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DoTr to issue NSCR bid soon amid interest from 28 Japanese firms

A train is seen at the construction site of the Malanday Depot and station in Valenzuela City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINES is doubling its efforts to find the operator for the North-South Commuter Railway (NSCR), the Department of Transportation (DoTr) said, as it hopes to issue bidding documents later this month or early October.

This came after the DoTr concluded the final leg of its roadshow for the NSCR project which gained the interest of foreign companies, mainly from Japan.

“We’re very happy to see the attendance in this fourth leg for our O&M (operations and maintenance) roadshow. It only goes to show that we are in the right direction in terms of structuring and developing this O&M concession,” Transportation Undersecretary Timothy John R. Batan said in a statement on Thursday.

He said there was a high turnout of participants during the final leg of the NSCR market sounding event in Japan.

Mr. Batan said around 28 Japanese companies including Mitsubishi Corp., Hitachi Ltd., Tokyo Metro, Sumitomo Corp.; and Alstom Japan have signified their interest in the O&M for NSCR.

The DoTr has been ramping up its roadshows to promote the P229.32-billion O&M contract for the NSCR project. It had conducted similar events in Singapore and Paris, France.

The agency will now consolidate comments from roadshow participants which will be included in the bidding document and concession agreement to be issued within this month or next month, Mr. Batan said.

Asian Development Bank (ADB) Director for Office of Markets Development and Public-Private Partnership (PPP) Siddhartha Bhaskar Shah said the ADB and the DoTr expect to award the concession by March or April 2026.

“The immediate next step to look forward to is the launching of the bid documents which we intend to do by the end of this month and will kick off the formal bidding process which will continue over the next six months with the idea that the bid will be awarded sometime in the March-April time frame,” he said.

The ADB is the technical advisory services provider of the DoTr for the NSCR project.

“We will reflect those in our bidding documents, our concession agreement, so by the end of September of the first week of October we will be able to officially launch and publish the tender for this O&M concession,” Mr. Batan said.

Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said public-private partnerships for O&M projects are more attractive compared to build-operate-transfer (BOT) types of projects.

“I am not particularly sure if roadshows can help a lot, but these are more advertising efforts. Even without those (roadshows), we’ll get the full array of prospective PPP operators from all over,” Mr. Villarete said in a Viber message.

“The more important thing is that the agency properly drafts the proposed PPP contracts that strikes a balance between sufficient protection for the country’s economic interests and high expected returns to draw the interests of private sector capital,” he added.

The 147-kilometer NSCR will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. The P873-billion project is co-financed by the Japan International Cooperation Agency (JICA) and the Asian Development Bank. It will have 35 stations and three depots.

According to the DoTr, the NSCR can partially operate its Valenzuela to Malolos line by 2027; while the Malolos to Clark segment can start operations by 2028. — Ashley Erika O. Jose

ERC OKs original rates for Meralco supply contracts with SMGP and ACEN

A lineman checks meters and wires in Marikina City, July 17, 2025. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Sheldeen Joy Talavera, Reporter

THE Energy Regulatory Commission (ERC) has approved Manila Electric Co.’s (Meralco) power supply agreements (PSAs) with San Miguel Global Power Corp. (SMGP) and ACEN Corp. at their original applied rates, securing 479 megawatts (MW) of renewable capacity.

“The final decision that we rendered, we based it on the applied rates and the rationale being that this was already the product of the competitive selection process,” ERC Chairperson and Chief Executive Officer Francis Saturnino Juan said on the sidelines of an energy forum organized by the Economic Journalists Association of the Philippines on Thursday.

Under Mr. Juan’s leadership, the ERC approved the original rates under Meralco’s PSAs with SMGP’s San Roque Hydropower, Inc. (SRHI) and ACEN’s Gigasol 3, Inc., covering a total supply of 479 MW.

SRHI and Gigasol 3 were among the winning bidders in Meralco’s competitive selection process last year for its 500-MW renewable energy supply requirement.

SRHI offered a rate of P7.10 per kWh for 340 MW, while Gigasol 3 submitted P8.1819 per kWh for 139 MW. The supply deals were set to take effect on Feb. 26 this year.

The ERC had granted provisional authority last year to implement the PSAs at a fixed rate of P5.1908 per kWh, lower than the companies’ proposed rates.

SRHI subsequently sought reconsideration over the ERC’s decision, which imposed a different rate and limited the sourcing of contracted capacity to eligible renewable energy facilities.

Meralco said the potential termination of its contracts would affect not only its ability to ensure continuous and reliable electricity for consumers but also its compliance with the Renewable Portfolio Standards.

“If [Meralco] would not be able to implement this mid-merit supply coming from these two generation companies, it will be forced to buy from the RE market which could be an additional cost on the part of Meralco,” Mr. Juan said.

The ERC chief added that the commission is working to streamline the resolution of PSA applications resulting from the competitive selection processes conducted by distribution utilities and power suppliers.

“We are acting with extreme urgency right now…We understand that timeliness of our decision, many are dependents, such as the generator and distribution utility that will need supply,” Mr. Juan said.

For the September electricity billing, Meralco slashed power rates by P0.1852 per kWh to P13.0851 per kWh, mainly due to lower generation charge.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

Ayala, Security Bank, SMIC lead PHL firms in Time 2025 World’s Best list

AYALALAND.COM.PH

TEN PHILIPPINE COMPANIES were included in Time magazine’s World’s Best Companies for 2025, a ranking of the top 1,000 corporations worldwide.

In the list compiled with Statista, conglomerate Ayala Corp. ranked 210th globally and was the top Philippine company for the third straight year.

Other Philippine companies in the ranking were Security Bank Corp. (369th), SM Investments Corp. (SMIC) (407th), Jollibee Foods Corp. (685th), and Union Bank of the Philippines (764th).

International Container Terminal Services, Inc. (828th), China Banking Corp. (882nd), JG Summit Holdings, Inc. (949th), Robinsons Retail Holdings, Inc. (962nd), and Filinvest Development Corp. (995th) also made the list.

“This recognition inspires us to be an even better Ayala as we journey to our 200th year. We share this with our employees and partners, whose hard work and support helped Ayala earn this honor,” Ayala Corp. President and Chief Executive Officer Cezar P. Consing said.

“This recognition inspires us to keep strengthening our efforts in creating value for our stakeholders and contributing positively to our communities,” SMIC President and Chief Executive Officer Frederic DyBuncio said.

Time said the ranking measured companies across three equally weighted dimensions: employee satisfaction, revenue growth, and sustainability transparency.

Employee satisfaction was assessed from surveys of over 200,000 verified employees worldwide, covering workplace image, atmosphere, conditions, salary, equality, and recommendations.

Revenue growth included companies with at least $100 million in revenue in 2023 or 2024, with positive growth over three years. The evaluation considered both absolute and relative growth.

Sustainability transparency was gauged through an environmental, social, and governance (ESG) index. The environmental component considered 2023 carbon emissions intensity and Carbon Disclosure Project (CDP) scores; the social aspect measured women’s representation on boards and the existence of a human rights policy; and governance was assessed based on whether Corporate Social Responsibility (CSR) reports complied with Global Reporting Initiative (GRI) standards.

Scores from the three categories were combined to select the top 1,000 companies, highlighting those with strong financial performance, employee engagement, and sustainability practices. — Alexandria Grace C. Magno

ICCP Group advances financial preparedness programs in host communities

Demonstrating its commitment to long-term community empowerment, the ICCP Group continues to invest in financial education and protection across its areas of operation through its corporate social responsibility arm, the ICCP Group Foundation, Inc. (IGFI).

Central to this effort is IGFI’s expanded financial literacy program, developed in partnership with BDO Foundation, Inc. The program recently brought its Basics of Personal Finance workshop to Barangay Babag in Lapu-Lapu City, Cebu, where over 240 residents participated in sessions held at Babag National High School. This initiative builds on earlier workshops conducted in the cities of Lipa and Batangas, as well as in the Municipality of Malvar in Batangas province.

“Our goal is to equip individuals with practical financial tools that foster greater self-reliance,” said IGFI President Richard Osmond. “Education lays the groundwork for sustainable community growth. This is something we prioritize across ICCP Group operations.”

To complement these educational efforts, IGFI has partnered with a leading financial services provider to implement an accessible microinsurance initiative. Designed to offer financial protection to select beneficiaries in ICCP Group host communities, the program is being delivered in close coordination with barangay leaders and partner organizations.

To date, more than 430 individuals from Batangas, Laguna, Cebu, and Cagayan de Oro have received coverage, with plans to reach a total of 600 beneficiaries. The insurance program provides support during times of unexpected loss or hardship, including coverage for accidental death, fire-related damage, and emergency expenses.

This initiative reflects the ICCP Group’s broader commitment to community resilience and inclusive development. It ensures that social interventions meet local needs in meaningful and sustainable ways.

Beyond its financial programs, ICCP Group companies continue to lead grassroots efforts that span livelihood support, green education, and resource-conscious practices. These programs reinforce their role as development partners in the communities they serve.

The ICCP Group maintains a strong presence in key growth areas through its companies, including Science Park of the Philippines, Inc. (SPPI), a leading industrial estate developer with locations in Laguna, Batangas, Cebu, and Bataan; and Pueblo de Oro Development Corporation (PDO), a successful real estate company with residential and commercial projects in Batangas, Cebu, Pampanga, and Cagayan de Oro.

From industrial parks to residential townships, the ICCP Group remains dedicated to building not only infrastructure but also stronger, more informed, and better-prepared communities.

 

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Megawide to get P3.5-B cash, CREC shares in settlement of advances

MEGAWIDE.COM.PH

MEGAWIDE CONSTRUCTION CORP. (Megawide) has signed agreements to recover P9.4 billion in outstanding advances from its parent Citicore Holdings Investment, Inc. (CHII) and sister company Citicore Power Inc. (CPI), with P3.5 billion to be settled in cash for debt repayment and the balance through a transfer of Citicore Renewable Energy Corp. (CREC) shares.

In a stock exchange disclosure on Thursday, Megawide said the remaining P5.9 billion will be covered through the assignment of a 13% stake in CREC.

“The cash inflow will be used directly to pay down a portion of our outstanding debt, while the ownership of CREC shares will offer immediate earnings accretion and serve as currency for future value realization,” Megawide Chairman and Chief Executive Officer Edgar Saavedra said.

Of the total advances, CHII accounted for P4.69 billion, while CPI accounted for P4.73 billion, inclusive of principal and interest.

The share transfer involves about 1.47 billion CREC shares, equivalent to a 13% stake, based on the initial valuation methodology using the 90-day volume-weighted average price of CREC shares as of the last trading day in August.

The final share price and number of shares will be determined by both parties, subject to validation by external independent parties, regulatory approvals, and reasonable market movements.

“From the early capital we infused in the platform, it has already produced two publicly listed entities, currently having a combined market capitalization of approximately P37 billion — attributable to our respective shares in both companies — and with very strong growth prospects,” Mr. Saavedra said.

The company said it found it appropriate to close out the advances and focus on its growth agenda, particularly in construction, real estate, and infrastructure.

“To complement this financial management program, we are finalizing several initiatives and negotiating critical projects that will provide us with sustainable income streams in the years ahead, that will further drive shareholder value,” Mr. Saavedra said.

Megawide’s attributable net income fell by 14% in the second quarter to P220.79 million due to lower revenues.

At the local bourse on Thursday, Megawide shares rose by 16.5% or 34 centavos to close at P2.40 apiece. — Beatriz Marie D. Cruz

Pangilinan: MPIC acquisition in Wendy’s, Conti’s ‘not a very big amount’

CONTIS.PH/STORES

By Ashley Erika O. Jose, Reporter

METRO PACIFIC Investments Corp. (MPIC) has acquired a 15% stake in Eight8Ate Holdings, Inc., the operator of Conti’s Bakeshop and Restaurant and Wendy’s Philippines, in a move analysts said would support MPIC’s strategy to vertically integrate its agribusiness.

“[It’s] not a very big amount,” MPIC Chairman, President and Chief Executive Officer Manuel V. Pangilinan told reporters on Thursday, describing the value of the transaction.

Asked how soon the deal could contribute to MPIC’s revenue, Mr. Pangilinan said the company only took a minority stake in Eight8Ate Holdings.

Established in 2018, Eight8Ate Holdings currently manages and operates brands such as Conti’s, a premium casual dining restaurant, and Wendy’s Philippines.

“We are only a minority. I know that Conti’s is making money already. I think Wendy’s will soon make money,” Mr. Pangilinan said.

“It will help the company be more vertically integrated. This is because they have the farms, then the food processor, manufacturer, then the restaurants. Vertical integration will help boost profitability,” COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said in a Viber message.

For First Metro Investment Corp. Head of Research Cristina S. Ulang, the investment will help expand the holding company’s dairy and other food-based products value-added chain.

MPIC, through its agriculture arm Metro Pacific Agro Ventures, Inc. (MPAV), said it is pursuing a strategy to create a vertically integrated agribusiness portfolio.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., along with Philex Mining Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

RCR issues new shares to Robinsons Land in P30.7-B property deal

ROBINSONSOFFICES.COM

RL COMMERCIAL REIT, INC. (RCR) has issued 3.83 billion shares to Robinsons Land Corp. (RLC) following the Securities and Exchange Commission’s (SEC) approval of their P30.67-billion property-for-share swap.

“Further to the disclosure dated Sept. 5, 2025, please be advised that 3,834,357,500 shares of RL Commercial REIT, Inc. were issued today in exchange for the following assets from Robinsons Land Corp. pursuant to the deed of assignment dated Aug. 13, 2025,” RCR told the stock exchange on Thursday.

Last month, RCR completed its fourth property-for-share swap with RLC through a deed of assignment for the infusion of nine mall assets.

The assets were exchanged for 3.83 billion primary common shares of RCR priced at P8 apiece.

The malls include Robinsons Dasmariñas in Cavite, Robinsons Starmills in Pampanga, Robinsons General Trias in Cavite, Robinsons Cybergate Cebu, Robinsons Tacloban in Leyte, Robinsons Malolos in Bulacan, Robinsons Santiago in Isabela, Robinsons Magnolia in Quezon City, and Robinsons Tuguegarao in Cagayan.

These properties have a combined gross leasable area (GLA) of 324,107.75 square meters (sq.m.).

The approval and issuance of new shares increased RCR’s issued and outstanding shares to 19.55 billion.

Public ownership is at 34.22% of the enlarged total, above the one-third minimum required under the Real Estate Investment Trust Implementing Rules and Regulations.

The infusion is expected to boost RCR’s portfolio, which currently consists of 828,000 sq.m. of GLA, including 12 mall assets with 289,000 sq.m. of GLA and 17 office assets with 539,000 sq.m. of GLA.

On Thursday, RLC shares slipped by 0.26% or four centavos to P15.52 apiece, while RCR shares fell by 0.24% or two centavos to P8.20 each. — Beatriz Marie D. Cruz

Jack Daniel’s promotes 20 indie artists with show series

JACK DANIEL’S Emerging Asia Brand Marketing Manager Gabriel Fajardo (center) with representatives of the indie production group partners set to mount live shows.

THIS YEAR, eight Filipino production groups will be celebrating the strength of Filipino indie music through a series of live events staged around Metro Manila.

It marks the second phase of Jack Daniel’s On Stage, a multi-year music program by the whiskey brand Jack Daniel’s which aims to shine a spotlight on Filipino indie artists and producers.

This year’s set of experiences is taking place under the theme “Road to Indiefest,” culminating in the Jack Daniel’s Indiefest in 2026.

“This is all about celebrating local indie artists and, of course, the communities around them. We’re here to give them more spaces, more opportunities, and more ways to reach new audiences,” Gabriel Fajardo, brand marketing manager for Jack Daniel’s Emerging Asia, said at the media launch on Sept. 9.

He added that the whiskey brand has been supporting music since 1866.

“Jack Daniel’s and our indie partners have shared values,” he said at the event in Makati City. “Authenticity, independence, and staying true to who you are.”

This year’s On Stage concept chose 20 indie artists from the 35 nominated by production group partners at last year’s Playlist LIVE. The pool aims to showcase “the distinct voices, creativity, and diversity of today’s Filipino indie music.”

The performers are: Alyson, Ang Bagong Luto Ni Enriquez, August Wahh, Cheeky Things, Dayaw, Fables, Halina, K+, Mi Mi, Minaw, Naïv, Nanay Mo, Novocrane, Peej, Pinkmen, Spacedog Spacecat, The Revisors, Ultraviolet, Uncle Bob’s Funky Seven Club, and Ysanygo.

Meanwhile, the production partners mounting the shows are Doc Def Productions, Funky Beat Entertainment, GNN, Locked Down Entertainment, Otelik Presents, SYQL Productions, The Flying Lugaw, and Red Ninja Productions.

THE PROGRAM
PROD NIGHTS, running from September 2025 to March 2026, will feature 23 sponsored shows from these partners, highlighting the 20 artists.

“With PROD NIGHTS, we really feel the trust from Jack Daniel’s. When we get corporate sponsors, it’s rare that they give us full creative freedom. But here, we are able to control the visuals, the lineup,” said Sofia Abrogar of SYQL Productions. “Our guests’ experience is all up to us, and we really appreciate that trust.”

For Elijah Pareno of The Flying Lugaw, every production involves “a unique curation.”

“On our end, we really highlight fringe acts, niche acts. Without the pressure to get a big headliner and with full creative freedom with building the lineup, we get to set the stage for smaller, community-based bands,” he said.

Another event is MIXTAPE, happening on Nov. 15 and Dec. 13, where the 20 indie artists will be paired up to perform reimagined full-set collaborations of each other’s songs.

Josh Villena of Otelik Presents said that the two events will showcase the various artists’ “creativity and spirit.”

“What will two artists from completely different genres bring to the table? More than that, it’s the sense of camaraderie that we’re all on different journeys but find ourselves in this shared path,” he said.

The final initiative, SOUNDCHECK, will feature three interactive voting events from January to March 2026, giving audiences a voice in shaping which artists advance. It includes SESSIONS, set within the same period, allowing the 20 acts to showcase their music live online via Jam 88.3.

These live shows sponsored by Jack Daniel’s are “a big help for artists,” according to Jigger Divina of Locked Down Entertainment.

“An artist will miss out if they don’t give the audience a chance to see them perform live. There’s a jaw-dropping number of releases each day now,” he explained. “It’s more important than ever to give them a live platform.”

For more information about Jack Daniel’s On Stage: Road to Indiefest, check out Jack Daniel’s Facebook page. — Brontë H. Lacsamana

Del Monte Pacific profit surges to $5.5M after US unit deconsolidation

Bugo cannery workers in Cagayan de Oro — DELMONTEPACIFIC.COM

DEL MONTE PACIFIC Ltd. (DELM) said its attributable net income for the first quarter of fiscal year 2026, ending in July, surged nearly 15 times to $5.5 million from $368,000 a year ago, as results stabilized after the deconsolidation of its US operations.

In a disclosure on Thursday, the Campos-led food and beverage producer said turnover rose by 12.9% to $203.72 million, while gross profit jumped 32.8% to $66.11 million.

“The Philippine market delivered $88.4 million in first-quarter sales, up 10.3% in peso terms and 14.9% in US dollar terms, driven by strong demand across beverages, packaged fruits and culinary essentials,” the company said.

Sales in the Philippines were lifted by health-focused beverage variants and new ready-to-drink products targeting younger consumers, it noted.

International sales increased by 6.4% to $97.2 million, supported by higher fresh pineapple demand in China and Japan, along with an improved product mix and pricing.

The premium S&W Deluxe Pineapple expanded its export share, while fresh-cut packs boosted S&W’s lead in North Asia to a 50% export share. In Japan, sales climbed 20% on stronger retail demand and new customers, the company added.

DELM deconsolidated its US subsidiary, Del Monte Foods Corp., effective May 1, after the unit filed for voluntary Chapter 11 bankruptcy in April due to heavy debt and shifting consumer preferences.

Del Monte Foods secured $912.5 million in financing to continue operations while selling most of its assets under court supervision. The restructuring was intended to support the unit’s recovery and enable it to continue serving customers.

At the local bourse on Thursday, DELM shares closed 21.3% higher at P4.16 apiece. — Alexandria Grace C. Magno

Cine Europa turns spotlight on Ukraine for 3rd year

Film festival presents 17 films

THE 28TH EDITION of Cine Europa is now underway, running until Sept. 17 in Metro Manila, Cebu, Bacolod, and Tacloban. Seventeen European films will be screened for free over the course of the festival.

This year, the festival films are being presented by Alliance Française de Manille, the Goethe Institut, Instituto Cervantes, the Philippine Italian Association, and various European Union (EU) member states.

“Over the years, Cine Europa has grown. It has become a significant platform for both Europeans and Filipinos to explore common norms, narratives, and cultural connections,” said Massimo Santoro, EU ambassador to the Philippines, at the opening night on Sept. 8.

“Last year, the festival welcomed over 6,000 audience members. We are hoping to welcome even more [this year],” he added.

The special “guest country” for the third year in a row is Ukraine, while France is the only country with two films in the lineup.

Mr. Santoro said that spotlighting Ukraine once more is “a gesture of solidarity with our neighbor.”

“Unfortunately, they continue to face enormous challenges. We will continue standing with Ukraine against Russian aggression,” he said. Ukraine’s entry this year is an investigative documentary about art theft by Kyiv Independent.

Cine Europa’s screening locations are Shangri-La Plaza mall in Metro Manila, the University of the Philippines in Cebu, the University of St. La Salle in Bacolod, and the Eastern Visayas State University in Tacloban.

Moviegoers can expect films of all genres, including selections for families and children, according to Mr. Santoro. “Cinema has the power not only to entertain, as we all know, but also to raise awareness and foster empathy, and these are qualities that we need more than ever today.”

For more information and screening schedules, visit Cine Europa’s social media pages. — Brontë H. Lacsamana

The festival films:

Czech Republic’s Sea of Hope

Denmark’s Fathers and Mothers

Finland’s Je’vida

France’s Un Metier Serieux and L’Amour et les Forêts

Germany’s Beyond the Blue Border

Greece’s Animal

Hungary’s Four Souls of Coyote

Ireland’s Tarrac

Italy’s Chiara Lubich

Netherlands’ Jippie No More

Poland’s The Peasants

Romania’s Three Kilometers to the End of the World

Slovenia’s Family Therapy

Spain’s Dragonkeeper: Guardiana de Dragones

Sweden’s Nova and Alice

Ukraine’s Curated Theft

PHL inflation may breach 4% in mid-2026 due to weather risks

Vendors continue to sell goods despite flooding at the Libertad Public Market in Pasay City, July 24, 2024. — PHILIPPINE STAR/RYAN BALDEMOR

WEATHER DISRUPTIONS and base effects may cause inflation to overshoot the Bangko Sentral ng Pilipinas’ (BSP) target range anew next year, an analyst said.

Philippine National Bank  economist Alvin Joseph A. Arogo said the consumer price index (CPI) could breach the upper end of the BSP’s 2-4% annual goal again in mid-2026 after falling well within the target for this year thus far.

“Headline inflation could slowly but steadily increase and breach the BSP’s 4.0% ceiling from April to July next year, in our view,” Mr. Arogo said in an e-mail. “Coupled with unfavorable base effects, key drivers are the seasonal weather disruptions as well as increases in wages and power rate adjustments.”

The last time the monthly CPI figure breached the BSP’s 2-4% target was in July 2024, when it was at 4.4%.

Headline inflation quickened to 1.5% in August from 0.9% in July, the government reported last week. This marked the sixth straight month that the CPI was below the BSP’s 2-4% target.

The August print brought the eight-month average to 1.7%.

Mr. Arogo said they expect inflation to average at 1.9% this year and 3.5% next year. These are higher than the BSP’s own forecasts of 1.7% for 2025 and 3.3% for 2026.

“We believe that the August print is an indicator that the disinflation cycle may have reached its bottom in July,” he said.

“The pressure to return to higher rice tariffs is gaining more momentum as sympathy for farmers builds up. The risk that worldwide trade flow disturbances could be inflationary also remains in the background.”

Meanwhile, Azril Rosli, economist at Maybank Investment Banking Group, said inflation could continue to pick up in the coming months before slowing anew.

“This may be due to the base effects that will continue to push headline inflation higher. Among other factors include the weather-related food price volatility which remains a key risk, particularly with ongoing monsoon season impacts, and the 10% surge in vegetable prices in August 2025 demonstrates how quickly weather events can affect food costs. Nonetheless, the moderating factors may include the record 17% year-on-year decline in rice prices… and overall economic demand remains relatively subdued as we expect inflation to average at 1.8% by yearend,” Mr. Rosli said.

He added that other upside risks to inflation are “intensified weather disruptions affecting agricultural production; global energy price volatility; potential supply chain disruptions and stronger-than-expected domestic demand recovery.”

CAUTIOUS STANCE
These emerging price risks could give the BSP a reason to take a prudent policy stance, Mr. Rosli said.

“The central bank will likely adopt a more cautious approach to its monetary policy rate adjustments, potentially slowing monetary policy easing to avoid persistent demand-driven price pressures and maintain stable inflation expectations while supporting continued economic growth,” Mr. Rosli said.

“We expect the BSP to focus primarily on underlying demand conditions and core inflation trends rather than temporary price volatility. The persistently moderate inflation environment continues to provide monetary policy flexibility for the central bank.”

The BSP last month lowered benchmark borrowing costs by 25 basis points (bps) for a third consecutive meeting to bring the policy rate to 5%.

It has now cut benchmark rates by a total of 150 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. earlier said they are seeing “more significant risks to the inflation outlook than the output outlook,” even as they expect inflation to be manageable.

He added that the current policy rate is now at a “sweet spot” for both inflation and output, but left the door open for one more cut within this year to support the economy if needed, which would likely mark the end of their current easing cycle.

The Monetary Board’s last two meetings this year are scheduled on Oct. 9 and Dec. 11.

Mr. Rosli said they expect another 25-bp cut before yearend if inflation stays benign.

“Nonetheless, the timing of the potential 25-bp reduction will be dependent on whether inflation remains below the BSP’s inflation target range corridor and economic data continue to show some weakness,” he said.

“Key decision factors include upcoming inflation readings, GDP (gross domestic product) growth, employment trends, global policy developments, and peso stability, with the BSP maintaining a data-dependent stance biased toward further easing if economic conditions warrant it.”

Meanwhile, Mr. Arogo said potentially faster inflation in the coming months could lead to a prolonged pause from the BSP.

“The terminal rate of 4.5% could be realized in the fourth quarter of 2026 once inflation has restabilized.” — K.K. Chan

MGen, KEPCO eye wind, storage projects in RE push

STOCK PHOTO | Image by Waldemar Brandt from Unsplash

MERALCO POWERGEN CORP. (MGen), the power generation arm of Manila Electric Co. (Meralco), and Korea Electric Power Corp. (KEPCO) are planning to expand their renewable energy (RE) partnership to help diversify the country’s energy portfolio.

“Looking ahead, KEPCO and MGen intend to expand their collaboration beyond solar into other renewable energy projects such as wind and ESS (energy storage system), further diversifying the Philippines’ energy portfolio,” the companies said in a statement on Thursday.

The expanded partnership builds on earlier collaborations, including the signing of a memorandum of understanding to jointly explore nuclear energy, renewable energy, smart grids, microgrids, ESS, electric vehicles, advanced metering infrastructure, smart substations, and distribution automation.

At the same time, MGen announced that its unit SP New Energy Corp. (SPNEC) will take over the operations of the 63.3-megawatt peak (MWp) solar farm in Calatagan, Batangas.

MGen signed a deed of accession and amendment with KEPCO to replace Solar Philippines Power Project Holdings Corp. (SPPHI) with SPNEC.

Through MGen Renewable Energy, Inc., MGen owns 53.7% of SPNEC after acquiring the stake from SPPHI. KEPCO holds a 38% share in SPPHI’s subsidiary Solar Philippines Calatagan Corp., which operates the solar farm.

“This agreement is a testament to the trust and cooperation that KEPCO and MGen have built over the years,” KEPCO Philippines Holdings, Inc. President and Chief Executive Officer Jeon Yongsu said. “Together, we are creating a stronger foundation to accelerate renewable energy development in the Philippines and set a benchmark for strategic energy partnerships across Asia.”

Under the agreement, the companies affirmed their commitment to strengthen their strategic partnership as joint shareholders in the solar farm.

“Our strengthened partnership with KEPCO underscores MGen’s commitment to advancing clean energy and supporting the country’s sustainability goals,” MGen and SPNEC President and Chief Executive Officer Emmanuel V. Rubio said.

“By working hand in hand, we aim to not only ensure the continued success of the Calatagan Solar Farm but also unlock new opportunities for innovation and growth in the Philippine energy sector,” he added.

At present, MGen has seven solar power plants in the Philippines across Bulacan, Nueva Ecija, Rizal, Batangas, and Tarlac.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

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