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Philippine Peso weakens anew

Roy — Thu, 28 Jul 2011 22:05:33 +0000

The Philippine Peso weakened on Thursday as an effect of investors concerns in the local economy. After hitting its strongest thus far in three years early this week, the peso closed at 42.17 against the US dollar on Thursday. Down by 6 centavos from Wednesday’s 42.11.

Traders said it was an effect on the concerns over the debt situation in the United States. With the August 2 deadline drawing near, the US Congress has yet to agree on the debt ceiling of the US government, without which, it will be prevented from borrowing more to raise funds for its maturing obligations.

When the US faults in its debt payment, it sends jitters in the international financial community. Because most emerging Asian markets, the Philippines included, have significant exposure in the US.

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Stricter No Smoking rules starting Monday

Roy — Sun, 29 May 2011 02:26:46 +0000

A stricter “No Smoking” policy in public places will be implemented in Metro Manila starting Monday and the Metro Manila Development Authority (MMDA) will see to it that it will be imposed.

The MMDA will be arresting smokers on and secondary roads starting Monday, especially those inside public utility jeepneys and buses. This crackdown against smoking in public places is enforced by the MMDA in partnership with health and environmental officers of Metro Manila’s 17 localities.

MMDA Chairman Francis Tolentino invoked Section 5 of Republic Act 9211 of 2003 or An Act Regulating the Packaging, Use, Sale, Distribution and Advertisement of Tobacco Produces and For Other Purposes, and also the anti-smoking drive of the Land Transportation and Franchising and Regulatory Board in the implementation of the No Smoking policy.

Those who will be caught will be fined P500 for the first offense, or will be required to render an eight-hour community service if they cannot afford to pay the fine.

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DTI to bring SME Caravan to Antique

Roy — Sun, 15 May 2011 17:43:22 +0000

The Department of Trade and Industry (DTI) will bring business caravan to Antique. The DTI has chosen the province to be one of the sites for the Small and Medium Enterprises (SME) caravan which is slated on the 26th and 27th day of this month.

The trade department is encouraging businesses falling under the category of small and medium enterprises to take part in the said business caravan as it could be of great help for them because they would gain knowledge and skills in the field of their specialization.

The Micro, Small and Medium Enterprises (MSMEs) sector are considered by the national government as the backbone of the country’s economy. They contribute to employment and generate output for the economy. The government considers this sector as a vital link in dispensing new industries to the countryside and providing gainful employment. With this in mind, the government initiated a comprehensive and integrated strategies in sustaining the growth and development of the MSME sector, one of them is the SME Caravan.

Through the SME Caravan, the MSME’s could gain improved access to government and private sector services, particularly in areas where the provision of business services are limited. The caravan also aims to create awareness of SME’s various business development services that are available to them, both from the government and private sector.

During the business caravan, there would be resource speakers who will cover different business topics like Access to Markets, particularly Product Development and Marketing the Business, Packaging and Labeling, Product Costing and Pricing, and How to Participate in Trade Fairs.

For the finance said of business, the Access to Finance module will cover Business Plan Preparations, while the session on Productivity and Efficiency will cover topics such as Good Manufacturing Practices and Food Safety. The module on Entrepreneurship will cover Entrepreneurial Mindset and Opportunity Seeking lectures.

The seminars are free and DTI published information materials on MSMEs will be provided to each seminar participant.

Supporting the DTI in business caravan are different agencies and organizations like the Land Bank of Philippines, Development Bank of the Philippines, Provincial Government, TESDA, OPA, PPDO, DAR, the Sangguniang Panlalawigan and Non-Government Organizations.

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JG Summit to sell PLDT shares

Roy — Sun, 15 May 2011 12:15:30 +0000

JG Summit announced last Friday its intention to sell its stake in telecommunications giant Philippine Long Distance Telephone Co. (PLDT) to NTT DoCoMo of Japan. The Gokongwei-led company said it will be selling to NTT DoCoMo the 2.8-percent stake it will receive from PLDT as part of the telecom giant’s deal with the Digital Telecommunication Philippines Inc. (Digitel).

NTT DoCoMo was given the option to purchase the 4.56 million shares of JG Summit in PLDT for P2,500 per share, for a total amount of about P11.4 billion (approximately $263 million), although the deal is still subject to the closing conditions.

The PLDT shares will be issued to JG Summit as part of the P69.2-billion PLDT-Digitel deal that will allow the telecom giant to have a controlling stake in Digitel, the company that also operates the Sun Cellular network. In the said agreement, JG Summit will receive a 12.8-percent stake in PLDT’s enlarged capital.

From the 12.8-percent stake, 2.8 percent will be sold to NTT DoCoMo, leaving JG Summit with 10 percent in PLDT, which still entitle them to single seat in the board. In its disclosure to the PLDT, JG Summit said the transaction gives considerable value to JGS shareholder, yet still having enough participation in PLDT.

NTT DoCoMo, part owner of PLDT, is a leading telecom company in Japan. Under their agreement with JG Summit, it will have the option to purchase the PLDT shares within 30 days from the day they are listed in the Philippine Stock Exchange (PSE) board. The acquisition of the JG Summit’s share is part of the NTT group’s plan to maintain its cumulative stake in PLDT.

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Foreign firm to present power supply options to the country

Roy — Sun, 15 May 2011 05:26:39 +0000

A United Kingdom company is offering the Philippines its power solution to help avoid power disruptions in the country.

The British Embassy in Manila said Aggreko, a developer of power solutions, will be coming in the country next week to make a presentation of its product. The embassy said the company’s expertise could help address the possible power shortage in the near future which poses a threat to businesses operating in the country.

Aggreko is bringing to the country its more than 45 years of experience in the power solution industry. The company is said to be the world leader in the supply of temporary power and temperature control services. It will present its alternative solutions to potential power disruptions when it makes its presentation to the country next week.

The target participants in its presentations include the construction industry, food and beverages, agriculture, healthcare, manufacturing, government and institutions, mining and mineral processing, ports and telecommunications, among others.

Aggreko owns the world’s largest power rental fleet which consists of diesel and natural gas generating sets. Company experts will be in Manila to present different power supply options to help businesses avoid opportunity lost and other costs that could be brought about by power disruptions.

The company will be organizing the seminar presentation in partnership with the British Embassy in Manila, through UK Trade & Investment. The aim of the seminar is to inform industries in the country of the different power supply options available in case of unavoidable future power supply shortages.

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NHI approved Charice’s rendition of Lupang Hinirang

Roy — Sun, 15 May 2011 04:01:23 +0000

After a series of boo-boo’s from the previous fights of Manny Pacquiao, the National Historical Institute (NHI) finally gave a thumbs up to the rendition of the Philippine National Anthem.

International singing sensation Charice Pempengco sang Lupang Hinirang before Pacquiao’s fight with Shane Mosley in Las Vegas, Nevada last May 8. Charice was personally picked by pound-for-pound champion to sing the national anthem in his fight.

The NHI said Charice did a great job in singing the national anthem. Chief of NHI Heraldry Section Teddy Atienza commended her and said it was the correct rendition of Lupang Hinirang. He said they will send an a-mail to Charice and her mother to congratulate them.

The institute have criticized the incorrect rendition of Lupang Hinirang by some local artists, most of which were performed during Pacquiao’s fight. Charice was in fact one of those reprimanded by the NHI for rendition of the national anthem in 2008.

Charice, after the 2008 incident, made sure she will not commit any mistake again. She was previously commended by the NHI in her rendition of the national anthem last year during the inauguration of President Benigno Aquino III.

During the Pacquiao fight, the NHI congratulates Charice and gave her the thumbs up for the following the national anthem’s march tempo.

Charice said she practiced hard for the Pacquiao fight in Las Vegas, adding that she even used a timer to make sure that her singing would follow the right tempo of the song. She said she did not want to upset the NHI again.

The NHI is very particular in the rendition of the Philippine National Anthem. Section 37 of the Republic Act 8491 states that the rendition of Lupang Hinirang, whether it is played or sung, should strictly adhere to the musical arrangement and composition of Julian Felipe. RA 8491 also states that violation of the said provision may the person to punishment by a fine of at least P20,000 or imprisonment of not more than one year.

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De Lima nominated for the ombudsman post

Roy — Thu, 12 May 2011 18:32:35 +0000

Department of Justice (DOJ) secretary Leila de Lima was nominated for Ombudsman before the Judicial and Bar Council (JBC) by Assistant State Prosecutor Romeo Swenson because he said he beilieves that de Lima is most qualified to head the anti-graft agency. “Secretary de Lima has shown he incorruptible stand, integrity beyond reproach and character par excellence in serving the public,” Senson said.

De Lima, however, said last week that she is not interested in the ombudsman post and that she will be more fulfilled if she stays in the DOJ, adding that she will decline any nomination. She said she wanted to stay in the justice department where she feels she could e more effective.

“I’ve been here for just less than a year,” De Lima said, “I’m just starting. There are many, many more problems, challenges to face. The mandate of the DOJ is broader, so I feel I can do a lot more.” Under the JBC rules, a nomination for a vacancy will be accepted only when the nominee accepts the nomination.

The eight-man council recently officially opened the acceptance of applications and nominations for the post of the ombudsman. It gave interested parties a non-extendible period of 10 days or until May 16 to submit applications and nominations. JBC said it already received a nomination for lawyer Ernesto Francisco Jr., and former Pampanga governor Eddie Panlilio.

JBC also expected to receive a nomination for Dean Jose Manuel Diokno, son of the late senator Jose Diokno. He will be endorsed by the Free Legal Assistance Group. The council will make the official list of nominees for ombudsman public, after all nominations and applications have been received.

The Ombudsman Act (RA 677) said that the ombudsman should be “a natural citizen of the Philippines, at least 40 years old, of recognized probity and independence, member of the Philippine Bar, and must not have been a candidate for any elective national or local office.”

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DOH wants medicine, support accessible to poor women with breast cancer

Roy — Thu, 12 May 2011 14:46:32 +0000

The Department of Health (DOH) and the Philippine Cancer Society (PCS) joined hands to launch a program that will allow poor women diagnosed with early stage of breast cancer to have access to medicines and other forms of support. The program hopes to increase the survival rates of breast cancer victims in the Philippines.

Department of Health Secretary Ona said that an awareness campaign should be made to make women realize that breast cancer is a curable disease when detected, treated and managed early. “Cancer is a costly disease, with the cost of medicines and treatment way out of reach for our many countrymen,” he said.

Ona added, “Women must have regular breast examination and never hesitate to go on a medical check-up especially those with lump in the breast before it is too late.”

The health secretary called on women with early stage of breast cancer to enroll in any of the four participating hospitals in Metro Manila. These are: East Avenue Medical Center (EAMC), Jose Reyes Memorial Medical Center (JRMC), Philippine General Hospital (PGH), and Rizal Medical Center (RMC).

Ona explained further that through a patient navigation scheme, targeted indigent Filipino women should be provided free medicine entitlement and other forms of support. The DOH and PCS partnership will provide P50 million for a year covering 800 patients and will target an initial 1,000 breast cancer patients. He also said that the there was an estimated 12,262 new cases of breast cancer in 2010 and 4,371 died of the said ailment.

The Philippines is among the countries with high incidence of breast cancer cases. Survival rate for breast cancer in the Philippines is below 40 percent compared to the high survival rates of 80 to 98 percent in developed countries.

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Villar remains to be the richest senator

Roy — Thu, 12 May 2011 05:05:43 +0000

Senator Manuel Villar’s statement of assets, liabilities and net worth (SALN) reflects his assets to reach P725,221,964 while maintaining no liabilities. Compared to his filed SALN for the previous year, Villar’s asset were reduced from close to P1 billion to about P725 million in the election year of 2010. Despite the decrease in asset size, however, he remained to be the richest senator.

The senator listed about six residential lots in Las Piñas, Muntinlupa and Cavite, among his properties, totaling P4.58 million, representing acquisition costs. Villar also reported investments in stocks worth P147 million and other real and personal properties totaling P572.8 million.

Villar and his wife, who filed a joint SALN, also listed stakes in M.B. Villar Co. Inc., Fine Properties, Inc., Mooncrest Property, Macys Inc., Hollinger Holdings, which were acquired from 1982 to 2010. Cynthia Villar was a former lawmaker before she was replaced by son Mark as Las Piñas representative in 2010.

Forbes Magazine listed Villar as the largest shareholder in property firms Vista Land and Lifescapes and Pollar Property Holdings in 2009. He was the country’s ninth richest man then, with net worth of $530 million, according to Forbes.

Meanwhile, Senator Antonio Trillanes was the poorest senator in the list, replacing Senator Joker Arroyo. He listed his assets totaling P3.836 million. These included 120-square meter residential lot in General Trias, Cavite; a 308-square meter lot in Antipolo; and a residential condominium in Parañaque worth P3 million. Trillanes also reported P3.880 million as liabilities,

The second richest senator based on filed SALN is Ralph Recto (jointly filed with Batangas Governor Vilma Santos-Recto) who reported assets worth P418.523 million while maintaining P32 million in liabilities. He was followed by Ferdinand Marcos Jr. who has P311.5 million net worth with no liabilities.

Completing the list of the senators between Marcos and Trillanes, based on the size of the assets reflected in their SALN: Ramon Revilla Jr., P125.75 million; Senate President Juan Ponce Enrile, P116.07 million; Senate President Pro-Tempore Jinggoy Estrada, P93.56 million; Sergio Osmeña, P82.3 million; Pia Cayetano, P76.775 million; Teofisto Guingona III, P73.97 million; Edgardo Angara, P70.09 million; Majority Leader Vicente Sotto III, P48.96 million; Loren Legarda, P45.545 million; Juan Miguel Zubiri, P41.3 million; Franklin Drillon, P33.442 million; Panfilo Lacson, P24.729 million; Gregorio Honasan, P19.354 million; Lito Lapid, P18.9 million; Allan Peter Cayetano, P15.94 million; Francis Pangilinan, P12.43 million; Joker Arroyo, P11.05 million; and Francis Escudero, P8.032 million.

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SM to build 200-room hotel in Davao

Roy — Wed, 11 May 2011 07:42:16 +0000

A new 200-room hotel in Davao City will be build by SM Investment Corp. It will be in Lanang district, adjacent to the SM shopping mall.

SM, in its disclosure to the Philippine Stock Exchange, said its wholly owned subsidiary SM Hotels and Convention Corp. signed a contract with Carlson, a privately held global hospitality and travel company, for the very first Park Inn by Radisson in Davao, as well as in the Asia-Pacific region.

The 200-room new hotel will be located inside the 175,000-square meter mixed-use complex owned and developed by SM shopping mall subsidiary, SM Prime Holdings, Inc. Aside from the hotel, the group also plans to construct an SM Supermall and a convenience center within the complex. The construction of the hotel will be started in the third quarter of 2011 and is expected to be operation by 2013.

Elizabeth Sy, SM Hotels and Convention president, said the signing of contract to open a Park Inn by Radisson in Davao City is just another step toward the fulfillment of the vision of her father, tycoon and SMIC founder Henry Sy, to make the Philippines a “world-class tourist destination.”

“We believe that Davao is an ideal location for such an undertaking because of its robust economy, vibrant population, and excellent infrastructure, including its international airport. In addition, the Park Inn Hotel will benefit from the business synergies that will be created with the other upcoming SM projects within the vicinity,” Sy said.

Park Inn by Radisson is one of the hotel brands under Carlson and is the largest mid-market brand for hotels under development in Europe. Radisson is also managing SMIC’s upscale hotel in Cebu.

Executive vice president and chief development officer at Carlson Hotels, Asia Pacific Xerxes Meher-Homji said, “With the tagline Sleep Well, Live Well, Park Inn by Radisson hotels offers a hassle-free, clean and comfortable stay at a reasonable price.”

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Wage Board increased COLA instead of salary

Roy — Mon, 09 May 2011 16:22:26 +0000

Private employees from Metro Manila will receive and additional P22 in their cost-of-living allowance (COLA) per day, in lieu of a wage increase. The Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) approved Wage Order No. 16 increasing the COLA of employees. This will take effect 15 days after its publication on the daily newspapers on May 10, 2011.

Raymundo Agravante, chairman of RTWPB-NCR, said their main consideration in the decision was the argument presented by the employers during the deliberation. A wage increase will be an added cost on the part of the employers, while in COLA, overtime and other benefits are not affected.

Because while the additional allowance would bring the daily compensation to P426 per day, the basis for the computation of the overtime, night differentials, 13th-month pay, bonuses, retirement, and other benefits will still be the prevailing wage whose minimum rate still remains at P404 per day.

“In the end, the employers’ position was P20 COLA but we still managed to haggle P22 or a P2 additional allowance in anticipation of projected increase in prices of basic commodities,” Agravante said. He added that they also considered the warning of the Bangko Sentral ng Pilipinas (BSP) on the possible inflationary effect of giving more than P25 increase in daily compensation of workers.

Meanwhile, the Trade Union Congress of the Philippines (TUCP) slammed the decision. The TUCP said it was a measly wage increase in the form of COLA and called on Congress to rectify the decision.

Rafael Mapalo, spokesperson of TUCP, said “The RTWPB just missed this important opportunity to raise workers standard of living in NCR and to help improve equity as mandated by law. It further institutionalizes the primacy of profits over people, a few people over the masses of suffering workers. That was a shameless decision.”

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New reimbursement payment scheme to be adopted by Philhealth

Roy — Mon, 09 May 2011 10:27:19 +0000

A new payment system that will replace the present “fee for service” scheme in reimbursing hospitals will be adopted by the Philippine Health Insurance Corp. (Philhealth) and hopes to implement it next month.

The Philhealth plans to adopt a new system called the “case payment” system which will have fixed rates for medical services and surgical procedures to reimburse hospitals for treatment of Philhealth members.

Senior manager of benefits and development and research department of Philhealth Dr. Israel Francis A. Pargas said the case payment system will cover both medical and surgical procedures. He said the board discussion on the new scheme is almost over.

Pargas presented a draft during the recent annual convention of the Philippine College of Physicians (PCP), of the proposed amounts that can be reimbursed by hospitals on specified surgical and medical cases.

Among the fixed rates for service and procedures are: hemodialysis, P4,000; radiotherapy, P3,000; caesarian section, P15,000; Medical Care Plan (MCP), P8,000; appendectomy, P26,000; hysterectomy, P30,000; cholecystectomy, P31,000; dilation and curettage, P11,000; mastectomy, P22,000; herniorrhaphy, P21,000; and thyroidectomy, P31,000. For other diseases, reimbursement for essential hypertension case will be P9,000 and typhoid fever is P14,000.

Pargas said, “The new case rates shall be the new reimbursement for all the specified cases. It will apply to all claims by eligible Philhealth members and dependents admitted in accredited facilities.” He noted that the new scheme will moderate the financial risk to Philhealth and will provide high financial protection to beneficiaries and members and would mean less administrative cost for hospitals and Philhealth because it will not need any itemization.

According to Pargas, under the current reimbursement scheme which is the fee-for-service method, there is a high risk to payors, Philhealth and members and is also incentive for fraud. The present system also results in high administrative cost for hospitals.

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Bebeng intensified into a storm

Roy — Sat, 07 May 2011 12:32:56 +0000

The Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA) said on Saturday that tropical depression “Bebeng” has intensified into a storm. According to PAGASA, Bebeng is threatening to hit the Bicol region.

Bebeng was spotted 220 kilometers east of Legaspi City with maximum winds of 65 kilometers per hour near the center as of 4 p.m. Saturday. PAGASA has raised public storm signal no. 2 on the following provinces: Sorsogon, Albay, Camarines Sur, Catanduanes, and Northern Samar.

The following areas were placed under public storm signal no. 1: Masbate, Ticao Island, Burias Island, Camarines Norte, Quezon, Polillo Island, Aurora, Marinduque, Easter Samar, and Western Samar.

It is expected to be around 69 kilometers northeast of Daet, Camarines Norte on Sunday afternoon, and by Monday, Bebeng is expected to be 110 kilometers north of Baler, Aurora or 70 km south of Tuguegarao City, Cagayan.

Meanwhile, the National Disaster Risk Reduction and Management Council (NDRMC) advised residents living near rivers and lakes in the northern part of the country to “take appropriate actions.” The NDRMC said that the 26 low-lying areas near the Bicol River Basis are likely to be affected by the slow rise in the water. Flooding may also be possible as basin rainfall will likely be moderate to heavy.

Bebeng has also caused the cancellation of at least six domestic flights in 10 provinces in Northern and Central Philippines. According to the Manila International Airport Authority media affairs division, the cancelled flights included Air Philippines’ flight to and from Catarman. Cebu Pacific also had it flights to and from Catarman cancelled.

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Smart cards issued to drivers can now be used

Roy — Sat, 07 May 2011 08:07:36 +0000

The Pantawid Pasada fuel subsidy smart cards released last May 2 to jeepney drivers have already been loaded according to the Department of Energy (DoE). The smart cards were loaded with a value of P1,050 and they can be presented at gasoline stations with signs saying “Pantawid Cards Accepted Here.” The energy department also confirmed that some of the cards were already consumed.

Unfortunately, there were reports that some gasoline stations have turned away jeepney drivers who wanted to use the fuel subsidy cards for jeepneys issued by the DoE. Some gasoline attendants would reply that none of their fuel pumps were designated for the smart cards.

Some jeepney drivers complained that the P1,050 load was not even enough to run their jeep the whole day since they would consume almost P1,500 worth of fuel in a day, while some were still appreciative of what the government was to able to give them.

Meanwhile, independent oil player Flying V have reduced its diesel price by P0.50 per liter but increased its gasoline pump price by P0.50 per liter. The adjustments took effect on 12:01 a.m. of Saturday, May 7.

The DoE also issued the requirements for those who would like to get their smart cards, which are the following: certificate of public convenience (decision/order); official receipt valid from April 2010 to March 2011 and certificate of registration; and one government-issued ID with photo.

The initial sets of smart cards issued were to jeepney operators with routes originating from Baclaran Bacood, Bacoor, Bagbaguin, Bagong Barrio, Bagong Nayon, Bagong Silang, Bagumbayan, Bagumbong, Balara, Balic-balic and Balintawak.

The energy department have scheduled release the smart cards of other routes in Metro Manila on Monday and Tuesday. For provincial jeepney drivers, DoE has tapped the regional offices of the Land Transportation Office (LTO) to be the distribution channel of the Pantawid Pasada cards.

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Willing Willie will definitely make a comeback

Roy — Sat, 07 May 2011 08:00:16 +0000

Controversial TV show “Willing Willie” will definitely be back on air, as confirmed by TV5 publicist Peachy Guioguio.

TV5’s chairman Manny V. Pangilinan revealed in a recent interview the TV network already considered May 14 as the comeback date for the show, even as the Movie and Television Review and Classification Board (MTRCB) suspension will be lifted on May 9.

Pangilinan said more time is needed to make more enhancements on the show. He said they also came up with new games and gimmicks for the show’s live audience and its television viewers, adding that the show will be housed in a new studio.

Meanwhile, Shalani Soledad also confirmed that the show will be back when she appeared for an interview in the show “Paparazzi” last April 24. She also revealed that their set now has a new state-of-the-art LED flooring.

According to the “Willing Willie” website, there has already been a dress rehearsal for the show last May 4.

Channel 5 voluntarily pulled off “Willing Willie” from the air last month after the controversy where a six-year old boy was dancing like a “macho dancer” in a segment of the show’s March 12 episode.

Show host Willie Revillame have been the target of criticism and was accused of child abuse by some government agencies, children’s’ rights groups and even private citizens. Complaints flood the MTRCB office urging them to conduct an investigation on the said incident.

After almost a month, the MTRCB imposed a one-month suspension on the show, but considered the date the show went on voluntary suspension in the suspension. The board ruled that the show “Willing Willie” may resume on May 9, but said that it will be on a probationary status which means it has to secure a permit for every episode.

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Taiwanese businessmen plan to relocate to the Philippines

Roy — Fri, 06 May 2011 08:51:26 +0000

Taiwanese businessmen are seriously considering relocating their manufacturing facilities to the Philippines from mainland China. The Manila Economic Cultural Office (MECO) said the decision was made by the Taiwan diplomatic row with the Philippines following their frustrations from the stringent labor requirements in China.

The Taiwanese businesses are engaged in industrial plastics manufacturing with estimated investments of at least $120 million, according to MECO chairman Amadeo R. Perez Jr. He said they are considering relocating their factories from China to Subic and Clark Freeport zones for their export-oriented investments.

Perez said that four plastic products manufacturers have already visited Subic and Clark and another will be coming over to visit Batangas and Clark. One company engaged in bed frames and mattresses production is eyeing a warehouse in Clark which it can is suitable and can be converted for its business. “One project alone can command at least $20 million in investments,” Perez said. For the six projects that would translate to an estimated $120 million worth of prospective investments.

The bed frame and mattresses manufacturer is exporting its products to the EU, Asia and the US while the plastic products manufacturers are producing industrial products which are used for packaging applications and are exporting them all over the world.

Perez added that some of the Taiwanese have already gone to Vietnam and Indonesia because those countries are not very choosy due to their high unemployment rate. He said Taiwanese investors in mainland China have been turned off by policy changes in the labor sector.

MECO is implementing a major campaign to attract more Taiwanese investors into the Philippines, following the successful resolution of the bilateral issue early this year. However, Perez said the country’s only problem is the high cost of electricity, and Vietnam and Indonesia could beat the Philippines on that factor.

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SMC to complete construction of MRT 7 by 2014

Roy — Fri, 06 May 2011 05:24:12 +0000

The San Miguel Corp. projected that by 2014, it will be finished with its construction of the Metro Rail Transit (MRT) 7 line, and by 2015, the new highway to La Union. San Miguel said in its disclosure to the Philippine Stocks Exchanges (PSE) that before the year ends, it would start work on the MRT 7 line which involves the construction of a 22-kilometer train line and the six-lane road beneath it.

The MRT 7 line will have 14 train stations from San Jose Del Monte in Bulacan to the corner of North Avenue and EDSA in Quezon City. It will be linked with the MRT 3 train line and the Light Rail Transit (LRT) line 1 via a common station in North Avenue.

The project is estimated to cost $1.5 billion, 25 percent of which will be funded by company’s equity and the rest through loans. San Miguel expects to shell out around $190 million for the said project.

The MRT 7 line is one of the several rail extension projects for the existing metro rail systems which services Metro Manila. San Miguel acquired a 51-percent equity interest in Universal LRT, which holds the concession for MRT 7. The conglomerate will have 25 year to operate the train line.

As for the Tarlac-Pangasinan-La Union Expressway (TPLEx) project which will stretch from Tarlac to Carmen, Pangasinan, San Miguel said the first phase of construction was scheduled for completion by August 2012. Revenue collection through toll will start immediately after the first phase is opened, “while the remainder of the expressway is projected to be completed by August 2014.”

The estimated project cost for the development of TPLEx is P821.6 billion, which will be funded by a combination of debt, equity, and Philippine government subsidy. The subsidy from the government will be available at the start of construction of Stage 3 of TPLEx which is the section from Urdaneta to Rosario, Pangasinan.

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JG Summit earmarked $700 M for its 2011 expansion

Roy — Fri, 06 May 2011 01:00:57 +0000

JG Summit Holdings Inc. is earmarking $700 million for the planned expansion this year. Most of these funds are allocated for its petrochemical and airline businesses.

JG Summit president Lance Gokongwei said the petrochemical business will be the company’s priority in the next three years. JG Summit also has stake in a property developer and may expand into power generation.

With sale of its stake in Digital Telecommunications Philippines Inc. (Digitel) to Philippines Long Distance Telephone Co. (PLDT), the company will also be able to cut its debt by $600 million, giving it “more room” for fund-raising. Also the asset sale is said to be “strategically good for JG Summit because it frees up capital that the company can invest in ventures that potentially will pay a higher return.”

Gokongwei said after the sale of its Digitel stocks to PLDT, “We will be very lightly leveraged. We will have a very good balance sheet.” According to data compiled by Bloomberg, JG Summit has bonds and loans worth P69 billion.

Last December, JG Summit said it may sell 31 percent of its stake in Cebu Air Inc. to fund expansion and pay debt, however, after the Digitel-PLDT deal, the company will have “no immediate” need to sell shares. JG Summit is the majority owner of Cebu Air, the country’s biggest budget carrier.

Gokongwei said JG Summit will invest about $200 million in a naphtha cracker plant worth $700 million that may start operations by 2013, snack and iced-tea maker Universal Robina Corp. may spend $80 million to $90 million, property unit Robinsons Land Corp. will spend as much as $200 million on capital expenditure this year, while Cebu Air will spend around $200 million.

JG Summit also plans to bid for airport projects that the government will be opening to companies for investment, and is mulling to build a power plant for its petrochemical business, said Gokongwei.

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8 companies eyeing the right operate MRT and LRT 1 lines

Roy — Thu, 05 May 2011 05:51:12 +0000

Eight companies are vying for the operations of major Metro Manila train lines. Conglomerate Ayala Corp., San Miguel Corp., and Pangilinan-led infrastructure giant Metro Pacific Investments Corps. are the local groups planning to bid for the P15-billion contract, while five foreign companies have also acquired bid documents worth P500,000 each for the project, according to the Department of Transportation and Communications (DoTC).

The DoTC said that the bidding schedule has been set on July 11. Interested bidders may purchase bid documents until July 11.

The contract being eyed by the bidders involved a five-year operations and maintenance contract for the Metro Rail Transit (MRT) and Light Rail Transit (LRT) line 1. This is the first project under the administration’s public-private partnership (PPP) infrastructure program.

US-based Abratique & Associates, London Stock Exchange-list Serco Group, multinational Jorgman Construction and Development, and Japanese companies Sumitomo and Marubeni completes the list of eight groups bidding for the said license. A total 44 companies, most of which are from abroad, have expressed interest in the project.

But the DoTC kept on trimming down the list by telling companies it deemed not likely to stand a chance to win the contract not to bother joining the bidding. Companies were screened in terms of their financial capability and technical expertise. Companies that were affiliated with other potential bidders were also disqualified from the bidding.

The winner in the bidding process will get the contract to operate and manage both train line for four years with an option extend it for another year.

The DoTC hopes that by bidding out a single contract for the LRT1 and MRT train lines would lead to the integration of the train line. The lack of connectivity between the two lines has been causing inconvenience for the one million passengers that use both train lines every day.

The LRT line 1 runs along Taft Avenue from Baclaran in Pasay City to Roosevelt, Quezon City, while MRT runs from Taft Ave. to North Avenue along EDSA.

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New CDC head assumes post

Roy — Wed, 04 May 2011 18:39:14 +0000

Antonio B. Remollo, former mayor of Dumaguete City, is the new head of the Clark Development Corp. (CDC) replacing Benigno Ricafort, Ateneo law school dean Cesar Villanueva assumed post as CDC chairman, replacing Rizalino Navarro.

Ricafort left to Remollo’s charge a Freeport hosting some P77 billion worth of investments of foreign and domestic firms. He also reported that Clark now employs 60,000 personnel, which is a far cry from the average 24,000 Filipinos employed by the Americans before they left the former US Air Force base.

Ricafort started as CDC board member in 1993 until former president Gloria Macapagal-Arroyo appointed him CDC head in 2008.

Meanwhile, Remollo had been mayor of Dumaguete City in Negros Oriental from 1998 to 2001. In an interview, Remollo said he would keep the current vice presidents of the CDC although they would be under probation for six months to one year. He said he would retain those proven efficient and dedicated to their work.

Remollo disclosed that he is eyeing enough area in Clark for the construction of a “new Malacañang” as well as buildings to accommodate national government offices. He did not confirmed though if it was motivated by President Aquino, although there were other sectors, both private and public, who wanted to move the country’s government seat to Clark.

One of the top priorities of Remollo, he said, would be the development of Clark as a major tourism destination. “Tourism here could be developed to the maximum also by hosting sports activities as well as promoting medical tourism. We should have a really attractive theme park here,” he said.

Remollo is eyeing particularly the 300 hectares of land by the Philippine Air Force (PAF). The area include a resort with an Olympic-sized swimming pool, an “officers’ club” building with conference rooms, a hotel, and a football field. Said facilities have been noted to be underutilized and deteriorating under the management of the air force.