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AstraZeneca receives FDA approval for drug that reduces mortality risk and hospitalization in heart failure patients

Dapagliflozin has been approved by the Food and Drug Administration (FDA) to treat heart failure in adults with reduced ejection fraction (HFrEF) in the Philippines. 

The results of the trial showed that dapagliflozin adds to other guideline-recommended therapies in reducing the risk of mortality and heart failure hospitalization. It also improves symptoms in patients with HFrEF.

A total of 4,744 patients 22 to 94 years of age—with a mean age of 66.3 years—were randomized for the trial.  The benefit of dapagliflozin was found consistent in both older and younger patients.

“Patients with a history of recurrent urinary tract infection or genital infection should be careful [when taking dapagliflozin],” said Dr. David K. Sim, president of Singapore’s Heart Failure Society, in response to a question about the medication’s contraindications during a February 16 discussion organized by AstraZeneca Philippines. “We also need to remind patients that, if they’re going to have a procedure that requires fasting, they should stop taking the drug prior [to the procedure.]” He added that the effect of the medication on blood pressure is “quite minimal.”

HFrEF, also referred to as systolic heart failure, occurs when the heart muscle does not contract effectively, and therefore pumps out less oxygen-rich blood to the body. Heart failure, commonly called “pumapalyang puso,” occurs when the heart muscle doesn’t pump blood as well as it should. It affects approximately 64 million people worldwide, with half of patients dying within five years of diagnosis. 

“Together with the current standard of care, dapagliflozin will contribute further to lower mortality, less heart failure hospitalization and, most importantly, a better quality of life for the patients suffering from heart failure,” said Mr. Sim, adding that Singapore-based doctors have incorporated dapagliflozin in their treatment of HFrEF patients. 

“We start new patients on the drug early. We don’t wait six months or one year. Heart failure has a poor prognosis,” he said. “The faster you start the drug, [the better],” he said. Patients reported feeling and sleeping better within a month of taking the medication. Their biomarkers (characteristics of the body you can measure like blood pressure) also showed marked improvement.

Nine million people have heart failure in Southeast Asia, which has an overall 15% mortality rate. In the Philippines, more than one in every five deaths are caused by diseases of the heart, making it the number one leading cause of death, according to the Department of Health.

“To reduce the risk factors of heart failure, one should know what causes it, first of all,” said Dr. Erlyn P. Demerre, the chair of the Heart Failure Program at St. Luke’s Medical Center in Quezon City, at the February 16 event. “Hypertension is the top cause of heart failure.” Other conditions that cause heart failure are coronary artery disease (a disease that develops when the major blood vessels that supply your heart become damaged or diseased), diabetes, and obesity. 

Dapagliflozin is also indicated in adults with type two diabetes. Patients with type two diabetes have a more than 2.5-fold greater risk of developing heart failure than patients without diabetes. The prevalence of type two diabetes in patients with chronic heart failure is approximately 30%.

According to the US Food and Drug Administration, the side effects of dapagliflozin oral tablets are as follows: dehydration, serious urinary tract infections, and genital yeast infections. “Patients with kidney problems or low blood pressure are also subject for further medical assessment for their kidney function. Patients with signs and symptoms of metabolic acidosis or ketoacidosis (acid buildup in the blood) should also be assessed. Serious cases of necrotizing fasciitis of the perineum (Fournier’s Gangrene) have been reported in people with diabetes taking [the oral tablets],” the US FDA said in a news release.  — Patricia B. Mirasol

MetroPac Movers, Inc. begins construction of its Sta. Rosa logistics hub

MetroPac Movers, Inc. (MMI) recently began construction of a large-scale, co-located dry goods and cold storage facility in Sta. Rosa, Laguna, as part of a strategic pivot towards systems integration in the supply chain category.

Plans for the logistics hub were unveiled last February, as a response to local and regional demand for modern and secure supply chain solutions. MMI President and CEO Jose Ma. Lim notes that the logistics hub is poised to drive efficiencies for its clients in the private and public sectors. It will offer 41,000 pallets of ambient warehousing and 17,500 pallets of cold storage warehousing all on a single site and will be the most sophisticated logistics complex in the Philippines.

Located along the Sta. Rosa-Tagaytay Road, about two kilometers from the South Luzon Expressway, the hub will occupy a 52,000- square-meter site and is expected to generate 550 jobs in Laguna once it opens in the last quarter of 2021.

MetroPac Movers have designed the logistics hub at Sta. Rosa to offer specific solutions to the most common problems in supply chains in the Philippines. The logistics hub will offer 65 truck docks and will ensure the fastest truck turnaround times in the country. 100 CCTV cameras, access cards, and biometric technology along with word-class fire systems will ensure product security and safety.

Business continuity and sustainability is embedded in the design. The buildings and racking are fully seismic, backup generators ensure 100% power supply at all times, the refrigeration system has full redundancy, 2 leased fiber lines ensure fast internet connectivity and the lithium-ion powered materials handling fleet ensures the product is always accessible and moving.

The entire logistics hub will be powered by Blue Yonder Warehouse Management System – the industry-leading warehouse management platform. Both the ambient and cold storage warehouses will operate RF hand-held inventory control devices and ‘real-time’ inventory data will be accessible to all Sta. Rosa Hub customers online. Fast, accurate, and reliable inventory management is an absolute focus of the MMI Sta. Rosa logistics hub.

The ability to warehouse dry and refrigerated products on the same site with the same logistics service provider is convenient and cost-efficient for companies in the food business. The cold store at the Sta. Rosa hub will offer room temperatures of between +25 to -25 degrees C and will operate to the highest international standards. The entire logistics hub will be ISO- certified and will introduce a new level of supply chain excellence in the Philippines.

Sta. Rosa is the first of multiple large-scale hubs that MMI plans to build as it looks to bring a new level of professionalism to supply chains across the country. The succeeding hubs will be constructed in Metro Manila and North Luzon.

BusinessWorld Virtual Stock Market Roundtable

After crashing into a global recession brought by the unprecedented impacts of the coronavirus disease (COVID-19) pandemic, investors are optimistic that stock prices and corporate earnings will bounce back this year.

Yet, with the economic uncertainties during this global crisis, what are strategies for advisors and investors to position themselves in the event of an increase in volatility?

Join stock market experts on a discussion on the “Philippine Stock Market 2021 Recovery” in the first-ever BusinessWorld Virtual Stock Market Roundtable with speakers Michael Gerard Enriquez, Sun Life – Philippines chief investment officer; April Lynn Tan, COL Financial vice-president, head of research and chief equity strategist; JC Bisnar, Investagrams chief executive officer and co-founder; and moderator Leo Uy, BusinessWorld research head.

#BWVirtualStockMarketRoundtable​ is presented by BusinessWorld Publishing Corp.; with the support of Management Association of the Philippines, CFA Society – Philippines, Investagrams and The Philippine STAR.

Roxas Holdings, Inc. announces schedule for virtual stockholders’ meeting

Please be advised that the Annual Meeting of the Stockholders of ROXAS HOLDINGS, INC. for the year 2021 will be conducted by remote communication on Wednesday, 17th day of March 2021 at 10:00 a.m. (URL: https://asm2021.rhi.com.ph/).

Stockholders who are interested to participate in the proceedings may visit the above website, RHI’s website at https://www.roxasholdings.com.ph/ or check the Company’s disclosures via PSE Edge, for the requirements to register.

Should you have queries, kindly send an email to: corporatesecretary@rhi.com.ph.

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

NOTICE IS HEREBY GIVEN that the annual meeting of stockholders of ROXAS HOLDINGS, INC. will be conducted virtually via https://asm2021.rhi.com.ph/ on Wednesday, March 17, 2021, at 10:00 o’clock in the morning with the following Agenda:

  1. Call to Order
  2. Certification of Notice and Quorum
  3. Approval of the Minutes of the Annual Meeting of Stockholders held on June 4, 2020
  4. Presentation and Approval of the Annual Report to Stockholders
  5. Ratification of All Acts and Resolutions of the Board of Directors and Management
  6. lection of the Board of Directors
  7. Appointment of External Auditor and Fixing its Remuneration
  8. Other Matters
  9. Adjournment

The Board of Directors has fixed the close of business on January 8, 2021, as the Record Date for the determination of stockholders entitled to notice of and to vote at the Annual Meeting of Stockholders.

Given the current circumstances, stockholders may only attend the meeting by remote communication, by voting in absentia, or by appointing the Chairman of the meeting as proxy.

Duly accomplished proxies shall be submitted on or before March 5, 2021, to the Office of the Assistant Corporate Secretary at the 14F Net One Center, 26th St. cor. 3rd Avenue, Bonifacio Global City, Taguig, Metro Manila or by email to: corporatesecretary@rhi.com.ph. Validation of proxies is set for March 10, 2021, at 2:00 p.m.

Stockholders intending to participate by remote communication should notify the Corporation by email to corporatesecretary@rhi.com.ph on or before March 5, 2021.

Stockholders may vote electronically in absentia, subject to validation procedures.

The explanation on the Agenda items and the procedures for participating in the meeting through remote communication and for casting their votes in absentia are set forth in the Information Statement.

Copies of the Information Statement and Management Report, the Annual Report of the Company, and other pertinent documents necessary under the circumstances are available in the Company’s website and PSE Edge.

In compliance with the SEC Advisory dated May 6, 2015, a copy of the Interim Unaudited Financial Statements of the Company as of and for the quarter ended December 31, 2020, with Management Discussion and Analysis shall be posted in the website of the Company, as may be available under the SEC rules. A hard copy of the same Interim Unaudited Financial Statements will be provided to any requesting shareholder, free of charge, as soon as said Interim Unaudited Financial Statements becomes available.

(sgd.) AIMEE E. PEDAYO
Assistant Corporate Secretary

 

 

February 17, 2021

Gov’t to devolve P295B of projects

The 2022 national budget is expected to increase by 11% to P5 trillion. — PHILIPPINE STAR/MICHAEL VARCAS

By Beatrice M. Laforga, Reporter

THE BUDGET department has ordered agencies to prioritize the full devolution of certain local infrastructure projects next year to ensure continuous funding for big-ticket items.

A Supreme Court ruling that gives local governments a bigger share in national taxes will take effect in 2022.

Budget Undersecretary Laura B. Pascua told BusinessWorld a draft executive order (EO) that the economic team submitted to the Office of the President in January covers local projects worth P295 billion that can be devolved in 2022.

She said this move should prevent funds for new big-ticket infrastructure projects from being reduced under the 2022 national budget. However, these funds may still be affected by insertions during budget deliberations in Congress.

The Supreme Court (SC) ruling on the Mandanas case broadened the definition of “National Government income” eligible for distribution to local government units (LGUs) under the Internal Revenue Allotment (IRA) to include taxes collected by both the Bureaus of Internal Revenue (BIR) and Customs (BoC).

The case, Mandanas vs. Ochoa, takes its name from Hermilando I. Mandanas, a former governor and legislator from Batangas province. Mr. Mandanas in 2012 questioned the basis for determining the IRA pool, noting that LGUs were owed about P500 billion in arrears since 1992 due to a more restrictive definition of “National Government revenue.”

The government is shifting about P234.4 billion worth of programs and projects to LGUs for implementation next year to comply with the SC ruling.

“It should not (affect the budget of big-ticket infrastructure projects) if we had our way. One problem is that a lot of these small local projects in the DPWH (Department of Public Works and Highways) are Congress-initiated. So even if the Executive Branch removes them from the budget, they can bump off major projects when Congress puts back these local projects,” Ms. Pascua said via Viber on Feb. 5.

The Departments of Budget and Management (DBM), Interior and Local Government (DILG) and Finance (DoF), and the National Economic and Development Authority (NEDA) have endorsed the draft EO to the President, she added.

“We are asking the agencies with these devolved functions to no longer include these local projects in their budget proposals for 2022. Removing these from the agency budgets will fully cover the increased IRA in 2022 due to the Mandanas ruling,” Ms. Pascua said.

The biggest portion of small local projects scheduled to be devolved will be from the DPWH, according to the DBM.

The DPWH did not immediately respond to queries seeking comments.

However, DBM’s Ms. Pascua said ensuring budget allocation for priority infrastructure projects would still be in the hands of lawmakers.

“I suppose it boils down to an assessment by Congress of what projects are more advantageous for the government to pursue,” she said.

Senator Juan Edgardo M. Angara, who heads the finance committee, said big-ticket infrastructure projects that are “shovel-ready” would be the ones to be prioritized for funding next year.

“I was told there will be more devolution of government functions to the local government units along with the increased funding under the Mandanas ruling implementation so hopefully those big-ticket items are shovel-ready so to speak so they will remain priorities,” he said in a text message on Saturday.

Next year’s budget is expected to increase by 11% to P5 trillion from P4.5-trillion this year. The government is bent on completing, or kickstarting flagship infrastructure projects before the Duterte administration ends its six-year term on June 30, 2022.

The government’s list of priority projects that can be started or completed within the administration’s term has been revised several times, and includes 100 projects to date.

Duterte signs FIST into law

PRESIDENT Rodrigo R. Duterte on Tuesday signed the law allowing financial institutions to sell bad loans to asset management companies, according to Finance Secretary Carlos G. Dominguez III.

Republic Act No. 11523, otherwise known as the Financial Institutions Strategic Transfer (FIST) Act, creates specialized asset management firms that would acquire nonperforming assets from distressed financial institutions.

The law will take effect immediately after it is published in the Official Gazette and a newspaper of general circulation.

In December, Congress ratified the Bicameral Conference Committee report that reconciled Senate Bill No. 1849 and House Bill No. 6816.

The bill is one of the measures certified as urgent by Mr. Duterte.

Under FIST, there will be a mechanism that will allow banks or lending companies to monetize bad loans.

According to the central bank, the banking industry’s nonperforming loan (NPL) ratio reached 3.61% as of end-December. NPLs increased 74.8% to P391.657 billion by end-2020, from P224.1 billion in 2019.

The bill, seen as an improved version of the Special Purpose Vehicle Act of 2002 that was enacted in response to the Asian Financial Crisis, now covers lending companies and other institutions licensed by the Bangko Sentral ng Pilipinas. — Kyle Aristophere T. Atienza

Consumption seen to recover once quarantine restrictions eased

Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua on Monday evening urged the President to place the entire country under the most lenient form of community quarantine starting March 1 to revive the pandemic-hit economy. — PHILIPPINE STAR/MICHAEL VARCAS

CONSUMER SPENDING in the Philippines is likely to rebound this year when lockdown restrictions are gradually lifted and the coronavirus disease 2019 (COVID-19) vaccine rollout is implemented, Fitch Solutions Country Risk and Industry Research said.

This as President Rodrigo R. Duterte considers a National Economic and Development Authority (NEDA) proposal to further relax quarantine restrictions by March, his spokesperson said on Tuesday.

“This better outlook comes from expectations that there will be more jobs and better incomes, less quarantine restrictions and more businesses reopening,” Fitch Solutions said in a note on Tuesday.

Private consumption, which makes up 70% of the economy, slumped by 7.2% in the fourth quarter of 2020, as consumers remained cautious amid a steady rise in COVID-19 infections.

“If the government is able to effectively inoculate its population over 2021, while at the same time gradually lifting restrictions, we believe consumer confidence will rapidly return to optimism,” Fitch Solutions said.

This year, Fitch Solutions expects household spending to grow by 5.7%, mainly on the low base effect.

“Food and nonalcoholic drink spending was prioritized in household budgets in 2020, and so growth in spending on these items, while remaining positive, will be slightly lower than in 2021,” Fitch Solutions said, noting that it expects the segment to grow by 5.3% after a 9.3% drop in 2020.

On the other hand, growth in other consumer categories such as clothing and footwear spending (8.9%); alcoholic drinks and tobacco spending (10.4%); furnishing and home spending (12.7%); recreation and culture spending (7.3%); and restaurants and hotels spending (10.6%) are seen to grow faster after coming from a low base last year.

Aside from gradual easing of restrictions, consumer spending’s recovery would also be supported by government stimulus measures, including cash support for low-income families, Fitch Solutions said.

Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua on Monday evening urged the President to place the entire country under the most lenient modified general community quarantine (MGCQ) starting March 1 to revive the pandemic-hit economy.

“Given progress on the health side and no spike in COVID-19 cases from the reopening of the economy last October and the year-end holiday, ang recommendation po namin: Number one, we further open the economy to MGCQ for the entire Philippines, especially NCR (National Capital Region) starting March. And the main reason is gusto na po natin ma-mitigate or mabawasan ’yong sickness, hunger, poverty, job and income loss that are arising from non-COVID cases,” he said in a televised Cabinet meeting on Monday night.

If necessary, Mr. Chua said localized lockdowns should instead be implemented at the village level.

Mr. Chua said the Inter-Agency Task Force (IATF) approved in a Feb. 11 meeting the recommendations to shift to modified lockdown, to increase seating capacity in public transportation to 75% from 50%, and to expand the age group allowed to go out.

Presidential Spokesperson Herminio “Harry” L. Roque, Jr. said Mr. Duterte is studying the recommendation, which will be discussed in the next Cabinet meeting on Feb. 22.

“Pero dahil ito ay naging rekomendasyon na ng IATF, napag-usapan na ng cabinet officials na mga miyembro ng  IATF, talagang si Presidente ang nag-aaral kung tama na tayong magpunta sa MGCQ,” Mr. Roque said at a briefing on Tuesday.

Mr. Chua said the strict lockdown had led to income losses of P1.04 trillion in 2020, or an average of P2.8 billion a day, as businesses closed down.

He also pushed for the expansion of interprovincial buses’ operations and the establishment of bike lanes to complement a more active transport support.

Mr. Chua said the government could gradually allow persons between the ages of five and 70 to leave their homes, subject to guidelines by local authorities.

He said the government should balance the support it gives to coronavirus patients and to people who are experiencing hunger especially in the National Capital Region. This is why the economy needs to be reopened further, he added. — Kyle Aristophere T. Atienza and Luz Wendy T. Noble

Philippines’ sole newsprint manufacturer halts operations

By Jenina P. Ibañez, Reporter

THE COUNTRY’S sole newsprint manufacturer is looking to restart operations in the second half after it stopped production last year.

Trust International Paper Corp. (TIPCO) had let go of 258 direct employees in June 2020 when it stopped manufacturing operations due to pandemic-related constraints, TIPCO Chief Operating Officer Edgar Pataroque told the Tariff Commission at a public hearing on Tuesday.

Mr. Pataroque said the pandemic halted the industry’s recovery from the effects of import competition.

“The economic effect of this pandemic caused market demand to (become) severely depressed. Based on market experts’ projections, there will be very little market demand for the company’s products in the foreseeable future,” he said.

“Continued operations will no longer be viable. TIPCO made a very difficult decision of shutting down and closing all manufacturing operations.”

The government imposed safeguard duties on imports of newsprint from other countries after it found that increased imports had likely caused serious injury to the domestic sector.

The Safeguard Measures Act, or Republic Act No. 8800, allows domestic producers to ask the government to conduct an investigation into import competitors if they claim to have been injured by excessive imports.

The Trade department imposed a safeguard duty of P980 per metric ton of imported newsprint in 2015, lower than the Tariff Commission’s recommended P2,470 to protect downstream industries like local textbook companies. The duties were reduced to P800 and P640 in each of the succeeding two years.

TIPCO ran machinery upgrade and logistics improvement projects worth P231.1 million as part of its commitment to the government to adjust to import competition, but fell short of a P156-million pulper upgrade project.

Mr. Pataroque said the company delayed implementing this project because of the lower import duty. If the government had used the recommended duties, it could have generated around P150 million in funds, according to the company’s computations.

“The death of the industry could have been delayed or prevented if other government agencies upheld the advice of this honorable commission.”

Jovie Rivera, the legal counsel to the petitioner, said that the industry was not able to access the Trade Remedies Fund, which could have helped the company compete. The Safeguard Measures Act earmarks part of funds generated from duties to assist industries affected by increased imports in improving competitiveness.

The company still legally exists, Mr. Pataroque said, although operations have been shut down.

“We want to be flexible, so right now we’re looking at renting out our warehouse and even renting out some of our facilities to other interested parties. But we’re still exploring,” he said.

“Hopefully if the market improves towards the second half of 2021 or even early part of 2022 — if the market improves or if there’s opportunity for us to get back into the game, we would definitely want to go back and manufacture.”

Demand for newsprint is still down, he said, but added that TIPCO is looking for potential opportunities from the shut down of other paper mills.

Although smaller than anticipated, Mr. Pataroque said the previous duties caused foreign mills to defer exporting products to the Philippines.

“It did not totally stop. There was lesser export from the foreign mills to the country,” he said, adding that weak demand for newsprint in other countries could compel foreign mills to send excess products to the Philippines.

Olivia T. Marasigan from the Trade department’s Bureau of Import Services asked TIPCO to submit a formal query on the trade remedies fund so the government can address the concern.

MIAA can upgrade airport on its own, says Transport dep’t

THE MANILA International Airport Authority (MIAA) can rehabilitate the Ninoy Aquino International Airport (NAIA) on its own, after completing the upgrade of airside facilities, the Transport department said.

“The upgraded NAIA airside facilities show that MIAA can pursue development projects at the gateway on its own,” the Department of Transportation (DoTr) said in a statement.

The NAIA’s upgraded airside facilities were inaugurated on Tuesday.

“The MIAA is confident that when additional airside related projects are completed within the years 2021 and 2022, it can, on its own, achieve the goal of 60 commercial flight movements per hour,” the DoTr said.

“This is a more practical approach, rather than waiting and being dependent on the unsolicited proposal’s approval,” it added.

Manila’s main airport has been operating beyond its 30.5 million passenger capacity, handling 45.3 million passengers in 2018, 42 million in 2017 and 39.5 million in 2016.

The MIAA board had revoked the P109-billion NAIA rehabilitation project proposed by Megawide Construction Corp. and its foreign partner GMR Infrastructure Ltd. It also rejected the appeal filed by the Megawide-GMR tandem.

Transportation Secretary Arthur P. Tugade said MIAA General Manager Ed V. Monreal had spearheaded improvements at the NAIA terminals even before any talks of unsolicited proposals.

“Nagpapakita lang na walang hinto, pandemic or not, walang hinto ang pagbabago dito sa NAIA (This shows there’s no stop, pandemic or not, there’s no stopping changes at the NAIA,” he said during the event. — Arjay L. Balinbin

Jollibee-Yoshinoya joint venture targets to open 50 stores in the Philippines

JOLLIBEE Foods Corp. has teamed up with Yoshinoya International Philippines, Inc. to operate and expand the Japanese restaurant chain in the country.

On Tuesday, Jollibee disclosed to the exchange that the two will establish a 50/50 joint venture, which will be the Philippine franchisee of Yoshinoya.

The partners plan to put up an additional 50 stores of the Japanese beef bowl business in the Philippines, a jump from Yoshinoya’s three operating stores.

The three stores were handled by Yoshinoya, the local subsidiary of Asia Yoshinoya International SDN BHD and Yoshinoya Holdings Co. Ltd., which is the trademark owner of the Yoshinoya System.

“We are very pleased to enter this joint venture with the largest food service company in the Philippines. Jollibee will certainly have a significant positive impact on Yoshinoya’s business in the country, with its extensive consumer knowledge, operational focus and presence in the Philippines,” Yoshinoya Holdings Co. Ltd. President and CEO Yasutaka Kawamura said in a statement.

“This partnership presents us a great opportunity to increase the potential growth of Yoshinoya in the Philippines,” the official added.

Jollibee Chairman Tony Tan Caktiong described the venture as a “long-term” partnership.

Yoshinoya, which has more than 2,000 stores worldwide, is the latest addition to the company’s global franchised brands, which includes Burger King, PHO 24, and Panda Express.

Jollibee said it sees growth potential through the foreign brand’s delivery services. Yoshinoya will be its first Japanese food chain.

“[Jollibee] will benefit from Yoshinoya’s experience and know-how in Japanese cuisine,” Mr. Tan Caktiong said, adding that the Philippines remains the company’s “most important market.”

“Yoshinoya will be a strong addition to our presence in the country. I am confident that this is the beginning of a long-term and much larger partnership,” he added.

Jollibee shares at the stock exchange declined by 0.28% on Tuesday to end at P179 apiece. — K. C. G. Valmonte

Travel ban pushes back target commercial run of Dinginin power plant — AboitizPower chief

By Angelica Y. Yang

THE target commercial operations of the 1,336-megawatt (MW) supercritical coal-fired power plant of GNPower Dinginin Ltd. Co. have been pushed back due to construction delays caused by travel restrictions, the top official of Aboitiz Power Corp. said.

“The earliest plausible commercial operations dates for Units 1 and 2 are expected to be on June 26, 2021 and November 26, 2021, respectively, only if plans happen right on schedule, with no allowance for construction delays,” AboitizPower President and Chief Executive Officer Emmanuel V. Rubio told BusinessWorld in an e-mailed response on Monday.

GNPower Dinginin in Mariveles, Bataan is a joint venture of AC Energy, Inc., Aboitiz Power Corp. subsidiary Therma Power, Inc. and Power Partners Ltd. Co. The plant’s two units have an identical capacity of 668 MW each.

“[GNPower Dinginin] is in the final stages of construction, but continues to face challenges due to the pandemic. There has been an improvement in terms of schedule performance in the recent months, but personnel and materials movement and availability are still impacted by the travel restrictions, thus affecting our timelines,” Mr. Rubio said.

He said that if there would be more delays, units 1 and 2 would begin their commercial runs on Aug. 26, 2021 and Jan. 26, 2022, respectively.

The new schedule comes three months after AboitizPower announced that the two units of the GNPD would start their commercial run around the middle of 2021.

In an earlier statement, the firm said that the first unit of the GNPower Dinginin was scheduled to “synchronize with the grid by the end of 2020 and start operating by the second quarter of 2021.” It added that its second unit was scheduled to “start operating commercially by the third quarter this year.”

According to the Department of Energy’s list of committed private sector-initiated projects in Luzon as of end-December, construction of the plant is underway, with around 5,060 jobs created due to the project.

The department added that “technical and construction-related matters have been encountered and dealt with, as normal, during the construction phase” of the plant.

Shares in AboitizPower inched down 0.19% or 0.05 centavos to close at P26.25 apiece on Tuesday.

Ayala unit sells Manila Water shares to Razon

A SUBSIDIARY of Ayala Corp. has agreed to sell its preferred shares in Manila Water Co., Inc. to Trident Water Co. Holdings, Inc. as control over the water concessionaire continues to shift.

In a regulatory filing on Tuesday, Ayala Corp. said its wholly owned unit Philwater Holdings Co., Inc. executed a share purchase agreement on Feb. 15, which sold 2.69 billion of its preferred shares in Manila Water to Trident Water owned by Enrique K. Razon, Jr.

The company said the preferred shares are equivalent to a 39.09% voting stake and 8.19% economic stake in Manila Water.

According to the disclosure, the purchase price of the preferred shares was at P1.80 per share, equivalent to a total of P4.84 billion.

“The payment terms are as follows: P100 million payable on or before three business days from signing; P2.37 billion payable on or before 4 years from the execution of the share purchase agreement; and the remaining balance of P2.37 billion payable on or before 5 years from the execution of the share purchase agreement,” the disclosure said.

Ayala Corp. said the rights and title to the shares, excluding voting rights covered by the proxies, which are to be executed upon the execution of the shareholders’ agreement, will not be transferred until all payments are finished.

“Dividends earned by the preferred shares shall continue to be for the account of Philwater until full payment has been made,” the disclosure said.

In February last year, Mr. Razon bought a 25% stake in Manila Water in a deal amounting to P10.7 billion. The transaction also signified that Trident Water had 51% of the voting rights in Manila Water.

On Tuesday, Ayala Corp. shares at the stock exchange rose 1.34% or P10.50 to finish at P793 apiece. — Revin Mikhael D. Ochave

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