FDA OK´s ivermectin use vs worm

May 7, 2021 | 8:50 pm

The local Food and Drug Administration (FDA) has approved the use of ivermectin by humans against a certain type of parasitic worm.

The certificate pf product registration paves the way for the drug to be sold commercially, FDA Director-General Rolando Enrique G. Domingo told an online news briefing on Wednesday.

Lloyd Laboratories applied for the certificate for locally manufactured ivermectin as a drug against roundworm, he said. It was approved after the company submitted data on the quality and stability of the product.

Some doctors and politicians have been pushing for the use of ivermectin as a treatment for the coronavirus.

The Health department earlier said there was insufficient evidence to recommend the use of ivermectin against COVID-19. It added that only hospitals given a compassionate special permit could distribute the drug. —
Vann Marlo M. Villegas

Duterte backs out of debate on China

May 7, 2021 | 8:48 pm

Duterte-PCOO — PRESIDENTIAL PHOTO/ KING RODRIGUEZ

President Rodrigo R. Duterte has backed out of a debate with a critic of his China policy and asked his spokesman to represent him instead.

The President heeded the advice of Cabinet members and two senators not to proceed with the debate because nothing good would come out of it, presidential spokesman Herminio L. Roque, Jr. told a televised news briefing on Friday.

Mr. Duterte earlier dared retired Supreme Court Justice Antonio T. Carpio, who has criticized him for failing to stop China´s militarization of the South China Sea, to a debate.

Mr. Roque said said it would not be fair to the President to debate with Mr. Carpio, who is now just an ordinary citizen.

He said the Philippine Bar Association, which volunteered to host the debate, should tell the time and venue and he would be there.

Mr. Duterte on Wednesday night belittled the country’s 2016 legal victory against China, saying an international tribunal’s decision rejecting China’s claim to more than 80% of the South China Sea was just a piece of paper that could end up in a trash bin.

He also challenged Mr. Carpio, a critic of the government’s response in the South China Sea, to a debate on the issue. The retired justice accepted the challenge. — Vann Marlo M. Villegas

Gov´t asked to fast-track probe of killings

May 7, 2021 | 8:46 pm

Human rights activists on Friday asked the Justice department and Supreme Court to hasten the probe of activist killings.

“Two months is too long. This is discouraging for relatives,” Karapatan Secretary General Cristina Palabay said at an online news briefing on Friday. “Lives and security are at stake here,” she added.

Two months have passed since almost a dozen activists were killed in a police raid in Southern Luzon.

Ms. Palabay asked Justice Secretary Menardo I. Guevarra to fulfill his promise before the United Nations Human Rights Council in February to look into the killings.

She added that Mr. Guevarra had offered to protect the relatives of slain activists, but they were not comfortable and “would rather seek protection elsewhere.”

Defend-Southern Tagalog Spokesperson Charm Maranan also called on Chief Justice Alexander G. Gesmundo to look into the “factory of warrants” to stop the unjustified killings and arrests of activists.

The activists said four more activists had been arrested in the provinces of Rizal and Quezon, and three others in the Bicol region. Families were allegedly “held at gunpoint” while law enforcers planted evidence of illegal gun possession.

In March, the high court said it would issue a rule that would require the police to use body cameras when serving warrants.

Meanwhile, government agents arrested five people in Cebu City for operating an abortion clinic.
In a report, the National Bureau of Investigation (NBI) said the suspects were offering abortion services online for P9,500 to P30,000.

They were arrested in different locations through an entrapment operation, where an NBI agent posed as an abortion customer.

The suspects are facing charges of violating the law against “ntentional abortion and conspiracy” and the Cybercrime Prevention Act of 2012. — Bianca Angelica D. Anago

Senator seeks import probe

May 7, 2021 | 8:44 pm

Hogs-Pigs-Swine-Philstar — PHILIPPINE STAR/ MICHAEL VARCAS

A senator has sought an investigation of the importation of goods at lower tariffs.

Senator Imee Marcos lauded the compromise on the tariff for pork imports but said all minimum access volume (MAV) or imports subject to lower tariff, should be probed.

“The MAV issue doesn’t stop there because our agricultural industry continues to struggle,” she said in a statement. “It seems we are still forced to import all kinds of basic commodities.”

“Let us use this opportunity to fix the country’s twisted system of food importation — whether it’s rice or corn, pork, chicken, fish, sugar, vegetables, X’mas goodies, or fruits,” Ms. Marcos said.

“There’s no end to racketeering, it’s exasperating. Despite the entry of pests and disease, we still haven’t learned our lesson,” she added.

The Finance department has agreed to change an executive order that cut the tariff for pork imports after the Senate and the country’s economic managers reached a compromise on the issue, Senate President Vicente C. Sotto III said on Wednesday.

Mr. Sotto said they agreed to place the cap on the minimum access volume for pork imports at 254,000 metric tons (MT).

He said they also agreed to set the tariff on pork imports under the MAV quota at 10% for the first three months, and increase it to 15% in the succeeding nine months.

Under EO 128 signed by President Rodrigo R. Duterte in April, the original 30% tariff rate of the pork imports under the MAV quota would be cut to 5% in the first three months and will be raised to 10% for the succeeding nine months. — VMMV

Shares decline on latest jobs data, pandemic concerns

May 7, 2021 | 8:02 pm

042321-PSEi-Closing — Philippine Stock Exchange index

Philippine shares closed the week in the red after data showed that the country’s unemployment rate went down in March and as the country’s pandemic situation continue to cloud investor sentiment.

The Philippine Stock Exchange index (PSEi) went down by 24.07 points or 0.38% to close at 6,258.71 on Friday, while the all shares index decreased by 2.22 points or 0.05% to finish at 3,877.43.

“Philippine shares closed lower as investors focused their attention on the highly anticipated jobs data, while fund managers continued to assess the new set of earnings that came out,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The preliminary results of the Philippine Statistics Authority’s Labor Force Survey for March this year showed that around 3.441 million Filipinos are unemployed, lower than the 4.187 million recorded in February.

The country’s unemployment rate for the month was at 7.1%, the lowest since the 5.3% seen in January last year.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the decline “[reflects] investors’ declining confidence towards the market amid the pandemic and economic concerns.”

“Investors continue to worry about the pace and the strength of our economic recovery due to the setbacks brought by the pandemic and the consequent strict quarantine measures reimposed in the NCR Plus,” Mr. Tantiangco said, referring to the National Capital Region and nearby provinces.

“Tailwinds that can boost sentiment remain missing,” Mr. Tantiangco said. in a Viber message.

Sectoral indices remained split on Friday. Mining and oil gained 136.89 points or 1.44% to 9,588.36; services climbed 18.98 points or 1.33% to 1,444.40; and industrials improved by 18.37 points or 0.21% to end at 8,628.65.

Meanwhile, property declined by 29.98 points or 0.97% to 3,044.26; holding firms fell by 42.47 points or 0.67% to close at 6,226.53; and financials inched down by 7.44 points or 0.53% to 1,390.35.

Value turnover went down to P4.66 billion on Friday with 2.10 billion shares traded, from the P5.28 billion seen the previous trading day with 13.84 shares switching hands.

Decliners narrowly outnumbered advancers, 106 to 104, while 35 names closed unchanged.

Net foreign selling increased to P637.59 million on Friday from the P460.67 million seen in net outflows recorded on Thursday. — Keren Concepcion G. Valmonte

Factory output slumps for 13^th straight month

May 7, 2021 | 7:41 pm

electronics-employees-coronavirus-042020 — CHINA DAILY VIA REUTERS

Philippine factory output extended its losing streak to 13 months in March, according to the local statistics agency.

The output as measured by the volume of production index fell by 73.4% year on year in March, worse than the 43.3% drop in February and 20.4% decline a year earlier.

The March drop marked the steepest in seven months.

The index has been on a steady decline since March last year, when President Rodrigo R. Duterte locked down the entire Luzon island to contain a coronavirus pandemic.

The average drop in the first three months of the year averaged 43.6% compared with a 7.9% slump a year earlier.

The Philippine Statistics Authority said five out of 22 industry divisions slumped, offsetting the gains made in other subsectors.

Of the five that contracted, four were in double digits led by the manufacture of coke and refined petroleum products (-97.3%), tobacco products (-45.4%), machinery and equipment except electrical (-39.3%) and basic pharmaceutical products and preparations (-28%).

Capacity use averaged 61% in March, up from 60.4% in February. Of the 22 sectors, 17 had an average capacity use of at least 50%.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI), which uses a different set of parameters, posted a 52.2 reading in March, above the neutral 50 mark that separates expansion from contraction. But this was down from 52.5 in February.

“The ongoing lockdowns, partial or otherwise, accompanied by the steep decline in economic activity and demand from the domestic market remains the main reason for the downtrend experienced by the sector,” ING Bank NV Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

“On top of the lack of demand, industries are constantly asked to shutter and to reopen whenever the country is moved into and out of community quarantine status, which also complicates the planning and production process for the sector.”

The country has been under various levels of lockdown since mid-March last year to curb COVID-19.

From March 29 to April 11 this year, Metro Manila and the provinces of Bulacan, Cavite, Laguna and Rizal were placed under the strictest quarantine level. These are now under a more relaxed modified enhanced community quarantine until May 14.

“I do not expect a stark pickup in manufacturing activity outside a possible bounce due to base effects,” Mr. Mapa said. “Overall growth momentum is lacking and the Philippine economy continues to hobble down a lower growth trajectory.”

Manufacturing was among the top contributors to economic growth in the past few years based on the national accounts.

The same could be said about the revised 9.6% drop in economic output last year, when the sector caused a 1.83 point drop, second only to a 2-point drop caused by a construction slump. — AMPY

Exports spur Philippine foreign trade rebound

May 7, 2021 | 7:36 pm

The country´s trade-in-goods deficit narrowed in March as exports grew at the fastest pace in a decade, the Philippine Statistics Authority reported on Friday.

Merchandise exports avanced by 31.6% to $6.68 billion after dropping by 1.5% in February, according to preliminary data.

The export tally for March was bigger than $5.35 billion a month earlier and $5.08 a year ago.

Meanwhile, merchandise imports expanded by 16.6% to $9.10 billion in March, higher than the 8.9% growth in the previous month.

March export growth was the fastest since 46.8% in September 2010, while import growth was the fastest since 26.2% in October 2018.

This brought the trade deficit to $2.41 billion in March, smaller than the $2.71-billion gap in February, as well as the $2.73-billion shortfall in March last year.

Year to date, exports have increased by 7.6% to $17.56 billion compared with the Development Budget Coordination Committee’s (DBCC) projection of a 5% growth for the year.

Imports also have grown by 3.2% to $25.56 billion this year from $24.76 billion a year earlier. This was still below DBCC’s 8% target this year.

To date, the trade balance has hit an $8-billion deficit, narrower than last year’s deficit of $8.45 billion.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. traced the numbers to base effects.

“The reopening of the economy in these first months of 2021 was also a clear factor as more people were out and businesses were open for more economic activity,” he said in an e-mail. “Corporate demand for imports and other inputs was also observed during this first quarter,”

Nicholas Antonio T. Mapa, a senior economist atING Bank N.V. Manila, cited the “strong showing” of the mainstay electronics sector in driving export growth this year.

“Demand for electronics and subcomponents will likely remain high given the global chip shortage — a development that could bode well for this sector in the coming months,” he said.

Danilo C. Lachica, president of the Semiconductor and Electronics Industries in the Philippines, Inc. said global demand for electronic products has continued to increase despite a global coronavirus pandemic.

“The electronics industry directly accounts for about 10% of the country’s gross domestic product,” he said In an e-mail. “If we consider the secondary effects of the industry’s supply chain, the total impact is about 20% of our GDP.”

Electronic products, which made up more than half of total exports in March, increased by a quarter to $3.60 billion. Semiconductors, which account for more than three-fourths of electronic products, also grew by 21.3% to $2.73 billion.

Manufactured goods, which include electronic products, rose by 36.3% year on year to $5.57 billion. These items made up 83.3% of total goods exported during the month.

“We expect the base effect-induced expansion for both exports and imports to continue in the coming months, with the Philippine economy relatively more open in 2021 compared with last year,” Mr. Mapa said.

“Demand for electronics components given the global chip shortage may also help lift demand for the export sector,” he added.

UnionBank’s Mr. Asuncion said the state´s ability to hit export and import targets would depend on a bigger reopening of the economy, more fiscal stimulus spending and an efficient vaccination program.

He added that the March trade figures bode well for first-quarter economic performance, but it may not be enough to push growth.

The trade momentum would likely have been sustained in April, though imports probably softened after a tighter lockdown, Robert Dan J. Roces, chief economist at Security Bank Corp. said in an e-mail.

Rising imports after the economy is reopened would boost the trade deficit and likely lead to a weaker peso, he said. “We think that the government targets this year for exports and imports at 5% and 8% are attainable.” — Lourdes O. Pilar

Central bank raises P100 billion at auction

May 7, 2021 | 7:34 pm

The Philippine central bank raised P100 billion from short-term securities it sold at an auction on Friday as rates fell due to easing inflation.

The Bangko Sentral ng Pilipinas (BSP) fully awarded the 28-day bills after getting P116.024 billion in bids. But the demand was 23% smaller than the P151.5 billion at last week´s auction.

The debt paper fetched an average 1.783%, down by 2.2 basis points from 1.805% last week.

Yields sought by banks ranged from 1.77% to 1.8%, lower than 1.79-1.82% last week.

“The results of the BSP bill auction continue to show that market conditions remain normal amid ample liquidity in the financial system,” central bank Deputy Governor Francisco G. Dakila, Jr. said.

“Moving forward, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments.”

The central bank uses the short-term bills and term deposit facility to mop up excess liquidity in the system and guide short-term interest rates.

Easing prices of goods and services may have pulled down the rates, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

Inflation quickened to 4.5% in April, same as in March but faster than 2.2% a year earlier. This marked the fourth straight month that inflation exceeded the annual 2-4% target of the central bank.

Last month’s inflation was lower than the median 4.7% in an analyst poll by BusinessWorld last week. It was within the BSP’s 4.2-5% estimate.

The final pork tariff rates that the economic team and senators agreed upon earlier this week may have also helped pull down rates, Mr. Ricafort said.

The move to increase the minimum access volume and lower tariffs for pork imports aims to temper rising meat prices.

Offshore, lower US Treasury bond rates also contributed to easing local bond yields, Mr. Ricafort said.

The rate of the benchmark 10-year Treasury note fell to 1.58% on Thursday from 1.63% at the start of the week.

Meralco power rates to increase in May

May 7, 2021 | 7:29 pm

Linemen-Meralco — PHILIPPINE STAR/MICHAEL VARCAS

POWER rates in the Manila Electric Co. (Meralco) service area are expected to rise in May with the typical household expected to pay an additional P37 on its monthly bill, the first to not include the refunds for over-recoveries in transmission and other charges, Meralco said.

Meralco said in a statement Friday that the overall power rate for May is P8.5920 per kilowatt-hour (kWh), against P8.4067 per kWh in April.

The May rate is also lower than the year-earlier level of P8.7468 per kWh.

The typical household is defined as one that consumes 200 kWh.

It added that households consuming 300 kWh, 400 kWh, and 500 kWh will see their bills increase by P55, P73, and P90, respectively.

According to the distribution utility, the increase was due to the completion of the refund of over-recoveries in pass-through charges ordered by the Energy Regulatory Commission (ERC).

The ERC released an order on Dec. 29 directing Meralco to refund P1.4 billion worth of over-recoveries in transmission and other charges.

“Meralco implemented the ERC-approved adjustments starting January 2021 and completed the refund of over-recoveries in April. The impact on residential customers, from the months of January to April 2021, was a refund of around P0.15 per kWh,” the power distributor said.

Meralco said the generation charge for May also increased to P4.5474 per kWh from P4.5370 per kWh in the previous month.

This is due to the P0.2541 per kWh increase in the agreed power rates as a result of low dispatch levels from the San Gabriel combined cycle natural gas-fired plant in Batangas, operated by First Gen Corp., which committed the plant’s full capacity for six years starting 2018.

Wholesale Electricity Spot Market (WESM) charges also stayed high due to tight supply on the Luzon grid.

“However, these were offset by lower charges from the Independent Power Producers which decreased by P0.1921 per kWh,” Meralco said.

“Power supply agreements provided 52% of Meralco’s energy requirement while WESM share was down to 7% this month. Independent power producers share this month was 41%,” it added.

Meralco said the transmission charge for residential customers also rose by P0.0933 per kWh as a result of higher ancillary service charges and with the end of the refunds, while a net increase of P0.0816 per kWh was recorded from taxes and other charges.

“Meanwhile, collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC,” Meralco said.

However, Meralco said the increase in May power rates was mitigated by the ongoing P13.89 billion refund ordered by the ERC, based on the actual weighted average tariffs compared to the interim average rate for distribution-related charges from July 2015 to November 2020.

In February, the ERC directed Meralco to refund that amount, which is equivalent to P0.1528 per kWh, over 24 months or until the total is fully given back to customers.

Last month, a consortium made up of Meralco Power Gen, a subsidiary of Meralco; Aboitiz Power Corp.; and Taiwan Cogeneration International Corp., said it will not be pursuing the development of a planned 600-megawatt (MW) coal-fired plant in Subic, Zambales. The consortium is known as Redondo Peninsula (RP) Energy Inc.

Asked to comment, Meralco Head of Utility Economics Lawrence S. Fernandez said the cancellation of the RP Energy project will not affect the power supply.

“As I see it, there is no direct impact on Meralco’s supply portfolio. We don’t have a power supply agreement with Redondo,” he said during a virtual Friday briefing on the company’s power rates.

Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by 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

Metro Manila hog deliveries approaching 390,000

May 7, 2021 | 7:26 pm

HOG deliveries to Metro Manila from various parts of the country are nearing 390,000 animals as the authorities seek to expand the pork supply to head off an inflation crisis, the Department of Agriculture (DA) said.

The DA said in a report that an additional 4,731 hogs were delivered to Metro Manila on May 6, which brought the total delivered supply to 388,367 hogs since the implementation of price controls via Executive Order (EO) No. 124 issued on Feb. 8.

Of the total, 1,570 hogs were sourced from Antique, Iloilo, and Negros Occidental; followed by 1,420 hogs from Batangas; and 692 from Oriental Mindoro and Marinduque.

Other areas that provided hogs were Sorsogon and Camarines Sur with 531; Zamboanga del Sur 250; Bukidnon and Misamis Oriental 245; and Tarlac 23 hogs.

Since Feb. 8, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) accounted for 41.3% of the hog shipments to Metro Manila, followed by Western Visayas with 21.3%, and Mimaropa (Mindoro, Marinduque, Romblon, and Palawan) 12.6%.

The DA said 28,203 kilograms of pork in carcass form also arrived in Metro Manila on May 6 which brought total deliveries to 2.69 million kilogram since Feb. 8. Majority of the carcasses were sourced from Central Luzon.

Earlier in the year, the DA projected a pork supply deficit of 400,000 metric tons (MT) as a result of the African Swine Fever (ASF) outbreak.

The price caps were lifted on April 8. The price ceilings for pork shoulder (kasim) were set at P270 per kilogram (/kg) pork belly (liempo) P300/kg, and whole chicken P160/kg.

Instead, the DA implemented a suggested retail price (SRP) for imported kasim of P270 /kg, with imported liempo at P350/kg.

Recently, the Senate and the economic team of President Rodrigo R. Duterte reached a compromise on the recommended amendments to EO 128, which had lowered the tariffs on imported pork in a bid to increase supply.

Under the compromise, the tariffs for pork imports inside the minimum access volume (MAV) quota were to be set at 10% in the first three months and up to 15% in the following nine months.

Out-of-quota pork import tariffs were also recommended to be set at 20% for the first three months and 25% in the succeeding nine months.

MAV refers to agricultural commodities that can be imported at lower tariffs under the World Trade Organization (WTO) trading system.

The original terms of EO 128, issued on April 7, had reduced the tariff rates for pork imports within the MAV quota to 5% in the first three months and to 10% in the following nine months. Out-of-quota pork imports were to be charged 15% and 20% over those periods, respectively.

Before the issuance of the EO, in-quota pork imports paid 30% tariff while out-of-quota pork imports paid 40%.

Also part of the compromise was the reduction of the expanded MAV import quota to an additional 254,210 metric tons (MT), from the 404,000 MT previously recommended by Mr. Duterte to Congress. — Revin Mikhael D. Ochave

Globe income rises 11% on lower non-operating charges, CREATE law

May 7, 2021 | 7:23 pm

Globe Telecom, Inc. announced on Friday an 11% increase in its first-quarter attributable net income, owing to a newly signed tax relief law and a decrease in non-operating charges.

Globe’s attributable net income reached P7.31 billion in the first three months, up from P6.58 billion in the same period in 2020, the Ayala-led telco said in a statement to the stock exchange.

“Despite the resurgence of COVID-19 (coronavirus disease 2019) cases in the country and the lingering uncertainties from the pandemic, we are encouraged by the improvements in Globe’s first quarter results,” Globe President and Chief Executive Officer Ernest L. Cu said.

“Looking ahead, we believe that Globe is well positioned to provide more digital solutions and innovative offers to make our services more relevant to our valued customers, especially during this time of crisis,” he added.

The company’s total revenues for the first quarter rose 4% to P42.85 billion from P41.19 billion in the same period in 2020. Service revenues — which include mobile, home broadband, corporate data, and fixed line voice — increased 2.5% to P37.81 billion from P36.88 billion previously.

Expenses increased 14.1% to P35.77 billion from P31.36 billion previously. This item covers general, selling and administrative expenses; depreciation and amortization; cost of inventories sold; interconnect costs; finance costs; and impairment losses.

Globe said its net income was “up 11% relative to the same period of 2020, as the decline in non-operating charges fully offset the hike in depreciation expenses.” Non-operating charges dropped 41.18% to P1.29 billion from P2.2 billion previously.

The company’s first-quarter operating costs, including subsidy and depreciation charges, stood at P28.7 billion, up 15% versus the first quarter of last year. Globe also said the higher equity share in net income of its affiliates resulted in lower non-operating expenses.

The lower taxes following the retroactive impact of Republic Act No. 11534 or the Corporate Recovery and Tax Incentives (CREATE) law resulted in the improvement in Globe’s after-tax income to P7.34 billion from P6.58 billion previously. The recently implemented law reduced the income tax rate to 25% from 30%.

“Excluding the impact of CREATE adjustment, normalized NIAT (net income after tax) would have been P5.0 billion, or 27% lower year on year,” Globe noted. At an online briefing, Globe Chief Finance Officer Rizza Maniego-Eala said the company saved “P330 million” in the first quarter because of the CREATE law. “That is positive for the company to help us reinvest in our massive network buildout throughout the country,” she said.

“Our capex (capital expenditure) for this year is P70 billion, with P19 billion spent in the first quarter,” she also noted.

Globe’s EBITDA (earnings before interest, taxes, depreciation and amortization) was P18.3 billion, down 11% year on year due to higher operating expenses.

“This led to weaker EBITDA margin to end the quarter at 48% from 56% a year earlier,” it noted.

The company’s first-quarter core net income, which excludes the impact of non- recurring charges, and foreign exchange and mark-to-market charges, increased 13.4% to P7.44 billion from P6.56 billion in the same period in 2020.

Globe Telecom shares closed 1.16% higher at P1,831 apiece on Friday. — Arjay L. Balinbin

PSALM: ‘winning’ negotiator offers P3B for Malaya power plant

May 7, 2021 | 7:20 pm

State-led Power Sector Assets and Liabilities Management Corp. (PSALM) has declared Fort Pilar Energy Inc. as the winning entity in the negotiated sale of the government’s 650-megawatt (MW) Malaya thermal power plant in Rizal province.

In a statement on Friday, PSALM said Fort Pilar Energy submitted the highest offer at P3,123,500,000, which exceeded the minimum offer price of P1,845,222,000 set by the agency’s board of directors.

It described the privatization of the power plant as “a success.” It held the negotiated sale on Friday.

PSALM President and Chief Executive Officer Irene Besido-Garcia said that after several attemps to privatize the plant in the past two years, “we are very happy to have finally received financial bids substantially above” the minimum offer price.

“PSALM definitely needs the proceeds of this privatization activity to pay for the remaining stranded contract costs and stranded debts,” she said, adding that the Malaya power plant “contributed to the losses of PSALM the past many years and so we really looked forward to selling it.”

The agency said the other qualified negotiating party, AC Energy Corp., submitted an offer of P2,220,000,000.

The sale of the plant is on an “as-is where is” basis. It includes the 300-MW unit 1 and the 350-MW unit 2 as well as the underlying land located in Pililla, Rizal.

PSALM said the results of the negotiation are subject to a post-qualification process “to ensure that the winning negotiating party indeed met all the financial and legal requirements as indicated in the negotiation procedures.”

It added that the proceedings were witnessed by representatives of the Commission on Audit, the Department of Finance, the Department of Justice and National Power Corp.

The Malaya plant is being dispatched by privately owned National Grid Corp. of the Philippines as a “must run” unit, or a power plant that is compelled to run and provide the needed power to ensure reliability of supply in the Luzon grid.

PSALM said on the turn-over date, the plant will no longer be required to run as such as approved by the Department of Energy.