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US says Houthis launched missiles at tanker ship but no damage caused

STOCK PHOTO | Image by Gerhard Traschütz from Pixabay

WASHINGTON — The Iran-backed Houthi militia launched two anti-ship ballistic missiles at a US-owned tanker ship late on Thursday that hit the water near the vessel but caused no injuries or damage, the U.S. military said.

The incident, the latest amid growing tensions in the Red Sea that have disrupted global trade and raised fears of supply bottlenecks, took place around 9 p.m. Yemen time (1800 GMT), according to a US Central Command post on X, formerly Twitter.

The Houthis, who control most of Yemen, earlier on Thursday claimed responsibility for the attack, saying they targeted the ship Chem Ranger with naval missiles that caused “direct hits.”

Monitoring service TankerTrackers.com said on social media that the “fairly small chemical tanker left the Red Sea port of Jeddah, Saudi Arabia for Kuwait, but her AIS (automatic identification system) went offline on (Tuesday) before proceeding south past Yemen.”

The Houthis say their attacks are in solidarity with Palestinians under attack from Israel in Gaza.

Since last week, the United States has launched strikes on Houthi targets in Yemen, and this week returned the militia to a list of “terrorist” groups. President Joe Biden told reporters on Thursday that air strikes would continue even if they may not be halting the Houthi attacks. — Reuters

House panel endorses CREATE MORE

TAXPAYERS line up at the Bureau of Internal Revenue office in Intramuros, Manila, April 18, 2022. — PHILIPPINE STAR/RUSSELL PALMA

By Beatriz Marie D. Cruz, Reporter

A HOUSE of Representatives committee on Thursday endorsed to members a bill that seeks to lower the income tax on both local and foreign companies to 20% under a so-called enhanced deduction regime, while streamlining the tax refund system for corporations.

Substitute House Bill No. 9794 or the CREATE MORE (CREATE to Maximize Opportunities for Reinvigorating the Economy) bill will amend Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The committee report will be taken up at the House Ways and Means panel next week before it is debated at the plenary.

The measure seeks to enhance fiscal and nonfiscal provisions of the Tax Code and “reconcile disparities between the CREATE Act and its implementing rules,” Albay Rep. Jose Ma. Clemente S. Salceda, who heads the Ways and Means Committee, said in a fact sheet that accompanied the committee report.

The CREATE law had imposed a 25% income tax on companies and limited the 20% rate to local enterprises with income not exceeding P5 million ($89,513) and assets worth P100 million and below. It also restricted the zero-rating on value-added tax (VAT) on local purchases to the sale of goods and services directly used in a project of a registered exporter.

Under the proposed CREATE MORE, domestic and export companies, including those inside ecozones and freeports, will be entitled duty exemptions, VAT exemption on importation, and the VAT zero-rating of local purchases.

Companies outside ecozones and freeports will also enjoy VAT zero-rating on local purchases as well as duty exemption on the importation of capital equipment, raw materials, spare parts, or accessories, according to a copy of the committee report.

The proposed law also seeks to establish a 20% corporate income tax rate on local and foreign corporations under the enhanced deduction income tax regime.

Registered business enterprises (RBEs) will also enjoy a 200% additional deduction for power cost, to be accumulated during the Income Tax Holiday (ITH) period. They may also enjoy 100% additional deductions in expenses for trade fairs, missions or exhibitions.

The bill also seeks to include the tourism industry under the coverage of the reinvestment allowance, and to apply the net operating loss carryover within five years after the ITH entitlement period.

The proposed law also seeks to impose a 1 1/2% RBEs local tax in lieu of any and all taxes to be collected by IPA.

VAT incentives for RBEs that enjoy incentives prior to the enactment of CREATE will be extended from 10 to 12 years, if there is no tax refund or credit granted. RBEs may also enjoy duty incentives for the remainder of the 10-year transitory period.

Under the measure, the power to grant and approve tax incentives would be returned to investment promotion agencies (IPAs), which is currently handled by the Fiscal Incentives and Review Board (FIRB).

“The President may, in the interest of national economic development, or upon the recommendation of the FIRB, modify the mix, period or manner of availment of incentives provided under this Code or craft the appropriate financial support package for a highly desirable project or a specific industrial activity,” according to a copy of the committee report.

The bill essentially limits the FIRB’s power to grant and approve fiscal incentives, upon the recommendation of President Ferdinand R. Marcos, Jr.

The measure also allows the information technology and business process outsourcing sector to “conduct business under alternative work arrangements.”

Under the CREATE MORE bill, the Bangsamoro Board of Investments and the Bangsamoro Economic Zone Authority will also be included under the list of IPAs.

If enacted into law, foreign nationals with executive positions and nonresident aliens in supervisory, technical and advisory positions will receive a working visa, while a special skills visa may be granted to foreign nationals with “highly specialized skills.”

Domestic market enterprises in creative industries listed under RA 11904 or the Philippine Creative Industries Development Act will also be entitled to the ITH period.

Eleanor L. Roque, tax principal of P&A Grant Thornton, said lawmakers must ensure that the bill’s tax provisions take into account the Philippines’ membership in the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) seeks to address tax avoidance schemes among its 140 member countries.

“An improvement of the set of incentives granted to qualified investors is expected to improve our attractiveness as an investment destination. The 20% income tax rate with the enhanced deduction is a generous incentive to investors. Depending on their cost structures, it can lead to a really low tax payable,” Ms. Roque said in a Viber chat.

“However, since the Philippines has joined the international efforts against tax avoidance by joining the OECD/G20 Inclusive Framework on BEPS and Pillar 2 initiatives, the bill should also consider how the incentives will impact on companies covered by BEPS-Pillar 2,” she said.

“We must ensure that taxes for transactions and activities in the Philippines are paid in the Philippines and not in other jurisdictions who have adopted local rules to implement Pillar 2.”

Jose Enrique A. Africa, executive director of think tank IBON Foundation, said lowering taxes under the CREATE MORE would reduce government revenues.

“One of the big selling points of the CREATE law, [is to] make our corporate income taxes quote unquote competitive with others in the region,” Mr. Africa said at a news briefing. “That attitude is eroding our fiscal space.”

“The resources for development won’t come if the government is choosing to lower income taxes, [on] those [who] should contribute more to the revenues of the government,” he added.

PHL to grow fastest in the region this year — AMRO

A VENDOR arranges fruits at a stall in San Andres, Malate, Dec. 27, 2023. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Luisa Maria Jacinta C. Jocson, Reporter

THE PHILIPPINES is projected to be the fastest-growing economy in the region this year amid resilient domestic demand, the ASEAN+3 Macroeconomic Research Office (AMRO) said on Thursday.

“The Philippine economy has held up very well despite high inflation and interest rates, and it’s much less dependent on exports than other countries in the region,” AMRO Chief Economist Hoe Ee Khor said in a virtual briefing on Thursday.

In its latest Regional Economic Outlook quarterly update, AMRO kept its Philippine gross domestic product (GDP) growth projection at 6.3% for this year, unchanged from its annual consultation report in November.

AMRO’s ASEAN+3 GDP growth forecasts

The Philippines’ growth is the fastest among Association of Southeast Asian Nations (ASEAN) members, ahead of Cambodia (6.2%), Vietnam (6%), Indonesia (5.2%), Malaysia (5%), Laos (4.7%), Thailand (3.3%), Myanmar (3.2%), Singapore (2.6%), and Brunei Darussalam (2.4%).

In the ASEAN+3 region, the Philippines is also ahead of China (5.3%), Hong Kong (3.5%), South Korea (2.3%), and Japan (1.1%).

If the 6.3% GDP growth is realized, however, this would be below the Philippine government’s 6.5-7.5% target for 2024.

However, Mr. Khor cited several risks that could dampen growth this year, such as a spike in global commodity prices; weaker economic growth in China, financial spillovers from tighter US monetary policy, a potential recession in the US and Europe, and US-China geopolitical tensions.

He also flagged the possible impact of the El Niño, which may stoke rice prices.

The latest data from the state weather bureau showed that a strong El Niño is expected to continue through January and is seen to persist until May.

AMRO said the Philippines likely grew by 5.6% in 2023, the same projection it gave in November. This also makes it the economy with the fastest growth in the region but falls short of the government’s 6-7% target.

“As it turns out, I think we were too optimistic on the growth momentum. Momentum is weaker than expected,” Mr. Khor said.

Latest data from the Philippine Statistics Authority (PSA) showed that the economy grew by 5.5% in the nine-month period. Fourth-quarter and full-year 2023 GDP data will be released on Jan. 31.

For ASEAN+3, AMRO expects stronger growth this year at 4.5%, slightly higher than its projection of 4.4% for 2023.

“The region did relatively well last year, better than what we expected, based on better exports and moderating inflation. We expect growth to pick up this year on strong exports and resilient domestic demand,” Mr. Khor added.

AMRO also noted that the recovery of China’s property sector and the rebound in tourism will help support growth in the region this year.

TIGHTER FOR LONGER
Meanwhile, AMRO kept its inflation forecast for the Philippines at 3.6% this year, slightly slower than the Bangko Sentral ng Pilipinas’ (BSP) forecast of 3.7%

“In 2024, headline inflation is likely to remain on a moderating trend in line with the continued normalization of global commodity prices,” AMRO said.

Headline inflation averaged 6% in 2023, the second straight year that inflation breached the BSP’s 2-4% target band.

AMRO also said that the BSP must continue to keep rates tighter for longer until inflation remains within target.

“We agree with the BSP view that the rates should remain tight until inflation is down to within target,” Mr. Khor said.

The Philippine central bank has raised rates by a cumulative 450 bps from May 2022 to October 2023, bringing the benchmark rate to a 16-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. also earlier signaled that policy easing will only be considered if inflation settles firmly within the 2-4% target.

“As long as the economy is doing strongly, we don’t see the urgency for the BSP to cut rates,” Mr. Khor added.

Regulator lifts suspension of the FIT-All collection

ANDREY METELEV-UNSPLASH

By Sheldeen Joy Talavera, Reporter

HIGHER ELECTRICITY BILLS loom as the Energy Regulatory Commission (ERC) lifted the suspension of the collection of feed-in tariff allowance (FIT-All) starting February.

In a statement, the ERC said that it has decided to lift the 13-month collection suspension due to the projected deficit in the FIT-All fund.

“As the Commission reevaluated the balance of the FIT-All fund as of Jan. 5, 2024, inclusive of the Cost Recovery Revenue (CRR) collections in November 2023, the ERC found that the projected FIT-All fund would be in deficit in the February 2024 customer monthly billing. In view of this, the Commission resolved to approve and adopt the lifting of the suspension and to resume the collection of the FIT-All charges,” it said.

The FIT-All is a P0.0364 per kilowatt-hour (kWh) charge reflected in the bills of electricity consumers that is collected from on-grid electricity customers to support the development and promotion of renewable energy.

Payments are remitted to the FIT-All fund established and administered by the National Transmission Corp., which keeps the funds with a government financial institution.

The fund goes towards paying renewable energy (RE) developers who have obtained fixed rates for electricity generated by their projects.

According to ERC Chairperson Monalisa C. Dimalanta, the FIT-All fund needs to pay around P2.2 billion a month to RE suppliers.

“The fund has about P2.98 billion remaining as of Jan. 5, 2024, so it needs to start building up amounts again to make sure the RE developers that supply in the next months can be paid for their supply,” she said in a Viber message.

The ERC had first suspended FIT-All collection for three months covering the billing period of December 2022 to February 2023 to ease the financial burden on consumers amid the rising costs of electricity in 2022.

The suspension of the FIT-All collection was extended twice last year.

Sought for comment, Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers, said that the resumption of FIT-All collection may lead to a slight increase in the cost of electricity, which may result in higher monthly power bills.

“This will raise the cost of electricity by 3.64 centavos/kWh, round off to four centavos/kWh starting February billing,” he said in a Viber message.

Meanwhile, Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said that the ERC should consider reviewing the tariff with the decreasing costs of renewables.

“The ERC should undertake a continuing review of the tariff to reflect the performance of RE providers and the current state of RE technology today, with its decreasing costs,” he said in a Viber message.

Manila Electric Co. has temporarily halted the collection of FIT-All to its consumers in the previous monthly electricity bills as directed by the ERC.

Households consuming 200 kWh may pay about P7.28 more, Mr. Oplas said, including value-added tax.

Loan growth expected to improve with rate cuts seen in the second half

By Keisha B. Ta-asan, Reporter

PHILIPPINE BANKS may see an improvement in loan growth this year, as monetary policy easing in the second half may encourage borrowers to take out more credit, BMI Country Risk & Industry Research said.

BMI, a unit of Fitch Solutions, said they expect stronger loan growth in 2024 as better macroeconomic conditions and lower interest rates in the second half may boost credit demand. 

“We expect loan growth to accelerate from an estimated 5.7% year on year in 2023 to 10% by the end of 2024,” BMI said in a report dated Jan. 17.

“We also see limited risks to financial stability as the Philippine banking system is underpinned by a strong balance sheet and robust capital buffers.”

Based on the latest data from the central bank, outstanding loans issued by big banks increased by 7% year on year to P11.4 trillion in November 2023 from P10.65 trillion in the same period in 2022.

At 7%, the loan growth rate was a tad slower than the 7.1% expansion recorded in October 2023.

According to BMI, easing inflation will prompt the Bangko Sentral ng Pilipinas (BSP) to start cutting borrowing costs by the second half of the year.

To tame inflation, the BSP tightened policy rates by 450 basis points from May 2022 to October 2023. This brought the benchmark interest rate to a 16-year high of 6.5%.

The overall year-on-year increase in prices of widely used goods and services eased to 3.9% in December from 4.1% in November and 8.1% a year ago, settling within the central bank’s 2-4% target range for the first time in nearly two years.

However, full-year inflation stood at 6% in 2023, the highest in 14 years and above 5.8% in 2022. This marked the second straight year that average inflation breached the BSP’s 2-4% target band.

“This set the stage for policy loosening in the second half, which will encourage lending as borrowing costs decline,” BMI said. “What surprised us was the resilience of household loans in 2023.

Despite the aggressive pace of domestic tightening, loans for household consumption still grew.” 

BSP data showed that outstanding loans for retail borrowers grew by 23.6% to P1.25 trillion in November from P1.01 trillion a year ago. Loan growth grew from the 22.8% expansion in October.

“Considering the possibility for cuts to materialize in the latter half of the year, we think these figures will remain robust in 2024 as well,” BMI said.

Better domestic conditions may also boost credit demand this year as the Philippine economy has proven to be resilient so far, the research firm noted.

Philippine gross domestic product (GDP) expanded by 5.9% in the third quarter of 2023, faster than the 4.3% growth in the previous quarter due to increased private and public spending. This brought the year-to-date GDP growth to 5.5%.

“We believe 2024 will also be a stellar year and expect real GDP growth to inch up from 5.7% in 2023 to 6.2% in 2024. This will be driven by private consumption which we expect to hold up pretty well on the back of easing inflationary pressures,” BMI said.

However, lackluster external demand in loans from the manufacturing sector, which makes up around 11% of banks’ total loan portfolio, may continue to drag lending growth this year, it said.

“Loans to the industry contracted by 0.1% year on year in November 2023, as a result of lackluster external demand. And a turnaround seems unlikely. Our global team is forecasting the global economy to expand by just 2.1% in 2024, a considerable slowdown from the 2.6% we estimate in 2023,” it said.

Loans for the manufacturing sector dipped by 0.1% to P1.23 trillion in November 2023 from a year ago. Credit growth, however, improved from the 3.6% contraction recorded in October.

Bank asset quality may also see some challenges this year, but its drop is not expected to be as severe as the decline during the coronavirus pandemic, BMI said.

“Tight monetary policy will put pressure on borrowers’ ability to repay loans,” it said. “We expect loan delinquencies to increase over the next few quarters against the backdrop of high interest rates.

Data from the BSP showed banks’ nonperforming loan ratio stood at 3.41% in November, easing from the five-month high of 3.44% in October but still above 3.35% a year prior.

The November bad loan ratio marked the lowest in two months or since 3.4% logged in September.

However, bad loans inched up by 1.1% to P454.281 billion in November from P449.454 billion in the prior month. Year on year, it rose by 11.3% from P408.097 billion in November 2022.

“Nevertheless, risks to financial stability are minimal. The Philippine banking system is supported by robust capital buffers, with the capital adequacy ratio standing at a healthy 16% in the third quarter of 2023, well above the 10% regulatory minimum,” BMI said.

Better bank profitability this year would also build up buffers, it noted.

“Elevated interest rates are expected to enhance net interest margins, as historical data show a positive relationship between the two. The tightening cycle has already led to significant improvements in profitability ratios,” BMI added.

The banking industry’s return on assets and return on equity stood at 1.6% and 12.8%, respectively, as of August 2023, based on the latest BSP data.

The cumulative net income of banks also rose by 10.4% to P270.352 billion in the January-to-September period from P244.876 billion last year.

As of end-September, banks’ net interest income jumped by 20.4% to P663.240 billion from P550.666 billion last year.

Drama and fantasy in the 18th Spring Film Festival

THE BEST of Chinese cinema today will be brought to light in this year’s Spring Film Festival at the Shangri-La Plaza Mall in Mandaluyong City.

This 18th edition of the film festival runs from Jan. 23 to 30, and it will screen six Chinese films for free. One of these is the opening film, Zhang Yimou’s 2023 historical thriller Full River Red, which was the highest-grossing Chinese film of the year.

Full River Red is set in the Song Dynasty, when a mysterious murder occurs at Chancellor Quin Hui’s residence and leads to a larger conspiracy concerning the fate of the empire. It stars Shen Teng and Jackson Yee. “This dark comedy explores themes of betrayal and patriotism,” said a press release.

Those seeking some thrilling action can watch The Captain (2019) by renowned Hong Kong director Andrew Lau. In this true story based on the Sichuan Airlines Flight 8633 incident, where a pilot must ensure the safety of 128 passengers and crew when the plane’s windshield is damaged mid-flight. The incident is regarded as one of the miracles in aviation history.

Looking Up (2019) by Deng Chao, who also plays the lead role, is a heartrending drama about an astronaut who, stranded in space, draws strength from his enduring connection with his father. It won Best Film at the 11th Macau International Movie Festival.

For those who want to know more about Chinese folk tales, White Snake (2019) by Amp Wong and Zhao Ji is based on a very popular one. The animated US-China co-production tells the story of a white snake that magically turns into a woman and marries a scholar.

Meanwhile, the epic fantasy Legend of the Demon Cat (2017) by Chinese auteur Chen Kaige presents an immersive, live-action world. It follows poet Bai Letain and monk Kukai as they investigate the death of the emperor’s concubine, a task made harder when a demon cat wreaks havoc in their city.

The last movie is the disaster film The Bravest (2019) by Hong Kong filmmaker Tony Chan and starring Chinese A-lister Huang Xiaoming. It tells the story of several firefighters as they struggle to contain a huge fire after an oil pipeline explodes. It is based on the real-life Xingang Port oil spill incident.

Admission to the screenings is free on a first-come, first-served basis.

PAINTING AND PHOTOGRAPHY
Aside from the film festival, there will be several related activities.

Mall visitors can join a Chinese Painting Workshop on Jan. 27, 2 p.m., at the Grand Atrium. Leading the workshop is Art Association of the Philippines president Fidel M. Sarmiento.

There will also be a special photo exhibit at the East Atrium, organized by the Embassy of China in the Philippines and Chinatown TV. Nihao, China features photos of iconic landmarks and landscapes across China, and different ways and traditions to celebrate the Chinese New Year (which falls on Feb. 10 this year). There will also be posters of fortune predictions per zodiac animal for the Year of the Dragon.

The film festival, which runs until Jan. 30 at the Red Carpet Cinemas of the mall, is organized by the Ateneo Ricardo Leong Center for Chinese Studies and the Film Development Council of the Philippines.

For the full screening schedule and more information, visit the Spring Film Festival and Shangri-La mall social media pages. — Brontë H. Lacsamana

Dolly de Leon grateful for inclusion in Forbes’ ‘50 Over 50’

DOLLY DE LEON, Golden Globe and BAFTA-nominated Filipino actress, is among Forbes’ “50 Over 50: Asia 2024” list.

This year’s list features 50 women from the Asia-Pacific region who are “proving that the years after 50 are the new golden age,” the magazine said on its website. (See full story here: 5 Filipinas spotlighted in Forbes’ 50 Over 50 Asia list – BusinessWorld Online (bworldonline.com)

“There is nothing more rewarding than being included in a list that honors people who are living proof that there is nothing wrong with being a ‘late bloomer’ or ‘past their prime,’” Ms. De Leon told BusinessWorld via Facebook Messenger.

“Everything happens at the right time and I have only gratitude for Forbes for recognizing that,” she said.

Ms. De Leon gained international acclaim for her role as Abigail in the Oscar-nominated satirical 2022 film Triangle of Sadness for which she received multiple nominations including from the Golden Globes and BAFTA. She shares the Best Supporting Performance award given by the Los Angeles Film Critics Association Awards with Ke Huy Quan who won for Everything Everywhere All at Once. She also starred in two US-made films that premiered at the 2024 Sundance Film Festival.

She is also the first Filipino member of The Academy of Motion Picture Arts and Sciences, even “after acting for three decades while juggling her role as a single mother of four,” Forbes added. — Brontë H. Lacsamana

The Filipino art of drag inspires on Drag Den season two

TEN queens will once more showcase the best of Philippine drag on season two of Drag Den with Manila Luzon, the hit Filipino reality show that premiered on Prime Video last year.

As the streaming giant’s first renewal of Southeast Asian content, it is available in the Philippines and in 240 countries and territories worldwide.

“We added new rules to make the stakes higher because we listened to our fans on how else we could improve the show. Also, if there’s a new den, there has to be new rules. We wanted to make it exciting,” series creator and director Rod Singh said at a press conference on Jan. 15.

“Drag Lord” Manila Luzon returns as host while beauty queen Nicole Cordoves and TikTok star Sassa Gurl return as the show’s “Drag Dealer” and “Drag Runner,” respectively.

Drag Den with Manila Luzon Season Two: Retribution has 10 new contestant queens (up from Season One’s eight): Deja, Margaux Rita, Elvira B, Feyvah Fatalé, Maria Lava, Mrs. Tan, Moi, Marlyn, Jean Vogue, and Russia Fox.

In the span of eight episodes, they will vie to be crowned the new “Drag Supreme,” this time on a bigger set with warmer colors to evoke psychedelia.

Manila Luzon, who is both host and executive producer, revealed that the show will continue to stay true to the Filipino iteration of drag.

“What I love about this show is that it is presenting a platform to a mainstream audience. Drag has been in the Philippines forever but it hasn’t really been celebrated in its truer form,” she told the media.

It is akin to any other form of entertainment in the country, according to Ms. Luzon. “We have the best singers, dancers, comedians — and all of that is used in drag. It is basically opening up the eyes of the mainstream audience to an entirely new form of Filipino entertainment.”

Meanwhile, for Ms. Cordovez and Sassa Gurl, who were not well-versed in the drag scene in season one, the art form improved not just their style game, but also their ability to present themselves to the public.

Ms. Luzon added: “What’s great about drag is it can be for everybody. We’re proud to showcase and tell stories of members of the LGBTQ+ community, and let people relate to us on a deeper level than what they’re used to.”

Drag Den with Manila Luzon Season Two: Retribution launched today Jan. 18, with a new episode every week. The show streams exclusively on Prime Video. — Brontë H. Lacsamana

Citicore Renewable Energy sets up to P35-B capex for 2024

CREC.COM.PH

CITICORE Renewable Energy Corp. (CREC) plans to spend around P35 billion this year, primarily on renewable energy projects, its chief executive officer said.

“For 2024, [the capital expenditure budget is set at] approximately P35 billion,” CREC President and Chief Executive Officer Oliver Y. Tan told reporters on Wednesday.

As part of a five-year plan, the company intends to deploy one gigawatt of solar projects this year.

Mr. Tan noted that funding for the first gigawatt of projects currently under construction has already been “procured and secured.”

CREC has ongoing construction in four sites in Batangas, two in Quezon province, two in Pangasinan, one in Pampanga, and one in Negros Occidental, scheduled for completion by 2024.

For the second gigawatt of projects, Mr. Tan said that it will be financed through the planned initial public offering (IPO). 

“The next batch, we are consolidating the land, medyo nakakalahati na kami (we’re already halfway through). Our pipeline projects are in clustered areas, so we’re not like strike anywhere. So, it’s going to be multiple phases in one region.”

On Wednesday, the Securities and Exchange Commission (SEC) approved CREC’s planned P12.9-billion IPO.

CREC is set to offer up to 2.9 billion common shares at a maximum price of P3.88 apiece, including an additional 435 million outstanding common shares for overallotment.

The company anticipates netting over P10.71 billion from the primary offer for capital expenditure (capex), pipeline development for solar energy power plants, and general corporate purposes.

CREC’s planned IPO is scheduled to run from March 4 to 8, with listing on the main board of the Philippine Stock Exchange on March 15, as per the latest timeline submitted to the SEC.

The Saavedra-led energy company manages a diversified portfolio of renewable energy generation projects, power project development operations, and retail electricity supply. It is the parent firm of listed Citicore Energy REIT Corp. — Sheldeen Joy Talavera

PNOC targets to finish P5-B Batangas port repurposing by 2027

By Sheldeen Joy Talavera, Reporter

STATE-RUN Philippine National Oil Co. (PNOC)  said it is targeting to complete the repurposing of its Mabini, Batangas port into an offshore wind integration port by 2027, estimating a cost of P5 billion and considering a public-private partnership (PPP) scheme.

“We still have to determine whether solicited or unsolicited, but the timetable is really to have this up and running by 2027,” PNOC President Oliver B. Butalid told BusinessWorld in a virtual interview on Tuesday.

PNOC manages the Energy Supply Base (ESB), a private commercial port spanning 19.2 hectares, initially under PNOC Exploration Corp. and officially transferred to PNOC in 2018.

Mr. Butalid disclosed the estimated cost of the undertaking to be P5 billion, indicating the company’s pursuit of a partner through a PPP arrangement.

“We’re talking to some interested parties,” he said.

The ESB port is one of nine ports identified by the Department of Energy (DoE) in a pre-feasibility study for offshore wind power development, with technical assistance from the Asian Development Bank.

The list includes Port of Irene in Sta. Ana, Cagayan; Port of Subic; and Port of Pulupandan in Negros Occidental.

The Energy department is finalizing the selection of the 10th port for inclusion in the study, with an expected completion date of October 2024.

PNOC’s ESB port anticipates being the first ready for use, supporting 32 gigawatts (GW) of potential offshore wind power projects, as part of the government’s goal to operate offshore wind turbines by 2028.

“In that sense, we are like trailblazer because we already have an existing port,” Mr. Butalid said.

The DoE has awarded 82 offshore wind energy service contracts, contributing to the Philippines’ estimated potential capacity of 178 GW in offshore wind resources.

“It is an important development because all of these developers who got their service contracts… they’re waiting for several key elements to be put in place before they really bring in their big investment,” Mr. Butalid said.

Los Angeles film, tv production fell 32% in strike-ravaged year

COMMONS.WIKIMEDIA.ORG

FILMING in Los Angeles County tumbled 32% last year, hobbled by strikes that closed down the sets of all major US studios.

Although the walkouts by writers and actors were settled in September and November, studios such as Walt Disney Co. and Netflix, Inc. couldn’t ramp up production quickly to reverse the decline, according to data released Tuesday from FilmLA, which administers permits to shoot in the region.

Output was down 36% in the fourth quarter from the same period a year earlier, the group said, with TV dramas virtually out of production. The aggregate data also includes commercials.

Overall, work on new TV shows and films was barely above the levels of 2020, when the industry halted production due to the global pandemic. Production of TV dramas was below that of three years ago.

“History offers no point of comparison to the present,” FilmLA President Paul Audley said in a statement. “The pandemic year aside, we have to look very far back — farther back than permit records allow — to find a time when production levels stayed so low, for so long.” — Bloomberg

MPIC’s Pangilinan open to solicited scheme for MRT-3

THE Metro Pacific Investments Corp. (MPIC) may consider submitting a bid for the operations and maintenance (O&M) of Metro Rail Transit Line 3 (MRT-3), in alignment with the Transportation department’s preference for a solicited scheme, its chairman said on Thursday.

“We probably would participate in that. I guess it depends eventually on the terms of reference for the bid that the government will draft,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan told reporters.

The Department of Transportation previously announced its intention to reject unsolicited proposals from San Miguel Corp. (SMC) and MPIC for MRT-3’s O&M, opting for a solicited scheme.

SMC was declared the original proponent for the MRT-3’s O&M contract in 2022, followed by another bid from MPIC in September last year.

“In principle [we would submit a bid] because we submitted an unsolicited proposal and the government has decided to bid it out, we will likely participate depending on the terms,” Mr. Pangilinan said.

The Transportation department aims to privatize MRT-3 before the contract expires next year under the build, lease, and transfer (BLT) agreement with MRT-3 operator Sobrepeña-led Metro Rail Transit Corp.

 MPIC is in discussions with SMC for other potential partnerships, with Mr. Pangilinan saying the company is considering submitting a joint proposal for the O&M of MRT-3.

“I think it might be good for us to reach out to SMC and see what we can do. Maybe it will be a joint bid, right? There are ongoing discussions in other areas with them, partnerships,” Mr. Pangilinan said.

Last year, Metro Pacific Tollways Corp., MPIC’s tollways unit, announced a deferral of its initial public offering to 2025, citing ongoing considerations for a joint venture with SMC.

In November, Mr. Pangilinan revealed plans to form a joint venture company with SMC to build expressways, anticipating a significant firm that might be listed on the Philippine Stock Exchange.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific, alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

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