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PSEi to move sideways ahead of CPI, labor data

REUTERS

LOCAL SHARES are expected to move within a limited range this week as investors await the release of November consumer price index (CPI) and labor data.

The bellwether Philippine Stock Exchange index (PSEi) lost 245.34 points or 3.64% to close at 6,489.65 on Friday, while the broader all shares index declined by 81.38 points or 2.32% to 3,419.65.

Week on week, the PSEi decreased by 117.29 points or 1.78% from its close of 6,606.94 on Nov. 25.

Online brokerage 2TradeAsia.com said in a report that the PSEi declined on Friday as investors opted to pocket their gains ahead of a shortened trading week and on optimism after the US Federal Reserve hinted at slower rate hikes.

“The Fed’s shift in tone towards ‘slowing down’ its aggressive hawkish stance on policy rates caused a ripple of optimism across capital markets,” 2TradeAsia.com said.

Fed Chairman Jerome H. Powell said last week that it was time to look at smaller interest rate hikes, but said borrowing costs may remain high for a while to help bring down elevated inflation.

The US central bank has raised borrowing costs by 375 basis points since March, with the fed funds rate now at the 3.75-4% range. The Fed’s next meeting is scheduled on Dec. 13-14.

“The local stock market gauge, the PSEi, corrected sharply lower for the second straight day, though still considered a healthy downward correction or profit taking after hefty gains recently,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

For this week, 2TradeAsia.com said investors are awaiting the release of November CPI data, which could provide leads on the Bangko Sentral ng Pilipinas’ (BSP) next move. The BSP’s last meeting for this year is on Dec. 15.

A BusinessWorld poll of 15 analysts held last week yielded a median estimate of 7.8% for November headline inflation. If realized, this would breach the BSP’s 2-4% target for the eighth straight month.

2TradeAsia.com added that the non-working day on Dec. 8 in commemoration of the Feast of the Immaculate Conception of Mary will give the PSEi room to consolidate.

“Finding the correct play for 2023 is going to be the crux of most trades in the next few weeks — monitor for possible spikes in volume as funds find rationality over this wall of worry,” it said.

“For the coming days, any sustained gains above the 6,430 immediate major resistance would still help maintain the integrity of the underlying upward trend over the past two months,” Mr. Ricafort added.

He said investors will also be pricing in the results of the November labor force survey and gross international reserves data slated to come out on Nov. 7.

Mr. Ricafort placed the PSEi’s immediate minor support at 6,360 to 6,520 and next resistance at 6,600.

Meanwhile, 2TradeAsia.com put the PSEi’s immediate support at the 6,350 to 6,400 range and resistance at 6,800. — Justine Irish D. Tabile

Peso may continue to climb vs dollar ahead of inflation data

BW FILE PHOTO

THE PESO may continue to strengthen against the dollar this week ahead of the release of November inflation data that could give the Bangko Sentral ng Pilipinas (BSP) impetus to hike interest rates further.

The local unit returned to the P55-per-dollar level on Friday, closing at P55.74, surging by 48 centavos from its P56.22 finish on Thursday, Bankers’ Association of the Philippines data showed.

This is the peso’s strongest close in nearly four months or since the P55.61 close on Aug. 12.

Week on week, the local unit appreciated by 93 centavos from its P56.67 close on Nov. 25.

The peso opened Friday’s session at P56.20 per dollar, which was also its weakest showing. Its intraday best was at P55.71 against the greenback.

Dollars exchanged rose to $1.28 billion on Friday from $898.7 million on Thursday.

The peso strengthened on Friday on the back of policy signals from the Philippine central bank chief, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

BSP Governor Felipe M. Medalla on Friday said the central bank is likely to hike interest rates anew this month, but the Monetary Board has yet to decide whether to tighten by 25 or 50 basis points (bps) on Dec. 15 following dovish hints from the US Federal Reserve chief.

“Certainly, we will not do zero and I cannot speak for the rest of the board. But I think the board members will probably be split between whether doing 25 or 50 (bps),” Mr. Medalla said in an interview with Bloomberg TV.

Fed Chair Jerome H. Powell last week signaled it was time to slow the pace of coming rate increases. The US central bank now widely expected to raise rates by just 50 bps in its last policy meeting for the year to be held on Dec. 13-14 following four straight 75-bp hikes.

The Fed has raised borrowing costs by 375 bps since March to a range between 3.75% and 4%.

Meanwhile, the BSP has hiked benchmark rates by 300 bps since May to keep rising prices in check, with the policy rate now at 5%.

The peso also rose “ahead of the expected seasonal increase in OFW (overseas Filipino workers) remittances and conversion to pesos before the holiday season,” Mr. Ricafort said. 

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion noted that the peso’s movement against the dollar throughout November stood out as the best monthly performance of the currency since 2017. 

This is largely attributed to money sent home by migrant Filipinos as the year ends. Inflows of remittances should continue to support the easing pressures on the foreign exchange volatility with the coming holidays, Mr. Asuncion said.

For this week, he said the peso may continue to strengthen as market players recalibrate their Fed and BSP rate hike expectations. 

Mr. Ricafort also said the market will be on the lookout for key local data releases this week, namely reports on November inflation, labor and dollar reserves.   

A BusinessWorld poll of 15 analysts yielded a median estimate of 7.8% for November inflation, within the BSP’s 7.4-8.2% forecast for the month.

If realized, this would mark the eighth straight month of inflation breaching the BSP’s 2-4% target. It will also be the fastest in 14 years or since the 9.1% in November 2008.

For this week, Mr. Ricafort expects the local unit to move from P55.30 to P56 per dollar, while Mr. Asuncion gave a lower forecast range of P56.30 to P55.80. — Keisha B. Ta-asan

Argentina, the Netherlands gain World Cup quarterfinals berths

JULIAN ALVAREZ OF ARGENTINA — REUTERS

AL RAYYAN, Qatar — Lionel Messi scored his first goal in a World Cup knockout round in his 1,000th match to beat Diego Maradona’s tournament tally, as Argentina beats off a frenzied Australia fightback to win 2-1 on Saturday and reach the quarterfinals.

Messi his side ahead after 35 minutes with a coolly taken low strike for his 94th international goal, passing the great Maradona’s eight World Cup goals, in a match where he was instrumental in almost every Argentine attack.

Julian Alvarez made it two near the hour mark after pouncing on a howler by keeper Mat Ryan to set up a mouth-watering last-eight clash next Friday with the Netherlands, who beat the United States 3-1 earlier in the day.

With nothing to lose, the Socceroos, chasing a first World Cup quarterfinal berth, pulled a goal back 13 minutes from time when Craig Goodwin’s wayward shot took a huge deflection off Enzo Fernandez and flew into the net for an own goal.

Messi spurned two clear chances late on but it was Australia’s teenaged substitute Garang Kuol who set hearts racing in the stadium when deep into stoppage time his close-range shot on the turn was brilliantly saved by Emi Martinez.

The Australia bench had their heads in their hands as the final whistle blew moments later, sparking fervent celebrations from the Argentina squad and roars around the packed Ahmad Bin Ali Stadium.

Man of the match Messi admitted the final moments were tense.

MESSI MAGIC
Argentina took a while to find their stride in a physical match that started off scrappy, with Alejandro Gomez, Fernandez and Alvarez combining well but unable to break down a resolute defense as Messi struggled to make his mark.

Australia had a chance from a corner when towering defender Harry Souttar leapt high in the area but headed tamely.

Lifted throughout by the overwhelmingly Argentine support, which cheered, sang and bounced in unison from all sides of the stadium, Argentina finally made the breakthrough after 35 minutes with Messi the creator and finisher of a superbly worked goal delivered at breathtaking speed.

He took a free kick then picked out Alexis Mac Allister, who passed to Nicolas Otamendi to tap gently back into the path of Messi, who fired low into the corner and beyond the reach of the outstretched Ryan.

Argentina got their second close to the hour after a huge back-pass blunder from Ryan, who came under pressure from Rodrigo De Paul and was robbed of the ball by Alvarez, who turned and slotted home.

Australia refused to give up and launched a succession of threatening moves that rattled an Argentina side whose attention was focused more on their own attacks.

After Goodwin’s deflected shot went in there was a real prospect of extra time in a stadium where the Socceroos had booked their World Cup place via a penalty shootout win over Peru in an intercontinental playoff earlier this year.

They pushed forward relentlessly and nearly equalized when Aziz Behich darted dangerously into the area before a brilliant saving tackle by Lisandro Martinez.

Argentina tried for a third goal, with Lautaro Martinez firing wide and Messi coming close before Australia substitute Garang Kuol missed with seconds left in stoppage time.

DUTCH FULL BACKS SHOW THE WAY TO THE QUARTERFINAL
DOHA — The Netherlands’ full backs proved the difference as veteran Daley Blind and hard-running Denzel Dumfries turned in decisive performances to help secure a 3-1 win over the United States in Saturday’s opening match of the World Cup knockout stages.

Dumfries netted and had two assists while Blind scored too as the Dutch saw off a brief spell of US resistance to book a quarterfinal.

Striker Memphis Depay got the first goal as the Netherlands advanced to a seventh World Cup quarterfinal.

A comfortable 2-0 halftime lead was halved in the 76th minute as the Americans finally made a breakthrough, even if scorer Haji Wright seemed to know little about the ball hitting his heel and then looping into the corner of the net.

However, any hopes they had of staging a comeback were ended five minutes later as Dumfries sealed his man-of-the-match performance by ghosting in at the back post and side-footing a volley into the net to restore the two-goal advantage.

The Dutch deserved the win but again there will be questions about whether they are serious World Cup contenders — something coach Louis van Gaal keeps insisting they are, although he was quick to admit Saturday’s showing could have been a lot better.

Van Gaal’s side did, though, offer some glimpses of classy potential, no more so than with a series of 20 passes that set up their 10th minute opener — finished off by Depay smartly hitting home a cut-back pass from Dumfries.

The second Dutch goal, on the stroke of halftime, was almost identical. Blind also delayed his entry into the area and Dumfries found him with another perfect pass from the right, allowing Blind to score for the third time in 98 internationals.

The American defense was sucker-punched on both occasions although in between their team had chances, notably Christian Pulisic in the third minute when goalkeeper Andries Noppert got his lanky leg in the way to block the shot.

They also had two second-half efforts cleared off the line but were always vulnerable to the counter-attack where the Dutch could have made much more of numerous opportunities to add to their tally.

In the end, though, they added only one more goal – but at a vital juncture, just as the crowd at the Khalifa International Stadium was beginning to offer the Americans encouragement.

Blind was criticized as the Dutch dithered their way through Group A but reminded everyone of his quality with a deft chip over the defense to allow Dumfries to kill off the contest. — Reuters

Lady Archers set a finals date with Lady Bulldogs

BETTINA Binaohan, Charmine Torres and Lee Sario backstopped Tchuido for the Lady Archers, who gained a separation at 61-52 midway through the fourth. — UAAP MEDIA

AND they meet again.

De La Salle University (DLSU) set a much-awaited finals date with familiar foe National University (NU), earning a 74-69 decision over a pesky University of Santo Tomas (UST) side in the do-or-die Final Four of the UAAP Season 85 women’s basketball tournament yesterday at the Mall of Asia Arena.

Armed with a twice-to-beat bonus as the No. 2 seed, the Lady Archers held fort and atoned for a 68-57 defeat in Game 1 to earn a shot at unseating the six-time reigning champion Lady Bulldogs in the best-of-three titular showdown next week.

Four players scattered twin digits led by Fina Niantcho Tchuido with 18 points, 12 rebounds, two steals and two blocks as La Salle barged back to the finals for the first time in six years.

De La Salle bowed to NU in Season 79, 0-2, but it was also the last team to beat the latter in the finals by virtue of a 2-1 victory in 2013 — making it a perfect rematch made in heaven for either a continuation of NU dynasty or a De La Salle destiny this time around.

The Lady Archers were also the only team to beat NU this season, eking out a 61-57 overtime win in the elimination round to snap the latter’s 108-game, nine-year winning streak and turn a supposedly steep stepladder playoffs to a traditional Final Four format.

But it wasn’t handed on a silver platter for De La Salle with Santo Tomas’ heavy resistance all series long, especially after a stunning loss in Game 1.

“The girls just wanted it more this time around. They knew we needed to be aggressive to beat a very good UST team,” said coach Cholo Villanueva after nearly losing a comfortable nine-point lead in crunch time.

“UST played one heck of a series against us but we’re the better team this time around. We made proper adjustments for that last finals spot against NU,” he added.

Bettina Binaohan (17), Charmine Torres (16) and Lee Sario (12) backstopped Tchuido for the Lady Archers, who gained a separation at 61-52 midway through the fourth after a toe-to-toe duel in the first three quarters.

De La Salle, however, needed one last stand as Santo Tomas rallied with a 17-8 spree to tie the match at 69-all before Ms. Binaohan and Ms. Torres iced the deal with clutch freethrows in the last 30 seconds.

Agatha Bron had 13 points while presumptive MVP Eka Soriano put up 10 markers, nine boards, six assists and three steals in the gallant exit of the third-seeded Growling Tigresses. — John Bryan Ulanday

The scores:

DLSU 74 — Niantcho 18, Binaohan 17, Torres 16, Sario 12, Jimenez 5, Dalisay 3, Arciga 2, De La Paz 1, Camba 0, Ahmed 0, Espinas 0.

UST 69 — Bron 13, Soriano 10, Dionisio 9, Villasin 8, Tacatac 8, Pangilinan 8, Ambos 8, Serrano 3, Santos 2.

Quarterscores: 21-18, 38-34, 57-50, 74-69

San Diego continues to lead PHL women’s chess championship

MARIE Antoinette San Diego — FIDE

MARIE Antoinette San Diego has been dreaming of becoming national champion since childhood.

The search for the 23-year-old Dasmariñas-based Woman International Master (WIM) could be over in a couple of days.

Ms. San Diego escaped the upset axe from Franchesca Largo with a 33-move draw of a Queen’s Pawn London System to continue to lead the way after eight rounds of the Philippine National Women’s Chess Championship presented by Nova Wellness Store at the PACE yesterday.

In a wild game filled with sacrificial attacks, Ms. San Diego went from winning to losing after Ms. Largo gave up a knight that sent the Olympiad veteran scampering for safety in an inferior position.

In the end, Ms. Largo couldn’t see the winning line and settled for a draw via perpetual check.

If Ms. San Diego, who faces Woman FIDE Master Shania Mae Mendoza, Bea Mendoza and April Joy Claros in the last three rounds, could sustain the charge, she would claim her very first national women’s crown after several tries.

At distant second with 6.5 points was Woman Grandmaster Janelle Mae Frayna, who was held to a marathon 74-move standoff by Mary Joy Tan of a King’s Indian Attack, while at third with six points was Vic Glysen Derotas, who stunned former national champion WIM Jan Jodilyn Fronda in 35 moves of an English Opening. — Joey Villar

Fury taunts Usyk after beating Chisora to retain WBC title

LONDON — Britain’s Tyson Fury roared out a challenge to rival heavyweight world champion Oleksandr Usyk of Ukraine after retaining his WBC title with a savage 10th round stoppage of compatriot Derek Chisora on Saturday.

Fury’s one-sided victory in front of 60,000 fans packing Tottenham Hotspur’s North London stadium on a chilly December night completed a trilogy over a brave but outclassed opponent.

The ‘Gypsy King’ had threatened ‘carnage’ in the ring and he dominated from the opening bell, with Chisora repeatedly on the ropes and taking some punishing blows from his taller and heavier opponent.

Fury was popping in the jabs freely in the second round, with Chisora unsteady on his legs in the third when both fighters tumbled accidentally to the canvas.

“Total dominance,” said former WBA champion David Haye, commentating ringside for BT Sport after six rounds of pummelling.

Chisora’s right eye began to close up from the seventh, the challenger receiving attention in his corner at the end of the following rounds as the fight became a race between a stoppage and a knockout.

Chisora’s long-time trainer Don Charles was not about to throw in the towel, however, and it needed referee Victor Loughlin to step in — the Scot finally waving a halt with 10 seconds remaining in the 10th of the 12 scheduled rounds.

Fury, 34, took his unbeaten professional record to 33 wins and a draw as Chisora, 38, suffered a fourth defeat in his last five fights and 13th in 46 career bouts.

The champion also beat Chisora comfortably in their previous encounters in London in 2014 and 2011 and Saturday was really a filler before a much bigger potential fight next year, probably in Saudi Arabia.

‘WHERE’S USYK?’
“Where’s Oleksandr Usyk, the rabbit?,” Fury roared at the crowd.

The Briton then went face to face with the Ukrainian, the WBA, IBF, WBO and IBO champion who had been watching from ringside and was booed by the crowd when his face appeared on the big screen.

“Hey rabbit, you’re next,” screamed Fury.

“Me and you … I’m going to write you off. I’ve already done one Ukrainian (Wladimir) Klitschko and I’ll do you as well. You ugly little man. Let’s get it on.”

Usyk smiled, saying nothing in reply.

The war of words was in sharp contrast with Fury’s respect for his beaten friend, the pair touching gloves at the end of the eighth after another bruising round with Chisora again on the ropes and punched at will.

“I needed some rounds,” said Fury, whose last fight was a sixth-round stoppage of compatriot Dillian Whyte at Wembley in April. He had announced his retirement then but could not stay away for long.

“I felt good in there tonight, I was landing my jab and landed some good punches. I take nothing away from Del Boy ‘War’ Chisora. He’s an absolute warrior and it’s been a privilege to fight him three times,” he said.

“We’ve had three epic fights and what a tough man. I was hitting him with shots there that would knock anybody else spark out and he stood up to every one of them.”

Chisora thanked the referee for taking matters into his own hands. “As a fighter you don’t want to stop,” he said. — Reuters

Brooks defeats strawweight champion Pacio in ONE Championship

JOSHUA Pacio relinquished his strawweight title to American challenger Jarred Brooks, absorbing a unanimous decision loss as ONE Championship marked its Philippine comeback for ONE 164 after almost three years due to the pandemic.

Despite the jampacked Filipino crowd at the Mall of Asia Arena rallying behind him, the Team Lakay stalwart could not get the job done in his fourth title defense against a very aggressive Mr. Brooks, who ran away with the country’s only remaining world title.

Mr. Brooks, the 29-year-old grappler, relied on his timely striking paired with a series of takedown attempts that set the tone in the majority of the match as Mr. Pacio turned to a defensive fighter from his usual fiery attack game.

In anticipation of Mr. Brooks’ lethal ground game, Mr. Pacio was kept at bay and failed to land his usual power shots highlighted by a spinning kick miss in the fourth round that left an opening for Brooks to finally complete a takedown.

By then, the Michigan, USA native almost had the victory in his hands with a rear naked choke in the waning seconds but Mr. Pacio escaped after being saved by the bell.

It went the distance through five rounds with Mr. Brooks hoisting the belt as the new strawweight king that in the process capped a subpar campaign for Filipino fighters in ONE’s twinbill event.

“Much respect to Joshua Pacio and Team Lakay. I know I had some choice words, but I was just trying to make this fight as big as possible. I love the Filipino people. I know I’ve been the heel a lot but I’m a good person,” said the emotional Mr. Brooks, who improved to 20-2.

Only Jeremy Pacatiw (triange choke) and Jhanlo Mark Sangiao (rear naked choke) won from the Team Lakay stable as Eduard Folayang, Geje Eustaquio, Jenelyn Olsim and Adonis Sevilleno also suffered devastating defeats.

Other Philippine bets Denice Zamboanga, Drex Zamboanga and Jackie Buntan salvaged the country with big wins as Brandon “The Truth” Vera announced his retirement after a TKO loss to Iran’s Amir Aliakbari. — John Bryan Ulanday

Playing with passion

The Bucks did well to end their weekend on a high note. Their victory over the Hornets on the road yesterday was most certainly a morale-boosting one. The second game of a back-to-back set does not typically lend itself well to success, but they played with passion to dominate the stat sheet and win with ease. And, coming on the heels of a disappointing encounter with the Lakers, it was exactly what they needed to remind all and sundry — and, perhaps, themselves — that they’re deemed to be among the league’s powerhouses for a reason.

To be sure, the Hornets, holders of the third worst record in the Eastern Conference and still reeling from the absence of top dog LaMelo Ball, weren’t expected to put up a decent fight. That said, the Bucks likewise headed to the Spectrum Center at less than full strength; in fact, they played without both perennial Most Valuable Player candidate Giannis Antetokounmpo due to left knee soreness and All-Star Khris Middleton, still managing his workload after having offseason wrist surgery. It could have spelled disaster in hostile territory; instead, it served as a positive statement on their mindset a fourth into their 2022-23 campaign.

Not that the Bucks don’t have issues to address, beginning with Antetokounmpo himself. It isn’t just that he has been less efficient than he was last season, with his two-point, three-point, and free-throw percentages all down significantly. It’s that he has let his shooting woes get to his head. For instance, he got into it with Sixers reserve Montrezl Harrell, Wells Fargo Center workers, and, notably, a ladder after a poor effort from the charity stripe had him staying around in an effort to improve his touch.

Granted, Antetokounmpo’s too good not to get his act together by the time the contests really matter. The same goes for the Bucks, blessed with a roster that boasts of depth, experience, and esprit de corps. If there is any cause for concern, it’s that they have to measure themselves against the best of the best. Bottom line, they’re not supposed to be pushing hard versus the likes of the Lakers, Bulls, Spurs, and, to a lesser extent, Hawks. Championship contenders are supposed to coast — let alone suffer setbacks — against seeming also-rans. Which is why they’re hard on themselves, and why they figure to keep working until they live up to potential en route to their second title in three years.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Mindanao railway attracting interest from ‘other countries’

PHILIPPINE STAR/KRIZ JOHN ROSALES

By Arjay L. Balinbin, Senior Reporter

MORE COUNTRIES have expressed interest in building the Mindanao railway project, according to the Department of Transportation (DoTr).

“There are other countries who have expressed interest in the project in general,” Undersecretary for Planning and Project Development Timothy John R. Batan told BusinessWorld in an interview recently.

The 1,544-kilometer railway will connect Davao City, General Santos, Cagayan de Oro, Iligan, Cotabato, Zamboanga, Butuan, Surigao City, and Malaybalay.

The first phase, from Tagum to Digos, which is expected to be financed by the Chinese government, is in the “advanced phase,” according to Mr. Batan, with the Philippine government hoping to conclude financial negotiations with Beijing “soon.”

The Department of Finance and China are currently in the “discussion phase” on the loan, Secretary Jaime J. Bautista told One News PH’s The Chiefs recently.

One of the major issues encountered by the previous administration, he said, is the interest rate offered by Beijing.

“Medyo nataasan ’yung gobyerno natin. Gusto nila 3% (China is asking for 3%, which our government finds a bit high), and right now, I think, China is open to lowering the interest rate,” Mr. Bautista said.

In a statement on Oct. 14, the DoTr said that US Ambassador to the Philippines MaryKay Loss Carlson had conveyed an offer of assistance to the department for various transport infrastructure projects, including the Mindanao railway.

“Ambassador Carlson discussed with Secretary Bautista the possible technical assistance for the implementation and development of the Mindanao Railway Project,” the department noted.

“The assistance, which will be coursed through the US Trade and Development Agency (USTDA) and the US Agency for International Development (USAID), will encompass the early-stage project preparation and development of a public-private partnership (PPP) structure, to facilitate increased private sector investment and participation,” it added.

The government awarded the P3.08-billion project management consultancy contract of the Mindanao Railway Project Phase 1 to a Chinese consortium composed of China Railway Design Corp. and Guangzhou Wanan Construction Supervision Co., Ltd.

The DoTr said the project management consultant will assist in the preparation and management of the overall project implementation program, including land acquisition activities, coordination with government agencies, the review of the project’s detailed design, and supervision of construction, among others.

The first phase covers a 100-kilometer railway that will connect Tagum in Davao del Norte, Davao City, and Digos in Davao del Sur, traversing eight stations. It is expected to accommodate 122,000 passengers per day and cut travel time between Tagum and Digos from three hours to one.

SMC Global Power offers Ilijan capacity to Meralco 

SMCGLOBALPOWER.COM.PH

SMC Global Power Holdings Corp., the power arm of San Miguel Corp. (SMC) has offered the capacity of its Ilijan natural gas to Manila Electric Co. (Meralco).

In a statement on Sunday, SMC President Ramon S. Ang said the offer covers the full 1,200 megawatts (MW) capacity of the Ilijan plant, which accounts for  about 10-12% of Luzon’s dependable capacity.

Mr. Ang said SMC Global Power’s offer will only cost Meralco “a minimal P1.00/kwh (kilowatt-hour) in capital recovery fee or half of its capital cost on the facility.” 

He said that SMC Global Power’s South Premiere Power Corp. (SPPC), the administrator of the power plant in Ilijan, Batangas is currently in discussions with Meralco over the offer.

In June, SMC purchased the remaining banked gas of Philippine National Oil Co. (PNOC), paying $1.2 billion for 70.26 petajoules (PJ).

SMC said this will support the projected fuel requirements of SPPC’s Ilijan power plant until February 2024. However, PNOC has yet to deliver the banked gas.

“SMC Global is also willing to work with Meralco in using its 70 PJ banked gas acquired from PNOC at a cost much lower than the prevailing cost of coal power generation,” Mr. Ang added.

Aside from its Malampaya allocation, Mr. Ang also proposed to source fuel for the Ilijan facility from liquid fuel which Meralco will pay for.  

Energy Secretary Raphael P.M. Lotilla has warned of the possibility of red and yellow alerts in 2023 if the output of Ilijan is not made available. Ilijan’s natural-gas supply agreement expired in June.  

“We will continue to look for ways to help make sure consumers will still have some protection from the effects of skyrocketing global fuel prices. This is one of the best and most direct ways we can show solidarity with our people in this time of crisis,” Mr. Ang said. — Ashley Erika O. Jose

Semirara sees ‘difficult’ year for power in 2023, relief from LNG imports to depend on price

SEMIRARAMINING.COM

ISIDRO A. CONSUNJI, chairman and executive officer of Semirara Mining and Power Corp., said in a briefing on Friday that he expects power prices to continue rising next year, with any relief to be provided gas imports, which will start arriving in significant volumes in 2024, to depend on how high gas prices will be.  

“In my opinion, next year will be difficult, I think 2024 will be okay because of the entry of LNG (liquefied natural gas) but the issue is the price,” Mr. Consunji said.  

In 2023, at least two LNG projects are expected to start operations — those of Atlantic Gulf & Pacific Co. and First Gen Corp. subsidiary FGEN LNG Corp. 

Mr. Consunji’s assessment is roughly in line with the government’s.

“We are expecting that by next year, we will see increasing energy prices,” Michael O. Sinocruz, director for Energy Policy and Planning at the Department of Energy, said at the BusinessWorld Economic Forum Forecast 2023 last week.  

Energy Secretary Raphael P.M. Lotilla has said power supply will be tight during next year’s dry season.  

In November, Manila Electric Co. announced that its customers should expect higher electricity bills due to the increase in the generation charge.  

The generation charge is the direct cost of obtaining energy from power generators. It accounts for over half of a typical consumer’s power bill. 

“We expect energy prices to rise in lockstep with fossil fuel prices in the market, which are unlikely to come down as the global tug of war for coal and gas supply continues,” Avril de Torres, deputy executive director of Center for Energy, Ecology, and Development, said in a message on Saturday. 

“I think in view of the projects that we see coming online (as Malampaya’s gas reserves deplete)… I think frankly, the country is in a difficult position. Hopefully we are able to get more progress in the few years,” Miguel de Jesus, executive director and head for commercial operations of ACEN Corp. said during the BusinessWorld Forum.  

The Malampaya gas field currently supplies 20% of the Philippines’ total power requirements and 27% of the Luzon grid’s supply. The concession agreement for operating the gas field is expected to expire by 2024 while its gas reserves started dwindling this year. 

Ms. De Torres said high electricity prices will continue for as long as the Philippines relies on fossil fuels and resorts to passing through fuel costs to consumers.  

“The only real solution is to tap renewable energy, the largest single source of power we have,” Ms. De Torres said.  

James A. Villaroman, chief renewable energy officer of Aboitiz Power Corp., told BusinessWorld in a recent interview that the entry of renewables has helped to reduce power costs. — Ashley Erika O. Jose

Foreign chambers want hybrid vehicle imports included in zero-tariff scheme

PHILSTAR FILE PHOTO

IMPORTS of hybrid electric vehicles (EVs) should be accorded zero-tariff entry alongside full EVs, foreign business chambers said.

The zero-tariff policy proposed by the National Economic and Development Authority (NEDA) covers EVs only.

Bradley Norman, Australian-New Zealand Chamber of Commerce Philippines vice-president, said in a briefing last week that including hybrid EVs in the zero-tariff policy will help ease the transition away from vehicles driven by internal combustion.

“It will certainly be great if it (zero-tariff) can be applied to the hybrids as well because they seem to be the bridge between fossil-fueled motor vehicles to EVs,” Mr. Norman said.

On Nov. 24, the NEDA Board endorsed a draft executive order (EO) lowering the most-favored-nation tariff to zero on completely built-up EVs for five years. The EVs covered by the proposed EO include cars, buses, mini-buses, vans, trucks, motorcycles, tricycles, scooters, and bicycles.

The current tariffs for EVs range from 5% to 30%.

Korean Chamber of Commerce Philippines President Hyun Chong Um said that removing the tariffs for imported EVs would help early adopters and create momentum for a shift away from fossil fuel-powered vehicles.

“For the Philippines, just removing the tariffs… will greatly benefit not only the environment, but also prepare for the next stage of the automotive industry,” he said.

“Hybrid EV or a combination (of both hybrid and full EV) will be a good start in changing from the combustion engine to electric cars,” he added.

Lars Wittig, European Chamber of Commerce of the Philippines president, also called for the EO to cover all potential import source countries.

He said the Philippines will be the first country in Association of Southeast Asian Nations (ASEAN) to allow zero import duties on imported EVs once the EO is signed.

“We applaud the (Philippine) government for these initiatives. But we would also like it to include hybrid cars and not only from within Asia or ASEAN, but also from Europe,” Mr. Wittig said. 

American Chamber of Commerce of the Philippines Executive Director Ebb Hinchliffe said that his organization is pushing for domestic EV production. 

“We would also like to see (EVs) being produced here, not just imported. Until we have the ability to manufacture these EVs in-country, for sure we should be have zero tariffs,” Mr. Hinchliffe said. 

“We just cannot continue to pollute the skies. We saw how blue the skies were during the pandemic when all the vehicles were off the road,” he added. — Revin Mikhael D. Ochave

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