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Ahanmisi, Alaska Milk dominate skidding Blackwater Bossing

AHANMISI tallied 17 points, 8 rebounds, and 2 assists to lead Alaska over Blackwater. — PBA IMAGE

By Olmin Leyba

GAMES ON SATURDAY
(Smart Araneta Coliseum)
4 p.m. – NLEX vs Phoenix
6:45 p.m. – Ginebra vs. Magnolia

MAKING the most of the opportunity against a long-skidding opponent, Alaska Milk steamrolled Blackwater, 98-75, to regain traction in the 46th Philippine Basketball Association (PBA) Governors’ Cup on Wednesday at the Smart Araneta Coliseum.

Skipper Maverick Ahanmisi took charge with 17 points plus eight rebounds as the Aces arrested a two-game slump and improved to 3-2 in a game that was essentially an all-Filipino battle with both imports playing sparingly due to injuries.

Alaska’s Olu Ashaolu strained his calf and managed to score 10 in 22 minutes while Blackwater’s Jaylen Bond, bothered by groin injury, posted two in what could possibly be his farewell outing for the Bossing (0-5).

Jeron Teng added 14 while Rob Herndon and former Blackwater Mike Tolomia chipped in 12 apiece for Jeff Cariaso’s squad, which bounced back from heartbreaking losses to Barangay Ginebra (80-77) and TNT (81-77).

“We felt those two were winnable games so going into this game, we just focused on the intangibles and not committing many turnovers,” said Mr. Cariaso.

“Just staying hungry, staying focused, and playing within what we do and we believe good things will happen to us.”

Mr. Cariaso added they made sure they had the right mentality in the clash with the Bossing, who were determined to snap a long-standing 23-game losing streak prior to Wednesday’s matchup.

“We used an analogy of playing against your older brother in one-on-one pickup all your life. There’s always one time when you’re going to beat your older brother so we focused on making sure that tonight, that doesn’t happen to us,” he said. “I think perspective played a big part in understanding that they (Bossing) are gonna be ready to play.”

A limping Mr. Ashaolu exited the game in the third quarter and Mr. Cariaso is praying he will recover fully in time for the Aces next assignment after the holidays.

The Aces unleashed a 17-7 second-quarter closeout to establish initial separation from the Bossing, 50-43.

Further tightening the defensive screws after the break, the Aces held Blackwater to only 17 points in the third quarter on a 29.4% clip and enjoyed a 20-point lead at one point.

They later widened the gap to as many as 26 at 92-66 before settling for a 23-point winning margin.

SEC revokes registration of iWATCH.PH

THE Securities and Exchange Commission (SEC) has revoked the registration statement of iWATCH.PH Corp. for its unlicensed investment solicitation activities similar to a “pyramid scheme.”

The SEC released two advisories against the entity earlier this year. In April, the regulator warned that the investment program of iWATCH.PH has “the characteristics of a pyramid scheme.” The SEC released another advisory in Filipino the following month.

“iWATCH.PH’s employment of executive soaps as its products is nothing but a smokescreen to ostensibly make it appear that it is involved in selling consumer products,” the SEC said in an order of revocation dated Dec. 13.

“The fact of the matter is that it is offering the opportunity to earn profits by investing in its investor-recruitment business in the guise of selling product packages,” it added.

The SEC noted that the entity describes itself on its website as an “online business that gives Filipinos a lifetime reason to earn in 20 different ways and with multiple features, giving them no excuses to have nothing coming in to have a greater life even further.”

“The company also posted pictures of its registration from different government agencies and claimed that its operation is legitimate,” the regulator said.

Investors have to pay a membership fee of P2,188 before getting the opportunity to earn as an “iWatcher.” 

The entity is luring investors to earn through its avail package, direct referral bonus, leadership bonus, salesmatch bonus, maintenance bonus, repeat direct referral bonus, and unilevel bonus, among others.

While iWATCH.PH was registered with the commission on Dec. 10, 2018 under company registration number CS201842541, it did not have the secondary license to sell or offer securities to the public.

iWATCH.PH requested the SEC to lift its advisory against the entity in April. However, the SEC’s Enforcement and Investor Protection Department (EIPD) informed the entity that it “is not inclined to favorably recommend the approval of its request to lift the advisory.” 

The EIPD also required iWATCH.PH to submit the company’s audited financial statements and income tax return in the previous years, as well as copies of its contracts or agreements.

The regulator also requested a detailed explanation of how investors earn in the company’s program as well as a Food and Drug Administration certificate of approval for its products.

The SEC met with iWATCH.PH’s counsel in June, where the company’s representative discussed its marketing scheme and its business model.

In July, the SEC issued a show-cause order against iWATCH.PH and its stockholders-directors-incorporators, including Reiner Cadiz, Mark Joseph Regalario, Jerome Joseph Operio, Norman Galanza, and Rex Panganiban Regalario.

The company and the persons involved replied to the SEC’s show-cause order and denied that it is engaged in a pyramid scheme. It explained that “the customer or distributor earnings are not dependent on the number of recruits, rather, it is based on the perseverance and hard work in performing [the] avenues of earning.”

The SEC denied iWATCH.PH’s settlement offers twice. In November, the regulator denied the settlement offer as “the company has failed to raise any substantial argument that would warrant the lifting of the advisory and to accept the offer.”

BusinessWorld tried to reach out to iWATCH.PH’s main office through the number listed on its website for comment; however, the number could not be reached. Mr. Operio and Mr. Regalario have yet to respond to BusinessWorld’s request for a statement via Facebook Messenger as of press time. — Keren Concepcion G. Valmonte

Grinch hits candy cane makers with sugar shortage, twisted supply chain

MATHILDE LANGEVIN /UNSPLASH

CHICAGO — Orders have been pouring into Andrew Schuman’s candy cane business this year, but business has been anything but sweet.

“We’re not taking new orders from new customers,” said Mr. Schuman, chief executive officer of Hammond’s, based in Denver, Colorado. “We can’t keep up with demand.”

Candy makers, like retailers and farmers, have been slammed during the pandemic with high commodity prices, labor shortages, and transportation and supply chain snarls, preventing them from fully cashing in on the holiday season.

For more than a century, Hammond’s Candies has twisted and packed up the classic Christmas treat for tiny gift shops and massive grocers alike. It is the largest wholesale supplier of US handmade candy canes.

This year, Hammond’s labor costs have increased 30%, yet staffing remains a problem: The company’s 250-person crew is down nearly 100 people.

Hammond’s is not alone.

When Sam’s Club, a Walmart unit, placed an order for Doscher’s Candy Co.’s gourmet candy canes, co-owner Greg Clark was thrilled. Still, he said, Doscher’s had staff and supplies to produce about 70% of the hand-crafted candies Sam’s Club wanted.

“More and more Sam’s Club members are shopping for seasonal candy, including candy canes,” a company spokeswoman said. “In an effort to meet the anticipated demand, we increased buys from other suppliers and pulled inventory and production forward where possible.”

Total seasonal confectionery sales are up 20% over last year, for the five-week period ending Dec. 5, according to the National Confectioners Association and IRI market data. Winter holiday non-chocolate sales — including candy canes — are up more than 34% from 2020.

Retailers have increased holiday candy items per store by more than 9%; and the total amount of non-chocolate products in stores is up nearly 23%, according to the data.

Many consumers are scrambling to stock up for the holidays after missing family gatherings last year.

“This is the fourth grocery store I’ve hit today, trying to find enough candy canes for our tree and stockings,” grumbled Terri Andresson, 51, browsing at Mariano’s grocery store in Chicago.

Kroger Co., which owns Mariano’s, declined to comment.

Spangler Candy Co., the largest US candy cane maker, ran extra shifts this fall to meet demand, said president Kirk Vashaw. The Ohio-based firm turned away business and faced supply-chain headaches.

“We would have the cherry flavoring scheduled to come in on Monday, but the trucks were delayed, so we would have to stop and switch over to raspberry,” Mr. Vashaw said.

SUGAR SHORTAGES
Facing tight global supplies, some sugar suppliers have limited sales to food manufacturers.

The US imports about a quarter of its annual sugar needs, according to US Department of Agriculture data. A swath of this year’s domestic crop was destroyed when Hurricane Ida tore across Louisiana, the nation’s second-largest sugarcane producing state.

Meanwhile, freight prices are soaring, and Brazil and Thailand — two of the world’s top sugar producers — had smaller-than-expected crops. Sugar prices are at a decade-high.

“I’ve heard that some commercial buyers are looking at erythritol as a substitute sweetener,” said Bob Cymbala, a food trader at A&J Global USA, referring to a sugar substitute made from corn.

But prices are rising for corn-based sweeteners too. Clark from Doscher’s Candy said suppliers of corn syrup — used to make candy canes — are quoting a 10% hike in 2022.

As sugar supplies tightened, the US government adjusted sugar import quotas after some overseas sugar suppliers failed to deliver the product.

Rick Pasco, president of the Sweetener Users Association trade group, said candy producers are hurt by the US sugar policy, which limits imports to protect local growers.

“We are only getting a fraction of what we need,” Mr. Pasco said. — Reuters

SEC clears BPI capital increase

BW FILE PHOTO

BANK of the Philippine Islands (BPI) has received the approval of the Securities and Exchange Commission (SEC) to increase its capital stock to P50.6 billion in line with its merger plans with unit BPI Family Savings Bank, Inc. (BFSB).

“The amendment to the Articles of Incorporation — increase in authorized capital is related to the proposed merger of BFSB to BPI,” the bank said in a filing with the local bourse on Wednesday.

It said the SEC gave its approval on Dec. 21.

After the SEC’s approval, BPI’s Article of Incorporation has been amended to reflect the higher capital stock from P49.6 billion previously.

This follows the increase in the common stock of BPI to 5 billion shares from 4.9 billion shares.

The planned merger has already secured regulatory approval from the Bangko Sentral ng Pilipinas (BSP). Meanwhile, the Philippine Deposit Insurance Corp. said its approval will be dependent on the view of the BSP’s Monetary Board.

For its part, the Philippine Competition Commission has said the transaction can be exempted from review as it qualifies as an internal restructuring.

BPI earlier said its merger with BFSB would take effect once the SEC issues a Certificate of Merger or by Jan. 1, 2022, with BPI as the surviving bank.

It was in January when BPI first disclosed the merger plan, citing the reduction in the gap in the regulatory reserve requirements between commercial banks and thrift banks as a factor for the move.

BFSB is the country’s largest thrift bank with assets worth P294.519 billion as of June 30, based on BSP data.

BPI is the fourth largest among universal and commercial banks with assets worth P1.891 trillion as of end-June.

BPI’s net income in the July-to-September period rose by 3% year on year to P5.657 billion from P5.495 billion, as lower credit provisions offset the decline in interest earnings. Its nine-month net earnings increased by 1.8% to P17.5 billion.

On Wednesday, shares in BPI closed lower by 40 centavos or 0.43% at P91.70 apiece. — Luz Wendy T. Noble

Frayna grabs solo leadership in routing Calimbo

WGM JANELLE MAE FRAYNA

By Joey Villar

WGM Janelle Mae Frayna showed she isn’t slowing down anytime soon as she crushed a listless Mariel Calimbo in a 36-move King’s Indian masterpiece on Wednesday to ascend to the solo lead after eight rounds of the 2021 Philippine National Women’s Chess Championship at the PACE in Quezon City.

The top-seeded 24-year-old Ms. Frayna did not leave anything to chance and threw everything at her disposal at Ms. Calimbo’s exposed king to extract the full point, the former’s sixth which was good for solo first place.

And it looked like nothing could stop Ms. Frayna, who lost to 13-year-old sensation Ruelle Canino in the opening round on Saturday, for now.

Third seed Jan Jodilyn Fronda, the 2019 winner who was Ms. Frayna’s co-leader the round before, could not sustain the pace as she was left with a draw against second pick Shania Mae Mendoza via repetition.

Their duel lasted only 16 moves in a Ruy Lopez game.

Ms. Frayna, an Army woman and proud daughter of Camarines Sur, was shooting for another win against a dangerous Rinoa Mariel Sadey in the ninth round being played at press time.

Ms. Sadey downed Ms. Canino in 50 moves of a Pirc Defense to stay in the middle of the pack at sixth with 4.5 points.

Ms. Mendoza stayed at No. 3 with five points along with Kylen Joy Mordido, who is being tipped to become the country’s next Woman Grandmaster (WGM), and Marie Antoinette San Diego.

Ms. Mordido trounced Bernadette Galas in 38 moves of a Sicilian encounter while Ms. San Diego crushed Francois Magpily in 30 moves of yet another Sicilian.

The event, which is backed by PSC chair Butch Ramirez, Chess Movement, Inc. chair Dr. Ariel Potot, PCSO general manager Royina Garma, Endgame Sports founder Atty. Cris Aspiras, POC President Bambol Tolentino, NCFP chief Butch Pichay and Atty. Roel Canobas, stakes P50,000 to the champion and a berth to the Hanoi Southeast Games in May next year.

Twitter, T-Mobile drop CES plans over COVID-19 concerns

FACEBOOK parent Meta Platforms, Inc., Twitter, Inc. and Pinterest, Inc. separately said on Tuesday they will not send teams to the Consumer Electronics Show (CES) in Las Vegas next month as concerns grow about the Omicron variant.

US wireless carrier and conference sponsor T-Mobile additionally said the vast majority of its contingent would no longer be going and that its chief executive would no longer be delivering a keynote speech in person or virtually. The other companies had not planned large in-person gatherings at the show.

“While we are confident that CES organizers are taking exhaustive measures to protect in-person attendees, we are prioritizing the safety of our team and other attendees with this decision,” T-Mobile said.

CES in the past has attracted over 180,000 people from around the world to a sprawling set of casinos and convention spaces in Las Vegas, serving as an annual showcase of new trends and gadgets in the technology industry.

The Consumer Technology Association, which runs CES, said on Tuesday that the show is going forward from Jan. 5 through Jan. 8. Health precautions will include vaccination requirements, masking and the availability of coronavirus disease 2019 (COVID-19) tests, the association said.

Twitter had planned to have some employees attend to participate on panels. Both Twitter and Facebook said they are now exploring virtual opportunities.

Pinterest even before canceling had already planned a scaled-down meeting area for its sales and partner teams from years past.

Many companies including Qualcomm, Inc., Sony Electronics and Alphabet, Inc.’s Google and self-driving vehicle unit Waymo have said they are moving forward for now with plans to attend and show off new hardware or host meetings. General Motors Co. said on Tuesday that Chief Executive Mary Barra is still scheduled to introduce the US automaker’s electric Silverado pickup truck and discuss company strategy in person at the conference on Jan. 5.

Other companies had long ago planned for virtual presences, among them chipmaker Nvidia Corp., which is having two executives deliver a keynote address by video. — Reuters

Chimes from Crusader times: Recreating Nativity Church’s Medieval music

BELLS from the 12th Century that researchers say used to play music inside Bethlehem’s Church of the Nativity and were hidden by Crusaders, are displayed in Jerusalem, Dec. 14. — REUTERS/AMIR COHEN

JERUSALEM — Crusader-era bells and organ pipes from the Church of the Nativity in Bethlehem are inspiring researchers’ efforts to re-create music as it may have sounded in the birthplace of Jesus during almost 800 years ago.

Worried they might otherwise be destroyed, mid-13th century Crusaders buried the 13 bronze bells near the church on the eve of a Muslim offensive, slathering them in animal fat to protect them from rust, said David Catalunya, who is leading a project to build facsimiles of them.

“It’s a very long process, not only in terms of constructing the materiality of the instruments but also its cultural context and its intellectual context,” said Mr. Catalunya, a researcher from the universities of Oxford and Wuerzburg, Germany.

With the exploratory research phase complete, he estimates it will take about five years to cast fully functioning copies.

Meanwhile, a knock of the knuckles is enough to bring a clear, high-pitched chime from the originals, whose clappers have long since rotted away — as demonstrated to Reuters at the Custody of the Holy Land for the Roman Catholic church, which holds the unique collection.

“It’s half of the original sound, (which) was much richer and louder and a little bit lower,” Mr. Catalunya said.

The bells were part of a carillon that accompanied chants inside the church, said Franciscan friar Father Stephane, the Custody’s liturgist.

They were discovered in the early 20th century, along with 222 Medieval copper pipes from the Church of the Nativity’s organ, during construction at the church’s Franciscan compound, Father Stephane said.

The collection also includes the scepter of the Bishop of Bethlehem and candlesticks from the 12th century which, according to Mr. Catalunya, were made in France, suggesting a shared provenance with the bells and organ pipes, which Father Stephane says are the oldest in Christendom.

Father Stephane said he hoped the collection would be displayed, and played, at a Jerusalem museum the Custody plans to open by 2024.

“These bells are very significant for us because they are the bells of Bethlehem (and a) symbol of Nativity in the Christian world,” he said. — Reuters

Digital infrastructure seen to benefit from full foreign entry

FITCH SOLUTIONS said the removal of foreign ownership cap in public services could increase foreign investment appetite in the Philippines, particularly in the telecoms and technology sectors.

“Increased foreign investment in the telecoms and technology sectors will serve the growth of such assets, particularly terrestrial fiber networks where coverage is particularly limited,” think tank Fitch Solutions said in a commentary e-mailed to reporters on Wednesday.

The Philippine Senate recently approved a bill amending the Public Service Act (PSA), or Commonwealth Act No. 146, to relax restrictions on foreign investment in public services such as telecommunications, air carriers, domestic shipping, railways, and subways.

“The government’s decision to remove the cap on foreign ownership in several industries including telecoms will improve the appetite for foreign direct investment in the Philippines,” Fitch Solutions said.

“Downside risks to foreign investment and improvements to fixed networks include the Philippines’ proximity to escalating tensions between China and Taiwan, as well as the appeal of mobile broadband,” it also said.

Senator Mary Grace Natividad S. Poe-Llamanzares, primary author and sponsor of the bill, has said that the proposed legislation includes safeguards to protect national security, such as prohibiting foreign state-owned enterprises from owning capital in any public service classified as critical infrastructure.

Foreign investments will also be reviewed by the National Security Council.

Fitch Solutions said that attempts by Western parties to “counter Chinese influence in the Philippines telecoms sector are now possible.” 

There have been indications of a growing interest in the Philippines from technology companies, it also noted.

“In June 2021, we covered Alibaba’s entry into the Philippines’ cloud computing market which we see as potentially the beginning of a peak in activity from hyperscalers that are reconsidering the placement of data centers in Asia in the midst of heightened tensions in the South China Sea, China’s National Security Law and concerns over the sustainability of recurrent data center construction in certain markets,” the think tank said.

Fitch Solutions sees the Philippines as one of the fastest-growing cloud markets in the region over the medium-term.

It is expected to expand “at a compound annual growth rate of 28.9% between 2021 and 2024 to reach a market size of $1.3 billion.”

But despite the investment, the Philippines will still be one of smallest cloud computing markets in the Asia-Pacific region, as recent activity is “insufficient to significantly improve the country’s scarce terrestrial digital infrastructure.”

“That said, liberalizing the market should see an influx of international tech-players looking to monetize the Philippines’ long-term growth opportunity, and we could see the country’s cloud computing market forecasts revised upwards,” Fitch Solutions said. — Arjay L. Balinbin

Term deposit yields mixed on hawkish Fed

YIELDS ON THE central bank’s term deposits ended mixed on Wednesday as the US Federal Reserve said it would quicken its pace of policy normalization.

Total bids for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) reached P508.198 billion on Wednesday, higher than the P400-billion offer and also beating the P502.663 billion in tenders logged a week earlier.

Broken down, the seven-day term deposits fetched tenders worth P202.415 billion, well above the P170 billion auctioned off by the BSP but lower than the P242.034 billion in bids seen the previous Wednesday.

Banks sought for yields ranging from 1.725% to 1.7675%, a slimmer band than the 1.7% to 1.775% band a week ago. This brought the average rate of the papers to 1.7495%, inching up by 0.09 basis point (bp) from 1.7486% previously.

Meanwhile, demand for the 14-day papers amounted to P305.783 billion, surpassing the P230-billion offer as well as the P260.629 billion in tenders on Dec. 15.

Accepted rates for the tenor were from 1.76% to 1.88%, tighter than the 1.753% to 2% seen a week earlier. This caused the average rate to drop by 2.66 bps to 1.8306% from 1.8572% in the prior auction.

The central bank has not offered 28-day term deposits for more than a year to give way to its weekly auction of bills with the same tenor.

Yields on the term deposits were mixed after the Fed has become more hawkish in its policy direction, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Last week, the Fed said it would finish its bond purchase program earlier in March. Central bank officials said they were also expecting up to three rate hikes next year in order to address elevated US inflation.

“Auction yields also mixed as the Typhoon Odette storm damage could be a drag to economic growth and could also lead to a temporary increase in prices and overall inflation until supply conditions normalize,” Mr. Ricafort added.

The Department of Agriculture on Monday said farming and fishing losses caused by the typhoon had reached about P362.3 million.

Headline inflation in November eased to 4.2% from 4.6% in October, mainly due to slower food price increases. However, it was still above the central bank’s 2-4% target.

The BSP last week raised its inflation expectation for 2021 to 4.4% from 4.3% previously. Headline inflation for the January-November period averaged 4.5%. — Luz Wendy T. Noble

Nueva Ecija eliminates Iloilo to set up semis clash with Imus

NUEVA ECIJA ousted Iloilo while Imus-Buracai de Laiya shocked Bicol-LCC Malls to set up their own semifinals duel in the Chooks-to-Go Maharlika Pilipinas Basketball League (MPBL) Invitational early on Wednesday the Mall of Asia Arena in Pasay City.

Michael Mabulac tallied 17 points and 11 rebounds to lead the Vanguards’ 84-67 win over Iloilo while Imus rode on the 23-point eruption of veteran Leo Najorda in its big 74-57 upset of the fancied Bicol side.

Nueva Ecija and Imus were to clash for a seat in the finals last night along with Pasig-Sta. Lucia and Basilan-Jumbo Plastic Medical Depot in the other Final Four bracket.

The lucky winners lock horns tonight in the one-game championship for the prestigious crown of the 22-team Invitationals plus a luxurious grand prize of P2 million.

Meanwhile, the MPBL will name the best league mentor after the late San Beda coach Edmundo “Ato” Badolato, who passed away earlier this week due to cardiac arrest.

The “Ato Badolato Coach of the Year” will be given to the head coach of the champion team.

“We hope that through this award, the next generation of Filipino basketball players will get to know who Coach Ato was,” said Chooks-to-Go Sports and Marketing Director Mel Macasaquit, also a former San Beda player.

MPBL’s tribute to Mr. Badolato, who authored San Beda high school dynasty with 16 NCAA champions, was among a bevy of homages given to the legendary mentor that produced the likes of Benjie Paras, Ronnie Magsanac, LA Tenorio and Jvee Casio.

Mr. Badolato, 74, also served as athletic director of San Beda, UAAP commissioner and national youth coach on top of his guidance to the National Basketball Training Center, Filoil Flying V Cup and Fr. Martin Cup. — John Bryan Ulanday

Has anyone seen Web3? Musk, Dorsey mock tech’s latest buzzword

BILLIONAIRES Elon Musk and Jack Dorsey dismissed the so-called Web3 and criticized the involvement of venture capital firms such as Andreessen Horowitz in building out what some have called the next phase of the Internet.

Web3, a vague term for a utopian version of the Internet that is decentralized, is based on digital record-keeping technology blockchain, which also drives the platforms running cryptocurrencies such as bitcoin and ether.

Tesla, Inc. Chief Executive Officer Mr.  Musk on Tuesday tweeted, “Has anyone seen web3? I can’t find it.”

To this, former Twitter, Inc. top boss Mr. Dorsey replied, “It’s somewhere between a and z.”

Mr. Dorsey did not elaborate on the tweet. Venture capital firms such as a16z, founded by Marc Andreessen and Ben Horowitz, have heavily backed blockchain, crypto and Web3. Andreessen Horowitz was not immediately available for comment.

Web3 is meant to give users ownership stakes in platforms and applications, according to its backers, while in Web2, the current form of the internet, only a few major tech giants such as Meta Platforms, Inc. and Alphabet’s Google control the platforms.

“You don’t own ‘web3,’” Mr. Dorsey tweeted on Monday night. “The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into…”

Mr. Dorsey’s tweet garnered thousands of likes and retweets, but many users also expressed disagreement.

To one such tweet with an opposing view, Mr. Dorsey responded, “We have bigger issues if a tweet stifles hopes and dreams. Currently, it’s not wrong. Critique can help fix, or divert energy to something more important.”

Web3 has joined the ranks of non-fungible tokens (NFTs) and the Metaverse to become a tech buzzword attracting a lot of attention and funding this year. — Reuters

SPNEC readies land for solar capacity beyond 500 MW

AMERICAN PUBLIC POWER ASSOCIATION-UNSPLASH

SOLAR PHILIPPINES Nueva Ecija Corp. (SPNEC) on Wednesday said it is preparing a 1,000-hectare land as it gears up for a joint venture with an unnamed company to expand the capacity of its solar farm beyond 500 megawatts (MW).

“We are preparing an initial 1,000 hectares for a joint venture with a partner who can help turn this plan into a reality,” said Solar Philippines Founder Leandro L. Leviste in a statement.

The company disclosed earlier that the P2.7-billion proceeds from its initial public offering (IPO) will be used for the construction of the initial 50 MW of a planned 500-MW solar power plant and for land acquisition in Nueva Ecija.

SPNEC did not name its supposed partner company, but hinted it is going to be one of the leading energy companies in the country.

“Mr. Leviste has emphasized in previous interviews the view that partnering with the country’s leading companies will be key to accelerate the transition to renewable energy,” the company said.

It added that in 2020, the company shifted its focus on developing greenfield sites and bringing in other companies as partners.

The expansion project eyed will also develop around 60-kilometer transmission line to Bulacan to extend power supply reach to Metro Manila and its neighboring provinces Cavite, Laguna, Rizal, and Bulacan.

“The project’s scale is both its advantage and disadvantage. Unlike 100-MW projects located next to existing transmission, this one will need to be at gigawatt-scale to justify the development of new transmission,” Mr. Leviste said.

“This is a bet on the demand for large-scale solar, and if such demand does come, this project can become larger than all the solar projects to date in the Philippines combined,” he added.

Under the Philippine Energy Plan, the Department of Energy (DoE) has committed renewable energy to account for 35% of the country’s total energy generation by 2030, and 50% by 2040.

Energy Undersecretary Felix William B. Fuentebella, during the Energy Investment Forum on Dec. 3, said the Philippines needs an additional 92,320 MW of installed renewable energy capacity by 2040 under a clean energy scenario. — Marielle C. Lucenio