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Energy dep’t signals continued coal, petroleum reliance

PEXELS-PIXABAY

THE DEPARTMENT of Energy (DoE) said Thursday that it considers coal and petroleum resources to be key to meeting the country’s power needs.

“While we issued a moratorium on coal projects, we still consider coal and oil energy resources vital to the country’s quest for power,” Energy Secretary Alfonso G. Cusi said at a virtual briefing Thursday.

He described Philippines as an “energy-hungry nation” which has yet to attain energy security.

“We do, however, take into consideration the environmental issues surrounding these (coal and petroleum) projects and we are encouraging hybridization of conventional energy plants to balance their effect on the environment,” Mr. Cusi said.

He added that the country is keen on ramp up production of petroleum products and coal.

Last year, power plants running on fossil fuels accounted for 78.8% of aggregate electricity output, according to the Philippine Energy Plan. Coal facilities and oil-based power plants produced 58.2 terawatt-hours (TWh) and 2.5 TWh, respectively.

During the briefing, Mr. Cusi also reiterated the department’s plans to establish the Philippines as a destination for investment in natural gas.

“We see natural gas as the fuel of the future. We hope that the facilities being put up in the country right now will help us attain energy security and that we can still make the Philippines the next LNG (liquified natural gas) hub of our region, given our strategic location,” he said.

At present, the country only has one indigenous gas field — the Malampaya project — which is set to be commercially depleted by 2027.

The offshore field produces power for five gas-fed plants on Luzon, which service 20% of national demand. — Angelica Y. Yang

First Philec expects ‘green’ transformers to launch as scheduled

FIRSTPHILEC.COM

MANUFACTURER First Philec, Inc. said the launch of its so-called green transformer is on track for a fourth-quarter release, with plans for it to be sold in overseas markets.

“Definitely, we are ready to launch it by fourth quarter,” First Philec President Ariel C. Ong said at a virtual briefing Thursday.
“We are actually in the final stages of our plans to enter an international market,” Mr. Ong said.

First Philec is a unit of First Philippine Holdings Corp.
Distribution utility Manila Electric Co. (Meralco) will be the first recipient of the transformers.

“They’re very open to sustainability solutions so we’re going to give them a few samples to evaluate,” Mr. Ong said of Meralco.

The company has said that its new transformer is made of 100% recyclable and biodegradable materials. The transformer features insulating coolant made from natural ester, a vegetable-based and non-polluting oil product sourced from sustainably-grown crops.

First Philec said its new product aims to reduce system losses and improve distribution efficiency, benefitting power providers and their customers.

The company gave no details on product pricing.

First Philec has installed over 250,000 transformers in the Philippines. It claims to be the largest manufacturer of amorphous or energy-efficient transformers in Southeast Asia. — Angelica Y. Yang

Manila Water to prequalify contractors for Wawa water treatment plant 

EAST ZONE water concessionaire Manila Water Co., Inc. announced a prequalification process for contractors seeking to participate in the design and construction of a water treatment plant in Antipolo City.

The company said Thursday that potential bidders to send a letter of intent on or before Nov. 26 for the Wawa Water Treatment Plant contract, which will supply an additional 438 million liters per day (MLD) of water to its customers.

Manila Water expects to issue invitations to bid by the first quarter of 2022.

“The project, when completed, shall be capable of treating raw water with a product water quality that is in full compliance with the Philippines National Standards for Drinking Water of 2017 and the employer treated water quality output requirements, and serve the client network for Antipolo and neighboring municipalities,” Manila Water said.

Manila Water has an offtake agreement with the Metropolitan Waterworks and Sewerage System (MWSS) and WawaJVCo, Inc. to supply raw water from the Wawa and Tayabasan rivers.

The first phase involves the supply of 80 MLD of raw water by Dec. 31, 2021 while the second phase involves the 438 MLD raw water deal, which kicks in on Dec. 31, 2025.

Separately, the MWSS Regulatory Office said Thursday that its board of trustees approved the removal of the foreign currency differential adjustment (FCDA) from customer water bills issued by Manila Water and Maynilad Water Services, Inc. starting Nov. 18.

Nov. 18 is the date the revised water concession agreements come into force. The deals called for of a tariff freeze until Dec. 31, 2022 and the removal of the FCDA.

The FCDA for Manila Water customers was 0.84% of the 2021 average basic charge of P28.52 per cubic meter (cu.m.) or 24 centavos.

Households consuming 10 cu.m. or less will experience a reduction of P1.26, while those consuming 20 cu.m. and 30 cu.m. will see a decrease of P2.79 and P5.69, respectively.

The impact on Maynilad customers, whose FCDA was equivalent to minus 0.55% of the 2021 average basic charge of P36.24 per cu.m. or minus P0.20 per cu.m., will increase standard rates for water and sewerage services.

The MWSS said Maynilad’s FCDA will instead be converted into a transitory adjustment in water bills between Nov. 18, 2021 to Dec. 31, 2022 as a consumer protection measure.

“The cash flow effect of the FCDA removal will be considered in the calculation of the opening cash position of the concessionaire in the 5th Rate Rebasing Exercise,” MWSS said.

Asked to comment, MWSS Chief Regulator Patrick Lester N. Ty said by mobile phone that the water bills of Maynilad customers will not increase.

“In order to protect the interest of the public, we converted it to a transitory adjustment so their monthly water bill will not increase and remain the same. Maynilad can just include this in the next rate rebasing,” Mr. Ty said.

The FCDA is a tariff mechanism, reviewed quarterly, which allows concessionaires to regain losses or return gains as a result of foreign exchange rate movements. The water providers pay concession fees in foreign currency to the MWSS, and also make non-peso payments on their loans.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Stocks rise on curfew lifting, Fed taper timeline

PHILIPPINE SHARES extended their climb on Thursday after the removal of curfew hours in Metro Manila, which were implemented for over a year and a half due to the coronavirus pandemic.

The 30-member Philippine Stock Exchange index (PSEi) improved by 19 points or 0.26% to close at 7,203.72 on Thursday, while the all shares index inched up by 4.08 points or 0.09% to 4,437.17.

“The continuous decline in our COVID-19 (coronavirus disease 2019) cases, and the lifting of curfew in the National Capital Region which is expected to augment economic activities lifted sentiment. Wall Street’s continuous rally towards record highs also helped in Thursday’s session,” Japhet Louis O. Tantiangco, senior research and engagement supervisor at Philstocks Financial, Inc., said in a Viber message.

Metro Manila had implemented curfew hours for over a year and a half to limit mobility in an attempt to curb the spread of COVID-19. These were lifted beginning on Thursday, Nov. 4.

The Health department reported 1,591 new COVID-19 infections on Wednesday, bringing the total active cases to 38,014. The Philippines has reported over 2.79 million COVID-19 cases since the pandemic began.

“The index sustained solid gains with more index heavyweights reporting earnings,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message, adding that the US Federal Reserve’s announcement on the reduction of its monthly bond purchases also contributed to market sentiment.

The Fed, as widely expected, announced on Wednesday that it would begin reducing its $120 billion in monthly purchases of Treasuries and mortgage-backed securities at a pace of $15 billion per month, with a plan to end the purchases altogether in mid-2022, Reuters reported.

“Selling pressures were noticed however with the market dropping to an intraday low of 7,176.64, down by 0.11% from the preceding day. Trading was quite active,” Philstocks Financial’s Mr. Tantiangco added.

Value turnover went up to P7.68 billion with 4.69 billion shares switching hands on Thursday, inching higher from the P7.52 billion with 2.33 billion issues traded the previous day.

All sectoral indices closed in the green on Thursday led by mining and oil, which went up by 83.02 points or 0.84% to finish at 9,916.99. Industrials gained 61.59 points or 0.57% to 10,779.16; services picked up 5.43 points or 0.28% to 1,903.75; financials increased by 1.94 points or 0.12% to 1,579.61; property climbed 3.80 points or 0.11% to finish at 3,242.24; and holding firms inched up by 0.75 point or 0.01% to 7,058.58.

Decliners outperformed advancers, 123 against 80, while 42 names closed unchanged.

Foreigners turned buyers on Thursday, logging P371.99 million in net purchases versus the P23.75 million in net outflows recorded on Wednesday. — Keren Concepcion G. Valmonte with Reuters

Peso slips on weak labor data 

BW FILE PHOTO

THE PESO slipped versus the greenback on Thursday following weaker labor data and ahead of the release of the October inflation report. 

The local unit closed at 50.595 per dollar on Thursday, shedding by 2.5 centavos from its P50.57 finish on Wednesday, based on data from the Bankers Association of the Philippines. 

The peso opened Thursday’s session at P50.55 per dollar. Its weakest showing was at P50.62, while its intraday best was at P50.53 versus the greenback. 

Dollars exchanged dropped to $782.25 million on Thursday from $941.7 million on Wednesday. 

The peso was slightly weaker due to cautious sentiment after the release of data showing a weaker employment market in September, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. 

The September Labor Force Survey showed the unemployment rate worsened to 8.9% that month from 8.1% in August, the Philippine Statistics Authority (PSA) said on Thursday. This is the highest rate so far in 2021 or since the 8.8% seen in January. 

This means 4.25 million Filipinos were jobless in September from the 3.88 million unemployed in the prior month. 

National Statistician Dennis Clare S. Mapa said the higher unemployment rate was likely due to the decline in agriculture jobs following recent typhoons as well as the harvest season. 

Meanwhile, a trader said the peso inched down versus the dollar ahead of the release of October inflation data on Friday. 

A BusinessWorld poll of 21 economists held last week yielded a median estimate of 4.9% for October headline inflation. If realized, this would be faster than the 4.8% in September. 

Analysts said weather disturbances and continued oil price hikes likely caused faster price increases in October. 

For Friday, Mr. Ricafort expects the local unit to move within P50.47 to P50.67 per dollar, while the trader gave a forecast range of P50.50 to P50.75. — L.W.T. Noble 

Metro Manila’s COVID cases back to pre-Delta surge level

PHILIPPINE STAR/ MICHAEL VARCAS

A CORONAVIRUS surge fueled by the Delta variant in the Philippine capital region and nearby cities has already been reversed, a group of public health researchers said on Thursday.

“We have reversed the Delta surge already in the NCR (National Capital Region),” OCTA Research fellow Fredegusto P. David told a virtual forum Thursday streamed on Facebook.

Metro Manila is now back to where it was before it struggled to contain a spike in infections spurred by the highly contagious Delta variant, which has been closely watched by health experts worldwide, Mr. David added.

He said the decline in infections in the capital region was first observed in mid-September.

Metro Manila’s number of cases remains on a downward trend as its seven-day average dropped to 630 cases daily, the OCTA fellow said.

The region’s virus reproduction rate was at 0.43, lower than the critical cut-off of 1.4, while its average daily attack rate remains moderate at 4.45 per 100,000 people, he said.

The positivity rate in Metro Manila decreased to 4%, which meets the World Health Organization’s standards.

CASE COUNT
Philippine health authorities reported 1,766 coronavirus disease 2019 (COVID-19) cases on Thursday, bringing the total to nearly 2.8 million.

The death toll rose to 43,825 after 239 more patients died, while recoveries increased by 2,591 to 2.7 million, it said.

The Department of Health (DoH) said there were 37,159 active cases, 68.9% of which were mild, 5.3% were asymptomatic, 8.2% were severe, 14.11% were moderate and 3.5% were critical.

It said 22 duplicates were removed from the tally, 17 of which were recoveries, while 214 recoveries were reclassified as deaths. Two  laboratories failed to submit data on Nov. 2.

The DoH said the intensive care unit occupancy rate in the Philippines and Metro Manila was at 43% and 37%, respectively.

Mr. David said several urban areas outside the metropolis — such as Davao City, Bulacan, Batangas, Cavite, Laguna, Pampanga, and Rizal — are now also classified as low risk from the coronavirus.

Cebu City in central Philippines is now considered as “very low risk,” he said.

“There are some areas in the country which still have a significant number of cases but most of them are already on a downward trend,” Mr. David said.

“I could count maybe five municipalities with significant risk,” he added. “It’s like we reversed back to March of this year.”

COVOVAX
Meanwhile, the local distributor of CovovaxTM developed by US biotechnology firm Novavax is optimistic of getting emergency use approval in the Philippines soon after the COVID-19 vaccine recently received authorization in Indonesia.

“We welcome this development and look forward to the start of the global rollout of CovovaxTM,” Vinay Panemanglor, founding member and chairman of the board of directors of distributor Faberco Life Sciences, Inc. (Faberco), said in a statement on Thursday

“CovovaxTM has high efficacy and safety levels, and we are anticipating approval of our EUA (emergency use authorization) from the Philippine Food and Drugs Administration shortly following the Indonesian EUA. We have completed all submissions and are ready to start shipment as soon as we get the approval,” he said.

Novavax, Inc. announced on Oct. 31 that it has also filed applications for use in other countries and for listing with the World Health Organization.— Kyle Aristophere T. Atienza

Robredo eyes P216-B stimulus; Lacson: no more death penalty

VICE PRESIDENT Maria Leonor “Leni” G. Robredo has pledged to push for a multi-billion stimulus package if she wins the presidential election next year.

Ms. Robredo vowed to allocate about P216 billion in next year’s national budget for pandemic aid.

This would curb hunger and boost household spending, according to the presidential aspirant’s pandemic recovery plan.

Ms. Robredo said she would also push for a measure providing P100 billion worth of grants to micro, small and medium enterprises.

Her administration would push for a national unemployment insurance program to help those displaced by the pandemic, she added.

She also highlighted the importance of strengthening the country’s farm and fishery sectors amid the health crisis.

The vice president said she would “double” the annual fund of the Department of Agriculture, increasing its share from the national budget by up to 3.4% in 2028 from the current 1.7%. All sectors in the industry “will not be left behind,” she said.

To bail the country out of the pandemic, Ms. Robredo said the next administration should focus first on the country’s healthcare system.

If elected, Ms. Robredo said she would form a team of experts to advise the government, reorganize the Philippine Health Insurance Corp., ensure sufficient salaries and benefits for health workers, support hospitals, roll out broad-based coronavirus testing, and set aside enough funds for the procurement of coronavirus vaccines.

LACSON
Presidential candidate and Senator Panfilo M. Lacson, meanwhile, said he is now against the reimposition of capital punishment, citing concerns over potential wrongful convictions.

“It holds more weight to save the life of someone wrongfully convicted,” Mr. Lacson said in a media briefing Thursday with his running-mate, Senate President Vicente C. Sotto III.

Instead, they plan on “creating or establishing a national penitentiary for high-level drug traffickers and heinous criminals.”

Mr. Sotto said criminals in the facility will be placed in separate cells and communication will be highly restricted.

“They will suffer for the rest of their life and will have nothing to do but regret,” said Mr. Lacson, “until they die in prison.”

Mr. Lacson is also open to reinstituting the Philippines’ membership to the International Criminal Court, which has launched an investigation on President Rodrigo R. Duterte’s drug war.

“We still need to consult our foreign policy managers or advisers,” he said in a mix of English and Filipino, “but my initial reaction is yes.” — Kyle Aristophere T. Atienza and Alyssa Nicole O. Tan

Immigration bureau preparing for holiday influx

BUREAU OF IMMIGRATION FACEBOOK PAGE

THE PHILIPPINE immigration bureau has banned its workers assigned at international airports from going on leave during the holiday season as it anticipates an increase in passenger traffic.

This would ensure the “availability of adequate personnel to serve the traveling public in anticipation of rise in passenger volume,” Immigration Commissioner Jaime H. Morente said in an e-mailed statement.

The no-leave policy, except for medical and emergency reasons, is needed to avoid long queues at the airports before and after the Christmas and New Year holidays, he added. “This is the time of every year when the services of our immigration inspectors are most needed in the airports.”

The bureau’s port operations chief, Carlos B. Capulong, has formed a team of on-call immigration officers to augment and assist personnel rendering supervisory and primary inspection duties at the airports, Mr. Morente said.

The Bureau of Immigration said 99 newly-hired officers undergoing their on-the-job training were deployed at the Ninoy Aquino International Airport, the country’s main international gateway.

“While we don’t see the number of passengers rising to pre-pandemic levels, we are getting ready for an increase of Filipinos and balikbayan (returning Filipinos) who may be vacationing here during the holiday season,” Mr. Capulong was quoted as saying.

Last month, the Philippines included China — where the first case of the coronavirus was reported in late 2019 — and 45 other countries and jurisdictions in its updated green list for travel.

Fully-vaccinated passengers from the green list countries with a negative test result for coronavirus will no longer be required to go on facility-based quarantine.

With the expected increase in passenger volume in Philippine ports, the government should improve its coronavirus testing capacity and establish additional testing centers in public areas, OCTA Research Fellow Fredegusto P. David said in a Facebook Messenger chat.

Protocols for passengers must depend on the coronavirus situation of their origin, he said. It should depend “where the passenger is from, if the passenger is vaccinated or not.”

Travelers from yellow-listed countries are required to undergo facility-based quarantine until the release of a negative swab test taken on the fifth day from arrival. They will quarantine at home until the 10th day.

Latvia, which has been struggling to contain a spike in infections, is the only country put on the red list.

An updated list of country classifications is posted on the Tourism department’s site: www.philippines.travel/safetrip#inboundadvisory. — Kyle Aristophere T. Atienza

Pharmally’s P3.4-B unsupported purchases could be basis for tax evasion charge, says expert 

CONTROVERSIAL Pharmally Pharmaceutical Corp. declared P3.4 billion worth of unsupported purchases, according to a tax expert providing assistance to the Senate blue ribbon committee’s probe on alleged procurement anomalies, which may be grounds for tax evasion. 

Raymond A. Abrea, a certified public accountant and Bureau of Internal Revenue consultant, said during Thursday’s hearing that Pharmally declared P7.2 billion worth of purchases in its audited statement last year, but the total amount is not fully supported by documents such as official receipts.   

Mr. Abrea explained that an overstatement of expenses is usually done “to lessen the tax they need to pay.” 

After looking into Pharmally’s financial statements, their summary list of purchases is only P3.2 billion, while their summary list of importation is P600 million, he added. 

“We don’t know where it came from or who supplied the P3.4 billion,” he said in Filipino. — Alyssa Nicole O. Tan 

Mt. Apo town opens all ecotourism, cultural sites 

JRPANER

SANTA CRUZ town in Davao del Sur, which hosts one of the entry points to Mt. Apo, has opened all its tourism sites as the municipality is now under less restrictive alert level 2.   

“All our sites are open since the modified general community quarantine and now that Davao del Sur is at alert level 2,” Santa Cruz tourism officer Julius R. Paner, told Businessworld in a mixed English and Visayan. 

Aside from day-treks or climbs to Mt. Apo, the country’s highest peak at 2,954 meters, the town offers a number of ecotourism and cultural activities in partnership with local communities and the indigenous group Bagobo-Tagabawa.   

Among the newest destinations prepared during the lockdowns are the Bamboo Peak and Tomari Falls.   

Mr. Paner said the Bamboo Peak is a 4.6-kilometer trail that passes through farmlands and tropical rainforest within the ancestral land of the Bagobo-Tagabawa. The trek culminates at a summit 1,106 meters above sea level.   

The Tomari Falls is one of the town’s more attractive waterfalls, with a natural cold pool ideal for bathing. 

Mr. Paner said each visitor will have to pay a registration fee of P50, and hiring of a local guide is mandatory at a rate of P500 per group with a maximum of five persons.   

Other tourist attractions in Sta. Cruz are the Bagobo Cultural Village, Passig Islet, Water Tubing in Sibulan River, Mt. Dinor in Sinoron, Pilan River in Sinoron, Tacub Laya Falls in Sinoron, Mt. Loay, and Saliducon Cave.   

There are also some beach destinations in the coastal town.   

“We remain an ecotourism attraction, showcasing outdoor sites and experiences, which is an appropriate tourism product in the new normal,” Mr. Paner said.  

The town, located about 76 kilometers south of Davao City, does not require a negative coronavirus test result nor proof of vaccination from visitors. — Maya M. Padillo 

Duterte signs law increasing penalties for perjury  

PRESIDENT RODRIGO R. Duterte has signed into law a measure increasing the penalties for perjury.  

Republic Act. No. 11594 increases the minimum jail time for persons who commit false testimony and perjury under oath to at least six years from the current six months. 

The law, signed last Friday, sets a medium period of eight years and one day to 10 years.  

Under the law, public workers and officials found guilty of perjury may be penalized with up to 12 years of imprisonment and a fine not more than P1 million. They may also face absolute disqualification from any government position.    

Perjury is committed by a person who “knowingly” makes untruthful statements under oath or “make an affidavit, upon any material matter before a competent person authorized to administer an oath in cases in which the law so requires.” — Kyle Aristophere T. Atienza 

Senatorial candidate calls for lowering of interbank, online transaction fees 

PHILSTAR

SENATORIAL candidate Neri J. Colmenares urged banks and other payment channels to reduce fees for interbank machine and online transactions to help ease the burden of consumers amid the pandemic.  

“The dramatic increase in e-commerce during the pandemic have increased the profits from online charges even as the sheer increase in the magnitude of transactions tend to make the cost per transaction lower,” Mr. Colmenares, Bayan Muna chair and a former congressional representative of the progressive party-list said.   

He said on Thursday that while consumers had to resort more to shopping online due to the pandemic, they have had to pay fees from P15 to as high as P50 per transaction.  

He also cited Philippine Payment and Settlement System data from the central bank for the second quarter of 2021, which shows a 40.98% and 55.38% increase for PESONet and InstaPay transactions, respectively, compared to the same period last year.  

He also called on Congress to approve House Bill 4019 or the ATM Fee Regulation Act, which would impose a standard rate of up to P5 for interbank transactions, including those using online payment channels such as GCash and Paymaya.    

“The same principle should be applied to fees charged by money remittance outfits especially at this time when every peso counts for our people,” Mr. Colmenares said.  

The measure is pending at the House Committee on Banks and Financial Intermediaries. — Russell Louis C. Ku 

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