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Globe Business and Snowflake deepen partnership to help customers in the Philippines unlock the true value of data  

Globe Business announced last February 21 the expansion of its partnership with Snowflake, the  Data Cloud company, to help customers in the Philippines maximize their data and future-proof their operations.

Organizations can use the Snowflake Data Cloud to unite siloed data, discover and securely share data, and execute diverse analytic workloads. Wherever data or users live, Snowflake delivers a single data experience that spans multiple clouds and geographies.

“In today’s fast-paced technological landscape, managing data has become a crucial business process that requires constant innovation so companies can instantly access information that helps them make better decisions,” Francisco “Cocoy” Claravall, Vice President for Partner Ecosystem for Globe Business, Enterprise Group, shared. “By bringing the Snowflake Data Cloud to future-proof organizations in the Philippines, we can contribute to redefining our nation’s greatness in this field.“

​​Customers throughout Southeast Asia are increasingly turning to Snowflake’s Data Cloud platform as they realize that data is the biggest value driver for their business. Snowflake Data Cloud helps customers unlock the true value of their data by breaking down data silos, making it easy to access and use data within an organization, and enabling innovation through Data Collaboration.

Sanjay Deshmukh, Senior Vice President ASEAN and India, Snowflake added, “Globe is a customer and a strategic partner of Snowflake. We are deepening our relationship with Globe to bring the power of the Snowflake Data Cloud to more organizations in the Philippines and help them unlock the true value of data.”

“Data is a powerful tool that can significantly impact organizations,” Claravall added. “Through effective use of data, businesses can generate valuable insights to optimize customer experience, increase operational/cost efficiency, and improve risk management. Looking further ahead, you can even build new business models with partners as you extract value coming from these insights.

The partnership between Globe Business and Snowflake leverages Globe’s extensive network and expertise and the innovation of Snowflake’s Data Cloud to provide solutions that will help customers embrace digital transformation. This aligns with Globe’s dedication to supporting the United Nations Sustainable Development Goals, specifically UN SDG No. 9, which emphasizes the importance of innovation as a driver of economic growth and development.

To learn how you can access a free trial of Snowflake Data Cloud, and begin to transform how your business uses data, reach out to a Globe Business Account Manager today.

Learn more about how your company can benefit from Globe Business solutions at https://www.globe.com.ph/business/enterprise.html.

 

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InLife honors top financial advisors and agency leaders  

Awardees pursued their dreams while empowering others to do the same

Insular Life (InLife) honored 270 financial advisors and agency leaders nationwide for their exemplary sales performance in 2022.

The awardees who made it to the 2022 Club of Honors pursued their dreams of a better future, while empowering others to pursue “A Lifetime for Good.”

InLife executive chairperson Nina D. Aguas said the Club of Honors Annual Awards Night 2023 is the culmination of a prolific year for the company’s top sales producers.

“InLife shares in their pride as they witness how the seeds of their dreams come to fruition through their hard work and commitment, through the trust and respect of their policyholders, and through InLife’s strong support,” Aguas said.

InLife president and CEO Raoul E. Littaua recognized the awardees for aspiring for a better future and empowering others to realize their financial goals.

“As they champion our company’s mission to provide high-value insurance products and other related services, they assure our policyholders that InLife is here to take care of the risks so that they can pursue their dreams,” Littaua added.

InLife’s agency and branch management head Geraldine B. Alvarez expressed optimism that the awardees will continue to create breakthroughs in the life insurance industry, saying that it is a “blessing” that in the pursuit of their dreams, they were also able to inspire others in achieving their goals.

The President’s Circle of Excellence led InLife’s Club of Honors awardees. They are Arslie M. Malipero of CPV Malipero and Associates Insurance Agency, Inc., Underwriter of the Year; Razlee Louie V. Malipero of RL Malipero and Associates, CPV Malipero and Associates Insurance Agency, Inc., Unit of the Year; and Cecile C. Gurrea of Agila Financial Team General Insurance Agency Inc., Agency Head of the Year. Arslie M. Malipero also received the Chairman’s Award.

Also part of the top honorees are the rookie awardees and group producers of the year: Renz Joshua B. Cabiso of Cabanatuan DSO 8, Rookie Underwriter; Mary Grace D. Aranez of MG Aranez and Associates, Bicol RO, Rookie Unit; and Rodolfo Francisco Sr. of Provident General Insurance Agency, Inc., Rookie Agency Head.  The group producers of the year who are all from Cebu DSO IX are Leonila Ceniza for the Agency Head category; Renato T. Ceniza for the Unit category; and Peter Teejay M. Salgado for the Agent category. Leonila Ceniza also placed 2nd in the Agency Head of the Year Award.

Completing the President’s Circle of Excellence are Richmond S. Baguno of Baguio DSO IV, 2nd place, Underwriter of the Year; Suzette A. Morillo of Agila Financial Team General Insurance Agency, Inc., 3rd place, Underwriter of the Year; Julmer F. Noro of Agila Sales Unit, Agila Financial Team General Insurance Agency, Inc., 2nd Place, Unit of the Year; Antonio Romulo A. Abrantes of Shining Alabaster, Davao Mega DSO, 3rd place, Unit of the Year; and Ida S. Jacob of Binondo DSO, 3rd place, Agency Head of the Year and recipient of the InLife Palladium Award for the district’s success in sales and quality business.

Here is the complete roster of the 2022 Club of Honors awardees.

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SFA Semicon Philippines Corp. to hold annual stockholders’ meeting on April 28

 

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BoP deficit widens to $895M in Feb.

US dollar banknotes are seen in this illustration taken July 17, 2022. — REUTERS

DOLLAR OUTFLOWS rose in February, driving the balance of payments (BoP) position to its biggest deficit in five months, on the back of foreign loan payments and a wider trade gap, the Bangko Sentral ng Pilipinas (BSP) said.

Data released by the BSP late on Monday showed the BoP position widened to an $895-million deficit in February, from the $157-million shortfall a year ago.

It was also a reversal from the $3.08-billion surplus in January, which reflected the National Government’s $3-billion global bond issuance.

Philippines: Balance of paymentsThe BoP deficit in February was the biggest in five months or since the $2.34-billion gap in September 2022.

“The BoP deficit in February 2023 reflected outflows arising mainly from the National Government’s (NG) net foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures,” the central bank said in a statement.

Latest data from the Bureau of the Treasury showed the National Government’s outstanding debt hit P13.698 trillion as of end-January, 2.1% higher than the P13.419 trillion at end-December. As of end-January, external debt increased by 17.8% to P4.314 trillion from a year ago.

The BoP measures the country’s transactions with the rest of the world at a given time. A deficit means more funds left the economy than what went in, while a surplus shows that more money entered the Philippines.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a note that the BoP deficit was largely due to the significantly wider trade gap. He noted imports have been bloated by relatively higher global commodity prices, and also reflected increased demand due to the further reopening of the economy.

The trade deficit ballooned to $5.74 billion in January from the $4.50-billion deficit in December. This was driven by the 3.9% increase in imports to $ $10.97 billion, while exports fell by 13.5% to $5.23 billion in January, latest data from the statistics agency showed.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said BoP swung to a deficit from January’s surplus as both the current and financial accounts were likely in a shortfall.

“Current account woes likely on the back of the chronic trade deficit with remittances and BPO (business process outsourcing) call center receipts unable to compensate,” Mr. Mapa said.

In 2022, the current account deficit ballooned to $17.8 billion from the $5.9-billion gap in 2021, amid a wider trade in goods deficit. 

“Meanwhile, the financial account, which was in surplus in January due to dollar bond proceeds, likely swung into shortfall as outflows outpaced inflows as uncertainty picked up due to concerns about the Fed rate hike cycle,” Mr. Mapa said.

Fed officials have signaled further policy tightening this year, but market players are concerned that the rate hikes may continue to negatively affect the banking sector in the US. The Fed’s two-day policy review ends on March 22.

For the first two months of the year, the BoP posted a $2.19-billion surplus, a turnaround from the $259-million deficit during the same period in 2022.

“Based on preliminary data, the cumulative BoP surplus reflected inflows that stemmed mainly from the Global Bond issuance of the NG in January 2023, personal remittances, and foreign portfolio investments (FPI),” the central bank said.

In January, personal remittances rose by 3.5% year on year to $3.07 billion, while cash remittances jumped to $2.76 billion.

Transactions on FPIs registered with the BSP through authorized agent banks posted a net inflow of $292.12 million in January.

With the latest data, the central bank said the dollar position as of end-February reflects final gross international reserves (GIR) of $98.2 billion, down 2.5% from $100.7 billion a month prior.

Despite the decline, the dollar buffers are enough to service 7.4 months’ worth of imports of goods and payments of services and primary income.

The GIR can also cover up to 5.9 times the country’s short-term external debt based on original maturity and 3.9 times based on residual maturity.

Moving forward, the country’s dollar position could be supported by the continued growth in remittances, BPO revenues, foreign investments, and tourism receipts, Mr. Ricafort said. 

“The proposed $3-billion US dollar or euro-denominated retail bonds to be offered by the National Government in the second quarter of 2023, with a tenor of at least 5 years, would also be added to the country’s BoP and GIR by then,” he added.

The BSP last week lowered its BoP projections for the year. The country’s BoP is likely to yield a deficit of $1.6 billion this year or equivalent to -0.4% of GDP, lower than the previous projection of a $5.4-billion gap (-1.3% of GDP) in December.

Meanwhile, the current account deficit is seen to end the year at a $17.1-billion deficit equivalent to -4% of GDP, narrower than the $19.9-billion (-4.7% of GDP) forecast in December.

The BoP in the Philippines stood at a $7.3-billion deficit in 2022, a reversal from the $1.3-billion surplus a year earlier. — Keisha B. Ta-asan

Moody’s Analytics slashes PHL GDP forecast to 5.7%

The full moon rises behind the condominium buildings in Manila, March 8, 2023. — PHILIPPINE STAR/MIGUEL DE GUZMAN

MOODY’S ANALYTICS slashed its growth projection for the Philippine economy to 5.7% this year, as household consumption is seen to weaken due to elevated inflation and rising interest rates. 

In a research note dated March 20, Moody’s Analytics Chief Asia-Pacific Economist Steven Cochrane said the Philippines had the largest downward revision to its growth outlook across the region.   

Moody’s latest Philippine gross domestic product (GDP) estimate is much lower than the 7.1% it gave in February, and below the government’s 6-7% full-year target.

“Inflation has come in higher than expected in the opening months of 2023, adding to expectations that the central bank will continue tightening borrowing costs. This will have a greater downward impact on domestic demand, particularly household consumption,” Mr. Cochrane said. 

Headline inflation eased to 8.6% in February from the 14-year high of 8.7% in January. Core inflation, however, accelerated to 7.8% in February from 7.4% in January, its fastest pace in over 22 years.   

Moody’s Analytics also raised its Philippine inflation forecast to 6.8% this year, from the 5.3% estimate given in February. It also revised upwards its inflation projection for 2024 to 4.1% from 3% previously. 

The Bangko Sentral ng Pilipinas (BSP) expects inflation to average 6.1% this year, and 3.1% in 2024.

According to Mr. Cochrane, central banks in the region may continue their tightening cycle, especially in countries where inflation is still running hot, such as the Philippines, Australia, India, and Vietnam. 

The BSP has raised borrowing costs by 400 basis points (bps) since May 2022, bringing the key policy rate to a near 16-year high of 6%. A BusinessWorld poll last week showed 12 out of 14 analysts expect the BSP to hike rates by 25 basis points (bps) on Thursday.

“With the weaker global economy this year, growth of remittances also will soften, adding another hit to private consumption and housing investment,” Mr. Cochrane said.

In an e-mail, Moody’s Analytics Senior Economist Katrina Ell said weaker household spending will likely be a “an important driver of the broader economic slowdown this year.”

She said private consumption growth may slow to 5.3% this year, from 8.3% in 2022. Private consumption typically accounts for around 75% of Philippine GDP. 

“Households are under pressure from ongoing high inflation and rising borrowing costs that will weaken employment and income growth. While nominal consumption may be up in the first half of 2023 due to elevated inflation, real consumption will be trending lower,” Ms. Ell said.

In the Moody’s report, Mr. Cochrane said an improvement in service exports for tourism will not be enough to offset a downtrend in goods exports.

“Service exports also include business process outsourcing, which follows global growth,” Mr. Cochrane said. — Keisha B. Ta-asan

Labor coalition seeks to hike NCR wage to P1,100

A mural depicting a construction worker is seen in Manila. — PHILIPPINE STAR/KRIZ JOHN ROSALES

A LABOR COALITION on Tuesday asked the regional wage board to increase the daily minimum wage in Metro Manila to P1,100 to help workers cope with the rising prices of basic goods.

The Unity for Wage Increase Now! (UWIN) filed a petition seeking to raise the current P570 daily minimum wage for nonagricultural workers in the National Capital Region (NCR) to P1,100.

“The current meager P570 minimum wage does not correspond to workers/employees necessary essential expenditures such as food consumed at home, clothing and footwear, transportation expenses, education…, among others,” UWIN said in its petition.

The Metro Manila wage board approved a P33 hike in minimum wages in June 2022. Wage boards can only act on wage petitions a year after a region’s last wage order.

Citing data from the think tank Ibon Foundation, UWIN said the minimum living wage in NCR for a family of five should be at least P1,008.

UWIN said there is an urgent and compelling argument for the review of the current wages in NCR, and for the implementation of a living wage of P1,100.

“This petition was made for workers in the region to eventually enjoy an appropriate living wage and to enjoy the fruits of their labor as embodied in the Philippine Constitution,” it added.

Under the Labor Code, wage boards must consider the demand for a living wage, wage adjustment in the consumer price index, the changes in the close of living in the region, and the needs of workers and their families among others.

Inflation eased to 8.6% in February, from a 14-year high of 8.7% in January as prices of food and utilities  remain elevated. The Bangko Sentral ng Pilipinas (BSP) expects inflation to average 6.1% this year.

However, analysts said wage hikes may further stoke inflation.

“The recent (wage hike) proposal would not only be inflationary but would likely cause companies to lay off workers, leading to higher unemployment and increase in poverty,” China Banking Corp. Chief Economist Domini S. Velasquez  said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that companies may have difficulty complying with wage hikes as many are still recovering from the coronavirus pandemic.

“This proposal would lead to higher prices/inflation since wage hikes are passed by businesses/industries/other institutions on to consumers as much as they can, though mitigated by competition,” he said in a Viber message.

Jose Enrique A. Africa, executive director of IBON Foundation, said that if the wage hike is approved, the government would uphold the workers’ right to a living wage under the Constitution.

“It is an eminently practical measure to help workers cope with rising prices, to give workers a more just share in the fruits of their labor and production, and to stimulate the economy,” he said in a Viber message.

“A similar wage hike in other regions would also help to even out wages, spread out benefits and prevent migration of establishments outside NCR.”

Senate President Juan Miguel F. Zurbiri earlier filed a bill seeking to increase the minimum wage for private sector workers by P150, which he said could help workers cope with the rising prices of goods and services.

The Makabayan bloc also proposed a wage increase at the House of Representatives, seeking a P750 hike for all private sector workers, those working in special economic zones, freeports and in the agricultural sector.

The Federation of Free Workers urged the NCR wage board to immediately act on UWIN’s petition.

“We also call on our lawmakers to ensure that this increase is in line with the current economic situation and will not cause undue hardship to micro, small and medium enterprises that are already struggling to stay afloat,” it said in a statement. — John Victor D. Ordoñez

Business groups urge gov’t to resolve issue on VAT zero-rating

ICTSI

THE FAILURE of the government to resolve the value-added tax (VAT) zero-rating issue will have a detrimental impact on the growth of key export sectors such as information technology and business process management, electronics, and garments, according to business groups.

The IT and Business Process Association of the Philippines, Inc., Semiconductor and Electronics Industries in the Philippines Foundation, Inc., and Confederation Wearables Exporters of the Philippines said they are awaiting the Fiscal Incentives Review Board’s resolution of the VAT zero-rating issue by the end of the month.

“The inability to address this serious and pressing matter by the end of March will have detrimental effects to these three sectors particularly in sustaining their growth potential,” they said. 

The issue stems from the Corporate Recovery and Tax Incentives for Enterprises Act, which took effect on April 11, 2021. The law required registered business enterprises to prove local purchases of goods and services directly and exclusively used in their registered activities to be given a VAT zero-rating. Otherwise, the purchase of such goods would be subject to 12% VAT.

“As exporters, these three industries have claimed VAT zero-rating on their purchases consistent with existing local regulations and globally accepted principles allowing for the sectors to remain competitive,” they said.

However, the conflicting provisions related to the VAT zero-rating of local purchases created confusion among exporters.

“The understanding of the sectors is that most of the government agencies involved in resolving the issue believe that there is clear basis for all purchases of exporters to be without the 12% VAT, given that this is not only allowed by the rules but is more importantly critical in ensuring that the prices at which the services and goods offered are able to remain competitive in the international market,” the groups said.

The business groups said that investment promotion agencies such as the Philippine Economic Zone Authority, Board of Investments, among others, should determine and endorse list of goods and services eligible for VAT zero-rating purchased by exporters from local suppliers.

They warned that a failure to address the VAT issue may also have a “crippling consequence on the parts localization initiatives of exporters,” which will also affect local suppliers.

The electronics/semiconductors, and garments/wearables export sectors generated $83 billion worth of exports, accounting for 69% of the country’s total goods and services exports. These sectors contributed 20% to the Philippines’ gross domestic product (GDP) in 2022. It accounted for 2.5 million direct jobs, and 6.75 million indirect jobs.

“Their ability to further contribute to the country’s GDP and reach their potential to provide employment to millions more Filipinos depend so much on having clear and consistent government policies and regulations,” they said. — RMDO

Mount Elizabeth Hospital’s Dr. Ronny Tan discusses urinary dysfunction and advanced treatments

A man’s private issues might be taken for granted until he is troubled in the middle of the night — whether in the bathroom or the bedroom. But, as Dr. Ronny Tan of Mount Elizabeth Hospital in Singapore shares, there is no shame in being aware of these problems and reaching out to a urologist for diagnosis and treatment, which is now advanced and minimally invasive.

For inquiries, please contact Mount Elizabeth Hospital’s patient assistance centre located at G/F-B, Marco Polo Hotel, Meralco Avenue and Sapphire Street, Ortigas Center, Pasig City 1600, e-mail manila.ph@parkwaypantai.com or call 0917-526-7576. Follow them at facebook.com/MountElizabethHospitalsSGPhilippinesOffice.

 

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Upson sets P1.95-B IPO for store network expansion

BW FILE PHOTO

INFORMATION technology retailer Upson International Corp. is set to offer its shares in an initial public offering (IPO) that could raise up to P1.95 billion for its store network expansion.

In its final prospectus released on Tuesday, the company said it plans to sell about 625 million common shares apart from 62.5 million common shares as an over-allotment option. The offer shares are priced at P2.40 apiece.

“To further cement our market-leading position, we intend to continue to grow our store network and penetrate cities with high growth potential,” the company said.

Upson said it plans to open 50 stores this year within the National Capital Region and key cities in Luzon, Visayas, and Mindanao.

“We target to open 250 stores, or an additional retail space of 25,000 [square meters], from 2023 to 2027,” it said, adding that it intends to use the net proceeds from the offering for “improvements in our supply chain and logistics.”

“The expansion can and may also be financed by other fund sources such as internally generated funds and/or borrowings,” it said.

The company has set the offer period from March 21 to 27.

It expects the gross proceeds raised from the sale of the primary shares to reach P1.5 billion.

“Our estimated net proceeds to be raised from the sale of the Primary Shares, after we deduct the fees and expenses, will be P1.4 billion,” the company said.

An earlier prospectus dated Jan. 30, 2023 stated that the company planned to offer up to 789.47 million primary common shares and up to 98.68 million secondary common shares with an over-allotment option of 98.68 million common shares, the preliminary offering was initially set at P4.88 billion as it maiden offering. — Adrian H. Halili

PSALM says qualified bidders for Casecnan now down to seven

CASECNAN Irrigation and Power Generation Project Rizal, Nueva Ecija — RAMON FVELASQUEZ/ COMMONS.WIKIMEDIA.ORG

STATE-led Power Sector Assets and Liabilities Management Corp. (PSALM) trimmed the number of qualified bidders for the government’s 165-megawatt (MW) Casecnan hydroelectric power plant in Nueva Ecija to seven companies.

“We have recently gone through a qualification round. Out of the 14, we have seven qualified bidders,” Dennis Edward A. Dela Serna, PSALM president and chief executive officer, told reporters on the sidelines of the Philippine Electric Power Industry Forum 2023 on Monday.

Mr. Dela Serna said that PSALM has also moved the deadline for bids to May 16 from March 28. The initial deadline was previously set on Feb. 24.

“We deferred the sale or the bidding to May 16. We are still waiting for documents from the National Irrigation Administration (NIA),” he said, adding that the power plant is co-owned by NIA and PSALM at a 60:40 sharing.

“So because of that, we need approval for certain documents. In this particular sale, we are waiting for a water protocol from NIA,” Mr. Dela Serna said.

Data provided by PSALM identified the seven entities as First River Lakes Corp. of First Gen Corp.; Neptune Hydro, Inc. of the SN Aboitiz group; Global Hydro Power Corp. of Manila Electric Co. and Global Business Power Corp.; Panasia Energy, Inc.; the consortium of EEI Power Corp., Soonan ENS Co. Ltd., Soosan Industries Co., Ltd. and Mapalad Power Corp.; GigaAce 11, Inc.; and Belgrove Power Corp.

PSALM said that the other seven potential bidders either withdrew or were found non-compliant with documentary deliverable requirements or did not submit the requirements.

The seven that withdrew are Sta. Clara International Corp.; Pan Pacific Renewable Power Phils. Corp.; Semirara Mining and Power Corp.; Axia Power Holdings Philippines Corp.; Hansan Solar Corp.; San Roque Power Corp.; and Peakpoint, Inc.

PSALM is the agency tasked to privatize state power assets. It said earlier that the asset, which has a limited water impounding area, is being privatized on an “as is, where is” and cash basis.

Casecnan, which is a hydro plant with irrigation and power generation components, was turned over to the government in 2021 after the build-operate-transfer contract with the previous operator, Casecnan Water and Energy Co., Inc. expired on Dec. 11, 2021. — Ashley Erika O. Jose

PLDT’s Sky Cable purchase to boost revenue market share to 48% — CreditSights

PLDT Inc.’s acquisition of Sky Cable Corp. is seen to increase the listed telco’s broadband revenue market share up to 48% with the addition of the target firm’s 2-3% share, CreditSights said.

In a report, CreditSights said that the acquisition will help PLDT maintain a comfortable lead over its broadband peers: Globe Telecom, Inc. at 31%, Converge ICT Solutions, Inc. at 21%, and small players, which comprise 1%.

“We think the acquisition represents a logical strategic addition to PLDT’s dominant cash-generative broadband business,” the credit research provider said.

Last week, Pangilinan-led PLDT announced that it had signed a sale and purchase agreement with sellers Sky Vision Corp., ABS-CBN Corp., and Lopez, Inc. to fully acquire Sky Cable for P6.75 billion.

CreditSights said that it sees the acquisition to be net credit positive that could improve PLDT’s earnings before interest, taxes, depreciation, and amortization (EBITDA) by 4% and its EBITDA margin by 20 basis points.

“We see a limited impact to PLDT’s credit metrics; pro-forma net leverage would remain unchanged at 2.6x from the acquisition, after factoring in the four tower sales and capex (capital expenditure) overrun,” it said.

CreditSights said it does not foresee the deal facing major regulatory hurdles with the Philippine antitrust body.

The Philippine Competition Commission (PCC) can only prevent mergers and acquisitions only if it will substantially lessen competition, said the Fitch Solutions company.

CreditSights cited the previous move of PLDT’s cable TV associate Cignal, which withdrew its bid to acquire a 38.9% stake in Sky Cable for P2.8 billion, as the PCC might block the deal on grounds of anti-competition.

“Such concerns mainly pertained to Sky’s cable TV business, as Cignal and Sky are the two largest cable TV providers in the Philippines with a combined market share of around 63%-65%,” it added.

CreditSights said PLDT’s case is not the same as its acquisition effectively involves Sky Cable’s broadband business only as it will terminate the cable TV business as part of the transaction.

“Sky has a relatively small broadband market share at 2%-3%, which should not materially reduce industry competition post-acquisition by PLDT,” it said.

CreditSights also expects the new tower sale, which PLDT announced last week, to bring the total number of towers it monetized to more than 7,500 via sale and leaseback.

“We had expected PLDT to conduct smaller tower sales in the near term to free up cash to fund its capex and to deleverage,” it said.

Last week, PLDT announced that it had entered a sale and purchase agreement with Digitel Mobile Phils., Inc. for the sale of 1,012 telecommunications towers to Frontier Tower Associates Philippines, Inc. for over P12.1 billion.

PLDT shares closed higher by P16 or 1.23% at P1,322 apiece on Tuesday.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Justine Irish D. Tabile

First Gen unit gets DENR nod on 120-MW hydro facility

LOPEZ-led First Gen Corp. said its unit had signed an agreement with the Department of Environment and Natural Resources (DENR) for the development of a 120-megawatt (MW) pumped-storage hydroelectric facility in Pantabangan, Nueva Ecija.

“This is one of our most crucial permits. We are thrilled to be able to continue our work on the Aya Pumped-Storage project, and we are grateful for the support of our partners in DENR,” First Gen Senior Vice-President Dennis P. Gonzales said in a media release.

First Gen subsidiary First Gen Hydro Power Corp. (FGHPC) signed the special use agreement in protected areas (SAPA) with the DENR that would allow the development of the facility while also preserving the status of the project site as part of a protected area.

The signed deal will enable the company to use a 36-hectare portion of the 84,000-hectare Pantabangan-Carranglan watershed forest reserve for FGHPC’s Aya pumped-storage hydroelectric power project. The agreement is valid for 25 years and subject to renewal for another 25 years.

FGHPC said it is pursuing the Aya project to support the government’s program of meeting electricity demand while preserving low carbon emissions.

It added that the SAPA signing reaffirms its commitment to pursue the project under Republic Act No. 11038 or the Expanded National Integrated Protected Areas System Act (E-NIPAS).

E-NIPAS covers the country’s ecologically rich and unique areas and biologically public lands.

First Gen said FGHPC had remitted about a P69.1-million check to the DENR as SAPA fee. The unit also manages the 132-MW Pantabangan-Masiway hydroelectric power plant. — Ashley Erika O. Jose

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