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Napocor targets to bid out RE hybridization in off-grid areas soon

PHILSTAR FILE PHOTO

STATE-LED National Power Corp. (Napocor) said it targets to complete the bidding process for the Accelerated Hybridization Program (AHP) soon to allow private companies to put up renewables in off-grid areas.

“We made an innovative structure, so they are doing the line-by-line review of the bidding documents and the terms of reference,” Ferdinand Martin Y. Roxas, Napocor president and chief executive officer, told reporters on the sidelines of a forum last week.

“Hopefully it becomes approved soon and we are able to bid out by end of May or June,” he added. 

The AHP is aimed at allowing the private sector to build renewable energy generation plants or facilities to supplement, augment, or replace the existing capacities in the operations of Napocor’s Small Power Utilities Group (SPUG) diesel power plants.

Under the program, Napocor plans to bid out four clusters of off-grid areas such as Batanes, Palawan, Bicol, and Tawi-Tawi.

“So, if this became successful, we will think about applying it to the rest of other power plants,” Mr. Roxas said.

Mr. Roxas said that the bidding will be under a 20-year contract wherein Napocor will serve as the offtaker and will pay for the energy delivered to its switchyard, including losses.

“It is technologically agnostic, as long as it’s RE (renewable energy). We will pay them the SAGR (Subsidized Approved Generation Rate). If the SAGR goes up, we will pay 50% each,” Mr. Roxas. 

However, he said that if the SAGR goes down, Napocor will “not pay them below what they bid.”

Napocor said that the program aims to reduce the Universal Charge for Missionary Electrification subsidies, the use of diesel fuel and its cost.

The agency is mandated to provide electricity to areas that are not connected to the transmission system, through SPUG plants. At present, Napocor operates 272 SPUG plants, mostly powered by diesel in 222 areas. — Sheldeen Joy Talavera

Philippines falls in 2024 Elite Quality Index

The Philippines fell three places to 51st spot out of 151 countries in the 2024 edition of the Elite Quality Index (EQx) by Switzerland-based Foundation for Value Creation Activities in partnership with the University of St. Gallen. Despite this, the country’s EQx score improved to 52.1. The EQx evaluates and ranks countries based on their elite quality in political economy. Elite quality refers to the overall impact of elite business models, which can result in either positive value creation or negative rent-seeking.

Philippines falls in 2024 Elite Quality Index

Domestic trade in the regions: Which have (un)favorable trade balances?

The domestic trade in goods in the first quarter grew by 46.7% year on year to P389.42 billion, the Philippine Statistics Authority (PSA) said on Friday. Read the full story.

Domestic trade in the regions: Which have (un)favorable trade balances?

Knowledge is key to vaccine confidence

DIANA POLEKHINA-UNSPLASH

The public perception of the importance of vaccines for children declined during the COVID-19 pandemic in 52 out of 55 countries. This was revealed by the UNICEF report published entitled “State of the World’s Children 2023: For Every Child, Vaccination.”

One of these countries is the Philippines, where the perception of the importance of vaccines for children declined by about 25%. The global report warned that a total of 67 million children missed out on vaccinations between 2019 and 2021, with vaccination coverage levels decreasing in 112 countries during that period.

Of the 67 million children globally, who missed out on routine vaccination between 2019 and 2022, 48 million did not receive a single routine vaccine (“zero-dose”). The Philippines recorded one million zero-dose children, the second highest in East Asia and the Pacific Region, and the fifth highest globally.

The report also warned the confluence of several factors suggest the threat of vaccine hesitancy may be growing. Vaccine hesitancy refers to delay in acceptance or refusal of safe vaccines despite availability of vaccination services. Although the COVID-19 pandemic has ended, growing access to misleading information, declining trust in expertise, and polarization remain. Vaccine hesitancy contributes to low immunization coverage which puts children at risk of death, disability, and illness from vaccine-preventable diseases.

The country’s fully immunized child (FIC) coverage rate, meanwhile, increased from 59.9% in 2022 to 62.3% in 2023 and our measles-containing vaccine (MCV2) coverage rate increased from 63.7% in 2022 to 69% in 2023. Despite extensive efforts by the Department of Health (DoH) and the National Immunization Program (NIP), these figures still fall short of the 95% target coverage for routine immunization among children.

The UNICEF report attributed vaccine hesitancy in the Philippines to cultural factors and concerns on vaccine safety. A recent study sheds light on the underlying factors that fuel vaccine hesitancy in the country, particularly in rural areas. Conducted by reach52, the study aimed to identify the reasons for vaccine hesitancy and delayed vaccinations in six municipalities in Region 6 (Western Visayas). The reach52 is a HealthTech social enterprise with the mission to redesign healthcare to reach 52% of the world’s population without access to essential health services.

From December 2023 to January 2024, focus group discussions (FGDs) were conducted with two groups of 62 parents of children under five years of age, as well as in-depth interviews with 23 local health workers (municipal health officers, midwives and barangay health workers).

The first group consisted of parents/guardians whose children have not been vaccinated with or have missed doses of pentavalent, polio, or measles vaccines. The second group consisted of parents/guardians whose children have been vaccinated with or are on schedule with their pentavalent, polio, or measles vaccines. Among the parents of unvaccinated children, four barriers to childhood vaccination were identified.

First, complacency. A common assertion among parents was “vaccines are unnecessary” — a conviction either inherited from their own parents or derived from their environments such as misinformation spread in certain groups.

Second, safety concerns. The risk of adverse events following immunization (AEFIs) is a key factor driving vaccine hesitancy among parents whose children may have had experienced AEFIs in the past. On the other hand, parents with children getting vaccinated for the first time were worried about the risk or perceived risk of vaccines or vaccination rather than the risk of infectious diseases — a form of omission bias. Concern about their children receiving multiple shots also led parents to postpone vaccination.

Third, cost. To reach the vaccination center, some parents need to rent a motorbike or travel by boat and could spend up to P115 per trip. Needing to accompany their children to the vaccination center, some parents also stand to lose a day’s pay.

Lastly, poor health of the child on the day of vaccination, too many children to care for, migration, and religion also hindered the decision of some parents to have their children vaccinated.

The reach52 community operations and insight manager Rachel Alcalde-Dumlao noted that insufficient knowledge and understanding of vaccines are the root causes of vaccine hesitancy.

When asked about the diseases that the government-provided vaccines protect against, most parents said they “don’t know much/anything about it.” Others claimed the available vaccines were not discussed to them during immunizations, except for tuberculosis and pneumonia. In particular, many parents were not aware of the causes of vaccine-preventable diseases and their infectious nature, with some even possessing inaccurate information.

Educating parents is key to improving routine childhood immunization coverage, stressed Ms. Dumlao. She recommended emphasizing the importance of vaccination by reinforcing the messaging already employed by the DoH; reiterating that vaccines in the NIP are tried and tested, safe, effective, and free; explaining the diseases prevented by each vaccine; and highlighting the serious consequences of failing to vaccinate children.

The research-based pharmaceutical industry is one with the DoH and the medical community in enhancing health literacy, fighting misinformation, and increasing the country’s immunization coverage.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP).  PHAP represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that  affect Filipinos.

Chocolate run

A sandy welcome in beautiful Samal Island — PHOTO FROM TOYOTA MOTOR PHILIPPINES

The Toyota Road Trek goes to Davao

EVERY YEAR, Toyota Motor Philippines (TMP) — the country’s undefeated top seller of vehicles for more than two decades now — holds the highly anticipated Toyota Road Trek event, which is essentially an exciting journey that brings together our local motoring media to experience the latest Toyota vehicles in a creative and very immersive way.

The annual event is eagerly awaited by automotive writers and content producers because it transforms what is typically the technical job of test-driving cars into a more elaborate and memorable adventure. Historically, it is set against the picturesque backdrop of various provinces. In doing so, Toyota not only showcases the Japanese brand’s commitment to innovation and excellence, but also celebrates the beauty and diversity of the Philippines while showing everybody a good time. It’s that secret sauce for making the work a more profound event. And clearly, it is a gargantuan task to organize.

Having said that, the Toyota Road Trek is more than just a work assignment — it is in fact, a coveted opportunity to connect with fellow motoring journalists while exploring stunning natural landscapes and, more importantly, putting Toyota’s lineup of vehicles through their paces in real-world conditions! Because as we very well know, not all corners of the country are bestowed with properly paved roads, and not all destinations are convenient to drive to. Whether it is navigating twisty roads, cruising along coastal highways, visiting farms or traversing bustling city streets, we all gain first-hand experience of the performance, reliability and comfort that define the Toyota brand.

And the cars did not disappoint.

The Toyota Road Trek is now on its 17th iteration, and this year holds the theme “Exploring Diverse Mobility.” The province of Davao was our selected destination, and our home base there was Samal Island. Davao is a quintessential icon showcasing the Philippines’ rich diversity in natural wonders, flora and fauna, and even in the cultural realm. The province boasts of pristine beaches like those found on Samal Island, alongside the majestic peak of Mt. Apo — the highest mountain in the country. Its geographical diversity alone already provides an ideal setting for driving vehicles across varied terrains, and it is a perfect practical test of car versatility. Moreover, the Davao region’s commitment to sustainable development and environmental conservation further highlights its role as a leader in progressive and inclusive growth.

My media team was assigned the Toyota Corolla Cross as our land vessel, and it accommodated our luggage for three, while still providing ample room for us and our video/photo equipment in the main cabin. The driving was straightforward, easy, and familiar. I guess that’s one of the strongest points of Toyota vehicles — we’ve all known them for that long, and we’re confident that they’re tried and tested. They’ve been evolving to keep with new sources of energy, and yet there’s still always that familiar feeling that Filipinos have grown to recognize and appreciate.

The main body of our adventure began at the large Toyota dealership in Davao City, which is a testament to the brand’s strong presence in the region. After a warm welcome and a brief introduction to the convoy of vehicles, our media contingent quickly hit the road to experience the different vehicles in a different environment.

One of my favorite stops during this trip was at the cacao farm region of Malagos. The area has rich agricultural heritage and is especially known for producing world-class chocolate. It was quite a distance from Davao town proper, but our vehicles demonstrated their adaptability and good handling on both paved roads and all rural paths.

The unmistakable aroma of cacao greeted us at the farm we visited, and we were offered an immersive experience into the art and science of cacao cultivation. We walked through verdant plantations and learned about the intricate process of transforming heirloom cacao pods into premium Philippine chocolate.

There was also an interesting Chocolate Museum for visitors, but I think the best part was getting the unique opportunity to craft our own personalized pieces of chocolate by selecting the ingredients we would like to have in them (such as sea salt, chili flakes, nuts, dried fruit, etc.) in quantities that we determined, for our personal enjoyment. Of course, we were guided by expert chocolatiers, and were provided with only premium ingredients to begin with.

After our chocolatey rendezvous, we drove towards the coast, and upon reaching the jetty, a speedboat awaited to transport us across the water on our way to Samal Island. It was a short but exhilarating boat ride that offered a beautiful view of the Davao Gulf, with the peak of Mt. Apo standing mighty in the background.

This year’s Road Trek took us through the urban environment of Davao City; from the rustic charm of Malagos to the serene elegance of Samal Island. This awesome combination of professional engagement and scenic exploration truly makes the Toyota Road Trek a standout event in the automotive calendar. At the end of the day, it always offers valuable insights and lasting memories for all participants involved.

Cubans put Asian silkworms to work for artisans in experimental project

COMMONS.WIKIMEDIA.ORG

INDIO HATUEY, Cuba — Cuban biochemist Dayron Martin, dressed in a white lab coat and jeans, looks over a table swarming with silkworms with the admiration of a proud father.

Hundreds of the cream-colored caterpillars squiggle across a bed of dark green mulberry leaves — their preferred food — freshly plucked from bushes just outside his laboratory.

This is the payoff, he says: The silkworms — native to Asia but happily transplanted to Cuba — are spinning a fine, lustrous white fiber that he hopes will be used by Cuban artisans to create products ranging from dresses, blouses, shirts, and even cosmetics.

Mr. Martin, who heads the ArteSeda project at the Indio Hatuey Experimental Station in western Cuba, oversees the process start to finish, from rearing the caterpillars to producing their preferred food and then harvesting their silk.

“It’s an ancestral process more than 5,000 years old,” Mr. Martin says of the traditional Chinese practice, though he notes that it has only recently been adopted in Cuba.

“(The worms) need very specific conditions,” he said.

Cuba fits the bill. Balmy temperatures, airy trade winds, and a year-round growing season assure a happy home and plenty of feed for the worms, which have made the transition to their new home.

Silkworms are the larva of a moth (Bombyx mori) native to Asia. They spin a cocoon of silk fiber that has long been used as the source of commercial silk.

The Cuban project, which began with funding from the European Union, the Cuban government, and more recently from the French government, aims to teach artisans the process and allow them to raise their own worms from scratch.

Artisans then use their silk to create home-grown products to sell to tourists and locals alike, said Dalgi Chaviano, who owns a small shop in Havana that produces cosmetics, crafts, soaps, fabrics, and prints.

Ms. Chaviano said she recently received authorization from the local government to raise mulberry plants and silkworms in Havana, allowing her to produce her own raw material.

“Every day I discover something new to do with the silk,” Ms. Chaviano said as she put the finishing touches on a pair of red silk earrings. Reuters

HSBC Philippines sees pickup in sustainability bond issuances

REUTERS

HSBC Philippines expects sustainability bond issuances to pick up after a slowdown amid high interest rates, an official said.

The growth will be driven by the Bangko Sentral ng Pilipinas’ (BSP) expected easing cycle, coupled with the ongoing push for companies and banks to develop sustainability frameworks and increasing demand for this type of financing among stakeholders, HSBC Philippines Corporate Sustainability Vice President Ceejay Hernandez said in a webinar on Friday.

“Money is expensive right now, but coupled with the increasing demand, the increasing regulatory space in terms of sustainability, and also the increasing understanding and demand on the stakeholder, it (the sustainable bond market) continues to grow,” Mr. Hernandez said.

Sustainable financing was already on the rise years ago but began to slow down when the central bank began its tightening cycle, he said.

“We’ve seen a considerable increase, especially in renewable energy or green financing. That definitely spelled a boom, in a sense, of sustainable financing. However, the increase in interest rates affected that, because when we look at the 2024 numbers, we’ve seen a bit of slowdown in terms of investments in sustainability,” Mr. Hernandez said.

He added that a supportive regulatory body has also helped boost issuances of sustainability bonds recently, noting the mandate issued by the BSP for lenders to adopt the Philippine Sustainable Finance Taxonomy Guidelines (SFTG).

Banks have until the end of this year to comply with the SFTG. The guidelines serve as a tool to classify if an economic activity is environmentally or socially sustainable to serve as a guide for stakeholders in making investment or financing decisions.

“Some of the banks, especially the smaller ones, it’s a bit of a challenge to set up a new framework. The idea of the BSP is really to work with these banks to set them up. And so, far as we’re seeing, a lot of banks, especially locally, have issued green bonds or blue bonds already because you cannot issue these bonds without sustainable finance frameworks,” Mr. Hernandez said. — AMCS

Carabao milk, meat output expected to decline 20%

A farmer guides his carabao on dry and cracked farmland in San Juan town, Batangas, April 18, 2010. — REUTERS

THE PHILIPPINE Carabao Center said that production of carabao (water buffalo) could drop this year due to the effects of El Niño on the supply of animal feed.

“We are estimating that production would drop by around 20%,” PCC Executive Director Liza G. Battad said on the sidelines of an agriculture event last week.

Ms. Battad added that the prevailing effects of El Niño on agriculture have caused volumes of  carabao feed — mainly rice straw — to decline.

The “super El Niño” impact on rice straw has a follow-on effect on both milk and meat production,” she said.

Each carabao typically consumes 40 kilograms of feed per day.

“Our real concern is feed. And at the same time, when it’s too hot, breeding is affected” she added.

Ms. Battad said that this could cause the breeding efficiency of carabaos to drop by 2% next year. The typical breeding time takes about 10 months.

“Our hope is to really contract artificial insemination services. And we will deploy them to areas where there are lots of animals to breed,” she added.

She said artificial insemination could sustain the momentum for building up herd at the cooperative levels.

Carabao males are typically used for meat, while females are kept from slaughter to specialize in dairy.

“We have more than 300 cooperatives that invested in their processing and consumer products,” she added.

Milka Krem is the PCC’s carabao milk advocacy program through which it hopes to “commercialize many products,” she said.

The government is aiming to increase dairy production to 80 million liters of milk per year by 2028, including carabao milk.

The US Department of Agriculture projects dairy demand in 2024 to rise 3% to 3.5 million MT in liquid milk equivalent. — Adrian H. Halili

ALI shares fall despite block share success

AYALA Land, Inc.’s (ALI) shares fell last week despite success in block share selling, attributed to investor profit taking and delays in Fed rate cuts. 

According to the Philippine Stock Exchange, a total of 64.6 million worth of P1.89-billion ALI shares were exchanged on the market from May 20 to May 24, making it the second-most actively traded stock last week.

ALI closed at P28.85 on Friday, down by 1.9% from P29.40 per share a week ago. Year to date, the price dropped by 16.3%.

“The decline this week was brought about by softer market sentiments amid fresh worries of a delay in Fed rate cuts and profit taking in ALI after an 8% rally,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail.

From May 13 to May 17, Ayala Land, Inc. saw a rally as the price per share surged from P27.75 on Monday to P29.40 on Friday’s close.

Following the rise in the share price of ALI, “foreign investors have persistently offloaded shares,” Globalinks Securities and Stocks, Inc. Senior Trader Mark V. Santarina said in a Viber message.

He added that investor sentiment was impacted by both the liquidity event and interest rate fluctuations.

On Tuesday, Federal Reserve policy makers signaled that rate cuts would be pushed back to several more months to ensure that inflation is back to the 2% target, a Reuters report said.

Since July, the Fed has kept the benchmark policy rate at  5.25%-5.5% as inflation was stronger than expected in the last three months.

Similarly, the Bangko Sentral ng Pilipinas monetary board has maintained key rates at 6.5% as inflation accelerated to 3.8% in April from 3.7% in March.

ALI’s decline in stock price overshadowed its rise in liquidity following a successful block share sale.

“The block sale initially boosted investor confidence due to the significant capital raised, indicating strong liquidity and strategic financial management by Ayala Land ,” Mr. Santarina said.

On Wednesday, Ayala Land raised 3.18 billion from a block sale of 98 million AREIT, Inc. shares at P32.45 apiece as part of a property-for-share swap deal. The swap deal includes ALI real estate properties amounting to P11.25 billion in exchange for 252.13 million AREIT primary common shares worth P44.65 apiece.

Mr. Santarina said that the deal resulted in positive short-term sentiment among investors despite this “some investors remained cautious about the long-term impact of asset sales on the company’s growth prospects and operational focus.”

On the other hand, Mr. Mercado said that this development influenced AREIT’s price action more than ALI.

In the first quarter of the year, ALI’s net income attributable to parents grew by 39.44% to P6.29 billion from P4.51 billion in the same period last year.

For the January to March period, Ayala Land’s net income reached P7.44 billion, 43.35% higher than the P5.19 billion in the same period last year.

Mr. Santarina expects Ayala Land, Inc.’s full-year income to reach P10 billion while its net attributable income is at P8.8 billion.

“[Assuming that there is] continued operational efficiency and favorable market conditions,” he said.

Mr. Mercado placed immediate support and resistance levels of ALI at P27.60 and P29.75, respectively.

“Immediate support is anticipated at P28.50, with stronger support at P27.80 if the stock experiences further declines while the major resistance point at P30, which the stock will need to breach to signal a potential upward trend,” Mr. Santarina said. — Andrea C. Abestano with Reuters

PSEi member stocks performed — May 24, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, May 24, 2024.


 

Peso to be range-bound ahead of US PCE data

ANGIE REYES-PEXELS

THE PESO may remain range-bound against the dollar this week as the market awaits the release of the May US personal consumption expenditures (PCE) index report, which is the US Federal Reserve’s preferred inflation gauge.

The local unit closed at P58.19 per dollar on Friday, weakening by six centavos from its P58.13 finish on Thursday, Bankers Association of the Philippines data showed.

Week on week, the peso sank by 57 centavos from its P57.62 finish on May 17.

The peso depreciated against the dollar on Friday due to hawkish signals from minutes of the Fed’s latest meeting, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

This, in addition to mostly stronger-than-expected US economic data lately, supported the dollar against other currencies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For this week, Mr. Ricafort said the May US PCE price index to be released on May 31, Friday, will likely be the main catalyst for peso-dollar trading.

US consumer sentiment data released last week will also affect the peso, Mr. Roces added.

Mr. Ricafort sees the peso moving between P57.90 and P58.30 per dollar this week, while Mr. Roces said foreign exchange trading could remain fluid. — A.M.C. Sy

Shares may trade sideways amid lack of drivers

REUTERS

PHILIPPINE SHARES may move mostly sideways this week, with bargain hunting likely to ensue as the market looks for fresh drivers, analysts said.

On Friday, the Philippine Stock Exchange index (PSEi) fell by 0.6% or 40.10 points to end at 6,619.89, while the broader all shares index dropped by 0.39% or 13.80 points to close at 3,523.49.

Week on week, however, the PSEi rose by 0.02% or 1.20 points from its 6,618.69 close on May 17.

“Hawkish comments from the US Federal Reserve prevented the PSEi from gaining higher ground [last] week,” online brokerage firm 2TradeAsia.com said in a market note.

US Federal Reserve officials at their last policy meeting said they still had faith that price pressures would ease at least slowly in coming months, but doubts emerged about whether the current level of interest rates was high enough to guarantee that outcome and “various” officials said they’d be willing to hike borrowing costs again if inflation surged, Reuters reported.

That meeting was held before data showed the pace of consumer price increases beginning to cool again in April, yet reflected what US central bank officials since then have said is increased uncertainty about the path of inflation and monetary policy.

For this week, investors are expected to hunt for bargains and trade cautiously amid a lack of fresh leads, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Primarily, investors are expected to watch out for more cues on our inflation and interest rate outlook,” Mr. Tantiangco said.

“Investors are also expected to monitor the movements of our local currency against the US dollar. A rebound above the P58 level may spur positive sentiment but a further depreciation may weigh on the bourse,” he added.

On Friday, the peso closed at P58.19 versus the dollar, weaker by six centavos from the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort put the PSEi’s major support at 6,540 and immediate major support at 6,800-6,820.

2TradeAsia.com placed the market’s immediate support at 6,400-6,500 and resistance at 6,700-6,800.

“The PSEi remains range-bound around the 6,400-6,800 band, with macro downside risks preventing any propulsion towards the medium-term resistance of 6,800,” it said.

Mr. Tantiangco added that the PSEi is currently trading with an immediate support at its 200-day exponential moving average (EMA) and immediate resistance at its 50-day EMA.

“If the market gets past its 50-day EMA, we may see a retesting of the 6,700 resistance line. If the market falls below its 200-day EMA, however, the market may test next its recent trough at 6,511.93 touched last May 10,” he said.

“Falling below this level too will be taken as a bearish development for the local bourse,” Mr. Tantiangco added. — Revin Mikhael D. Ochave with Reuters