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AboitizPower takes P3.7-B hit with permanent closure of biomass plant

ABOITIZ POWER Corp. (AboitizPower) is taking a hit of P3.7 billion as it permanently stopped the operations of a biomass power plant because of the lack of organic materials to produce electricity.

“Our top consideration now is to balance the interests of all our stakeholders, including that of Aseagas’ employees,” said AboitizPower President and Chief Operating Officer Antonio R. Moraza in a statement on Monday.

AboitizPower in November temporarily halted operations of its 8.8-megawatt (MW) power plant in Lian, Batangas under its unit Aseagas Corp. because of the unavailability of organic effluent wastewater from its supplier, Absolut Distillers, Inc. 

“Total value affected as a result of the closure is estimated to be at P3.7 billion, which represents Aseagas’ invested equity of P3.45 billion and the company’s estimated remaining obligations of around P250 million,” AboitizPower said.

Mr. Moraza warned last month that a write-off was a possibility.

“The company also took the opportunity to assess the plant’s other issues, and after a full assessment decided to make the plant shutdown permanent,” the company said yesterday.

Ahead of the permanent closure, Aseagas had prepaid an outstanding P2.368-billion loan with the Development Bank of the Philippines (DBP). The company had invested equity of around P950 million for the biomass plant and has around P460 million in outstanding liabilities aside from the DBP loan, AboitizPower had said.

Mr. Moraza gave his assurance that AboitizPower remained on track to add around 500 MW, mainly from baseload and hydropower plants in 2018, moving the company closer to its 2020 target of 4,000-MW net attributable capacity.

AboitizPower acquired the biomass plant in July 2016, as it expanded its renewable energy footprint, which covers large hydro, run-of-river hydro, geothermal and solar.

The deal was through Aboitiz Renewables, Inc., the listed company’s holding firm that houses its investments in renewable energy. AboitizPower acquired the Aseagas facility from parent firm Aboitiz Equity Ventures, Inc.

The acquisition, which marked AboitizPower’s entry into biomass technology, followed the company’s foray into solar power with the inauguration in April 2016 of San Carlos Sun Power, Inc.’s 59-MW peak solar power plant in Negros Occidental.

The biomass plant was expected to start operating and delivering power to the Luzon grid before October 2016.

The facility was meant to use and convert the organic effluent of Absolut Distillery into clean and renewable energy. It was supposed to power about 22,000 households while producing 33 tons per day of liquid carbon dioxide for the industrial and beverage industries.

On Monday, shares in AboitizPower rose by P1 or 2.50% to close at P41 each. — Victor V. Saulon

Psychiatrists to be invited to impeachment hearing

By Tricia Aquino
Interaksyon

MANILA — The House committee on justice will invite the psychiatrists who supposedly “gave failing marks on the psychiatric or psychological make-up” of Chief Justice Maria Lourdes Sereno during the impeachment hearings against her, the panel’s chair, Oriental Mindoro Representative Reynaldo Umali, said on Monday at the resumption of hearings in 2018.

The psychiatrists were “allegedly ‘fired’ or whose contracts were not renewed upon the assumption of the Chief Justice,” he said.

In her verified answer to the impeachment complaint filed against her by lawyer Lorenzo Gadon, Ms. Sereno denied that she “failed the psychological examination administered by the JBC (Judicial and Bar Council)” and that under the existing JBC policy, “an applicant to any position in the judiciary with a grade of four is unfit for the job.” These accusations were false, she said.

“There is no such provision whatsoever in JBC-009, or the Rules of the JBC in effect when the Chief Justice applied for a position in the Judiciary,” her answer read.

Aside from that, according to her verified answer, “under JBC No. 2016-01, or the Revised Rules of the Judicial and Bar Council (JBC Rules) presently in force, the results of the psychological examination of an applicant are to be used solely by the Council ‘for evaluation purposes only,’”

Her answer also stated that under the JBC Rules, results of such examinations are “strictly confidential and are used solely by the JBC for evaluation purposes.” Ms. Sereno had “not consented to the release of her evaluation results to complainant or any third party,” thus, “any copy in their hands is one obtained in violation of the JBC Rules, doctor-patient privilege, and/or the Chief Justice’s right to privacy.”

According to a press release from the House of Representatives Press and Public Affairs Bureau, there had been reports that two psychiatrists hired by the JBC gave Ms. Sereno a rating of “4” from a scale of 1 to 5, with “5” being the lowest. This grade meant that while she projected a “happy mood,” she also exhibited “depressive markers.”

The same press release noted that after the test results were revealed, Ms. Sereno, who was chairman of the JBC, refused to renew the contracts of the two psychiatrists and terminated them in 2013.

But in her verified answer, it was pointed out that Ms. Sereno’s evaluation results are “irrelevant to these proceedings as they do not constitute any of the acts alleged in the complaint as grounds for impeachment.”

“Even if true, a ‘4’ in the alleged evaluation is not an offense, let alone an impeachable one,” her verified answer read.

It was also included there that the psychiatrists “were under short-term consultancy contracts,” which were “no longer renewed by the JBC after the expiration of their respective terms.”

This decision “was arrived at by the JBC as a collegial body after a thorough review of the methodology, performance, qualifications, and relevant training of said individuals.”

As for Mr. Gadon’s allegation that Ms. Sereno “flies into a rage every time the issue of psychiatric testing comes up during deliberations in the JBC,” the verified answer said that this was “false, baseless, and . . . hearsay.”

It added that the allegation was not based on Mr. Gadon’s personal knowledge, but on “unsubstantiated and false news reports.”

Sanofi to reimburse PHL for unused dengue vaccine

FRENCH PHARMACEUTICAL giant Sanofi is to reimburse the Philippine government for leftover doses of an anti-dengue vaccine whose use was suspended due to health concerns, the two parties said Monday.

The manufacturer said the refund had nothing to do with safety issues and was meant to improve ties with the Philippine Health department, which is investigating the deaths of more than a dozen children injected with Dengvaxia.

Philippine regulators stopped the sale and distribution of the drug last month after Sanofi warned the shots could worsen symptoms for vaccinated people who contracted the disease for the first time.

The Health department said in a statement it had issued a “demand letter” to the company’s vaccine unit Sanofi Pasteur to refund P1.4 billion ($27.8 million) for unused supplies of the drug.

Its chief, however, had earlier called for a full refund to include the amount covering the used vaccine, for a total of about P3 billion. The Senate leader has also backed that monetary claim.

Sanofi Pasteur in its statement did not disclose the agreed amount. “Our decision to reimburse for unused doses is not related to any safety or quality issue with Dengvaxia,” the company said.

Rather Sanofi Pasteur hopes that this decision will allow us to be able to work more openly and constructively with the (Health department) to address the negative tone towards the dengue vaccine in the Philippines today.”

Philippine authorities have been investigating the deaths of 14 children who were among more than 830,000 given Dengvaxia last year in the world’s first public immunization program against dengue.

After the program began, Sanofi Pasteur released findings in November of a new study that showed Dengvaxia could lead to severe infections in some cases.

The disclosure triggered a public furor, with some parents blaming the vaccine for their children’s deaths and a number of legislators accusing the government of endangering public health.

Health Secretary Francisco T. Duque III has also threatened to sue the company if it had withheld crucial information on the vaccine.

Sanofi Pasteur has maintained that no death has been found to have been caused by Dengvaxia.

“Sanofi Pasteur strongly believes that this tone is due to a misunderstanding of the benefits and risks associated with the dengue vaccine,” its statement said.

It cited “a lack of awareness amongst the general public, particularly parents of vaccinated children, that the overall benefit of dengue vaccination remains positive in high endemic countries like the Philippines.” — main report by AFP

Fuel prices up this week

OIL COMPANIES are raising the prices of petroleum products this week to reflect the movement of prices in the international market. Gasoline products will increase by P0.80 per liter after being unchanged last week. Diesel prices will rise by P0.55 per liter or the same increase reported last week. Kerosene prices will also increase by P0.55 per liter, a bigger hike after last week’s P0.30-per-liter adjustment. Those that sent advisories as of yesterday afternoon said they would be implementing the price increase at 6 a.m. on Tuesday, Jan. 16. The Department of Energy (DoE) earlier reminded oil companies to ensure and advise their dealers that old stocks should be sold on the old excise tax rate or at zero-rated excise tax for diesel products. It may opt to check importation notices to check compliance with its advisory.

Gov’t to repeal special tax rate for regional HQs

THE GOVERNMENT will repeal a law granting special tax rates for Regional Operating Headquarters (ROHQs), thus completing the removal of the privilege first signaled in a presidential veto of tax reform legislation.

“The intent of the veto is to repeal. It doesn’t mean they keep enjoying it. The intention of the vetoer is to repeal it,” Finance Undersecretary Antonette C. Tionko told reporters, referring to ROHQs’ 15% preferential withholding tax rate on gross income.

“It is clear to us, it’s not clear to them,” Finance Secretary Carlos G. Dominguez III added.

Ms. Tionko said that those pushing for the retention of the preferential rate are high-earning employees of ROHQs.

“It’s mostly the high earning employees of ROHQs that benefit from the 15% rate because most of them… are earning millions. So they are probably in the higher brackets, they are the ones who are insisting but most of the employees of ROHQs are not covered by the special rate,” she said.

Ms. Tionko said that “almost 90%” of the employees of ROHQs will be assessed lower withholding income tax under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) law.

She said that only those earning P975,000 a year in income qualify for the preferential tax rate.

“The high-earning people… they enjoy lower rates. So to be fair that is the intention,” she said.

Tax experts and ROHQs sought clarification from the Bureau of Internal Revenue during public consultations for the implementing rules and regulations of the tax reform law last week.

President Rodrigo R. Duterte vetoed the TRAIN provision that allows ROHQ employees to continue to enjoy the special rate, saying the veto makes the law more fair to employees doing similar work in local firms.

Tax experts have noted that the veto did not explicitly repeal the preferential tax rate, which have caused confusion among stakeholders.

Republic Act No. 8756 defines ROHQs as “any foreign business entity formed, organized, and existing under any laws other than those of the Philippines whose purpose is to service its affiliates, subsidiaries or branches in the Philippines, Asia-Pacific Region, and other foreign markets.”

The special tax rate was intended to attract talent with technical and managerial expertise. — Elijah Joseph C. Tubayan

Gov’t to inaugurate new air traffic system

THE GOVERNMENT is set to inaugurate today, Jan. 16, a P10.8-billion air traffic system eyed to reduce congestion in the Philippine airspace. The Civil Aviation Authority of the Philippines (CAAP) said in a statement that with the new system, the agency can accommodate demand of the aviation industry for more capacity in airspace; ensure safety and efficiency in the airspace; and reduce congestion in airspace, therefore reducing travel time to airport destinations. “The New CNS/ATM Systems Project established an aviation infrastructure to more than 40 airports, air navigation facilities and air traffic control facilities nationwide, from Basco, Batanes in the North to Jolo in the South,” CAAP said in a statement. The project is financed by the Japan lnternational Cooperation Agency (JICA) under a loan agreement between the Philippine and Japanese governments. — Patrizia Paola C. Marcelo

Dante Jimenez appointed to head the Presidential Anti-Corruption Commission

PRESIDENT Rodrigo R. Duterte has appointed an anticrime advocate and leading supporter, Dante L. Jimenez, as chairperson of the Presidential Anti-Corruption Commission (PACC). The PACC was created last year through the President’s Executive Order No. 43. The Presidential Anti-Corruption Commission (PACC) is under the Office of the President and is primarily made up of a chairperson and four commissioners. The commission was established in the wake of Mr. Duterte’s criticisms against the Office of the Ombudsman, which is constitutionally mandated to investigate police and other officials on Mr. Duterte’s watch. Mr. Duterte signed Mr. Jimenez’s appointment papers last Friday, Jan. 12. — Arjay L. Balinbin

Compton welcomes pattern of winning for Alaska Aces

By Michael Angelo S. Murillo
Senior Reporter

HAVING had his share of losing slumps in the Philippine Basketball Association (PBA) especially last season, Alaska Aces coach Alex Compton knows how difficult it can be, which is why now that they are establishing some winning pattern in the ongoing Philippine Cup he is welcoming it and something he hopes to build on.

Beating the Kia Picanto, 102-65, last Sunday, Alaska has now won back-to-back after starting the season-opening PBA tournament with two straight losses to improve to 2-2 and good for joint sixth place.

The Aces relied on their tremendous energy on defense, limiting the Picanto to a franchise-low five points in the third quarter to pull away and complete the rout.

It was a continuation of what seemingly is a turnaround for Alaska from their first two games in the tournament where they struggled to find their defensive footing which led to the losses they absorbed.

“It was defense that did it for us. I think we got our teeth back on defense [in this game]. I really appreciate the effort that the guys gave and hopefully we get to sustain that when we face the tough teams ahead,” said Mr. Compton in the postgame press conference following their win over the Picanto.

But winning the way they did over Kia (0-4), Mr. Compton could not help but feel some commiseration for the entire Picanto squad, having gone through tough losses themselves recently.

“I’ve been on the other side where Kia is right now where they are still figuring things and it is frustrating,” Mr. Compton said.

“What happens is when the other team keeps bringing the defensive energy and you miss shot after shot you get frustrated and I think it was one of those days for them tonight,” said the Alaska coach, whose team had to deal with a franchise-worst 14 straight losses that spanned two conferences last season.

Now that they are regaining their footing, Mr. Compton said they are appreciating more the progress they have made while trying to build on it and keep their high level of play.

Next for the Aces are the Barangay Ginebra San Miguel Kings who they will play on Jan. 21.

Duterte to attend India-ASEAN Summit

MALACAÑANG on Monday, Jan. 15, confirmed that President Rodrigo R. Duterte will attend the India-ASEAN Summit on Jan. 24-26. President Duterte’s participation is an outcome of his bilateral meeting with the Prime Minister of India at the sidelines of the 31st ASEAN Summit,” Presidential Spokesperson Herminio Harry L. Roque, Jr. said at a press briefing. “The fact that the President decided to attend is also because of a personal appeal by the Indian Ambassador that in 2012, the Commemorative Summit held in 2012 in India, the Philippines was the only country that was not represented by a Head of State, and that is why he has confirmed his attendance,” Mr. Roque said.

Celine Dion is coming to Manila

CANADIAN songstress Celine Dion will finally hold a concert in the Philippine capital, four years after she was originally scheduled to perform in the Philippines.

Her show on July 19 at the SM Mall of Asia Arena is part of the Celine Dion Live 2018 tour which will take her to seven cities across the region including Singapore, Jakarta, Taipei, and Bangkok.

Ms. Dion was originally supposed to perform in Manila in 2014 but had to cancel due to the deteriorating health of her husband and manager, Rene Angelil.

The Asian leg of Ms. Dion’s tour will kick on June 26 in Tokyo and will bring her to cities “she hasn’t performed in for 10 years” including Tokyo and Macau, said a press release.

Ms. Dion first made a name for herself in 1981 — at the age of 13 — after releasing her first studio album, La Voix du bon Dieu. Her manager, Mr. Angelil, mortgaged his home to produce the record as he was determined to make the young Canadian singer a star. (They married in 1994.)

The following year, Ms. Dion joined the Yamaha World Popular Song Festival in Tokyo, taking home the awards for Top Performer and the gold medal for Best Song with “Tellement j’ai d’amour pour toi.”

Her international breakthrough came in 1991 when she sang with Peabo Bryson on the title track of Disney’s animated hit movie Beauty and the Beast. The song became her first Top Ten hit in the UK and her second Top Ten hit in the US after “Where Does My Heart Beat Now” released in the same year.

“Beauty and the Beast” also gave her her first Grammy Award for Best Pop Performance by a Duo or Group with Vocal. The song became the lead single of her self-titled album released in the same year.

In 1993, Ms. Dion released her The Colour of My Love album which included one of her most familiar hits: “The Power of Love” (a remake of Jennifer Rush’s 1985 song). It became her first album to reach the top of the US, Canadian, and Australian album charts.

The succeeding years saw her release hit after hit including a remake of Eric Carmen’s “All By Myself” and “It’s All Coming Back to Me Now,” both of which are songs from her 1996 Falling Into You album. Another one of her signature hits, “My Heart Will Go On,” which was the love theme of James Cameron’s blockbuster film Titanic (1997) was included in her album Let’s Talk About Love.

“My Heart Will Go On” won her Academy and Golden Globe awards for Best Original Song, and two Grammy Awards: Best Female Pop Vocal Performance and Record of the Year.

After releasing 13 albums in the 1990s, Ms. Dion decided to step back, and came back after a three-year hiatus in 2002 with A New Day Has Come which featured songs telling about how she had matured as a woman and a mother. The album includes the titular single and “Goodbye’s (The Saddest Word).”

The following decades saw Ms. Dion doing what she does best, touring and singing. In 2010 she announced a three-year residency at Caesar’s Palace in Las Vegas, entitled Celine.

In 2014, everything was either put on hold or canceled (as in the case of her Asia Tour) following the worsening of her husband’s health after the removal of a cancerous tumor.

Mr. Angelil died in 2016 and Ms. Dion resumed her Las Vegas residency a few months later.

The same year saw her presented with the Lifetime Achievement Icon Award by the Billboard Music Awards.

Beauty and the Beast came back into her life 26 years later — one of her most recent hits is “How Does a Moment Last Forever” from the live action version’s soundtrack released in 2017.

Ms. Dion has sold almost 250 million albums during over a three-decade career, earning five Grammy Awards, two Academy Awards, and seven American Music Awards in the process. She also received the Diamond Award at the World Music Awards in 2004 in recognition of her status as the best-selling female artist of all time.

Ms. Dion will be performing on July 19 at the SM Mall of Asia Arena. Tickets go on sale to the public beginning Jan. 18, 10 a.m., at www.smtickets.com, though members of TeamCeline (a Celine Dion fan club in Manila) will be able to purchase tickets in advance starting Jan. 16. Tickets range in price from P2,640 to P35,380. — Zsarlene B. Chua

Pressure mounting for monetary policy response to credit growth, imports — ANZ

By Melissa Luz T. Lopez,
Senior Reporter

IMBALANCES in the Philippine economy could intensify further amid an expected rise in commodity prices and accelerated credit and imports growth, analysts at ANZ Research said, in the absence of policy rate hikes from the central bank.

An “elevated” trade deficit coupled with inflation pressures will continue to weigh on the peso, amid declining dollar reserves held by the Bangko Sentral ng Pilipinas (BSP) which have been serving as buffer against external shocks.

The global lender flagged last year the Philippines’ deteriorating current account balance and rapid credit growth as sources of concern for the economy, at a time of rapid economic expansion.

“We will retain our cautious view until we get a decisive and sufficient monetary policy response. In its absence, imbalances can only intensify. Neither credit nor imports can auto-correct to manageable levels, in our view,” ANZ economist Sanjay Mathur said in a report published yesterday.

“Other problems could become more prominent — risks to inflation are to the upside and foreign exchange reserves could continue to drop.”

ANZ expects inflation to average 4.1% in 2018, which would overshoot the central bank’s 2-4% target band and would surge from 3.2% in 2017. The Tax Reform for Acceleration and Inclusion law which took effect this month is expected to add 0.4-0.7% to headline inflation, excluding secondary effects resulting from increased domestic demand.

ANZ also expects the country’s trade balance to remain in deficit despite swinging back to a surplus during the third quarter of 2017, and after an 18.5% surge in imports reported in November. The bank expects this trend to continue, with buoyant expansion plans among local businesses pointing to signs that imports will further strengthen over the coming quarters.

On the other hand, credit growth was “unabated” as it picked up by 19.2% in November, maintaining the double-digit pace of the past few years.

“While the credit impulse does track the business cycle, a sustained increase can signal a less-productive use of capital. That the strengthening credit impulse has corresponded with moderating corporate profitability is worrying,” Mr. Mathur added. “Residential construction activity has also been robust and excesses may be building up.”

On the other hand, additional revenue expected from the implementation of the TRAIN law — which will fund additional infrastructure projects in the pipeline — is expected to be “positive” for fiscal policy over the long term, ANZ said.

A short-term impact of increased public spending would however “intensify” current imbalances, Mr. Mathur also said.

“Our view has been that these imbalances will take a toll on the currency. These views did not fully play out in 2017 — the trade deficit narrowed for a few months and the PHP, though still a regional underperformer, held up better than we had anticipated,” the bank added.

ANZ said two rate hikes worth 25 basis points each within the first semester are the needed policy response from the BSP: “In its absence, the above discussed imbalances can only intensify and exert depreciation pressure on the PHP.”

The peso has weakened again past P50 to the dollar this month.

BSP Governor Nestor A. Espenilla, Jr. has said that the monetary authority has no compelling reason to raise rates just yet, given “limited evidence” of overheating in the local economy with output, liquidity, price and credit conditions still favorable.

Strong growth in the manufacturing sector also showed robust economic activity, coupled with robust private household spending and increased investment in public infrastructure, Mr. Espenilla added. These provide leeway for the central bank to keep rates steady despite tightening moves in the United States.

Vikings dump Saints on last-play shocker; Jacksonville advances

WASHINGTON — Case Keenum connected with Stefon Diggs on a desperation game-winning 61-yard touchdown pass on Sunday’s final play, giving the Minnesota Vikings a dramatic 29-24 NFL playoff victory over New Orleans.

Minnesota advanced in astonishing fashion to play the Eagles in Philadelphia in next Sunday’s National Conference final. If they win, the Vikings will become the first team to play the Super Bowl in its home stadium.

Jacksonville stunned host Pittsburgh, 45-42, in Sunday’s other NFL playoff game, sending the Jaguars to defending champion New England in next Sunday’s American Conference final, but that upset was overshadowed by one of the most shocking finishes in NFL history.

With New Orleans leading 24-23 and only 10 seconds to play, Keenum hurled a pass to the right sideline and Diggs leaped high to grab it.

When Saints defender Marcus Williams missed the tackle, diving past Diggs, the receiver turned and raced unchallenged into the end zone as the final seconds ticked away.

“They count us out all the time. Nobody thinks we could do it,” Diggs said. “Everybody thought it was over. I don’t stop playing until there are all zeroes on the clock.”

Moments after the astounding touchdown play, Keenum could only marvel at the miracle.

“I can’t even explain it,” Keenum said. “We were definitely in a desperation moment. (Diggs) made a heck of a play. That was one of the most special moments of my life.

“I don’t even know what just happened. It’s crazy. I have no words.”

Minnesota jumped ahead 17-0 on Jerick McKinnon’s 14-yard touchdown run, Kai Forbath’s 20-yard field goal and a 1-yard Latavius Murray touchdown run.

Drew Brees answered with a 14-yard touchdown pass to Michael Thomas and a 3-yard touchdown toss to Thomas to pull the Saints within 17-14.

Forbath added a 49-yard field goal to give the Vikings a 20-14 edge with 10:17 to play but the Saints’ George Johnson blocked a later Minnesota punt and four plays later, Brees threw a 14-yard touchdown pass to Alvin Kamara, Wil Lutz’s conversion kick giving New Orleans a 21-20 lead with 3:01 remaining.

Forbath connected on a 53-yard field goal to put the Vikings back in front but a 43-yard Lutz field goal with 25 seconds remaining put the Saints back in front until the final heartbreaking play.

The Vikings, who boast the NFL’s top-rated defensive unit, reached the conference final for the first time since the 2009 season, when they lost to New Orleans. They haven’t played in a Super Bowl since 1977, when the Vikings lost to Oakland.

JAGS FACE ‘ANOTHER FIGHT’
At Pittsburgh, Jacksonville rookie Leonard Fournette ran for 109 yards and three touchdowns to put the Jaguars in defending champion New England’s path.

“It’s going to be another fight. It’s crazy,” Fournette said. “As a unit we came together. We kept pushing each and every play.”

Pittsburgh’s Ben Roethlisberger, who threw a career-high five interceptions in an October loss to the Jaguars, completed 37-of-58 passes for a Steelers post-season record 469 yards and five touchdowns but it was not enough.

“The guys played with confidence all day long,” Jaguars quarterback Blake Bortles said. “We knew we had to hold onto the ball, make some plays and hold them off at the end and we did it. It was incredible.”

It’s the third time the Jaguars have come so close to the NFL championship spectacle, having lost to Tennessee in 2000 and at New England in 1997 in prior conference finals.

“We get to keep playing for another week,” Bortles said. “We’re just honored to be able to do this.” — AFP

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