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
 
Unfair competition

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 …

Plunge in Meralco stocks dampens index

 Economy
Jul 192013
 
Plunge in Meralco stocks dampens index

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
 
Ayala Land starts P15-B bond offer

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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