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Maynilad installs solar power farm at La Mesa pumping station 

COMPANY HANDOUT PHOTO

MAYNILAD Water Services, Inc. recently launched its new 1-megawatt solar power farm located inside the La Mesa Compound in Quezon City.   

The west zone water provider said in a statement on Wednesday that the P100-million green energy source, which spans 8,250 square meters, is designed for optimal use for at least 40 years.

Maynilad said the solar farm is estimated to generate 10% in terms of yearly cost savings on the electricity consumption of the pumping station, which is operating 24/7.   

“We operate a lot of facilities to ensure non-stop delivery of water and wastewater services. This new solar farm provides a renewable energy source that will enable us to generate energy savings and also decrease our greenhouse gas emissions,” Maynilad President and Chief Executive Officer Ramoncito S. Fernandez said.   

Maynilad provides water to areas in the west zone of the National Capital Region as well as parts of Cavite province including Bacoor, Imus, Kawit, Noveleta, and Rosario.

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   

Senator calls for probe on rotational brownouts

SENATE.GOV.PH

A SENATOR on Wednesday called for an investigation of the rotational blackouts experienced in some areas of Luzon since the start of the week.

In a statement, Senator Risa N. Hontiveros-Baraquel said the brownouts, along with the current typhoon, present a logistical challenge for vaccines stored in freezers.

“This isn’t just about our household appliances. There is a large stock of vaccines in freezers and we have a typhoon. It is important to give an explanation to the public because the country seriously needs electricity at this time,” she said in mixed Filipino and English.

The National Grid Corporation of the Philippines (NGCP) on Monday raised red and yellow alert status over the Luzon grid. Distribution utilities and electric cooperatives implemented rotational brownouts in some areas, including the capital Metro Manila.   

Ms. Baraquel also wants clarification on the diminishing power supply, noting that there is a supposed “robust energy supply outlook” under the government’s Philippine Energy Plan 2018-2040.

“So, if we look at the numbers, rotational blackouts are least of the scenarios. Unless someone is withholding supply during critical moments, or there is a failure in securing the needed reserve which is the duty of the grid operator, the NGCP,” she said.

Senator Emmanuel “Manny” D. Pacquiao, meanwhile, said in his privileged speech that the rotational brownouts affected those who are under a work-from-home arrangement, among others.

He also questioned if the power supply would suffice for the cold storage facilities being used for the coronavirus vaccines.

“We could not afford to waste the precious vaccines,” he said, noting that brownouts also hit Luzon in 2016.

“This is a recurring problem. We cannot rely on the same strategies to solve this problem on the rapidly growing demand for power supply. We need to innovate. We need to secure renewable energy resources,” he added.

Mr. Pacquiao also noted that during an April hearing on the power sector, Energy Secretary Alfonso G. Cusi stated that they are not seeing a high risk of shortage. — Vann Marlo M. Villegas

Senator wants Metro Davao expanded to 14 cities and towns

WIKIPEDIA
WIKIPEDIA

A SENATOR has called for the inclusion of another four towns in the envisioned Metro Davao area, bringing to 14 the local government units that will be under the proposed Metropolitan Davao Development Authority (MDDA).

At Tuesday’s hearing on the MDDA bill, Senator Ronald M. dela Rosa suggested adding the municipalities of Hagonoy, Padada, Malalag, and Sta. Maria, all in his home province of Davao del Sur. He cited their “contiguous” location within the Metro Davao area, which will be along the Davao Gulf.

The original Metro Davao plan only covered seven local governments spanning Tagum City in Davao del Norte and Digos City in Davao del Sur with Davao City in the center and Samal off the mainland.

Under House Bill 8930, the lower chamber’s version approved in March, the Metro Davao area has been expanded to 10 towns and cities, namely: Tagum, Panabo City, Carmen, and Samal in Davao del Norte; Davao City; Digos City and Sta. Cruz in Davao del Sur; Mati City in Davao Oriental; Maco in Davao de Oro; and Malita in Davao Occidental.

These areas track a line along the Davao Gulf.   

The MDDA will be similar to the Metropolitan Manila Development Authority in the capital region.

Davao City Rep. Isidro T. Ungab, who authored the House version, said the creation of the MDDA will allow for a more coordinated development in the Davao Region’s rapidly urbanizing areas.

The proposed agency will manage common programs and projects on infrastructure, drainage, disaster response, public transport and road traffic, and solid waste.

“It will bring more teeth and power (to the collaborative work) considering that the we will now have a separate budget for (these),” Mr. Ungab said during the Davao City business chamber’s membership meeting last week.

Under the proposed bill, the MDDA’s fund will come from the national annual budget as well as contributions from the local budget of the covered towns and cities.

Further discussion on the Senate bill is set for June 10. — Maya M. Padillo

NEDA’s Chua backs return of students to campus

THE PHILIPPINES could post “strong growth” in line with the official target of 6% in the next two or three years even though much still needs to be done to effectively manage the coronavirus crisis, including playing catch-up on education, Socioeconomic Planning Secretary Karl Kendrick T. Chua said at his confirmation hearing Wednesday.

“I have no doubt that if we do three things: number one, do not be too risk averse; number two, implement the recovery program; number three, accelerate vaccination, it is possible to achieve 6% growth or even higher next year,” he told the Commission on Appointments.

The Development Budget Coordination Committee last month downgraded the gross domestic product growth target to 6-7% from the 6.5-7.5% estimate issued in December.

Mr. Chua, however, noted that some actions taken during the crisis may have long-term effects that need to be corrected, such as the lack of face-to-face classes for students, which can affect quality of learning and future productivity.

“With COVID in the next two or three years we can continue to see strong positive growth, but to be sustainable and achieve our 2040 Ambisyon Natin (medium-term plan), we really have to do much more to recover lost ground and to restore the productivity of the people,” he said.

Mr. Chua also recommended a risk-management approach while stepping up vaccinations to permit on-site schooling to resume and to allow families to spend time out of the house in open spaces.

He noted that the Philippine median age is 24, while 40% are 18 years old and under. 

“Based on our computations at NEDA, 50% of non-essential spending is driven by family. And this is why the economy (is performing) as you see it,” he said.

Mr. Chua said allowing pilot face-to-face classes was previously approved but was withdrawn following the emergence of more contagious COVID variants in the Philippines.

“In hindsight it was the right decision because pagdating sa March (at the onset of March), we saw a spike (in COVID infections). Now we are going back (down), so we are making that recommendation again,” he said.

About 5.2 million coronavirus vaccine doses have been administered as of May 30, with 1.2 million individuals fully vaccinated, according to the Health department. — Vann Marlo M. Villegas

Mines regulator proposes 3-5% royalties for mining operations outside reservations

THE MINES and Geosciences Bureau (MGB) said it supports a bill that would extract royalties for those mining outside designated mineral reservations.

At a hearing of the House Committee on Natural Resources Wednesday, MGB Director Wilfredo G. Moncano said that only those within mineral reservations currently pay mineral royalties of 5%.

“Those outside mineral reservation areas do not pay this 5%. These operations are about 75% (of the industry). There are more (miners) outside the mineral reservation areas that are not paying mineral royalties,” Mr. Moncano said.

Mr. Moncano said the royalties will be a readily-available source of added to the government.  

“We are proposing between 3-5% royalties for those outside the mineral reservation areas,” he added.

Rowena S. Sta. Clara, a representative from the Department of Finance (DoF), said during the hearing that the department also backs such a royalty scheme.  

“We are also proposing the imposition of mining royalties both inside and outside mineral reservation areas, applicable to metallic and non-metallic minerals in both small- and large-scale mines,” Ms. Sta. Clara said, noting that the DoF also backs a range of 3-5%, but implemented in phases.

“We propose that the first year be at 3%, the fourth year 4%, and the fifth year 5% for those outside mineral reservations,” Ms. Sta. Clara said.

On April 14, President Rodrigo R. Duterte signed Executive Order No. 130 that lifted the ban on new mineral agreements.

The government has said that 100 mining projects are in the pipeline, estimated to generate P21 billion in revenue which can be used to fund the government’s pandemic response.  

The MGB estimates that the value of metallic mineral output in the first quarter rose 14.11% to P28.91 billion.

Nickel ore and other nickel-by products accounted for 47.12% or P13.62 billion, followed by gold at 40.49% or P11.71 billion, copper 11.51% or P3.33 billion, and silver, chromite, and iron ore less than 1% or P254.92 million. — Revin Mikhael D. Ochave

Cavite extends deadline for Sangley bid documents

PHILSTAR

By Arjay L. Balinbin, Senior Reporter

CAVITE PROVINCE has extended by 45 days the deadline to buy bid documents for the Sangley Point International Airport project, citing the need to provide more time due to the quarantine.

“In view of the GCQ (general community quarantine) status with heightened restrictions for NCR (National Capital Region) Plus including the province of Cavite up to May 31, the deadline for the purchase of the RFP (request for proposals) and the registration of candidate joint venture partners is extended further by 45 days from May 14. The new deadline is June 28, 2021,” Cavite’s Public-Private Partnership Selection Committee Legal Officer Jesse R. Grepo told BusinessWorld by phone Monday.

He said the joint venture proposal and bid submission deadlines are also extended with the new deadlines to be announced later.

The province had initially targeted to sign the joint venture and development agreement by around July 1.

The responsibilities of Cavite’s joint venture partner include an equity investment and accessing debt financing.

The selected partner should also contract out or perform engineering, procurement, and construction services for the land and airport development components of the 1,500-hectare Sangley airport project.

Lucio C. Tan’s MacroAsia Corp. and its partner China Communications Construction Co. Ltd. negotiated with the province for the project last year, but the latter cancelled its notice of selection and award due to the “various deficiencies in the submission of requirements to conclude the joint venture agreement.”

Water franchise bills remove 12% cap on returns

PHILIPPINE STAR/GEREMY PINTOLO

THE PROPOSED franchises to be granted to the two water companies serving the National Capital Region will not cap the concession-holders’ returns at 12%, in contrast to their recently-signed revised water agreements with the government, a senior legislator said Wednesday.

“These bills as they currently stand contain no mention of this cap and may provide the concessionaires a means to earn more than that set by law and the Revised Concession Agreement,” Deputy Speaker Bernadette Herrera-Dy said in a statement.

She added that the prospective franchise holders must “prove” themselves to be “worthy,” after the bills regulating their proposed franchises were approved on second reading May 25. 

Ms. Herrera-Dy said Manila Water Co., Inc. and Maynilad Water Services, Inc., “must prove themselves worthy of a franchise as a public utility, answerable not to Congress but to the Filipino people.” 

She said the companies must meet the standards for public utilities, calling their services critical for the public.

“We must ensure that these franchises respect and retain these numerous safeguards of the Revised Concession Agreement and in fact I urge that these safeguards be implemented in future franchise agreements or renewals of water public utilities,” Ms. Herrera-Dy said.

“Should these concessionaires not win (franchises), then a company truly deserving of a franchise shall be issued one by Congress,” she added.

Manila Water and Maynilad signed their revised water concession contract with the government with the Metropolitan Waterworks and Sewerage System on March 31, 2021 and May 18, 2021, respectively. — Bianca Angelica D. Añago

Customs exceeds May target as collections top P49B

THE Bureau of Customs (BoC) exceeded its collection target in May by 6.6% after collecting P49.334 billion on the strength of a revised import valuation system, and improved volumes, the agency said in a statement Wednesday.

The preliminary collection total was also 60.4% higher year on year, with all the months of 2021 running above target.

“The BoC’s positive revenue collection performance is attributed to the improved valuation and volume of imports, and the intensified efforts of all the ports to prevent revenue leakage and collect all lawful revenues,” the agency said.

It said 12 out of 17 collection districts exceeded their collection targets for the month: the ports of Batangas, Cagayan de Oro, Clark, Davao, Iloilo, Legaspi, Manila, San Fernando, Subic, Surigao, Tacloban, and the Manila International Container Port.

Customs collected P249.79 billion in the first five months, 2.1% higher than its goal for the period and exceeding year-earlier levels by 18.7%.

The five-month revenue total is the equivalent of 40.5% of its P616.749-billion collection target for 2021. — Beatrice M. Laforga

FDA releases over 400 delayed drug approvals

REUTERS

THE Food and Drug Administration (FDA) released more than 400 drug applications after it was issued a show-cause order seeking an explanation for the delay by the Anti-Red Tape Authority (ARTA).

ARTA said that the FDA drug regulation center released 408 out of 412 automatic renewal applications, with four pending due to incomplete submissions or after re-routing to other FDA units.

An Ambica International Corp. application submitted in 2017 was approved on May 28, ARTA said in a statement Wednesday.

ARTA last month issued a show-cause order to the FDA for delays in processing 600 drug applications, requiring the drug regulation center to conduct an inventory of all pending permits, release pending applications, and submit a compliance report to ARTA.

Several pharmaceutical firms signed affidavits detailing delays on their applications submitted as far back as 2014.

“The (FDA) is now evaluating (the center for drug regulation’s) reply before recommending an appropriate action,” the agency said.

ARTA added that it is calling on the public to submit affidavit complaints on pending applications with government agencies. — Jenina P. Ibañez

IPOPHL signs partnership with Ateneo Law School

THE intellectual property (IP) office has entered into a partnership with Ateneo de Manila University’s law school to improve the IP skills of the law school’s student body.

The Intellectual Property Office of the Philippines (IPOPHL) will support the law school in seeking accreditation with the World IP Organization in promoting its programs to prospective international students.

Through an agreement signed on May 28, the two organizations plan to collaborate to ensure that Ateneo’s Master of Laws program and other professional programs “maintain an international standard of knowledge and skills relevant to global and local IP laws and trends,” IPOPHL said in a statement Wednesday.

IPOPHL plans to promote the graduate program to its government and private sector partners, and it will look into training its own personnel through the program.

In turn, Ateneo Law School will encourage students to take up an internship in IPOPHL, promote the agency’s training programs, and support IP-related research project. The school will also explore scholarship and grant options.

“It is such a privilege to join hands today with the Ateneo Law School and secure its commitment to help IPOPHL in its mandate of promoting IP as a tool for technological progress and economic growth,” IPOPHL Director General Rowel S. Barba said. — Jenina P. Ibañez

Fitch Solutions sees nickel supply increasing due to growth in Indonesian output 

FITCH SOLUTIONS said the supply of nickel is expected to rise because of  a 33% year-on-year increase in Indonesian output, and forecast prices to average $16,500 per ton this year.

In a report, Fitch Solutions said its previous forecast of $18,180 per ton was adjusted after prevailing year-to-date prices slipped below that level to about $17,382 per ton, as Indonesian production rose.

“We forecast Indonesian nickel metal production to experience 33.0% year-on-year growth in 2021, and Chinese nickel inventories at seven key ports have begun to show signs of increasing likely for the remainder of the year with domestic mining activity recovering at the end of the rainy season in the Philippines,” it said in the report.

Fitch Solutions said Chinese demand for nickel, used in stainless steel production, remains strong, with that country’s stainless steel output up 23.5% year on year in the first quarter.

In the Philippines, Fitch Solutions said nickel ore prices dropped between 11.5% and 21% from their March levels but were stable in May.

“(This is suggesting) looser demand dynamics, in combination with recovering mining activities following the end of the rainy season” in parts of the Philippines where the mineral is mined. Solid growth in demand in 2021 will keep the overall nickel market in deficit, pushing prices above the 2020 average of $13,860 per ton up to $16,500 per ton,” Fitch Solutions said.

Over the long term, Fitch Solutions said nickel prices are expected to rise gradually with the global supply-demand balance still negative.

“Nickel demand is expected to remain supported, particularly due to China, as the construction and autos industries continue to grow,” Fitch Solutions said.

“The rise in demand will exceed production growth in the short term, underpinning a prolonged deficit in the market, pushing prices higher. Rising prices will then incentivize smelters to ramp up output over the long term, pushing the market deficit back into balance,” it added.

Fitch Solutions said the electric vehicle market will also be a demand driver for nickel, adding that manufacturers are starting to use more nickel in batteries.

“We expect this trend to begin taking hold over the coming years as consumers favor electric vehicles with longer range between recharges, making nickel-based battery compositions the optimal choice for vehicle producers,” Fitch Solutions said.

Asked to comment, Nickel Asia Corp. Vice-President for Corporate Communications Jose Bayani D. Baylon said the projections are expected to have little impact on the company.

“Our targets are based on our long term mine plans, so they’re not affected by this report. Our sales volume has averaged around 18.7 million wet metric tons (WMT) in the last five years,” Mr. Baylon said.

“The Fitch report in general reflects our own positive outlook about our business — whether in the short medium or long term,” he added. — Revin Mikhael D. Ochave

House bill extending Bayanihan II validity wins 2nd reading approval

PHILIPPINE STAR/ MICHAEL VARCAS

HOUSE BILL 9538, which extends the validity of funds authorized by Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II), has been approved by the chamber on second reading.

The extension runs until the end of 2021. They had been due to expire on June 30. The law’s original spend-by date was Dec. 9, 2020, before the June extension was granted with the signing of RA 11519 in January.

Bayanihan II is a P165.5-billion economic stimulus measure seeking to aid sectors hit hardest by the coronavirus disease 2019 (COVID-19) pandemic.

P140 billion was sourced from general appropriations and the remaining P25.5 billion is contingent on fund availability.

 According to the Department of Budget and Management, as of April 15, 2021, only 51.1% of Bayanihan II funds have been obligated.

 The House of Representatives’ second regular session will go into sine die adjournment on June 4. — Bianca Angelica D. Añago

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