AboitizPower invests $1.2 B in 2 Bataan plants

 Economy
Oct 042016
 
AboitizPower invests $1.2 B in 2 Bataan plants

Buys out Blackstone stake in GNPower coal-fired facilities MANILA, Philippines – The Aboitiz Group is acquiring beneficial interests from Blackstone Group-affiliated investment funds in two GNPower coal-fired power plants in Bataan for  about $1.2 billion to meet its 4,000-megawatt (MW) capacity target in the next five years. Aboitiz Power Corp. announced yesterday its wholly owned unit Therma Power Inc. has finalized the purchase and sale agreements for the acquisition of the partnership interests held by affiliated investment funds of The Blackstone Group  – World Power Holdings L.P. and Sithe Global Power L.P. – in GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co., respectively. Therma Power is the Aboitiz Group’s holding firm for investments in non-renewable energy. Under the deal, Therma Power will hold an indirect effective interest of 66.1 percent in GNPower Mariveles and 40 percent in GNPower Dinginin for $1.197 billion, subject to certain adjustments and approvals by the Philippine Competition Commission (PCC) and the Board of Investments (BOI). The company has already filed a notification with the PCC, the country’s anti-trust body. “We have to go through PCC for clearance which we hope will not be a problem,” AboitizPower president and COO Antonio Moraza said in a text message. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 AboitizPower said the acquisition cost would be funded by a combination of internally-generated cash and financing from foreign banks. It said it has signed a facility agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., DBS Bank Ltd., Read More …

Manufacturing grows at record pace in Sept

 Economy
Oct 042016
 
Manufacturing grows at record pace in Sept

MANILA, Philippines – The Philippine manufacturing sector grew at a record pace in September, outpacing the performance of other countries in Southeast Asia, according to the latest reading of the Nikkei Philippines Manufacturing Purchasing Manager’s Index (PMI). The PMI registered a higher reading of 57.5 in September, higher than the August reading of 55.3 and is the steepest since data collection for the local manufacturing sector began in January. An index reading of above 50 indicates improvement in business conditions and activity while a reading below 50 indicates the opposite. The Nikkei manufacturing PMI is released monthly ahead of official economic data. The positive reading in September was attributed to strong client demand and higher production targets. “Driving the overall improvement in business conditions was another marked rise in new contract win as a number of firms reported having secured new customers. Moreover, the rate of growth was the sharpest on record so far,” said IHS Markit the entity that compiles the data for Nikkei. Purchasing managers surveyed during the reference period reported hiring more workers to enhance operating capacity and accommodate additional orders. Greater demand for goods also led manufacturers to purchase more input materials despite the higher cost brought about by the depreciation of the peso against the US dollar. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “All looks positive for goods-producing companies in the Philippines, with strong demand conditions leading to robust growth of new orders and output,” IHS Markit economist Alex Gill said in Read More …

PhilWeb implements retrenchment

 Economy
Oct 042016
 
PhilWeb implements retrenchment

MANILA, Philippines – PhilWeb Corp. is implementing a retrenchment program following the non-renewal of its license by the Philippine Amusement and Gaming Corp. The company disclosed yesterday that vice president Antonio Jose Garcia would serve in the corporation only until Nov. 4 due to retrenchment. Businessman and former trade minister Roberto Ongpin was the first to resign from the company after President Duterte singled him out as an oligarch who must be destroyed. Ongpin is divesting his entire holdings equivalent to 771.6 million PhilWeb shares or 53.76 percent of the company. He is in talks with investment bankers on how best to go about his divestment including selling this in the open market or through a private placement. Following Ongpin’s resignation, businessman Gregorio Ma. Araneta III, chairman and CEO of Araneta Properties Inc. and the son-in-law of the late dictator Ferdinand Marcos, has been elected as chairman. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  Araneta is the second largest shareholder of PhilWeb and has been a director of the company for a number of years. He also has other business interests in property development and energy aside from his investment in the company. PhilWeb is on temporary shutdown after Pagcor refused to renew its gaming license which expired on Aug.10. The company used to provide technology for some internet cafes exclusively dedicated to casino games. PhilWeb is also studying the viability of participating in the Duterte administration’s plan to roll out offshore gaming, which will target foreign players.

Proposed tax reforms: for better or for worse?

 Economy
Oct 032016
 

The Department of Finance submitted to Congress last week the first package of proposed tax reforms. The proposals include the restructuring of the personal income tax (PIT) system; expanding the value-added tax (VAT) base by reducing the coverage of its exemptions; adjusting excise taxes imposed on petroleum products; and, restructuring the excise tax on automobiles except for buses, trucks, cargo vans, jeeps, jeepney substitutes and special purpose vehicles. These proposed tax reforms, however, received varying reactions from stakeholders.

Online job hiring up 4% in August

 Economy
Oct 032016
 
Online job hiring up 4% in August

MANILA, Philippines – Online job hiring in the Philippines sustained its upward trend, rising by four percent in August on positive economic outlook in the country, an online research firm said. According to the Monster.com, the country’s job market has seen substantial improvement in the past months and is likely to continue its momentum until the end of the year. “The growth is in part due to the recent effective policies rolled out following the elections, as well as the increase in infrastructure projects, creating more job opportunities across the country,” said Sanjay Modi, managing director for Asia-Pacific and Middle East at Monster.com. In particular, the education sector recorded its fourth consecutive double-digit growth as it spiked 27 percent year-on-year in online hiring, the top growth among all job sectors. Purchase, logistics and supply chain roles also registered a 23 percent increase while information technology and telecoms recorded a four percent decline. Customer service saw the most notable decline, falling 23 percent as against the 18 percent growth reported between July 2015 and 2016. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The MEI is a monthly gauge of online job posting activity based on a real-time review of millions of employer job opportunities culled from a large representative selection of career websites and online job listings across the Philippines.

Disaster communications critical in saving lives

 Economy
Oct 032016
 
Disaster communications critical in saving lives

Luxembourg City, Luxembourg — We took a three-and-a-half hour drive from Paris to the Grand Duchy of Luxembourg, a small nation that happens to be one of the richest in the world. It has an estimated population of 582,291, according to the CIA World Factbook, with a GDP per capita of $99,000 — the highest in the Eurozone and the second highest globally. Its capital city is truly dynamic — a study in contrasts with diverse cultures blending together in harmony. One of its famous landmarks is the Place de la Constitution that has the “Gelle Fra” (Golden Lady) monument in remembrance of those who perished during World War I, and right below the Constitution Square is an impressively tended national park (shown in photo). The Luxembourg Ministry of Foreign and European Affairs arranged several meetings during my visit, among them with director general Carlo Thelen of the Luxembourg Chamber of Commerce which recently celebrated its 175th year, and Tom Baumert of the House of Entrepreneurship created only this April to serve as a one-stop shop to help new businesses get started and avoid “administrative barriers” in putting up a business. Focus is on developing new digital hubs and companies that “create synergies between finance and information and communication technologies” or fintech. Director general Thelen has been with the Chamber of Commerce for about two decades, and he has seen the economic and political changes that have been happening. Businessmen face a new set of challenges to which they must Read More …

ERC commissions study on system loss charges

 Economy
Oct 032016
 
ERC commissions study on system loss charges

The power regulator commissioned a third party to study and make reconmmendations on the system loss charges aimed to benefit consumers, ERC spokesperson Floresinda Digal said after Sen. Sherwin Gatchalian asked for updates on the reduction of system loss charges during a Senate hearing yesterday. MANILA, Philippines – The Energy Regulatory Commission (ERC) has tapped a third party consultant to do a review on the system loss charges aimed to reduce the pass-on burden to consumers. The power regulator commissioned a third party to study and make reconmmendations on the system loss charges aimed to benefit consumers, ERC spokesperson Floresinda Digal said after Sen. Sherwin Gatchalian asked for updates on the reduction of system loss charges during a Senate hearing yesterday. System loss refers to unbilled power caused by pilferage and physical loss of energy when electricity passes through distribution lines, which can be passed on to consumers as stated under Republic Act 7832, or Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994. The ERC awarded last month the contract to conduct the system loss review to local consultancy firm PowerSolv Inc., Digal said. Under the terms of reference (TOR), PowerSolv will review how the components of the system loss charge can be segregated into technical and non-technical items as well as study updating the system loss cap, she said. “The first part of the TOR will be a study on how system loss can be segregated to technical and non-technical, including what levels of technical and non-technical, if Read More …

BOl assures EU companies on Philippine business prospects

 Economy
Oct 032016
 
BOl assures EU companies on Philippine business prospects

MANILA, Philippines – The industry development and investments promotion arm of the Department of Trade and Industry has assured top European multinational companies of continued healthy relationship between the Philippines and the European Union (EU) despite President Duterte’s previous outbursts against the 28-member economic bloc. The Board of Investments (BOI) said it received recently an 18-member delegation from Europe-ASEAN Business Alliance (EABA), a group composed of leading European multinational firms with major business interests in Southeast Asia. During the meeting, BOI managing head Ceferino Rodolfo assured the delegates economic ties between the Philippines and European countries would be strengthened further through the government’s initiatives and policies that aim to foster a better business environment. He cited the EU GSP+, Philippines-EU free trade agreement (FTA) and Philippines-European Free Trade Association (EFTA) agreement as huge areas of opportunities EU companies investing in the Philippines may take advantage of. The BOI said this year’s 18-member EABA delegation is twice the size from the 2014 EABA mission’s nine delegates. Rodolfo said the increased number of delegates represents the strong interest of European companies to do business in the Philippines.  Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He said this year’s EABA delegation consists of high-profile companies operating in the areas of automotive, high-value agro technology, health services, dairy food production, innovation, power and automation, and banking and finance.  The Philippines is EU’s sixth largest trading partner in the region and 44th worldwide. The EU, on the other hand, is the Philippines’ fourth Read More …

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