Megawide’s first shipment of pre-fabricated construction materials to a Southeast Asian residential project contractor will likely be conducted early next year, Tan said. “We’re still looking at the numbers but it looks promising,” Tan said, adding that Megawide will benefit from zero tariffs for construction materials. The listed firm’s P1-billion pre-cast production plant in Taytay, Rizal, the biggest one-stop facility for pre-cast concrete building systems in the country and one of the largest in the region produces materials like beams, columns, stairs and walls. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Our facility is state-of-the-art in Southeast Asia. We’re more advanced than our neighbors so we’re looking at the supply of pre-cast regionally,” Tan said. To date, the pre-fabrication facility’s utilization rate is just 30 percent. “We’re trying to market our pre-cast products to horizontal developments,” Tan said, adding that pre-fabricated items have been sold mostly to high rise developments in the past few years. For the next three years, the supply of pre-cast building materials is targeted to account for 20 percent of Megawide’s total revenues, Tan Read More …

DOT sets bid for Roxas Blvd transformation

 Economy
Aug 262013
 
DOT sets bid for Roxas Blvd transformation

MANILA, Philippines – The government will bid out next month the Roxas Boulevard Park Redevelopment Project intended to transform parts of the area into a commercial strip, a top Department of Tourism (DOT) official said. “The Department of Public Works and Highways (DPWH) will hold the bidding process by September,” Tourism Secretary Ramon Jimenez Jr. said. He said the DPWH and the DOT are also in the process of finalizing the project cost. “Full budget is not yet finalized. We have yet to bid it out in September,” he said, noting the DPWH would release the cost of the project. Last week, the two agencies unveiled plans to redevelop Roxas Blvd. into a park complex by 2015. Based on the plan, the government wants to increase accessibility of Roxas Blvd. to pedestrians and bikers, as well as widen the “green” space in the area. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The Roxas Blvd. Park Redevelopment project is a convergence between National Government agencies, local government units and the private sector. This is not just a beautification project,” Jimenez said. The program, he said, would re-establish the importance of Manila as a capital city and enhance the value of property all over the district that it crosses. “This is a business plan aimed at restoring and enhancing Manila as a viable capital for tourism and business,” Jimenez added.  The redevelopment would involve the improvement of the 7.6-kilometer Roxas Blvd. that stretches from Ermita in Manila to Parañaque City.  Read More …

Gov’t to roll out P53-B foreign-assisted projects

 Economy
Aug 252013
 
Gov’t to roll out P53-B foreign-assisted projects

MANILA, Philippines – The government plans to roll out P53.297 billion worth of foreign assisted projects (FAPs) next year, 36.47 percent higher than this year’s P39.04 billion. According to Department of Finance data, the Philippines is seen to receive P29.11 billion worth of donor financing in 2014, an increase of 11.75 percent from the expected P26.05 billion this year. Japan remains the largest source of financial aid with P14.31 billion, 36.5 percent more than this year’s P10.48 billion. Of the programmed FAPs, P23.87 billion would come from counterpart funds while P169.16 million will be in the form of grants. The Japanese government extends financial support through the Japan International Cooperation Agency, Japan Export-Import Bank, and Japan Bank for International Cooperation. The Asian Development Bank is the second largest donor for FAPs with P5.5 billion. It is one of the country’s biggest sources of dollar-denominated program loans. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Korea is extending P3.38 billion while the International Bank for Reconstruction and Development is providing P2.84 billion. France is contributing P2 billion while Italy is lending P424.5 million. Most of the FAPs are infrastructure-related which include the construction and rehabilitation of roads, bridges, expressways, airports and railways. The government has been scaling up infra spending to further pump-prime the local economy. Other projects cover flood control, water irrigation and food production.  Other funds would go to the development of sub-specialty center for heart, lung and kidney diseases in Luzon and Visayas. The rest of the loans are distributed Read More …

Int’l show to feature innovative techs

 Economy
Aug 252013
 
Int’l show to feature innovative techs

MANILA, Philippines – A numerous highly innovative machine, equipment and solutions are expected to showcase at country’s largest and focused metal working show. 5 Axis machine, 3D laser printing, laser cutting machines, robotics and other related products will invade the manufacturing industry in the Philippines Aug.28-31at World Trade Center Metro Manila. As the only largest professionally organized industrial machinery, equipment, accessory and subcontracting exhibition in the country and recognized worldwide for its being the only focused industry, PDMEX 2013 is the perfect stage for companies to showcase their newest innovations, as well as for everyone to share knowledge and discuss industry trends.  PDMEX 2013 is an ideal venue for professionals, decision makers  to introduce, meet, network, learn, form business partnerships and closing deals. PDMEX is back with much better and bigger scope that would cater to the metal working and its allied industries. A free entrance event and a free seminars to participate, what else can we ask for. For more information, contact MAI (Market Access & Innovations) Management Philippines at (63-2) 899-2642 or e-mail mai_mgt@compass.com.ph.

DOE to use part of P4-B budget for projects

 Economy
Aug 252013
 
DOE to use part of P4-B budget for projects

MANILA, Philippines – The Department of Energy (DOE) will use part of its P4.05 billion budget to finance the department’s continuing activities including the household and sitio electrification program, Energy Secretary Carlos Jericho Petilla said.  Petilla earlier said the Aquino administration is aiming to cover 33,000 sitios under the rural electrification program by 2015. Aside from household and sitio electrification, the DOE will allocate portion of the budget for “biofuels blending, renewable energy installation and development of indigenous resources and clean energy technologies,” Petilla said. The Energy chief also said that the department has three ongoing special projects – the high impact solar project, which entails promoting the use of solar energy in the Philippines, the high impact hydro project, which is a joint venture with the Philippine National Oil Company-Renewables Corp., electric cooperatives and the private sector and the electric vehicles (e-trike) project, which is under a loan agreement between the government and the Asian Development Bank. For the e-trike project, the ADB is working with the government to promote the adoption of e-trikes in Metro Manila and soon, throughout the country. Ultimately, ADB and the government hope to see 100,000 electric tricycles on the road by 2016. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The e-trike produces no noise and zero tailpipe emissions and can be charged at night during off-peak electricity hours, according to the ADB.

Foreign buyers seek gov’t funding to revive garment sector

 Economy
Aug 252013
 
Foreign buyers seek gov’t funding to revive garment sector

MANILA, Philippines – The Foreign Buyers Association of the Philippines (FOBAP) is seeking funding support from the government to revive the country’s garments industry. The Philippine Exporters Confederation Inc. in a statement, cited FOBAP president Robert Young as saying that the projects costing around P5 million include industry mapping for garments and hard goods sectors, compliance program and “invite the CEO (chief executive officer)” project. Young said factories need to comply with implementing requirements and regulations on child labor, clean and safe environment and minimum wage. He said compliance to the requirements and regulations is important so that “the big buyer companies with big quantities and buying program will place orders.” “If not, the factories can just settle with the small quantity buyers which usually have lower buying prices,” he said. He also said there is a need to bring back the so-called “invite the CEO” project which has been effective in terms of regaining foreign buyers. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The “invite the CEO” project was implemented during the Martial Law years, when the country experienced crisis and foreign markets stopped purchasing goods. “What we did last time, we invited all the top CEOs and buyers of the major department stores abroad, all expenses paid for like four to five days. We told them that Manila was ready to serve you, we were still here and the industry was being revived,” Young said. With the implementation of the three projects, the group is optimistic Read More …

DOE says it can’t stop Petron from acquiring rival Liquigaz

 Economy
Aug 252013
 
DOE says it can’t stop Petron from acquiring rival Liquigaz

MANILA, Philippines – The Department of Energy (DOE) said its hands are tied and that it cannot do anything on the plan of Petron Corp. to acquire rival Liquigaz Philippines Corp., a ranking official told The STAR. Zenaida Monsada, director of the energy department’s Oil Industry Management Bureau said the agency has no jurisdiction over mergers and acquisitions even if the companies involved are oil firms. “The DOE cannot do anything about mergers and acquisitions. We only have jurisdiction on the initial public offering (IPO) requirement of refiners,” she said, referring to the Oil Industry Deregulation Law of 1998, which requires oil refiners to offer shares to the public. She said it was up to the Securities and Exchange Commission (SEC) to police corporations such as Petron regarding their acquisition activities if it deems necessary. Furthermore, she said Congress can also pass a measure that would put safeguards against monopolies. Petron is in the process of acquiring Liquigaz, a wholly-owned Philippine subsidiary of SHV Energy of the Netherlands. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Rep. Arnel Ty of the LPG Marketers’ Association has raised concerns that once Petron completes negotiations for the acquisition of Liquigaz, it may control the LPG industry with a 75-percent share. Ty said Petron has given SHV a non-binding offer of $60 million for Liquigaz’s LPG business, a statement that Petron neither confirmed nor denied. “The company confirms that it is participating in the proposed acquisition of the operations of Liquigaz, a wholly-owned Read More …

Higher Phl growth, stable rates seen by BofA, Barclays

 Economy
Aug 242013
 
Higher Phl growth, stable rates seen by BofA, Barclays

MANILA, Philippines – The Philippine economy is expected to have grown 6.8 percent in the second quarter, faster than the six percent expansion in the same period last year.  “We expect growth to remain supported by consumption and investment,” UK-based Barclays said in its Global Economics Weekly report published Friday. The bank’s forecast is within the government’s target of a six to seven percent economic growth this year but is slower than the higher-than-expected 7.8 percent expansion in the first quarter. Second quarter gross domestic product (GDP) data is set to be released by the National Statistical Coordination Board next week. Amid strong economic growth and a manageable inflation, Barclays noted the Bangko Sentral ng Pilipinas may keep policy rates steady in the coming 12 months. “With a favorable growth-inflation balance, we expect the central bank to keep rates unchanged in the coming 12 months,” Barclays said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The central bank has kept overnight borrowing and lending rates at 3.5 percent and 5.5 percent, respectively, since the start of the year. Rates were kept steady amid a benign inflation environment and a robust Philippine economy. Likewise, Bank of America Merrill Lynch (BofA), in its Asia Economic Weekly report said it expects the Monetary Board to keep rates unchanged at its next policy meeting on Sept. 12. “We do not think that monetary authorities will consider a policy rate reduction at this stage,” BofA said. The bank also noted it has raised its Read More …

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