PLDT invests P4.4 billion to expand international capacity
Telco giant PLDT Inc. has invested $75 million or around P4.4 billion to expand its international capacity by laying down a 9,400-kilometer subsea cable traversing East and Southeast Asia......»»
DMCI Homes earmarks P16 billion for capex in 2024
DMCI Homes, the property development arm of the Consunji Group, is allocating around P16 billion in capital expenditures this year to expand its portfolio......»»
Philippines, US allot P1.15 billion to fight TB
The Philippines, through the Department of Health (DOH), and the United States government, through the US Agency for International Development (USAID), have teamed up to finance a P1.15-billion campaign against tuberculosis (TB) in the country......»»
Gaming revenues beat target, hit record P285 billion in 2023
The local gambling industry continued to take advantage of increased operational capacity, with its gross gaming revenues exceeding targets and hitting a record P285 billion in 2023......»»
ACEN secures sustainability-linked loan worth P11 billion
ACEN Corp., the listed energy platform of the Ayala Group, is looking to raise P11 billion from its first sustainability-linked loan, which will help boost solar energy capacity in the country......»»
Philippine gaming revenue grows 20 percent in Q3
The local gambling industry continued to take advantage of increased operational capacity as its gross gaming revenue increased to nearly P70 billion in the third quarter......»»
PAGCOR income jumps to P4.9 billion in 9 months
Earnings of state-run Philippine Amusement and Gaming Corp. surged by almost 40 percent to about P5 billion in the nine months to September as the operational capacity of the gambling sector continues to improve......»»
Meralco eyes cutting 2030 direct emissions by over 20%
The Manila Electric Company, the country’s largest distribution utility, has unveiled its plans to slash its 2030 direct emissions by over 20 percent in line with the company’s goal to become coal-free before 2050. This target covers the company’s projected 2030 baseline Scope 1 emissions, which refer to greenhouse gas emissions directly generated by the company from thermal power generation and from the use of fuel for vehicles and other equipment. Meralco’s just, orderly, and affordable transition to clean energy is the central thrust of its long-term sustainability strategy, which begins with the company’s investment in renewable energy to serve the country’s growing energy demand with greener power. This includes the distribution utility’s program to source an increasing portion of its supply portfolio from RE. Initial target exceeded Meralco has so far contracted 1,880 megawatts of RE capacity from various suppliers, already exceeding its initial target of 1,500 MW. Through Meralco’s strategic sourcing initiatives, RE is expected to account for 22 percent of the distribution utility’s supply portfolio by 2030, and 18 percent of that of Meralco’s retail electricity supplier, MPower, by 2025. “We recognize our impact on the planet, and we will do more as part of our earnest commitment to sustainability. As we chart the path towards a brighter and greener energy future, Meralco will continue to evolve and elevate its sustainability agenda to continue powering the good life for all,” Meralco first vice president and chief sustainability officer Raymond B. Ravelo said. To further strengthen its decarbonization efforts, Meralco, through its power generation arm, Meralco PowerGen Corporation, is accelerating its RE buildout to develop greener generating capacities to power the country with sustainable energy. Committed to invest P18-B Earlier this year, MGen committed to invest at least P18 billion for its RE buildout which will cover capacities from clean technologies such as solar and wind which the company aims to build through 2030. “In the coming years, Meralco will accelerate its shift to green energy through the adoption of next-generation clean technologies. Ultimately, we will drive deep decarbonization to advance long-term energy security with earth-friendly power,” Mr. Ravelo said. The post Meralco eyes cutting 2030 direct emissions by over 20% appeared first on Daily Tribune......»»
Meralco coal-free by 2050
The Manila Electric Company, or Meralco, the country’s largest power distribution company, has set out its long-term strategy to promote a just and affordable clean energy transition. The company intends to be coal-free by 2050. But before that, it will first push to cut it direct emissions by more than 20 percent by the end of the decade, or by 2030. According to Meralco, the targets cover its projected 2030 baseline Scope 1 emissions it directly generated from thermal power generation and the use of fuel for vehicles and other equipment. “We recognize our impact on the planet, and we will do more as part of our earnest commitment to sustainability,” Meralco first vice president and chief sustainability officer Raymond B. Ravelo said. Sustainability agenda “As we chart the path towards a brighter and greener energy future, Meralco will continue to evolve and elevate its sustainability agenda to continue powering the good life for all,” he added. Meralco has been heavily investing in the development of renewable energy or RE to serve the country’s growing energy demand for greener power. This includes the distribution utility’s program to source an increasing portion of its supply portfolio from RE. Meralco has so far contracted 1,880 megawatts or MW of RE capacity from various suppliers, already exceeding its initial target of 1,500 MW. As such, Meralco said RE is expected to account for 22 percent of the distribution utility’s supply portfolio by 2030, and 18 percent of that of Meralco’s retail electricity supplier, MPower, by 2025. Decarbonization push To further strengthen its decarbonization efforts, Meralco, through its power generation arm, Meralco PowerGen Corp. or MGen, is accelerating its RE buildout to develop greener generating capacities to power the country with sustainable energy. Earlier this year, MGen committed to invest at least P18 billion for its RE buildout which will cover capacities from clean technologies such as solar and wind which the company aims to build through 2030. “In the coming years, Meralco will accelerate its shift to green energy through the adoption of next-generation clean technologies. Ultimately, we will drive deep decarbonization to advance long-term energy security with earth-friendly power,” Ravelo said. The post Meralco coal-free by 2050 appeared first on Daily Tribune......»»
EU, Phl eyes creating digital gateway pack
The European Union or EU and the Philippines are crafting a digital development program, set for launch next year to help the boost Internet speed and reach, strengthen cybersecurity, and integrate more women into the digital economy. On Thursday, the Department of Finance said the two partners, along with other countries, are creating the Digital Connectivity Global Gateway Package. “The package has key elements on capacity building, regulatory or policy support, cybersecurity, and enhanced cable connectivity,” a DoF statement said. “The package, which is being considered for launch next year, will also help address the digital gender gap in the country by empowering women in the digital economy,” the DoF added. Connectivity partnership This global partnership on digital connectivity was recently sealed during the first Global Gateway Forum hosted by European Commission President Ursula von der Leyen from 25 to 25 October in Brussels, Belgium. There were 40 government leaders who attended the forum, with Finance Secretary Benjamin Diokno representing the Philippines. Global Gateway is the EU’s largest global investment program, with funding of up to 300 billion euros to be used by partner countries from 2021 to 2027 to improve their digital, energy, and transportation infrastructure, along with health and education systems. During the forum, the EU and the Philippines signed a 60 million euros financing agreement to help the latter realize projects for climate change mitigation and digital transformation. Under its digital program, the European Commission already committed in 2021 to provide all highly populated areas of the EU’s 27 member-states with faster Internet through 5G by 2030. Less than one-third of these areas benefited from that Internet technology two years ago. Expanding use of AI The commission also aims to expand the population of the EU’s small businesses using artificial intelligence and cloud from less than half to 75 percent, and those with basic technology skills from 75 percent to 100 percent over a decade. The Department of Information and Communications Technology, or DICT, on the other hand, is developing 500 to 1,000 digitalization programs. Information and Communications Technology Secretary Mon Gutierrez said the government is doubling its efforts to realize over 10 percent of its total number of digitalization programs through public-private partnerships. Also conducted by the DICT are digital literacy campaigns for government agencies, private firms and the public to spur technological innovations and better digital policies. The post EU, Phl eyes creating digital gateway pack appeared first on Daily Tribune......»»
Japan aid bolsters fight vs pandemic
Japanese Minister for Economic Affairs Nihei Daisuke graces the turnover ceremony for the Department of Health Program for Covid-19 Crisis Response Emergency Support. The event was led by DoH Secretary Teodoro Herbosa, and was attended by esteemed guests including JICA Philippines Representative Sakamoto Takema and other DoH officials. Japan is among those that provided various assistance to effectively deal with the pandemic. Among the notable contributions is a grant totaling approximately 700 million Japanese yen, or P260 million, dedicated to bolstering the Philippines’ cold chain management and logistics. This includes the procurement of essential resources, such as 8 refrigerated vans, 17 delivery vans, 17 pick-up trucks, 18 wing van trucks, 500 biothermal packaging systems, and 140 ice pack freezers. This support was designed to fortify the country’s capacity to effectively respond to existing and future health crises. Overall, Japan has provided over $100 billion comprehensive Covid-19 support to the Philippines, ranging from vaccines, medicines, equipment, technical assistance, budgetary support, food, and livelihood, among others. The post Japan aid bolsters fight vs pandemic appeared first on Daily Tribune......»»
Ginggay Hontiveros-Malvar: Scaling the realms of social responsibility
There is something quite riveting about Ana Margarita “Ginggay” Hontiveros-Malvar. Her gaze direct, her rhetoric fluid, she shares stories of immersing in conflict areas, of being in Leyte post-“Yolanda” and in Marawi post-violence, and within the same conversation, of her corporate hat within the “power, banking, food, land and infrastructure sectors.” Not so much as a vein mars her refined features. If not for those eyes, which reveal a depth of thought and feeling, hers would likely be a face some might take as just another classic beauty. Then again, her relationship with similarly strong-minded women cannot be discounted. She says, from the get-go, that she would rather not talk about herself or her sisters (Risa, the senator, and Pia, the broadcast news personality). Unlike them, she took the private route, but now unwittingly finds herself in the limelight. The Aboitiz Group, for which she handles a vital role, has many exciting things to share, Ginggay says. Smiling, she proceeds to rattle off some of these pillars — in education (“to create future leaders” who are solutions-oriented), in climate action and in enterprise and jobs. “For over 35 years, we’ve delivered probably over 5,000 CSR (corporate social responsibility) projects, spread over all the business units all over the Philippines. We’ve partnered with something like 600,000 individuals and organizations and we’ve invested the amount of P5.1 billion in all these different programs. We’re trying now to reevaluate what it is that’s next for Aboitiz Foundation, and then how we can serve our stakeholders better, and what are some of the things that we want to scale. Maybe to create a bigger impact in the country, help the country more, I think is what we want to do.” In the pipeline toward this goal of creating a bigger impact on development, Aboitiz Foundation is seeking more collaboration — “more conversations between organizations that are doing a lot of work already here in the country, and probably having a stronger voice and then putting that voice out there,” she enthuses. Clearly, Ginggay is in her element in the world she inhabits — at the heart of an “old legacy conglomerate,” her words, that now sees the need to transform along with the climactic times. “I lead a department called Reputation Management. We cover brands, media, corporate communications, sustainability — the ESG (environmental, social and governance) journey for the Aboitiz Group. We provide strategy, direction, governance and then very recently, just this year, we have our CSR arm which is called Aboitiz Foundation. It was recently also placed under us. Because at the end of the day, Aboitiz Foundation is like the big ‘S’ in our ESG — it’s really all about the social impact, the social good that we want to continue,” Ginggay tells the DAILY TRIBUNE in an interview on Pairfect. Ginggay is currently vice president for Reputation Management and Sustainability at Aboitiz Equity Ventures Inc., a holding company of the Aboitiz Group. For the Aboitiz Foundation, meanwhile, she works to help “scale its impactful programs for systemic change.” The mother of two is also communications lead for the Philippines’ Private Sector Advisory Council and team leader for APEC Business Advisory Council, which are areas where the visionary leader, Aboitiz Group chief executive officer Sabin Aboitiz, holds key roles. Grateful her children are adults now, Ginggay keeps her nurturing side on overdrive with her current responsibilities. “Aboitiz is a group,” she emphasizes. “And as a family of organizations, our priority has always been about people. That’s always been our passion, whether it’s the well-being of our own employees or the well-being of communities where we have our businesses. It’s really always been about people. “We don’t feel it’s right that a business does well and then the community that it’s in doesn’t. It cannot be like that — it has to go hand in hand. So, we’ve always been like that. Very people-centric. I think what we’re trying to change now in our transformation or evolution is to see how can we use more of technology and innovation and balance it with our people-centric approach. So maybe we can be a little bit faster, be better, be more data-driven in the kinds of things that we’re doing,” she says. And has her heart always been in this kind of work — one she freely admits is demanding and sometimes even emotion-driven? “My dad was pretty laidback. And he usually let us do what we want to do as long as you know, like, please do well in school, and things like that,” Ginggay recalls. “My mom was very attentive to us and she just wanted to make sure that aside from doing well in studies, you also had to do well in something else. And then, very ingrained, I think, in our DNA, I think as a family also, is that aspect of service, whether it’s public service, or you know, just service in general — whether it’s to your community or to your family, or your immediate set of, I suppose, stakeholders. So, it’s almost been like part of my DNA or something like that, or probably my character as well.” With so much on her plate, and a daily grind that consists of steering various teams to ensure the conglomerate is moving toward its goals smoothly, Ginggay makes sure she takes time — even just 30 minutes a day, she says — disconnecting from it all and connecting with herself. “Our days are very fast — they are jam-packed with schedules, meetings, a lot of stakeholder engagement activities,” she says. “There’s a lot of collaboration also that goes on between our team and the rest of the business units in the Aboitiz Group, and then a lot of meetings as well with the board just to check in on directions and things like that. It’s very fast-paced. It’s very demanding. It takes a lot of time and I think a lot of commitment… and this is what I see from all our team leaders and team members — people are really passionate about what they do. I think that’s important.” For Ginggay, certainly, such passion is necessary to lead the company toward its goals including “delivering on communications and brand that are integral to the transformation of the group into the Philippines’ first techglomerate.” Techglomerate, she explains, “is a dream in Aboitiz Group, something that we have really been working hard on for the past few years. We kind of coined the term from ‘technology’ and ‘conglomerate,’ putting it together — and it is really about trying to be more technologically advanced but we also want to incubate exciting businesses which are more in the techspace or, say, data science. To incubate all these new companies and hopefully lead in certain industries… and I think at the end of the day we realized we have a much greater responsibility to the country.” And what’s next? “We realized that to stay ahead, we also need to transform… and I suppose that transformation should happen first and foremost at the level of the person. We’re also really focused on building a new kind of culture for the Aboitiz Group, still very much rooted in our core values of responsibility, innovation, teamwork, integrity. But now, probably trying to imbibe more of the behaviors like being more entrepreneurial, trying to be more articulate, being better storytellers, being more open to new things, being more data-driven in our decisions, you know, and a lot of other things that we’re trying to do in terms of helping to develop this new culture.” In her capacity as first vice president at Aboitiz, as well as in her other roles — senior adviser for Agripreneurship at Go Negosyo, for example — Ginggay keeps her “eye on the prize” no matter what challenges come along. This “multi-disciplined, results-oriented and multi-awarded leader,” as she is described in the Women of the Future, may prefer to keep herself below the radar, but Ginggay Hontiveros-Malvar will certainly not stay unnoticed. The post Ginggay Hontiveros-Malvar: Scaling the realms of social responsibility appeared first on Daily Tribune......»»
Maynilad activates P1-B reservoir expansion
West Zone concessionaire Maynilad Water Services Inc. has mobilized P1.07 billion to augment the storage capacity of its main reservoir in Quezon City to address water supply constraints. Maynilad has 39 reservoirs across its franchise area, but the Bagbag Reservoir, which can store up to 200 million liters of treated water produced by its La Mesa Treatment Plants 1 and 2, serves as its primary reservoir. It serves around four million customers in Quezon City, Caloocan, Malabon, Navotas, Manila, Makati, Pasay, and parts of Parañaque and Cavite — representing approximately 58 percent of Maynilad’s total customer base. Maynilad said over the weekend that the expansion of Bagbag Reservoir involves the construction of a new chamber in this underground reservoir, which will add another 100 million liters to its storage capacity. Likewise, the water company said other enhancement works on the facility, including a 1,800mm-diameter inlet and outlet pipeline installation, new tank construction, and pump upgrade to improve its operating capacity. “Water demand has been increasing over the years due to population growth in urban areas. By increasing our water-storage capacity, we can address water availability issues, especially during hours of peak demand when consumption can sometimes exceed our water reserves,” said Maynilad President and CEO Ramoncito Fernandez. Based on the latest timeline provided by the company, the project is scheduled to be completed by 2027. Maynilad is the concessionaire of the Metropolitan Waterworks and Sewerage System for the West Zone of the Greater Manila Area composed of certain areas in the cities of Manila, Quezon City, Makati, Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon. It also operates in the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario. The post Maynilad activates P1-B reservoir expansion appeared first on Daily Tribune......»»
DoE eyes OSW, taps USAID
Due to the lack of financial allocation, the Department of Energy or DoE is turning to the United States Agency for International Development or USAID to bankroll the inclusion of offshore wind or OSW and floating solar energy, among other new technologies, into the country’s competitive renewable energy zones or CREZ. In a recent interview with reporters, Assistant Secretary Mylene C. Capongcol said these new power technologies should be included in the CREZ so that its integration into the grid will be efficient. “The first stage of CREZ, that finished does not include offshore wind and floating solar and other bodies of water. So the second stage, hopefully, will be supported by a USAID grant because we don’t have the budget here,” Capongcol said. “We will talk officially with USAID but we have sent our official request so we will just have a meeting about what is the scope of work and the timeline,” she added. OSW potential high Based on the Philippines OSW Roadmap launched in 2022, the country has about 178 gigawatts or GW of OSW potential. To date, the DoE has awarded a total of 79 OSW Contracts with a total potential capacity of 61.931 GW, spread mainly North of Luzon, West of Metro Manila, North and South of Mindoro, Panay and Guimaras Strait. Meanwhile, in terms of floating solar energy ventures, one of the latest developments was the Laguna Lake Development Authority’s move to offer 2,000 hectares of the Laguna de Bay for floating solar projects. Of these, 800 hectares were taken by ACEN Corp. Half, or 1,000 hectares were leased by renewable energy firm SunAsia Energy, which aims to develop a 1300-MW facility for $1.2 billion. The remaining 200 hectares, on the other hand, were allocated to Singapore-based firm Vena Energy. Capongcol reiterated that the CREZ project will significantly complement the government’s drive to augment the country’s supply of clean energy. By proactively focusing transmission expansion to these resource areas, clean energy generation development obstacles such as transmission access, energy curtailment, land permitting, and regulatory barriers will be resolved. Thus, reducing the risk for private players who will invest in the sector. Relatedly, the DoE official bared that the 2023-2050 Philippine Energy Plan or PEP will also highlight the adoption of modern technologies, smart grid systems, and demand-side management to bring down overall energy consumption and cut down greenhouse gas emissions. The government set the target of a 35 percent share of renewable energy in the country’s energy mix by 2035 and increased it further to 50 percent by 2040. However, it is still notable that despite an aggressive stance on clean energy utilization, the Philippines continues to heavily rely on coal. Coal, which is cheaper than other forms of power but more detrimental to the environment, is still the highest contributor to the power generation mix at nearly 60 percent. Renewable energy only takes a little over 20 percent of the mix. The post DoE eyes OSW, taps USAID appeared first on Daily Tribune......»»
LNG a vital transition fuel, says Aboitiz Power
Industry players and government regulators should harness cost-effective liquefied natural gas or LNG as the so-called "transition fuel" in the near term to gradually displace coal and complement the variability of renewable energy. Speaking at a recent energy forum, Aboitiz Power Corp. Chief Finance Officer Liza Montelibano reiterated that the transition to clean energy should be gradual and well thought out. Otherwise, it will result in higher power prices. Montelibano pointed out that utilizing the present supply of natural gas, which is relatively cleaner than burning coal, to buy time and keep the grid stable while renewable and low-carbon technologies are being developed. “The realistic pace to do transition is underscored by the available technology that allows you to do it reliably and affordably. Given what is available today, we believe what is realistic is a practical and gradual approach that will allow for technology development,” Montelibano said. Locally, the Malampaya project is the only local facility that uses indigenous natural gas to reduce the country's oil imports. It has been powering up to 20 percent of Luzon’s total electricity requirements. It supplies natural gas to power four power generation plants in Batangas with a combined capacity of 2,011 megawatts or MW. Meanwhile, several projects, including First Gen Corp.'s integrated LNG and regasification terminal in Batangas province, are underway to easily bring in low-cost LNG from abroad into the country. The LNG facilities are a significant source of fuel diversification to complement the efforts of the Malampaya consortium to optimize the sustainability of the remaining indigenous gas in the Malampaya-Camago reservoir. The government set the target of a 35 percent share of renewable energy in the country’s energy mix by 2035 and increased it further to 50 percent by 2040. However, it is still notable that despite an aggressive stance on clean energy utilization, the Philippines still heavily relies on coal. AboitizPower, which presently has the largest and most diversified local renewable energy platform in terms of installed capacity under its operational control, aims to support the government's goal by investing P190 billion until 2030 to have a portfolio of 9,200 MW evenly split between renewable energy and thermal sources. Close to 1,000 MW of renewable energy projects — including wind and solar farms and more geothermal capacities — are currently in the company's pipeline. The post LNG a vital transition fuel, says Aboitiz Power appeared first on Daily Tribune......»»
DTI pushes for AI research hub; P300-M for consumer protection programs
The Department of Trade and Industry is pushing for the establishment of the Center for Artificial Intelligence Research, however, it remains "unfunded” under the proposed 2024 National Expenditures Program. During the hearing of Senate Committee on Finance’s Subcommittee “M” on DTI’s proposed P7.909 billion budget for the fiscal year 2024 on Tuesday, Trade Secretary Alfredo Pascual emphasized the idea would help the country's Micro, Small, and Medium Enterprises to effectively adopt “artificial intelligence in their business operations. “This is a research [and development] center. The model is the AStar of Singapore…It’s industry-oriented, it's not academic research. It’s a way to help MSMEs to adopt AI in their operations,” Pascual said, citing that large companies in the country “can take of themselves” to implement AI solutions in their businesses. “But this SMES would need assistance and this is the center that could do that plus the continuing research in the impact of AI on employment which jobs will be affected,” he said. The issue of AI ethics will also be addressed through CAIR, he added. “We are working this out, actually with some business groups that can donate…In fact, we have been offered already a place,” the DTI chief said. Pascual explained that the CAIR has been included in the DTI’s plan for revitalizing Philippine industries under the Philippine Development Plan. Meanwhile, DTI’s Competitiveness and Innovation Group, Undersecretary Rafaelita Aldaba said the agency has been requesting funds, amounting to P200 million, for the CAIR since two years ago. Aldana did not give further details as to why the Department of Budget and Management disapproved their requests. Stressing the importance of the AI program, Senate President Pro Tempore Loren Legarda lamented there must be a reason why the CAIR did not get a budget. Legarda asked Aldaba to further provide details on CAIR as the latter noted the DTI doesn’t have enough space in their existing building, “It’s a physical center and its goal is for us to become an AI center of excellence in the region in the near future. It’s going to house our data scientists, researchers, engineers who will be conducting AI [research and development] to support the needs of the industries, including MSMEs, start-ups, large companies, and multi-nationals,” Aldaba said. The CAIR is also eyed to provide capacity building and training and workshops on AI, she added “so that new products and services could come out from the idea. However, Legarda said DTI should not wait for the physical CAIR to be set up before it starts building the capacity of Filipinos concerning AI, adding that developing a physical infrastructure may take at least two years. “And knowing government, that’s so slow. That means all the resources on AI will not ensue until the structure is done,” Legarda lamented. “What I’m saying is that while the infrastructure is not yet set up, we should continue with AI capacity buildings and research.” Senator Mark Villar, who presided over the budget hearing, backed Legarda’s position, noting that DTI should ensure that AI benefits the country. “Other countries are very concerned also about what AI might mean for the labor industry and what the implications are. I think it’s important that we learn how we can leverage it to help our industries,” he said. On the other hand, Pascual appealed to the Senate for an additional P300 million in funding to strengthen the DTI’s consumer protection programs. “We want to reorganize our consumer protection activity by centralizing it because you cannot expect a junior person running after hoarders or profiteers in an area where there are a lot of people of influence that are operating in the region,” he said. “So the plan that we have done, this planning, after the budget submission, is to centralize the consumer protection activity in the head office and have a quick response task force,” said Pascual. “That would require a funding of P300 million to strengthen our consumer protection activities," he added. Villar supported the DTI’s plan citing its significance amid the ongoing inflation being experienced in the country “It is very relevant that the DTI takes a stronger role in monitoring these hoarders and manipulators,” he said. DTI Assistant Secretary Jean Pacheco said the P300 million would fund an inter-DTI strike team to increase their enforcement activities, consumer education and advocacy, complaints handling, and procurement of equipment for the certification and testing of vapes, among others. At least P130 million of the total request will be utilized for the procurement of equipment for DTI’s certification and testing of vape products, which is in line with their implementation of the law regulating e-cigarettes. The post DTI pushes for AI research hub; P300-M for consumer protection programs appeared first on Daily Tribune......»»
Alternergy raising P12B for 2 wind power projects
Renewable power pioneer Alternergy Holdings Corp. is raising P12 billion to bankroll the construction of two wind power projects that would ramp up the local supply of renewable energy as mandated by the government. In a stock exchange disclosure on Monday, Alternergy said BPI Capital, RCBC Capital and SB Capital will assist the company in finalizing the terms and structure of the debt financing for the two projects — Tanay Wind Power Project in Rizal and the Alabat Wind Power Project in Quezon. The Tanay and Alabat Wind Projects have a capacity of up to 164 MW and are expected to be completed by 2025. Winners of DoE’s GEA-2 These projects won the Department of Energy or DoE’s second round of the Green Energy Auction Program or GEA-2 last July. Under the GEA-2, winning bidders must make their committed capacities available. The DoE conducts GEA yearly to fast-track the government’s plan of integrating 35 percent renewable energy in the energy mix by 2030 and 50 percent by 2040. Alternergy president Gerry Magbanua said the company and its partner banks will aim for financial closing before the year ends. Largest project financing deal “The total P12-billion mandate would be the largest project financing deal to be undertaken by Alternergy and we appreciate the support from RCBC Capital, BPI Capital, and SB Capital to ensure that the transactions would yield the most benefit for the Tanay and Alabat Wind Power Projects as laid out under the DoE’s GEA 2 Program,” Magbanua said. Alternergy has been investing a significant amount to expand its clean energy portfolio. It aims to develop up to 1,245 megawatts or MW of additional wind, offshore wind, solar, and run-of-river hydro projects. The total P12-billion mandate would be the largest project financing deal to be undertaken by Alternergy and we appreciate the support from RCBC Capital, BPI Capital, and SB Capital to ensure that the transactions would yield the most benefit for the Tanay and Alabat Wind Power Projects as laid out under the DoE’s GEA 2 Program. Alternergy was involved in the development of the 33-MW Bangui Bay wind farm in Ilocos Norte — the first commercial wind farm in Southeast Asia at that time. The post Alternergy raising P12B for 2 wind power projects appeared first on Daily Tribune......»»
Phl disaster preparedness gets P450-M assistance
The United States government is providing more than P450 million ($8 million) in additional funding to strengthen disaster preparedness and response in vulnerable communities in the Philippines. The new funding will primarily enhance typhoon preparedness and develop resilient livelihood strategies in the regions of Bicol, Caraga and Eastern Visayas. It will be facilitated through the US Agency for International Development, or USAID. Likewise, it will also fund partnerships with the private sector to help ensure the continuity of businesses and other critical services, such as energy and water, after disasters. The USAID assistance will also go to training personnel of the Office of Civil Defense, Department of Information and Communications Technology, Department of Social Welfare and Development, and other relevant government agencies in setting up post-disaster logistics, emergency shelters and emergency telecommunications. Additionally, USAID said it will also work with local government units in Eastern Samar and the Bangsamoro Autonomous Region in Muslim Mindanao to set up referral systems for children’s welfare and protection during disasters. “Strong typhoons came earlier than expected this year, and we’re reminded of how vulnerable many Philippine communities are to the impacts of natural disasters,” said USAID Philippines Mission Director Ryan Washburn. “We are proud of our partnership with the Philippine government to help the Filipino people prepare for and respond to disasters,” he added. Since 2010, USAID has provided approximately P17 billion ($372 million) in disaster relief and recovery aid and boosted the disaster risk reduction capacity of over 100 cities and municipalities in the Philippines. The post Phl disaster preparedness gets P450-M assistance appeared first on Daily Tribune......»»
Indonesia launches Southeast Asia’s first high-speed rail
Indonesia launched Southeast Asia's first high-speed railway on Monday, a delayed, multibillion-dollar project backed by China that President Joko Widodo hailed as "a symbol of our modernization". With a top speed of 350 kilometers (220 miles) per hour, the bullet train "Whoosh" can get between the capital Jakarta and Bandung in 45 minutes. The 140 km journey would previously have taken about three hours by train. "The Jakarta-Bandung high-speed train marks our efficient, friendly, and integrated mass transportation system," Widodo said during a ceremony at the capital's central station. "It is a symbol of our modernization in the public transport, seamlessly connecting with other modes of transportation." Widodo said the 600-capacity train was the first high-speed rail transportation in Southeast Asia. It is part of Beijing's Belt and Road initiative -- a decade-old program of China-backed infrastructure projects. The president said the name was actually an acronym, standing for a tagline of "Waktu Hemat, Operasi Optimal, Sistem Handal" -- which in Bahasa Indonesia means "Saving time, optimal operation, reliable system". It was built by PT KCIC, which is made up of four Indonesian state companies and Beijing's China Railway International Co. The project was initially set to cost less than $5 billion and be completed by 2019. However, delays caused by construction challenges and the Covid-19 pandemic led to a surge in costs. In preparation for its opening, officials have conducted public trials for the new high-speed route. Last week, Transportation Minister Budi Karya Sumadi confirmed that the government would extend the high-speed train route from Bandung to the country's second-biggest city Surabaya. Last month, Chinese Premier Li Qiang joined Senior Minister Luhut Pandjaitan on a ride aboard the train during his Jakarta visit for summits with Southeast Asian leaders. Pandjaitan told reporters on Thursday that Widodo plans to welcome Chinese President Xi Jinping in the future to ride the train, but did not give more specifics. agn/ebe/sn/leg © Agence France-Presse The post Indonesia launches Southeast Asia’s first high-speed rail appeared first on Daily Tribune......»»
US provides P450-M to boost disaster preparedness of vulnerable communities
The United States government, through the US Agency for International Development (USAID), is providing more than P450 million ($8 million) in additional funding to strengthen disaster preparedness and response in vulnerable communities in the Philippines. The new funding will primarily enhance typhoon preparedness and develop resilient livelihood strategies in the regions of Bicol, CARAGA, and Eastern Visayas. It will also fund partnerships with the private sector to help ensure the continuity of businesses and other critical services, such as energy and water, after disasters. Additionally, USAID’s assistance will train personnel from the Office of Civil Defense, the Department of Information and Communications Technology, the Department of Social Welfare and Development, and other relevant government agencies in setting up post-disaster logistics, emergency shelters, and emergency telecommunications. USAID will also work with local government units in Eastern Samar and the Bangsamoro Autonomous Region in Muslim Mindanao to set up referral systems for children’s welfare and protection during disasters. “Strong typhoons came earlier than expected this year, and we’re reminded of how vulnerable many Philippine communities are to the impacts of natural disasters,” said USAID Philippines Mission Director Ryan Washburn. “We are proud of our partnership with the Philippine government to help the Filipino people prepare for and respond to disasters,” The United States is a key partner of the Philippine government in preparing for and responding to disasters, as well as delivering life-saving humanitarian assistance. Since 2010, USAID has provided approximately P17 billion ($372 million) in disaster relief and recovery aid and boosted the disaster risk reduction capacity of over 100 cities and municipalities in the Philippines. The post US provides P450-M to boost disaster preparedness of vulnerable communities appeared first on Daily Tribune......»»
Think tank: SMGPH faces liquidity crunch
The declining profitability of San Miguel Corporation’s energy unit San Miguel Global Power Holdings Corp. has affected the capability of the company to meet near-term financial obligations, according to a report of the Institute for Energy Economics and Financial Analysis, or IEEFA. Local groups held a forum on Wednesday ahead of the 133rd anniversary of the Adian conglomerate that focused on the “losing strategy” of maintaining its dependence imported fossil fuel with its planned shift from traditional coal to liquefied natural gas, or LNG. Think tank Center for Energy, Ecology and Development indicated during the event that SMGPH is implementing “a losing strategy that is having devastating consequences on shareholders and investors, energy consumers, and the environment.” “While SMC is pursuing the country’s further dependence on fossil fuel, it is also losing on the actual energy transition development. SMC had lost in the race to secure new permits for renewable energy capacity, which will be built in the next two to three years,” Gerry Arances, CEED executive director, said. Sam Reynolds, author of an Institute for Energy Economics and Financial Analysis, or IEEFA, report titled San Miguel Global Power: Fossil fuel-oriented growth strategy raises financial red flags, said the article detailed the financial issues SMC faces because of its reliance on coal and gas. IEEFA is a Detroit-based advisory group for energy industry strategies. He warned the company’s overexposure to volatile fossil fuel prices could sink its financial health and that “SMGPH’s overreliance on fossil fuels has weakened its financial health — moving from coal to LNG is not going to solve the fundamental problem of overexposure to fossil fuel prices.” SMGPH debts are falling due between 2024 and 2026, according to the study. The company’s financial position would likely remain inadequate to address the callable perpetual securities, amounting to $3.4 billion (P193 billion). “SMGPH could face a double-edged sword. On one hand, the need to redeem perpetual securities demands additional capital or funding. On the other, opting not to exercise the call option subjects the company to additional financial costs, further straining its financial position,” according to IEEFA. No contract to back up projects “This is especially true when you consider the company’s lack of contracts for its existing and proposed LNG facilities,” he added. SMC’s status as one of the country’s biggest conglomerates entails that the company should be among those leading the transition away from fossil fuels, Reynolds added. Reynolds also doubts the company will be able to fulfill the 2050 net zero commitment it unveiled earlier this year. “Unless there is a major, material pivot within the company to transition to renewables and phase out its fossil fuel expansion plans, the company is going to have very little chance of achieving its 2050 net zero target. Without a strategic, material, immediate pivot, that goal is simply unrealistic,” he said. Liquidity crunch possible As a result of SMGPH’s declining profitability, IEEFA’s analysis indicated that its ability to cover near-term financial commitments in the form of debt, interest and capital distribution for perpetual securities may have worsened considerably. This points to an overall liquidity crunch, which could translate to a longer-term funding shortfall if not carefully managed. IEEFA indicated that its view “aligns with conclusions from Bloomberg Intelligence, which stated that the company may need $900 million (P51 billion) by the end of this year to meet its financial commitments. “SMGPH’s funding constraints also depend on its ability to extend P21 billion worth of short-term loans. There is also a possibility of obtaining local funding due to its connection to parent company SMC,” IEEFA indicated. Its financial SMGPH’s perpetual securities come with a notable feature: a step-up interest mechanism. If the call option on the security is not exercised, the interest rate increases by a certain percentage each year. SMGPH has strategically tapped into the issuance of bonds and loans to fund its expansion plans, increasing its total debt. Total equity has also grown, driven largely by the company’s issuance of perpetual securities. The paper added that a broader assessment, beyond operating cash flows, reveals a rising liquidity risk for SMGPH. It measured the SMGPH’s cash flow from operations (CFO)-to-current liabilities ratio, the results of which pointed a “concerning trend.” The ratio has been on a downward trajectory since 2019. In 2022, the CFO-to-current liabilities ratio plummeted to an all-time low of -0.12, indicating insufficient cash flow to cover short-term liabilities. The same ratio remained weak in the first half. Its ratio in 2022 was 1.00, down from 1.43 in 2021, meaning the company has exactly one dollar of current assets for every dollar of current liabilities. “In essence, the company holds a relatively tight margin of assets available to cover its immediate financial obligations. Meanwhile, the accounts receivable turnover ratio stood at 3.15, marking its lowest value since 2016.” The post Think tank: SMGPH faces liquidity crunch appeared first on Daily Tribune......»»