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Gov’t studying 6 power proposals for Laguna de Bay

THE Department of Energy (DoE) has accepted six project proposals that seek to use water from Laguna de Bay to produce power using pumped-storage hydroelectricity.

 

electrical pylon
Pumped storage facility in Laguna de Bay follows the passage of the Renewable Energy Act of 2008 — BW FILE PHOTO

The process generates electricity from the release of pumped and stored water in a reservoir.

“We have accepted six service contract applications over Laguna Lake,” Mario C. Marasigan, who heads the Department of Energy’s renewable energy management bureau.

“All of these projects are pumped storage,” he said, identifying Citicore Power, Inc. and Phinma Energy Corp. as among the project proponents.

He said the proposals would require pumping water from Laguna de Bay and storing it in a reservoir at a higher elevation. When there is a demand for electricity, the stored water is released through turbines to produce power.

He said the range of capacity targeted by the proponents is from 400 megawatts (MW) to 600 MW. The final figure will depend on the outcome of their feasibility studies, he added.

Mr. Marasigan said the six projects would total around 3,000 MW depending on whether Laguna de Bay is able to accommodate the projects. The projects are distributed around the Rizal and Laguna sides of the lake, he said.

He said the feasibility studies of the proponents would answer whether Laguna de Bay has sufficient water to allow the construction of the power generation facilities. The government has a similar project installed — the Caliraya-Botocan-Kalayaan power generation complex in Laguna, which has a combined capacity of around 379 MW.

Mr. Marasigan said interest in putting up a pumped storage facility in Laguna de Bay follows the passage of the Renewable Energy Act of 2008 and the Mini-hydroelectric Power Incentive Act of 1990.

He said before the passage of the two laws, only government agency National Power Corp. held the exclusive authority to exploit the country’s river systems and water bodies for power development.

“All six projects are in the pre-development stage,” Mr. Marasigan said.

Sought for comment, Rio Q. Balaba, Citicore energy regulations manager, said the company was awarded about a month ago a service contract to develop certain areas in Laguna.

Citicore’s technical working group was “formulating the project development landscape and procedure on how to move with the project,” he said.

“We are given under the service contract a pre-development stage of five years. But we are as aggressive and very committed for our renewable energy development,” he told reporters.

“We wanted, as much as possible, earlier than five,” he said, adding that the project will depend on the outcome of the feasibility study. — Victor V. Saulon

Dismissal of wage hike plea sought as board review nearing its end

THE LARGEST group of private employers in the Philippines has formally asked Metro Manila’s wage board to junk a string of petitions seeking an across-the-board hike in the daily minimum wage, with public debates on the plea set for conclusion by July 27.

Cargo adds to its line of weatherproof makeup

CARGO, the Canadian cosmetics brand known for its functional packaging (think sachets of foundation) has added new products to the successful long-wearing, weatherproof Swimmables line.

Undying issues in the Espinosa killing

Corporate Watch
Amelia H. C. Ylagan

Mayor Rolando Espinosa, Sr. of Albuera town, and a fellow inmate, Rudy Yap were shot dead before dawn (October 29, 2016) by police officers who staged a raid in search of firearms and illegal drugs in the provincial jail in Leyte’s Baybay city (AP 11.05.2016). Espinosa was among more than 160 officials suspected of drug involvement named publicly by President Duterte in August 2016 as part of a shame campaign (Ibid.). At the Senate inquiry on the jail killing, Espinosa’s son Kerwin, who confessed to being a drug dealer in the region, testified that the CIDG-8 Head, Supt. Marvin Marcos, whose outfit conducted the raid and killed Espinosa Sr., “was on his payroll” — an allegation that Marcos tearfully denied on national TV (ABS-CBN News 03.20.2017).

Drilon: No ‘unli’ martial law under the Constitution

SENATE MINORITY Leader Franklin M. Drilon on Sunday said any extension of martial law must not exceed the original 60-day period as provided by the 1987 Constitution. “We cannot have an unlimited or ‘unli’- martial law in Mindanao,” Mr. Drilon, a former justice secretary, said in an interview with DZBB that his office thereafter issued in a statement to the media. The martial law declaration in Mindanao expires on June 22 while Congress resumes session next week on the occasion of President Rodrigo R. Duterte’s State of the Nation Address on July 24. Mr. Drilon said any extension of martial rule must not go beyond 60 days “in accordance with the intentions of the framers of the 1987 Constitution.” He added: “Given that the 1987 Constitution places utmost importance on our systems of checks and balances, any notion of perpetual or even a five-year martial law rule in any part of the country can never be allowed under the fundamental law.”

Jerusalem holy site reopens after attack

JERUSALEM — Israeli authorities were to reopen an ultra-sensitive holy site Sunday closed after an attack that killed two policemen, but new security measures including metal detectors and cameras were being put in place.

MICC meeting this month to short-list mining experts’ panel

AFTER a hiatus following the rejection of former Environment Secretary Regina Paz L. Lopez by the Commission on Appointments in May, the Mining Industry Coordinating Council (MICC) is set to meet again July 25 with the aim of coming up with a shortlist of experts who will review the status of all operational mines in the country.

mining
A miner checks gold ore inside a mine in Itogon. — AFP

“What’s on the agenda is the shortlisting of the possible members of the review team. And the other agenda item is the terms of reference in the engagement of professional services,” Mines and Geosciences Bureau Acting Director Wilfredo G. Moncano said in a phone interview over the weekend while confirming that the mining council is set to meet on that date.

Mr. Moncano said the MICC has compiled a list of people to be tapped and will select them on the basis of the earlier approved qualifications which disallow the inclusion of those employed, or involved with operating mines and/or any anti-mining group.

Selected experts should also have 10 years of experience in the technical aspects of mining or social development.

The MICC is seeking specialists in the law, social development, the economy, minerals and the environment.

The interagency subcommittee includes representatives of the Departments of Finance, Environment and Natural Resources, Labor and Employment, Energy, Social Welfare and Development, the Union of Local Authorities of the Philippines, and the National Commission on Indigenous Peoples. The panel will evaluate the suitability of each potential expert.

Asked if the review of the 26 miners ordered closed or suspended by Ms. Lopez will hold to the three-month timetable, as initially targeted, Mr. Moncano said: “We’ll see.”

The MICC under Executive Order 79, is mandated to review the status of all operating mines every two years.

However, since 2012 when the order was signed, the council has met only this year to discuss the review, as ordered by President Rodrigo R. Duterte after Ms. Lopez moved to shut mines down due to alleged environmental violations.

Some half of the affected miners have filed a motion for reconsideration with the Environment department, which are now being reviewed, while half have addressed their appeals to the Office of the President. — Janina C. Lim

T-bills likely to fetch higher rates

TREASURY BILLS (T-bills) on offer today are expected to fetch higher yields across the board, tracking the direction of US Treasuries and offshore oil prices, and due to the hawkish stance of major central banks on monetary policy.

The government plans to raise as much as P15 billion in T-bills at today’s auction: P6 billion in 91-day debt papers, P5 billion in 182-day notes and P4 billion in 364-day papers.

Bond traders said they expect rates requested by banks to inch higher compared to the previous auction as local yields continue to follow the direction of US Treasuries.

“Yields will be higher by 10 basis points (bp) across the board ideally because global yields have gone up, and local government securities has been 20 bps higher in the past weeks, so we’re expecting bids to be higher for this auction,” one trader said by phone on Friday.

Similarly, another trader said: “We are looking at a 10-15 bps upward bias across as we’re still looking at movement in offshore oil prices and US Treasuries, which are the indicators of this auction’s yield movement.”

The government only raised P12.5 billion out of its P15 billion program during its offering of Treasury bills last July 3 after bids by investors rose across the board. The papers were met with P24.538 billion in total tenders, still above the planned borrowing.

The 91-day T-bills received a total of P12.005 billion in tenders, double the programmed P6 billion, with the government fully awarding the papers quoted at an average rate of 2.126%.

However, the Treasury only raised P4.131 billion from the 182-day securities, less than the planned P5-billion borrowing. The papers fetched a 2.496% yield and offers came in at P5.631 billion.

Lastly, the 364-day T-bills were also partially awarded, with the state only raising P2.37 billion out of the programmed P4 billion fund raising, even as bids reached P6.902 billion. The year-long tenor fetched an average rate of 2.926%.

At the secondary market on Friday, the three-month, six-month, and one-year papers fetched 2.8264%, 2.9929%, and 2.8699%, respectively.

Asked what other factors could contribute to investors’ decision to bid on the short-termed debt notes, the trader said: “The market sentiment on the rhetorics of global central banks and the US Federal Reserve.”

Last month, the world’s top central banks — namely the Fed, Bank of England , European Central Bank, and Bank of Japan — delivered what seems to be a collective message that quantitative easing is being put back in its box and interest rates are going up.

“So since this is a short-term issuance, there’s an immediate reaction on their comments so there’s an effect in yields, plus the increase in rates as well as the demand might also be influenced in steadily increase in TDF (term deposit facility) rates,” the trader mentioned, noting yields seen for the Bangko Sentral ng Pilipinas’ TDF have been rising in the past three to four auctions.

Meanwhile, the other trader said Fed Chair Janet L. Yellen’s recent comments on monetary policy could push local yields higher.

The US economy is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, though low inflation and a low neutral rate may leave the central bank with diminished leeway, Ms. Yellen said in her US Congress testimony last Wednesday.

Asked how much demand the T-bills will attract in today’s auction, one trader said, “There’s still appetite, for same reasons as the previous auction — because of huge maturities in the second quarter.”

The other trader said the papers will be oversubscribed.

The government plans to borrow as much as P195 billion from domestic sources this quarter through offerings of P105 billion worth of T-bills and P90 billion in Treasury bonds. — Janine Marie D. Soliman

Closing birdie keeps Feng atop US Women’s Open

BEDMINSTER — China’s Feng Shanshan birdied the last hole after 17 consecutive pars to seize a one-stroke lead after Saturday’s third round of the US Women’s Open with US President Donald Trump in attendance.

Stocks seen sideways as investors hunt for leads

THE MARKET will take its cue from US economic data this week, as investors scout for catalysts to push stocks to higher levels.

The Philippine Stock Exchange index (PSEi) closed at 7,885.90 on Friday, down 0.64% or 50.95 points from Thursday’s close.

The bellwether’s finish was also lower by 3.43 points or 0.04% week on week from its 7,889.33 close last July 7, with sectors closing mostly lower led by services and financials, which declined by 0.42% and 0.24%, respectively.

Value turnover reached P7.5 billion, up 26% week on week. Losers outnumbered winners at 103 to 97, while net foreign outflows totalled P173 million.

The market moved mostly sideways last week due to Federal Reserve Chair Janet L. Yellen’s testimony to the US Congress last Wednesday, where she said the US economy is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, though low inflation and a low neutral rate may leave the central bank with diminished leeway.

The Fed “continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time,” Ms. Yellen said in her prepared testimony.

At home, players turned to second quarter earnings as well as economic growth projections for the rest of the year.

“[This] week, the markets will be feeding off the latest economic data that will be announced in the US on Friday: core CPI (consumer price index), retail sales, manufacturing production and industrial production,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said ahead of the data release.

US consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and soft domestic demand that diminished prospects of a third interest rate increase from the Fed this year.

Still, the economy likely regained speed in the second quarter after a sluggish performance at the start of the year. Other data on Friday showed industrial production picked up in June, driven by a surge in oil and gas drilling.

Mr. Limlingan said investors may also start positioning ahead of second quarter earnings.

Support remains at 7,800, while resistance is pegged at the 7,950 to 8,000 level, he said.

2TradeAsia.com said markets may also look to the policy meetings of the European Central Bank and the Bank of Japan this week “as concerns have been brewing how various central bankers will decide in tightening policies without creating a blip in financial markets.”

The market is waiting for the PSEi to breach the 8,000 level which it has neared in several trading days last week, it said.

“Any hint on the commencement of infra[structure] spending & efforts to support corporate earnings growth will reinforce investors’ valuation perception, especially those in the hunt for better returns,” the online brokerage added, placing support at 7,800 and resistance at 7,900 to 7,950. — JCL with Reuters

PTFC earnings plunge in March-May

EARNINGS of PTFC Redevelopment Corp. was sliced by more than half in the March to May period, despite a 12.3% increase in revenues due to higher lease and occupancy rates.

PTFC_LogoIn a regulatory filing posted on Friday, the leasing firm reported a net income of P11.24 million in the third quarter ending May 31. This is 60% lower than the P28 million it generated in the same period a year ago. The company’s fiscal year ends in August.

The increase in revenues to P41.81 million was not enough to offset the sharp decline in other income for the period, which stood at P6.28 million compared to the P31.2 million in the same period in 2016. The gap was primarily due to the P25-million compromise settlement it reached with Robinsons Supermarket Corp. (RSC).

The company’s wholly owned subsidiary Baesa Redevelopment Corp. filed a complaint against RSC in August 2012 for breach of contract with damages regarding the tenant’s breach of the pre-termination clause in a leasing contract dated March 18, 2009.

With this, the company’s net income for the nine months ending May is now at P43.72 million, 11.21% lower year on year. Revenues, meanwhile, showed a 12.34% gain to P126.95 million.

Formerly known as the Philippine Tobacco Flue-Curing and Redrying Corporation, the company changed its primary purpose to that of a real estate firm in 2014 while terminating its tobacco businesses. — Arra B. Francia

Farm output likely grew 5% in Q2 — Agri chief

FARM OUTPUT growth for the second quarter likely matched the first quarter’s pace to remain supportive of the economy during the period, the country’s agriculture chief said over the weekend.

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