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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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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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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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Transport firm to pioneer electric buses in the Philippines

Roy — Sun, 01 May 2011 14:57:44 +0000

Local transport firm Green Frog Zero Emission Transport Corp. dared to take the huge risk in the electric vehicle industry and expressed interest to buy some 3,000 electric buses in the next seven years, with the initial 38 units coming in from China within the year.

Green Frog director Philip Apostol said the 36-passenger buses will be fielded in Makati City with an P8 fare trip. The first 10 buses arriving midyear will ply the Buendia line while the 28 units will take other routes. The buses will initially ply a route that goes along Buendia from EDSA to the South Luzon Expressway (SLEX). Eventually, they will be available to commuters with the whole of Makati.

“The plan is to implement to project within 90 days after the signing of the MOA (memorandum of agreement) with the Makati LGU. This is a PPP (Public-Private-Partnership) with Makati,” he said. Apostol admits that cost of the e-buses was high, but hopes that the government “would work” with them.

He did not disclosed the cost of the electric buses but said that normally, the bigger electric buses would cost $300,000 (P13.5 million) each. Green Frog’s buses, however, will be smaller and would cost less.

The company is seeking tax perks, among other incentives, and a pioneer status from the Board of Investments, to make the project economically viable.

Negotiations by the company with banks and government financial institutions have been started, seeking for the best financing package. It also seeks some guarantees from the Philippine Export Import Credit Agency (PhilExim) to get lower interest rates.

Apostol said the half of the revenues will be coming from advertising income to help keep fares at reasonable levels during the initial roll-out.

Another Green Frog director, Servillano Batac, said talks were also ongoing between government and financial institutions for the mechanics of a “tap-and-go” system for the electric buses. “The idea is that you will be able to use your MRT (Metro Rail Transit) cards to pay our electric buses, just like in other countries,” he said.

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Philippine-China trade and conference fair set on June

Roy — Sun, 01 May 2011 08:56:27 +0000

The China Council for the Promotion of International Trade (CCPIT)-Guangzhou and Philippine Chamber of Commerce and Industry (PCCI) recently signed a cooperation agreement to co-organize the Manila-Guangzhou Trade and Investment Conference slated to be held on June.

The event, which is aimed to further boost the Philippine-China trade and investment relations, is expected to gather around 500 business leaders, industry captains and government officials from both countries.

Part of the activities of the conference will be a product promotion through a virtual trade fair which would feature top export products of China, and business matching activities. There will also be office and factory visits to be arranged for the estimated 200 businesses and industry leaders comprising the Chinese delegation.

PCCI President Dr. Francis Chua said, “The Philippines and Chinese’ economies are open to mutual cooperation in trade and investments. While initially, the idea behind the conference is to promote Chinese-manufactured products for export to the country, we are making it a point to ensure that local enterprises and industries get maximum exposure and gain from the visit of top-level Chinese businessmen. That is why we are arranging business meetings and site visitations on the sidelines of the conference.”

China is the country’s top trading partner with export receipts reaching US$51.39 billion in 2010. Data from the National Statistic Office (NSO) show that the combined markets of China and Hong Kong in 2010 accounted for about 19.52 percent of the Philippines’ total exports.

Guangzhou Vice President of CCPIT Madame Li San Jian said, “China is a very big market. With increasing domestic demand and infrastructure development, Philippine export products such as mineral-and-metal-based resources as well as processed and fresh food products can easily gain entry into the Chinese market.”

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Aboitiz to invest P25 billion for Mindanao coal-powered facility

Roy — Sun, 01 May 2011 02:56:29 +0000

The Aboitiz Power Corporation offered to invest P25 billion to jumpstart construction of its proposed 300-megawatt coal-fired power facility in Davao, with the said investment coming from its internally-generated cash. “To save time, Aboitiz Power is ready to invest its own fund, amounting to P25 billion instead of seeking financing from other institutions to fast-track construction,” the company said.

The coal-fired power facility being pushed by Aboitiz Power will be equipped with circulating fluidized bed (CFB) coal combustion technology. In the genre of what is being dubbed as “clean coal technology,” it is a more advanced and efficient equipment that extensively minimizes emissions from a coal plant.

Aboitiz Power first vice president for Mindanao affairs Manuel Orig said, “The region needs a steady supply of power to fuel its growth, as industries, investments and businesses expand. Unless the proposed power plant is constructed soon, the energy supply situation in Mindanao will become more precarious, especially as 2011 enters the dry summer season.”

As in all other power projects, the multiplier effect being seen by the project firm will be provision of additional source of livelihood as well as development initiatives for the host community. By the company’s own estimate, Mindanao may suffer from a supply shortage of 480 megawatts by 2014. And considering the lengthy timeline for power projects, construction of facilities must start now to beat the odds of worse brownouts in three years time.

“The demand for electricity for Davao and the rest of Mindanao is growing steadily but the supply, unfortunately, has been lagging behind the needed base-load capacity,” the Aboitiz firm has emphasized.

The Aboitiz arrived at the decision to invest its own funds because Mindanao has been snarled with power outages anew in the past days. Unfortunately, financial closure for power projects generally gobbled up time in the apportioned gestation period of project implementation.

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Trans-Asia stock rights offer approved by PSE

Roy — Sat, 30 Apr 2011 06:19:03 +0000

The Trans-Asia Oil and Energy Development Corp.’s plan to raise fresh fund for power generation via stock rights offer was approved by the Philippine Stock Exchange (PSE).

The Phinma-led company got the nod from PSE when the latter posted a memorandum on Friday saying that its board has approved the listing of 1.16billion additional common shares to be issued by Trans-Asia to cover an equity offering to all shareholders. Each eligible shareholder is entitled to subscribe to seven right shares for every 10 existing shares held as of record date of May 18.

The offer price of P1 per share represents a discount of 21.9 percent on the market price of Trans-Asia as of March 21, which was the date the stock rights offer was approved by the board of Trans-Asia.

The net proceeds from the stock rights offer, based on the memorandum, would be used to partly finance Trans-Asia’s equity investment in the planned 135-megawatt clean coal plant in Calaca, Batangas and its investment in Maibarara geothermal power plant.

Trans-Asia tapped on the services of ATR KimEng Capital Partner Inc. to be the underwriter of the stock rights offering which would run from May 30 to June 3 this year.

The Phinma group, which is composed of Philippine Investments Management Inc. and Phinma Corp., the principal stockholders of Trans-Asia, pledged to subscribe to any shares not taken up by other eligible shareholders.

Trans-Asia was originally into petroleum exploration, and later diversified to other industries like cement manufacturing, coal trading and power generation. This year, the company expects to generate a net profit of P482.23 million, which is a considerable increase from the P14.74 million it posted a year ago. Revenue is projected to rise to P1.7 billion from P894 million in 2010.

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PLDT counters Globe’s claim

Roy — Sat, 30 Apr 2011 02:02:45 +0000

The Philippine Long Distance Telephone Co. (PLDT) said the claim of Globe Telecom that the deal between PLDT and Digital Telecommuncations Phil. Inc. (Digitel) would result into the monopoly of the telecom industry is only Globe’s way of protecting its interest at the public’s expense. PLDT criticized Globe’s effort to stop the deal that would allow the telecom giant to take over third-ranked mobile brand Sun Cellular.

PLDT said that the acquisition of Sun would actually result in a more efficient use of network facilities, which would lead to better services at lower costs. “Globe wants to create the impression of an impending monopoly by PLDT, which is not the case,” said Ray Espinosa, regulatory affairs head of the company. “What they really want is for the government to make up for their inefficiencies.”

Earlier, Globe asked the National Telecommunications Commission (NTC) to intervene in the deal between PLDT and Sun Cellular operator Digitel. Globe claimed that a monopoly would emerge from this deal and this could only work for the detriment of the industry and consumers. Globe also said that the deal would give the combined entity 3.5 frequencies for every one that Globe has, creating an imbalance.

Espinosa countered that based on the data available at the NTC, PLDT is in fact 23-percent more efficient than Globe in terms of frequency use. This means PLDT, which has 45 million subscribers, need more frequencies than Globe. He said Globe should instead allow market forces to work and let the consumers decide for themselves which is the better network.

With the claim that the PLDT-Digitel would give them 70 percent control of the market that would eventually kill competition, Espinosa said that at the end of the day, it all boils down on to which network can offer the better service, regardless of the size of the company.

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Aircraft maintenance company to expand facility in the Philippines

Roy — Fri, 29 Apr 2011 22:45:16 +0000

Lufthansa Technik Philippines (LTP) plans to expand its facility in Manila in order to increase the variety of aircraft it can serve, including the Airbus A380, which the world’s largest passenger plane. The Airbus A320, designed for short to mid-range flights, is among the most-used aircraft by local airlines and is ideal for trips to domestic and international destinations within the Asia Pacific.

The aircraft maintenance company, which is a joint venture between Lucio Tan’s MacroAsia Corp. and Germany’s Lufthansa group, said it will be spending $30 million in the next year to expand its facility at the Ninoy Aquino International Airport (NAIA).

The company said the expansion will “boost its capability in servicing the growing range of Airbus models that includes the A320, A330, A340 and A380, which is the world’s biggest and most technologically advanced commercial aircraft.”

For its part, MacroAsia said, “The Philippines will be one of the few places of A380 maintenance in the world, and this definitely cements the country’s place in the global aviation map.”

LTP said that once its expansion is completed, the Philippines’ position and presence in the global aviation map would be enhanced. The company will also be hiring additional 2,700 workers more when its new hangar becomes operational by January 2012.

The expansion will cover a new 8,484 square meter facility which will be built in accordance with the strictest design codes. It will add to LTP’s four existing hangars. This would be able to accommodate one wide-body and two narrow-body or four narrow-body planes all at the same time.

Among the international airlines currently served by LTP are Lufthansa German Airlines, Qatar Airways and Cathay Pacific. Among the local airlines, the company serves Cebu Pacific, Zest Airways, and LTP affiliate Philippine Airlines.

Aside from the Manila hangars, LTP also has an aircraft maintenance facility at the Clark Freeport Zone in Angeles City, Pampanga.

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Philippine tuna company acquires US salmon company

Roy — Thu, 28 Apr 2011 13:51:25 +0000

Philippine company Alliance Select Food International Inc. sealed a deal to acquire 100 percent of US company Spence & Co. Ltd., a Massachusetts-based salmon smoking and curing company who specializes in the production of smoked salmon and seafood, prepared in the Scottish tradition of its founder Alan Spence. The company caters to the high-end market in the USA and Europe.

The Alliance, in its disclosure to the Philippine Stock Exchange (PSE), said it had signed an agreement to acquired the US fish company lock, stock and barrel through subsidiary ASFI Choice Foods Inc. for $8.5 million.

Alliance spokesperson Rajat Balain said, “An investment in Spence is another step towards Alliance’s goal of diversifying its product line to enhance shareholder value and ensure future profitability. This will be Alliance’s third smoked salmon venture, making it the largest salmon processor in the region, and will help it establish a beachhead in the lucrative seafood market in the US.”

To partly finance the acquisition of Spence, Alliance will be conducting a stock rights offering. The company already gave the approval for the said offering. The PSE suspended trading of Alliance starting 9 a.m. Tuesday pending the submission of additional disclosure pertinent details on the transaction.

Alliance started commercial operations in General Santos City in Mindanao in 2004, it was formerly known as Alliance Tuna International and engages in tuna processing, canning and export of canned tuna products. It exports to Europe, North America, Asia, Africa and South America as a “private label manufacture,” which means it processes and cans tuna using its customer’s brands.

Part of its overseas expansion in recent years is the company’s aspirations to become a regional food company with a “decidedly Filipino DNA.” Alliance is always on the lookout for opportunities in regional seafood companies with high margins and high-value products.

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China auto company to open manufacturing facility in the Philippines

Roy — Mon, 25 Apr 2011 10:22:44 +0000

Chery Automobile Ltd. announced it will build a manufacturing facility in the Philippines which will be the company’s left hand drive manufacturing hub in the Southeast Asia. Chery Philippines sales marketing manager Raymond Tribdino said the manufacturing facility will be constructed in the next three years. He said, aside from serving the local market, the company also plans to sell Philippine made vehicles to the ASEAN market. They plan to build Philippine specific models for both passenger cars and small vehicles.

“We will have a local partner. We will subcontract. We are in the trial phase and we are working out the shares in the company. We are not sure how much the total investment will be, but normally, one line costs more than $10 million,” Tribdino explained.

He also added that they would like to bring in cheaper electric vehicles to the Philippines and ASEAN market, “For electric cars, we would like to introduce the first commercially available electric vehicle.” Tribdino said the lithium ion battery is 60 percent of the price. The Chery full electric vehicle is estimated to be at P1.8 million but it could be more. For a single charge, it can run up to 250 kilometers.

Chery Philippines is asking the government to grant them incentives like a parking lot with charging station, lower registration rate and zero percent import duty from China. The current import duty is 30 percent. If the said tariff is removed or is the same as AFTA at one percent, Tribdino said the small e-vehicle will be cheaper at P1.057 million. Although the vehicle is over P1 million, he said the running cost is low with the high cost of fuels.

Tribdino also said they are looking to beef up their local sales as Chery China took over from old distributors Easy Way Motors. The company bought Easy Way’s assets worth P150 million. He said they are looking at matching their 2010 sales target last year which was 1068 units. Their 2010 sales stood at 1,134 units.

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Globe to invest $500 M to improve mobile network

Roy — Sun, 24 Apr 2011 06:57:15 +0000

Mobile service provider Globe Telecom is investing $500 million to improve the quality and capacity of its mobile network infrastructure throughout the country. Company officials said the network quality will be top priority of Globe this year.

As part of the company’s network transformation program, Globe is making one of its biggest network investments in quality and capacity to date, where the significant amount will be used for capacity buildup, network modernization and optimization. These upgrades would provide subscribers better experiences in call, text and data services in 2G, 3G and 4G.

Globe earlier announced a major expansion of its current 4G footprint with the country’s first commercial rollout of 4G mobile technology. At its initial phase, Globe utilized the global standard HSPA+ Globe allots or Evolved High-Speed Packet Access for its 4G mobile network.

HSPA+ is a 4G wireless mobile, high speed broadband technology that allows for peak theoretical download of up to 21 Mbps with upgradeability for 84 Mbps which would complement the company’s existing 4G WiMAX (Worldwide Interoperability for Microwave Access) network. Under the Globe HSPA+ network, subscribers are expected to enjoy browsing at a typical speed of 4-6 Mbps with even faster peak speeds.

Globe president and CEO Ernest Cu said, “Our customers are looking for better network quality, and this is what we are giving them. We are making a substantial investment in our network to improve the quality of our services to our subscribers. Certainly, the network on which our services are delivered play a pivotal role in achieving superior customer experience.”

By continuously enhancing their network facilities and operations, Cu explained, their subscribers will enjoy better quality and greater reliability for calls, text messaging and data services. “This year, we are making significant investments in upgrading and expanding our networks. One tangible result of which is the commercial rollout of 4G for mobile, making us the first Philippine operator with a 4G mobile network in the country,” he added.

The 4G HSPA+ rollout expands the foray of Globe into new and up-to-date network technologies to provide its subscribers with high-speed broadband access with the added convenience of full mobility.

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DTI’s trade mission to India produces $42 M investment pledges

Roy — Fri, 22 Apr 2011 15:59:24 +0000

The Department of Trade and Industry (DTI) reported that their recent trade and investment mission in India have generated new investment pledges worth $42 million. Trade Secretary Gregory Domingo said they were from three energy projects and a pharmaceutical packaging ventures.

The Philippine delegates, led by Domingo, attended the recent ASEAN-India Business Fair and Conclave held in New Delhi in its bid to penetrate India’s trillion dollar market. Other members of the Philippine mission were the Department of Agriculture, Department of Tourism, Department of Foreign Affairs and the Philippine India Business Council of the Philippine Chamber of Commerce and Industry.

Domingo said he was able to convince Indian businessmen to invest in the Philippines during his first official trip, and the trade department’s first mission to India. “India is emerging as a source of foreign direct investments (FDIs) for the Philippines. Apart from BPO companies which are directed by their principals to open delivery centers in the Philippines, more Indian companies are continuing to realize the potential of the Philippines as a gateway to the lucrative ASEAN market,” he said.

The investment pledges acquired by DTI include two 20-megawatt stand-alone liquefied natural gas (LNG) power plants in Tawi-Tawi and in Cagayan as well as a 1.5-megawatt mini hydro electric power project in Abra.

According to Domingo, the trade department is working on several initiatives for Indian businessmen locating in the country which include the improved business registration procedures; and relaxed visa norms for senior executives of IT and BPO companies. Add to this, he also announced the recently inaugurated direct flights from Manila to New Delhi of the Philippine Airlines (PAL).

During their trip, Domingo also witnessed the signing of a memorandum of understanding (MOUs) between the Associated Chamber of Commerce in India (ASSOCHAM) and the Philippine Chamber of Commerce and Industry, and between the Federation of Indian Mining Industries and the Philippine Chamber of Mining Industries represented by Philip Romualdez, to promote trade, investments, and economic relations between India and the Philippines.

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PNOC-EC eyes expansion of coal production

Roy — Fri, 22 Apr 2011 12:35:27 +0000

The Philippine National Oil Company-Exploration Corporation (PNOC-EC) earmarked P900 million for the expansion of its coal mining ventures in Zamboanga Sibugay in Western Mindanao. The state-run oil exploration company said that its board of directors has already approved the special budget “to fund the development of existing coal mine” that will enable it to double its annual production of steaming coal to 500,000 metric tons.

The expansion is in line with company’s mandate to develop more sources of indigenous energy for the country’s needs. PNOC-EC’s coal mine in Zamboanga Sibugay is said to produce the highest grade of coal quality in the country. Developments in the mine are underpinned by the company’s coal operating contracts 41 and 152 as awarded by the Department of Energy.

Aside from its Zamboanga Sibugay mine, the company is likewise engaged in coal exploration and development activities in Isabela and Surigao del Sur via coal operating contracts 122, 141 and 140. PNOC-EC also operates coal terminals in Zamboanga Sibugay, Cebu, Batangas, and North Harbor for its integrated coal trading activities. These locations have been serving as handling facilities for local as well as imported coal which the company supplies to power plants and cement factories.

PNOC-EC is also into oil and gas exploration. It currently holds interest along prospect areas in Cagayan, Ragay Gulf, Offshore Mindoro, Calamian, West Calamian, West Balabac and East Sabina. Its biggest venture in oil and gas development to date is still the Malampaya deep water gas-to-power project. Its Service Contract (SC) 38 for the Malampaya field is only the acreage in the production phase; while the rest are still exploration blocks.

The company is also aligning a budget of $100 million for its next round of investment in the Malampaya project. Given its current financial standing, PNOC-EC noted that it is all set for capital infusion once the project consortium-members comes off for a “cash call.”

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Ayala invests in hydro-electric power

Roy — Fri, 22 Apr 2011 05:33:57 +0000

Another venture that the Ayala group is breaking into is the hydroelectric power generation partnership. The conglomerate, through its wholly owned subsidiary Michigan Power Inc. (MPI) has entered into a joint venture agreement with Sta. Clara Power Corp., an independent power producer specializing in run-of-the-river power plants. Ayala Corp managing director John Eric Francia confirms this as stated in the company’s disclosure to the Philippine Stock Exchange.

MPI and Sta. Clara will be developing a run-of-the-river (ROR) hydroelectric power projects across the Philippines. MPI will take a 70-percent stake in the venture and has committed an initial equity infusion of about P600 million.

A run-of-the river hydroelectric power plant operation involves “borrowing” some river water to turn its kinetic energy into electricity and returning the same unpolluted water back into the river. Francia said, “It is considered as green because it does not produce harmful emissions. Like other renewable power technologies, it is economical as it depends on the free energy of nature as fuel.”

Speaking on the joint venture agreement, president and chief operating officer Fernando Zobel de Ayala said, “This venture builds on our current portfolio of renewable energy assets, which focuses on solar, wind and hydro power technologies. This is an important component of our plan to create a portfolio of power assets over the medium term that blends conventional and sustainable energy sources and contribute to the country’s energy requirements.”

The Ayala group has ventured into power generation as a key platform for future growth especially as demand for electricity is expected to rise in the years ahead. And since the company has yet to build its expertise in the industry, part of its strategy is forging partnership with other institutions.

In the next five years, the conglomerate plans to build a portfolio of power generation assets that will include both renewable and conventional with a capacity of 1,000 megawatts. Francia said that it is all “in line with Ayala’s campaign to augment the country’s power supply primarily through renewable and clean energy.”

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Ayala’s HRMall acquires US BPO firm

Roy — Tue, 19 Apr 2011 14:21:34 +0000

HRMall Inc., a business process outsourcing (BPO) firm backed by the Ayala group, has acquired IQ BackOffice LLC. Based in Los Angeles, California, IQ BackOffice provides backroom finance and accounting services to mid-sized companies in the United State. It delivers high quality, software-enabled and real-time finance and accounting BPO services to US companies.

HRMall is one of the investing companies of the Ayala group’s BPO holding firm LiveIt Investments Ltd. it provides IT-enabled human resource services out of Manila. The firm entered into a definitive agreement to acquire IQ BackOffice. The combined value of the two companies is estimated at $15 million.

IQ BackOffice employs over 200 people in the United States and India. Its clients are US firms with annual revenues of $50 million to $1 billion. Some of its clients generate revenues up to $10 billion. The company has more than 30 public and private company clients, including restaurants, manufactures and distributors, hotels, entertainment establishments, property and financial firms.

As part of the deal between IQ BackOffice and HRMall, founder and chief executive officer David Schnitt of IQ BackOffice will get a 17.5-percent ownership interest in HRMall. Schnitt will be appointed CEO of HRMall.

The 82.5-percent interest of HRMall will be owned by LiveIt which has vowed to support a strategy to fast-track growth in existing markets in the United States and Asia. With the said, HRMall will be in a better position to help enterprises slash costs by 30 to 50 percent a year.

All stockholders of both firms, HRMall and IQ BackOffice, have already approved and signed the sale and purchase documents. The transaction though is subject to customary closing conditions and is expected to be sealed by April 30.

As part of the deal, the company will operate as HRMall in Asia and IQ BackOffice in the United States. It will employ a total of over 300 workers out of centers in Manila, Chennai, Mumbai and Los Angeles.