Crypto startups raised more VC money during market slowdown

August 14, 2024 | 12:02 am

CRYPTO STARTUPS raised more money but closed fewer deals in the most recent quarter, mirroring the broader slowdown seen in the digital-asset world.

Venture capital (VC) investment in crypto companies totaled $2.7 billion in the three months ended in June, a 2.5% increase from the first quarter and a 9.8% decrease from the year-earlier period, PitchBook data show. The number of deals closed dropped 12.5% from the first quarter.

Overall, the crypto market faced a more challenging period after prices reached all-time highs in the first quarter amid the exuberance over the introduction of US exchange-traded funds (ETFs) being allowed to hold Bitcoin for the first time. Investor inflows into the ETFs slowed to $2.8 billion in the second quarter, down 80% from $13.7 billion in the quarter before, based on Bloomberg’s estimates.

“While still far below the 2021 and early 2022 highs, VC investing in crypto reached somewhat of a fever pitch in March and April,” said Rob Hadick, a general partner at crypto venture fund Dragonfly. “Later stages have continued to be soft and as the market turned in late April and into May, the VC market slowed again.”

Crypto market bellwether Bitcoin fell 13% in the second quarter, and has been little changed so far this quarter.

It was the third sequential quarterly increase in the total value of investment. The broader recovery this year in token prices and continued institutional adoption of digital assets suggests that fund raising will grow, Robert Le, senior analyst at PitchBook, wrote in a report on Monday.

The rise in valuations of projects in the second quarter came “as founders tried to capture the more rosy secondary market,” said Jason Kam, a founder of crypto venture firm Folius Ventures.

Investment continued to be focused on infrastructure projects such as new blockchains, while venture capitalists remained leery of consumer-focused applications. Shuyao Kong, co-founder of blockchain startup MegaETH, raised $20 million in a seed funding round in June, saying the fundraise came as the market remained “hungry” for high-performance blockchains.

The only large funding round that closed in the past quarter for a crypto application was for the social media platform Farcaster, which raised $150 million in May. Venture capitalists said there’s growing fatigue in infrastructure investment, and more VCs are looking for investment opportunities in applications, which has also contributed to the slowdown in the second quarter.

“It is a rebalancing of private investments away from infrastructure to applications,” said Tarun Chitra, a partner at Robot Ventures. “People are looking for applications and there are just fewer of those that are private market investable at the moment.”

At the same time, exit activities — the process by which investors realize returns on their investments by selling stakes in a company, increased to the most since the first quarter of 2022. There are 26 exits in the second quarter, including the acquisition of Bitstamp by Robinhood Markets, Inc. PitchBook expects exit activities could extend throughout the rest of the year.

“We expect more consolidation among crypto exchanges, custodians, and infrastructure providers as the market matures and smaller players seek strategic exits,” the PitchBook report said. — Bloomberg News

Finance for the net-zero transition must maximize and share benefits equitably

August 14, 2024 | 12:02 am

THE ASIA AND PACIFIC REGION stands at a critical juncture, positioned both as a significant contributor to global greenhouse gas emissions and a potential leader in transformative climate action. The Asian Development Bank (ADB), alongside our member countries, is steering the region towards a sustainable future through support for a just transition. Our vision aims to reorient economic and social frameworks to foster low-carbon, climate-resilient growth that enhances prosperity and inclusion.

The need for a just transition, one that puts people at the center of the shift to net zero, cannot be overstated. Asia and the Pacific account for over half of the world’s annual greenhouse gas emissions, driven by its dependence on fossil fuels. At the same time, more than 200 million people in the region are impoverished, with many lacking access to basic electricity and relying on traditional biomass for cooking and heating. Women are particularly affected, and often face disproportionate impacts.

As Asia and the Pacific’s climate bank, ADB prioritizes an inclusive approach to ensure that the costs and benefits of the transition to net zero are fairly distributed. Achieving net zero requires us to restructure our economies and change the way we live and work. It is paramount that in this process, the burdens of change are not imposed on the most vulnerable and that the benefits of a low-carbon economy are both maximized and shared equitably. Ensuring that all segments of society, including women, share in these benefits is critical to the success of our just transition efforts.

To create opportunities for inclusive and sustainable growth, ADB works with partners to implement robust policy frameworks, enhance institutional capacities and engage stakeholders through participatory processes. These just transition efforts align with global commitments such as the Paris Agreement, and at the country level we support our developing members in crafting policies and programs that respond to their unique climate challenges and development needs.

At COP27, ADB launched a Just Transition Support Platform to help drive a just transition within our developing member countries. This platform focuses on supporting countries to incorporate just transition into their institutional and policy frameworks and identify innovative financing approaches that attract public and private capital for a just transition. The platform also supports the mainstreaming of just transition in ADB’s operations.

Moreover, at COP28, ADB launched an inclusive process to design a Just Transition Finance Facility that will provide targeted finance to address the socio-economic challenges of the transition to net zero. It will help countries realize the economic and social benefits of the transition and ensure these benefits are inclusive and widespread, ultimately supporting a robust and equitable shift to low-carbon and resilient economies.

Just transition is also a core part of ADB’s Energy Transition Mechanism (ETM). Developed in partnership with ADB member countries, ETM is a scalable initiative that has the potential to be one of the largest carbon-reduction programs in the world. Under it, public and private investments — governments, multilateral banks, private sector investors, philanthropies, and other long-term investors — finance country-specific ETM funds. These funds are designed to retire or repurpose coal power assets on an earlier schedule compared with a business-as-usual timeline.

Just transition principles are a cornerstone of ETM’s implementation, helping us to ensure that potential negative socio-economic impacts are minimized through policies and programs. For example, retraining and reskilling programs provide new opportunities in emerging industries for women and vulnerable workers.

The importance of managing the social impacts associated with the transition to net zero can be seen through ADB’s work on the Cirebon 1 coal-fired power station in Indonesia. This plant serves as an ETM pilot, for which ADB completed a preliminary just transition assessment earlier this year — the first of its kind for ADB and for the region. The assessment utilized a comprehensive methodology to identify impacts along the coal value chain and within the community and surrounding areas. It also established a process to further assess and develop a plan to manage impacts at the appropriate project stages.

Just transition offers a compelling vision for green and inclusive development across Asia and the Pacific. Its promise lies not only in avoiding the worst impacts of climate change, but in creating a more equitable social order that values well-being and gender equality, provides decent work, and ensures sustainable economic growth.

We must encourage optimism and concerted effort from all sectors of society to embrace the principles of justice and inclusivity that will be needed for a low-carbon, climate-resilient future. This journey faces challenges but is also filled with opportunities for transformative change that can forge a healthier, more equitable and prosperous world. The path we chart now will determine the climate legacy we leave for future generations.

Masatsugu Asakawa is president of the Asian Development Bank. This article was first published in the OECD Development Co-operation Report 2024: Tackling Poverty and Inequalities through the Green Transition [https://doi.org/10.1787/357b63f7-en].

Entertainment News (08/14/24)

August 14, 2024 | 12:01 am

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We Play Here school tour kicks off at UP

AT the UP College of Science Amphitheater at the University of the Philippines Diliman, the We Play Here school tour will be returning for the second year in a row. The first was held in April last year in celebration of Warner Music Philippines’ 30^th anniversary. On Aug. 23 at 3 p.m., the second iteration will feature a star-studded lineup: SB19’s Stell, English singer-songwriter Griff, bands Dilaw, Sugarcane, and PLAYERTWO, and Filipino soloists Arthur Miguel and Paul Pablo. Tickets for We Play Here at UP Diliman are priced at P750 and are available here.

Edwin Hurry, Jr. releases new single

FILIPINO singer-songwriter Edwin Hurry, Jr., known for his soothing melodies, is back with another heartwarming track, “Himlay.” Following the success of his single “Dito Ka Lang,” the new love song is dedicated to the tireless efforts of breadwinners. It is a touching reminder of the importance of rest and relaxation, according to Mr. Hurry, who said in a statement that “it is crucial for our well-being.” “Himlay” is now available on all digital streaming platforms.

NIKI releases new album

JAKARTA-born, LA-based singer-songwriter and producer NIKI has dropped her new album, Buzz, via 88rising. Accompanying the release is the music video for title track “Buzz,” directed by Isaac Ravishankara. The video, a cheeky line-by-line depiction of the lyrics, encapsulates the rush of raw emotion and bittersweet nerves of a budding romance. Across 13 tracks on the album, the singer encapsulates the feeling of being on the precipice of something undiscovered. Buzz is out now on all digital music streaming platforms.

Ely Buendia solo concert at Newport World Resorts

FILIPINO rock icon Ely Buendia will be performing his greatest hits at the Newport Performing Arts Theater in September. The one-night solo concert will feature tracks from his Eraserhead days as well as recent hits. His repertoire includes “Pare Ko,” “Toyang,” “Tindahan ni Aling Nena,” “Ligaya,” “Kailan,” “Magasin,” “Alapaap,” “With a Smile,” and “Huling El Bimbo.” Mr. Buendia is also known as the frontman of rock band Pupil, rock supergroup The Oktaves, and soul outfit Apartel. Tickets for the show on Sept. 14 at 8 p.m. are priced from P1,500 to P8,800. They are now available via TicketWorld.

SB19, Gloc-9 join forces on new single

P-POP boy group SB19 and rapper Gloc-9 have dropped their joint single “Kalakal” via Sony Music Entertainment. The collaboration finds both blending their different styles together. According to SB19, they reached out to Gloc-9 for a potential partnership after performing together on the well-received PAGTATAG! Finale concert, which was held at the Araneta Coliseum a few months ago. All members of SB19 and Gloc-9 contributed individual songwriting parts and verses to the song. “Kalakal” is out now on all digital music streaming platforms.

BTS’ Jimin and Jung Kook star in travel reality show

THE TWO youngest members of Korean boy group BTS are part of a travel reality show that has taken them across New York in the United States, Jeju in South Korea, and Sapporo in Japan. The Disney+ series Are You Sure?! centers on Jimin and Jung Kook, who spend time unwinding together across multiple scenic destinations. The eight-part series follows the duo as they eat, shop, cook, camp, canoe, and go on a road trip together. The first-ever travel show starring two BTS members on vacation, the newly released series gives fans an insight into the duo’s friendship. Two episodes are now out on Disney+, with a new episode to be released every Thursday through Sept. 19.

Vivant’s Q2 profit falls 26.6% amid increased service, operating costs

August 14, 2024 | 12:01 am

CEBU-BASED company Vivant Corp. posted a 26.6% decline in its second-quarter (Q2) attributable net income to P652.18 million, driven by higher costs of services and operating expenses.

Gross revenues grew by 59.2% to P3.63 billion from P2.28 billion, the company said in a stock exchange disclosure on Tuesday.

Sales of power increased by 88.2% to P2.86 billion. Revenues from management and service fees rose by 15.7% to P23.3 million, while engineering services income increased fourfold to P7.59 million.

The company’s gross expenses soared by 95.2% to P2.85 billion. Operating expenses climbed by 51.8% to P350.3 million, while the cost of services nearly doubled to P2.5 billion.

For the six months ending in June, Vivant posted an attributable net income of P877.39 million, lower by 40.2% from P1.47 billion a year ago.

Gross revenues increased by 41.8% to P5.56 billion.

Power sales grew by 77% to P4.39 billion, led by the improved revenue contribution of the company’s investments in oil-fired power plants, retail electricity supply, and solar rooftop businesses.

Management and services declined by 47.8% to P23.45 million, and engineering service income went up by more than three times to P9.59 million.

Meanwhile, the company’s gross expenses increased by 91.9% to P4.49 billion.

Operating expenses soared by 46.8% to P647.83 million, while the cost of services doubled to P3.84 billion.

Higher costs of services and operating expenses were attributed to increases in generation costs, salaries and employee benefits, taxes and licenses, outside services, professional fees, travel expenses, among others.

Vivant said in June that it plans to invest P15 billion in its renewable energy projects until 2030.

At the local bourse on Tuesday, shares in the company fell by 12.25% to close at P14.04 each. — Sheldeen Joy Talavera

High cost of living threatens Filipinos’ financial confidence

August 14, 2024 | 12:01 am

FILIPINOS are growing more concerned about their financial well-being due to higher cost of living, according to The Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines).

The 2024 Manulife Asia Care Survey showed that while Filipinos want to be financially secure, increased cost of living will have impact on their confidence, the insurer said in a statement on Tuesday.

“Many Filipinos are grappling with a number of challenges that are impacting their ability to feel secure about their overall well-being within the next decade, including their financial confidence,” Manulife Philippines Chief Health and Products Officer Grace M. Mallabo said.

“It goes to show that a holistic approach to health and wellness — one that addresses physical and mental well-being, as well as financial preparedness — is very important.”

The survey, which included more than 1,000 respondents from the Philippines, showed that more Filipinos are ensuring they have financial safety nets.

The majority or 43% are depending on passive income, followed by building emergency savings (39%), finding ways to attain financial freedom after retirement (32%), having enough savings for healthcare needs (31%) and finding ways to be debt free (26%).

However, respondents are worried about rising healthcare costs (82%), threats of inflation (81%), economic slowdown and recession (78%), increasing interest rates (78%) and health trending down (73%).

“Women are more concerned about rising healthcare costs and inflation (85%) impacting their financial goals than men (80% and 78%, respectively),” Manulife Philippines said.

“Filipinos aged 50-60 have more concerns on the rising healthcare costs (86%) and health trending down (75%) than younger segments,” it added.

Manulife Philippines’ premium income stood at P15.54 billion in 2023. Its net income was at P1.899 billion. — AMCS

Net Foreign Direct Investments (May 2024)

August 14, 2024 | 12:01 am

NET INFLOWS of foreign direct investments (FDI) slipped to a 16-month low in May amid a decline in investments in equity capital, the Bangko Sentral ng Pilipinas (BSP) reported. Read the full story.

With great (corporate) power comes great responsibility

August 14, 2024 | 12:01 am

Office worker — ORIGINAL PHOTO: HUNTERS RACE-UNSPLASH

The adage “with great power comes great responsibility” was famously brought to prominence in Marvel’s Spider-Man. It captures the essence of the moral responsibility that comes with having power or influence. This theme resonates in many aspects of life — leadership, talent, or even personal decisions. Interestingly, this concept also applies to corporate officers and directors, who can be held accountable for the crimes committed by their respective organizations.

While a corporation’s personality is separate and distinct from its officers and directors, the Supreme Court, in Securities and Exchange Commission v. Price Richardson Corp. (G.R. No. 197032, July 26, 2017), has explained that they may still be held criminally liable for the acts of a corporation if there is a showing that they actively participated in or had the power to prevent the wrongful act. Since a corporation can only act through its officers and agents, its officers responsible would personally bear the criminal liability (Suarez v. People, G.R. No. 253429, Oct. 6, 2021). However, the Court also noted that there must be a specific provision of law that makes the officer or director liable, as being a corporate officer by itself is not sufficient to hold him or her liable (People v. Mabborang, G.R. No. 226140, Feb. 26, 2020).

In the recent case of Valenzona v. People (G.R. No. 248584, Aug. 30, 2023), the Supreme Court had the opportunity to further explain when corporate officers may be held liable for the crimes committed by a corporation. In the said case, Valenzona, the president of a real estate company, was criminally charged for his corporation’s failure to register certain contracts to sell with the Register of Deeds as required by law.

Section 17 of Presidential Decree No. 957, otherwise known as “The Subdivision and Condominium Buyers’ Protective Decree,” requires the registration of all contracts relative to the sale or conveyance of subdivision lots and condominium units by the seller in the Register of Deeds. Relatedly, Section 39 of P.D. 957 holds the president, among other corporate officers, criminally responsible for any violation of the provisions of the said decree.

As a defense, Valenzona claimed that it was not his function, as president, to register the contracts of the corporation since there is a different department handling the same. Thus, he argued that he should not be held liable for the said violation. However, the lower courts ruled against him, stating that the mere commission of an act prohibited under P.D. 957, which is a special law, constitutes the offense. Hence, good faith and lack of criminal intent on the part of Valenzona cannot be considered. At this juncture, it is worth noting that generally, acts or omissions punished under special laws are considered mala prohibita, which means that good faith and lack of criminal intent are not valid defenses.

The Supreme Court, however, ruled in favor of the corporate officer. In acquitting Valenzona, the Court held that while the subject contracts were not registered by the company, the prosecution failed to establish the guilt of the corporate officer beyond reasonable doubt. Here, Valenzona was charged specifically and only because he was the president of the corporation. To hold him personally liable, however, it must also be established that he had the volition or intent to cause the non-registration of the subject contracts.

Therefore, the mere fact that the corporation’s president is made liable under P.D. 957 for violations of the provisions of the said decree does not excuse the prosecution from having to prove Valenzona’s active participation in the crime charged. As highlighted by the Court, dispensing with proof of criminal intent for crimes mala prohibita does not discharge the prosecution of its burden of proving, beyond reasonable doubt, that the prohibited act was done by the accused intentionally. Here, it was incumbent upon the prosecution to establish that Valenzona was, at the very least, aware of the non-registration of the subject contracts, in order to prove that the said corporate officer had the intent to perpetrate the prohibited act.

All told, with the great power which corporate officers wield in their respective organizations, comes the equally great responsibility of ensuring that they do not actively participate in or knowingly fail to prevent any of the corporation’s wrongful acts. Otherwise, they may be held criminally liable for the prohibited acts committed by the corporation. In the same vein, however, the case of Valenzona serves as a reminder for the State that its power to prosecute individuals, including corporate officers, must also be exercised with utmost responsibility —especially since the primary duty of the prosecution is not simply to convict but to see to it that justice is done. Indeed, in all aspects of life, great power comes with great responsibility.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

Louie Emmanuel G. Pagtakhan is an associate of the Litigation and Dispute Resolution Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

(632) 8830-8000

lgpagtakhan@accralaw.com

Sierra Space Corp. executives depart as it grapples with rocket plane delays

August 14, 2024 | 12:01 am

SIERRA SPACE CORP. is losing some key engineering and financial executives as the National Aeronautics and Space Administration (NASA) and defense contractor grapples with delays on its signature Dream Chaser vehicle.

Jen Splaingard, senior vice-president of engineering, and Ken Venner, its chief information officer and a former SpaceX executive, have left the company recently and been replaced with new appointments, the company confirmed. Naved Mohammad, a finance executive, and Sanjoy Kumar, a quality and mission assurance specialist, both left “some time ago” and have been replaced, the company said.

“We continue to recruit the best talent in the industry to fuel the ongoing growth of our young company,” Matthew Clarke, Sierra Space’s senior vice-president of marketing and communications, said by e-mail.

The fresh departures come as Sierra Space works toward a December launch, at the earliest, of its Dream Chaser miniaturized space shuttle. The craft is designed to ferry cargo to the International Space Station for NASA. In the latest setback, United Launch Alliance, which was initially slated to loft Dream Chaser in September, was forced to swap out the plane for a dummy payload.

The first plane, dubbed Tenacity, is undergoing final testing at the Kennedy Space Center and its successor is in production in Louisville, Colorado, the company said.

Colorado-based Sierra Space, spun out of defense contractor Sierra Nevada Corp., backed by billionaire Turkish couple Fatih and Eren Ozmen, is also working on inflatable space stations and rocket engines.

The company said its valuation climbed to more than $5 billion after a September 2023 private capital injection. Chief Executive Officer Tom Vice is laying the groundwork for a potential initial public offering but says a successful Dream Chaser flight is key to deciding whether to take that step.

“We want access to the public markets,” Mr. Vice told Bloomberg in February. “We’ve been working for a year and a half to make sure that we are public company ready.”

Mr. Vice and a leadership team and board built up of former Boeing Co. executives including Greg Smith, Tim Keating and Troy Lahr, have taken steps to control costs, including layoffs last year. Sierra Space’s president, Janet Kavandi, left the company in December.

“We remain in a healthy capital position with $4.4 billion in active, cash-delivering contracts and a hugely supportive group of long-term investors, including our company’s founders,” Mr. Clarke said.

Sierra Space has added $1.3 billion in national security contracts since 2023, he added. — Bloomberg News

How PSEi member stocks performed — August 13, 2024

August 14, 2024 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, August 13, 2024.

PHL stocks rise on strong peso, corporate results

August 13, 2024 | 9:00 pm

PHILIPPINE SHARES closed higher on Tuesday on positive sentiment after the peso returned to the P56 level against the dollar and strong corporate results.

The Philippine Stock Exchange index rose by 0.56% or 37.08 points to end at 6,650.44 on Tuesday, while the broader all shares index improved by 0.31% or 11.46 points to finish at 3,610.

“The local market bounced back this Tuesday. The peso’s strengthening against the dollar has helped in lifting the market. Investors’ appreciation of second-quarter and first-half corporate results also helped in bringing the market up,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

On Tuesday, the peso closed at P56.96 per dollar, rising by 35.6 centavos from its P57.316 close on Monday, based on Bankers Association of the Philippines data.

This was the local unit’s best close in almost four months and was the first time it ended at the P56 level since its P56.808-a-dollar finish on April 15.

“Philippine shares rebounded, tracking their Asian peers, as investors continue to take positions ahead of the upcoming BSP (Bangko Sentral ng Pilipinas) meeting this Thursday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

A BusinessWorld poll conducted last week showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-basis-point (bp) rate cut at its meeting on Thursday (Aug. 15), bringing the target reverse repurchase rate to 6.25% from the current over 17-year high of 6.5%.

On the other hand, seven others expect the BSP to keep rates steady this week.

From May 2022 to October 2023, the BSP hiked borrowing costs by 450 bps.

“Meanwhile, Wall Street opened the week with choppy trading as investors awaited key inflation reports that could provide direction after last week’s volatility, driven by a weak jobs report and the unwinding of the yen carry trade,” Mr. Limlingan added.

Majority of sectoral indices closed higher on Tuesday. Property climbed by 1.69% or 44.13 points to 2,649.16; industrials went up by 0.56% or 50.70 points to 9,045.97; holding firms rose by 0.43% or 25.03 points to 5,743.04; and services inched up by 0.37% or 7.74 points to 2,086.95.

Meanwhile, mining and oil fell by 1.09% or 89.42 points to 8,102.52; and financials dropped by 0.18% or 3.66 points to 1,984.21.

“GT Capital Holdings, Inc. was the index’s top performer for the day, jumping 4.73% to P620. JG Summit Holdings, Inc. was the worst index performer, plunging 4.17% to P24.15,” Mr. Tantiangco said.

Value turnover climbed to P4.98 billion on Tuesday with 607.05 million shares changing hands from the P3.67 billion with 505.37 million issues traded on Monday.

Decliners beat advancers, 100 versus 81, while 64 issues were unchanged.

Net foreign buying dropped to P121.63 million on Tuesday from P205.66 million on Monday. — R.M.D. Ochave

‘Balanced’ energy mix keeps power affordable — biz groups

August 13, 2024 | 8:42 pm

BUSINESS GROUPS said that the Department of Energy’s (DoE) pursuit of a balanced energy mix is suitable for achieving energy security while keeping power affordable.

In a joint statement on Tuesday, nine business groups led by the Management Association of the Philippines expressed support for Energy Secretary Raphael P.M. Lotilla’s policies, which they said were appropriate to the country’s particular context.

“As an emerging market, the country must balance energy security and affordability with climate change concerns to support its economic progress,” they said.

According to the groups, energy supply per capita is the third lowest in ASEAN, highlighting the need to prioritize the need to augment power capacity quickly amid growing energy demand.

“Even with the government’s goal of a 50% renewable energy share in the country’s power generation mix by 2040, it has left a sizable proportion for fossil fuel-based sources,” they said.

Criminal and administrative complaints have been filed against Mr. Lotilla by the Power for People Coalition (P4P) for endorsing the expansion of Aboitiz-controlled Therma Visayas, Inc. Unit 3 in Cebu.

In a statement last month, P4P said that the endorsement of the project violates the moratorium on greenfield coal-fired power projects declared by the previous administration.

Meanwhile, the business groups said: “The DoE has repeatedly made it clear that its own advisory on the moratorium on coal-fired power plants applies to greenfield projects.”

It added that the DoE is also working on the development of indigenous resources to reduce dependence on imported fossil fuels, to lower power costs, and to pursue energy efficiency to maximize energy resources.

“Energy insecurity is expensive. The power outage on Panay Island in January this year was estimated to have led to about P3.8 billion in economic losses for the Province of Iloilo alone,” the groups added.

The other signatories to the statement were the Makati Business Club, the Employers Confederation of the Philippines, the Federation of Philippine Industries, the Financial Executives Institute of the Philippines, and the Foundation for Economic Freedom.

Also signing were the Blockchain Council of the Philippines, Fintech Alliance.PH, and the Women’s Business Council Philippines.

On Aug. 5, the Philippine Chamber of Commerce and Industry (PCCI) also expressed support for Mr. Lotilla, noting that the allegations have the potential to push investors away.

“We are competing against other countries in the region in enticing foreign direct investment (FDI) to come to our shores; let us not create an air of uncertainty that could dissuade these investments,” the PCCI said in a statement on Monday. — Justine Irish D. Tabile

Largest solar project eligible for green lane treatment — BoI

August 13, 2024 | 8:42 pm

THE Board of Investments (BoI) said on Tuesday that it awarded green lane certification to the P185-billion project of Terra Solar Philippines, Inc. (TSPI), which is expected to be the world’s largest solar farm.

In a statement, the BoI said that the certification covers TSPI’s 3,500-hectare Terra Solar project located across Nueva Ecija and Bulacan.

TSPI is a subsidiary of SP New Energy Corp. and MGen Renewable Energy, Inc., the renewable energy unit of Meralco PowerGen Co.

BoI Managing Head and Trade Undersecretary Ceferino S. Rodolfo said TSPI’s project will help in the Philippine transition to greener sources of power.

“The basic objective of the Philippines now under this administration is not just to grow — we are already the fastest-growing economy in the region — but more importantly, to transform the Philippine economy into a smart and sustainable hub for manufacturing and services,” he said.

The Solar PV (photovoltaic) and battery energy storage system project will be executed in two phases, with the first phase expected to supply 600 megawatts (MW) of output and the second phase adding 250 MW.

It was awarded an 850-MW Mid-Merit Power Supply Agreement from Manila Electric Co. (Meralco), under which it is required, upon completion, to supply 850MW of power.

MGen President and Chief Executive Officer Emmanuel V. Rubio expects the endorsement to fast-track projects that will accelerate the Philippines’ low-carbon transition.

“Having the green lane certificate is a testament to our commitment to excellence, innovation, and environmental stewardship,” Mr. Rubio said.

TSPI targets commercial launch for the first phase of the project by February 2026, with the second phase set to launch by February 2027.

Late last month, the company reported that the project is 56% complete.

The project last month was also certified by the Department of Energy as an Energy Project of National Significance, which is given to projects with capital investment exceeding $59 million.

Executive Order (EO) No. 18 established the “green lane” system in all government agencies to speed up the approval and registration process for priority or strategic investments.

The BoI said 102 projects involving investment worth P3 trillion have been endorsed by the BoI’s One-Stop Action Center for Strategic Investments.

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. — Justine Irish D. Tabile