Facebook Instagram Linkedin X Youtube
Home Blog Page 8514

INXS

 

Rediscovering Tagaytay via the BMW X5 and X7

IT’S BEEN a long while since I last frolicked around Tagaytay. Last year’s volcanic unrest, and the subsequent imposition of the enhanced community quarantine (ECQ) have left me with little opportunity to revisit this weekend favorite. So, I was happy to finally have the chance for a quick rendezvous to the lovely Escala Hotel there; and even happier that the vehicles I had to drive back and forth were the handsome 2021 BMW X5 and X7 SUV siblings.

X5
I set out from BMW’s Libis dealership driving the X5 luxury midsize SUV, which I’ve always found to be a model with a good blend of luxury and practicality. From the get-go, it is self-evident that the car is made with good workmanship, and with quality materials — one of the main reasons why I would ever consider paying extra to acquire a premium vehicle in the first place. The car has a classy, leather-wrapped dashboard, boasts Vernasca leather design-perforated upholstery, and is equipped with a plethora of technology. It now supports wireless Apple Carplay and offers power-adjustable front seats with memory (for the driver), among others.

Moreover, the X5 has a nice, strong engine. Its 3.0-liter BMW TwinPower turbodiesel powerhouse, mated to an eight-speed automatic tranny, will not disappoint — offering an athletic 265 horses, combined with an impressive 620Nm of maximum torque at 2,000-2,500rpm. While you might think that this diesel powerplant could compromise vehicle NVH (noise, vibration, and harshness), you’ll be delighted to know that BMW really did its homework when it built this car. It has very good insulation; you’ll forget you’re driving a diesel, and hardly hear any outside noise, for that matter. This afforded me a relaxed and pleasurable drive through C5 and into the SLEX, en route to Tagaytay.

Oh, and remember that one particular lane along C5 with those horrible patches of bad pavement (because they’ve been constantly pounded by heavy trucks)? I occasionally found myself driving over them in morning traffic, but the X5’s suspension soaked them up easily. I also took the liberty of experimenting with the X5’s different drive modes, depending on the situation: Eco Pro, for that morning traffic crawl; and Comfort Mode, for the rest of the faster-moving stretches of C5. Needless to say, Sport Mode was my favorite — the SUV’s anticipation to go faster was especially fun on the highway. It also allowed me to overtake vehicles easily and with greater confidence. Furthermore, I noticed the X5 did not lose its poise even when going through fast corners.

It took us about two hours to arrive at Escala Hotel, where we had a satisfying lunch (that came in big portions) amid cool weather and a dearly-missed view of Tagaytay Lake. After our pleasant meal, the X7 was waiting.

X7
Now, I knew the X7 would be good. But frankly, I didn’t expect it to be this good. For starters, I am not someone who gravitates towards large, full-size vehicles, and the X7 is the largest luxury SUV that BMW has. But the X7 is just exceptionally comfortable and luxurious — it actually got me thinking why the phrase “woman cave” was never coined to describe large wonderful vehicles. That is, until I realized that the combination of words didn’t exactly sound appropriate. Nevertheless, you get what I’m trying to say here — it felt like the X7 had everything I would ever need to be happy while on the road.

As a driver, I was delighted with the X7’s quick bursts of acceleration and ultra-smooth power. The car sailed like a boat, and that must have been its adaptive two-axle air suspension at work. There was nothing to complain about NVH; the cabin was quiet as a reading room, but only more comfortable to be in. Opulent appointments constantly reminded me that I was aboard a luxury vehicle. Attractive Merino upholstery and fine wood trim accents give the cabin sophisticated flair; while the panoramic sunroof and other bells and whistles — such as the crystal shifting knob, that exudes that extra bling — all come together to pamper the driver and its occupants. I wouldn’t mind getting stuck in traffic for long hours in this car, I remember telling myself. And if some vehicles, in the words of a friend, were meant to “Manila-proof” you from the inconveniences of the city, well, this sure is one of them.

The BMW X7 is packed with technology (including a rearview camera with surround view and the like), a suite of safety systems, a BMW Live Cockpit Professional, and BMW laser lights. It shares the same twin power turbo inline six-cylinder diesel engine as with the X5 but, for some reason, just feels ever so much smoother to drive.

Sure, there was more traffic on our way back to Manila. But with the X7’s Harman Kardon surround sound system, I savored every minute driving it back, while tuning in to ’80s music and enjoying the entire drive experience. It really does make a huge difference, after all. A luxuriously pleasurable car can help keep your spirits high, as you navigate through your daily drive in our otherwise high-stress environment of the city.

Buskowitz seeks to raise up to P1-B for solar rooftop projects

By Angelica Y. Yang

BUSKOWITZ Energy is looking at raising around P1 billion for solar rooftop projects this year, about 40% of which would be funded by a local company, the renewable energy developer’s top executive said.

“Our initial idea is to raise a billion [pesos], maybe a little less, given that it’s already February. [Our] target is to invest about 800 to 1 billion [pesos] this year,” the firm’s Chief Executive Officer James Buskowitz told BusinessWorld in a video call Thursday.

The projected capital raising is more than twice the previously recorded amount in 2019. “In 2019, we raised about 300 [to] 400 million [pesos]… every two years, we’ve almost doubled our capital raises,” he said.

Mr. Buskowitz said that the firm did not raise capital in 2020, as the company was spending funds raised from previous years for services, including outright purchase and residential projects.

He explained that the firm planned to raise 40% of the target fund-raising from a local firm, adding that Buskowitz Energy would disclose more information about the infusion in the coming weeks.

According to Mr. Buskowitz, 60% of the firm’s planned capital will come from foreign banks and wealth funds.

“We’re currently discussing with foreign international banks and sovereign wealth funds, the debt component of the projects. So far, we have ongoing discussions with them and it’s between two other international financiers that are going to be providing the debt. We’re looking at around 500 to 600 million [pesos] in debt capital for projects as an initial start,” he said.

This year’s planned capital-raising would mainly go to rooftop solar projects, Mr. Buskowitz said.

Last year, Buskowitz Energy was able to install a total capacity of 5 megawatts of solar in the residential and commercial segments.

In November, the firm held a three-day “Black Friday Sale” that gave a 40% discount for its signature Solar Home Systems per package, with rates starting at around P119,000.

On Thursday, Mr. Buskowitz said that the sale accounted for 30% to 40% of the firm’s sales in the residential segment last year.

“The Black Friday Sale was very effective… That was very, very successful and it was also a very good discount. It’s something that we would like to be offering a lot more,” he said.

Buskowitz Energy is a sustainable solutions company that aims to grow local capabilities in the country’s solar photovoltaic industry.

T-bill rates may move sideways ahead of Treasury’s RTB offer

RATES of Treasury bills (T-bills) on offer this week will likely move sideways ahead of the government’s sale of three-year retail Treasury bonds (RTBs).

The Bureau of the Treasury (BTr) is looking to raise P20 billion from the T-bills on offer on Monday, broken down into P5 billion each via the 91- and 182-day debt papers and P10 billion from the 364-day instruments.

Rates of the short-term debt will likely inch down by 5 to 10 basis points (bps) amid abundant liquidity in the market, a bond trader said by phone on Friday.

Meanwhile, another trader said the auction would still attract lower yields despite the upcoming RTB sale this week as there is strong demand for the shorter-tenored T-bills.

“Yields for T-bills will move sideways to down by around 5 bps since end-users are still looking to purchase T-bills. For now, traders may limit trading short-term bonds until the rate setting of the RTB,” the trader said via Viber over the weekend.

The BTr last week hiked the volume of T-bills it awarded to P24 billion from the P20-billion program as total bids reached P103.65 billion and rates declined across the board.

Broken down, the BTr borrowed P7 billion via the 91-day debt, more than the P5-billion plan, from P19.56 billion in bids. The three-month papers fetched a lower average rate of 0.917% against the 0.969% quoted in the Jan. 25 auction.

The government also raised P7 billion via the 182-day T-bills, above the P5-billion program, as tenders amounted to P33.456 billion. The average rate of the six-month debt declined by 11.3 bps to 1.21% from the previous week’s rate of 1.323%.

The Treasury, meanwhile, made a full P10-billion award of the 364-day securities it offered at an average rate of 1.492%, down 5 bps from 1.542% previously.

Meanwhile, the BTr will hold the rate-setting auction for the three-year RTBs on Tuesday as it looks to raise at least P30 billion from the retail papers. It will offer the bonds in denominations of P5,000 from Feb. 9 to March 4, unless ended earlier.

The second trader expects the rate of the three-year bonds to range from 2% to 2.375%.

“The issuance comes at a time when inflation for the previous month was higher than the expected consensus and above the target range of the BSP (Bangko Sentral ng Pilipinas),” the trader said.

The government offers RTBs to encourage small retail investors to invest, with higher returns than prevailing market rates. These are also considered low-risk investments because they are backed by the state.

At the secondary market on Friday, the 91-, 182, and 364-day T-bills were quoted at 1.041%, 1.204%, and 1.416%, respectively, while the three-year tenor fetched 2.074%, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

The second trader said yields on government securities on offer this week will also be affected by rising interest rates in the United States as markets await the $1.9-trillion stimulus package of US President Joseph R. Biden, Jr. 

“This may be offset by slower local loan growth since banks remain wary of credit risks and some banks may be looking to place excess liquidity in safer assets,” the trader added.

Bank lending contracted for the first time in more than 14 years in December as lenders tightened credit standards while demand for loans remained weak.

Latest central bank data showed outstanding loans by big banks went down by 0.7% to P9.178 trillion that month from P9.242 trillion a year ago, turning around from the 0.5% uptick in November. It was the first decline since September 2006’s 1.9% contraction.

The BTr plans to borrow P140 billion from the local debt market this month: P80 billion via weekly auctions of T-bills and P30 billion from a Treasury bond offer.

The government is looking to raise P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — B.M. Laforga

LVMH Watch Week: Passing time

TIME passes. The 525,600 minutes of 2020 are now in the past, and the passing of the 525,600 minutes of 2021 are being marked on our watches. For some, the passing of time is marked on luxury watches like those that LVMH showed in a virtual press conference in the last days of January.

HUBLOT’S MAGIC GOLD
Standing outside the Hublot offices in Switzerland, Ricardo Guadalupe, CEO of Hublot, bade us to “step inside.” Press from around the world, sitting at their desks, followed Mr. Guadalupe as he stepped into different rooms in their manufacture. He started out in the room where they make the “magic” gold they developed that is scratch-resistant thanks to combining 24k gold and ceramics.

Here he showed the Big Bang MP-11, with seven barrels that serve as a 14-day power reserve. This power is displayed with a clear case. Next came the Unico Integral, with a case and bracelet made of ceramic. The new lines come in gray metallic finish, navy blue, and white.

Mr. Guadalupe took his virtual guests to the room where they add jewels in watches, showing the Big Bang One Click, named after the ease with which its straps are replaced. Next, appearing over at a sculpture by Richard Orlinski, he showed the Classic Fusion line, made in collaboration with Mr. Orlinski, boasting a sculpted dial. While the first collection had come out in 2017, these have their dials and bracelets in black and blue ceramic — and are limited to 200 pieces.

Finally, Mr. Guadalupe showed us their new development, a new color of sapphire: orange. The orange sapphires are made in the shape of watch components, which will be made into the Big Bang Tourbillon Automatic. “Innovation, specifically in materials, is very important for me,” he said.

TOURING ZENITH
Zenith was the watch of choice for India’s national icon Mahatma Gandhi.

Julien Tornare, CEO of Zenith, also took us on a tour of their offices, showing the Chronomaster Sport, capable of displaying 1/10th of a second, using the El Primero chronograph. The El Primero A386 serves as an older sibling for this Chronomaster Sport, but the Chronomaster also takes inspiration from other Zenith lines, such as the El Primero Rainbow and the de Luca. It measures about 41mm, crafted in steel and is set with a black ceramic bezel.

Mr. Tornare also introduced their new ambassador, 2020 NFL MVP Aaron Rodgers, during the tour.

BULGARI’S BEAUTY
The creation of beauty doesn’t stop for Bulgari, not even during a pandemic.

Antoine Pin, Bulgari General Manager for Bulgari Horlogerie, showed an even grander Bulgari Serpenti (the ovoid head and coiling bracelet should make you think about serpents). The new Serpenti Spiga has a new pattern on the bracelet, suggesting scales — except these are studded with diamonds.

They’ve also added to the Divas’ Dream collection with the Peacock Dischi and the Tourbillon Lumiere. The bezels are studded with diamonds and precious stones, but the dial is even grander: they’re made of a marquetry  of peacock feathers, shown during the press conference as being assembled by hand.

Meanwhile, CEO Jean-Christophe Babin showed what else has been keeping the company busy over the pandemic: the Bulgari Virus Free Fund. The fund has donated 800,000 bottles of sanitizer (made using the resources at their perfumery) to the governments of Italy, the UK, and Switzerland. Through their funding, they have also helped Oxford University develop the Oxford-AstraZenecea vaccine; and they continue to fund research at Rockefeller University.

Discussing how the business fared during the pandemic, Mr. Babin said, “We have managed not only to do good but to do much better than the market,” noting that they closed 2020 on a note of growth in watches. “2021 will for sure be better than 2020,” he said. — Joseph L. Garcia

Ford PHL rules 4×4 pickup segment in 2020

THE FORD RANGER became the best-selling 4×4 pickup truck in 2020, cornering 41% of the market. Ford Philippines reported full-year sales of 5,093 units for the Ranger 4×4 pickup — accounting for 52% of the total 9,767 Rangers sold.

In a release, the company said this model helped drive Ford’s overall market share to 24% in the pickup segment, securing the Ranger’s position as one of the two best-selling pickups in the market last year. Ford currently offers a 4×4 variant for the Ranger XLS, FX4 and Wildtrak, including the Ranger Raptor, in its pickup portfolio.

Ford Philippines expanded its truck portfolio last year with the launch of the new Ranger FX4 and a 4×4 variant. It also mounted a successful comeback in the small SUV segment with the launch of the all-new Ford Territory — whose full-year sales reached 1,925 vehicles, good for 33% share in the small SUV segment within five months of launch.

Further expanding its footprint in the SUV and pickup segments in the country, Ford also launched the Everest Trend, Everest Sport, and F-150 full-size pickup last year to cater to a diverse range of Filipino customers.

Ford Philippines reported that its fourth-quarter sales surged 36% from the previous quarter to 5,411 vehicles, on the way to a total of 14,775 units.

“We thank our customers for their trust to the Ford brand amid a challenging year brought about by the pandemic. The continued demand for Ford vehicles in the country further drives us to bring segment-leading vehicles that are relevant to the needs of the Filipino driving public, now and in the future,” said Ford Philippines Managing Director PK Umashankar.

97% of funds for assistance for critically impacted shipping firms distributed, PPA says

By Arjay L. Balinbin, Senior Reporter

THE Philippine Ports Authority (PPA) said it had released about 97% of the allocated budget for the financial assistance for the shipping companies or operators that had been critically impacted by the coronavirus pandemic.

The amount of funds used as of Jan. 26 was P7,458,965.75, according to PPA data that the agency provided to BusinessWorld on Jan. 29.

The amount was released to 4,068 beneficiaries, the PPA said.

Based on the PPA Memorandum Circular No. 42-2020, the agency was given P250 million under the Bayanihan Act II or Republic Act No. 11494 for the implementation of the assistance for the maritime sector.

Qualified beneficiaries can avail of the financial assistance until June 30 this year, according to the latest memorandum circular issued by PPA General Manager Jay Daniel R. Santiago on Jan. 28.

Eligibility requirements for shipping companies or operators include a valid certificate of public convenience, provisional authority, or special permit from the Maritime Industry Authority, and a valid accreditation certificate issued by the PPA.

Shipping companies or operators who have pending applications for accreditation are also eligible to avail of the financial assistance “unless otherwise said applications have been denied by the PPA.”

The Philippine Liner Shipping Association President Mark Matthew F. Parco previously said the domestic shipping industry, like other industries, was “taken by surprise by the speed and breadth” of the impact of the coronavirus pandemic.

Visayas, Mindanao hog raisers start shipments to Metro Manila

HOGS RAISERS from the Visayas, Mindanao, and parts of Luzon have launched deliveries of live animals to Metro Manila, in order to help head off an inflation crisis in the capital region following a spike in food prices, the Department of Agriculture (DA) said.

In a recent visit to Region 12 or SOCCSKSARGEN, Agriculture Secretary William D. Dar announced the departure of two truckloads of hogs, with 260 animals on board, to Metro Manila.

“The hogs, courtesy of the Koronadal Valley Livestock Growers, are expected to arrive at Manila ports early next week,” Mr. Dar said.

Mr. Dar confirmed that growers in the Visayas, particularly Iloilo, recently shipped 600 live hogs to plug shortages on Luzon, where the herd has been greatly reduced by African Swine Fever and the associated culls to contain the outbreaks.

“With these initiatives, we are helping the hog raisers and those involved in the supply chain to earn, while providing consumers access to affordable meat and meat products,” Mr. Dar said.

Mr. Dar said a possible source from within Luzon is San Jose, Batangas, whose growers are being sounded out about supplying the Metro Manila market.

According to the DA, there are around 41,953 animals available from San Jose.

The DA has received commitments from the South Cotabato Swine Producers’ Association for the transport and delivery of live hogs and carcasses to Luzon, with an initial agreement of 10,000 hogs per week.

Executive Order (EO) No. 124 set a price ceiling on pork and chicken products sold in Metro Manila, and will take effect on Feb. 8, Monday.

The EO set the retail price of pork shoulder, known as kasim, at P270 per kilogram, and pork belly or liempo at P300. The ceiling for dressed chicken was set at P160. — Revin Mikhael D. Ochave

BSP eases investment account rules

THE CENTRAL BANK is allowing financial institutions to set their own minimum balance for investment management accounts provided this is not lower than P100,000, making these products available to more people.

Circular No. 1109 signed by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on Feb. 4 revised the P1-million minimum balance for investment management accounts based on standards under the Manual of Regulations for Banks and for Non-Bank Financial Institutions.

“BSP-supervised financial institutions should consider the adequacy of their risk management processes and operational capabilities in setting the minimum amount for their investment management accounts,” it said.

The circular now allows for a lower investment amount provided the carrying balance and contribution will not fall below the minimum investment required, except in cases where the reduction is due to investment losses and/or fund management fees.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the easing of rules on investment management accounts will help push financial inclusion.

“More people would have greater access to more sophisticated and professionally managed investment funds with prospects of higher returns commensurate with higher risks involved,” Mr. Ricafort said in a text message.

Companies will also benefit from the revised rules, Mr. Ricafort said.

“This initiative is also part of further development of the country’s capital markets, allowing more of the investing public to tap funds that invest in various securities that are alternative sources of financing for many businesses,” he added.

The BSP circular also allows the commingling of funds from different investment management activities as long as P100,000 is allocated for each activity.

Funds are allowed to be channeled into investments in local and international government securities, exchange traded equities, and commercial papers registered with the Securities and Exchange Commission. Securities issued by local banks, except those through trust units, are also allowed.

“The risks associated with commingling of funds, such as market liquidity risk, shall be fully disclosed to the clients,” it said.

The investment manager is expected to be in charge of determining how many activities can be commingled based on its operational capability.

Withdrawals from the account are allowed as long as the minimum balance of at least P100,000 is maintained and an order has been given to the investment manager. — L.W.T. Noble

Barefoot luxury

CONSIDERED by some as the birthplace of “barefoot luxury,” Nay Palad Hideaway nestles between mangrove forests and the soft white sands of Siargao in the Philippines. In easy reach of tropical jungle, underground caves, untouched beaches, deep-sea fishing, and the legendary Cloud 9 barreling wave, this unique resort lets visitors create their own rhythm, turning each day into a different story.

Guests can just let Nay Palad know what they want: absolute privacy or around-the-clock attention; non-stop adventure or total relaxation; dinner in a tree house or watching a movie by the pool — it will be arranged.

The resort has a number of unique, architecturally inspiring spaces: a multifunctional structure that houses a gym, an indoor yoga studio, an indoor kids’ area, and an adventure storage room, where guests are free to inspect the equipment. There’s also the spa.

To reach Nay Palad Hideaway, guests can take a direct flight to Sayak Airport, either by Cebu Pacific or Philippine Airlines. At the airport, guests will be welcomed by the resort’s Guest Relations team, and they will then take a 30- to 40-minute scenic drive to the resort.

For details and inquiries, visit the website, www.naypaladhideaway.com or e-mail home@naypaladhideaway.com.

Suzuki presents updated Dzire

SUZUKI PHILIPPINES (SPH) brings in the 2021 version of the Dzire sedan, which features key updates and changes.

In a release, SPH Vice-President and General Manager for Automobile Keiichi Suzuki said, “We are very much thankful for the great support that the market has shown to us, especially for the past year. Despite the challenges the we are faced with, this new model serves as our light and hope as we continue to work harder and strive for greatness in the months and years to come.”

He added, “We, in Suzuki Philippines, are happy to announce that the new Dzire offers our latest innovative technology and design (for) an authentic sedan experience. We are optimistic that with this new model, we will be able to continue in championing the ‘Suzuki Way of Life,’ and remain true to our dedication to deliver quality products and services.”

The new Dzire rises upon Suzuki’s HEARTECT platform, and features lightness and high rigidity. Under the hood is a 1.2-liter engine that the company says is efficient and delivers “strong driving performance.” It is similarly mated to Suzuki’s so-called “automated manual transmission” Auto Gear Shift (AGS) “that gives the comfort of driving an automatic with the fuel efficiency of a manual transmission.”

The upgraded version gets a seven-inch infotainment system that accommodates USB and Bluetooth connectivity, GPS navigation, and has a radio AM/FM function. It features an electric fold and adjust outside door mirror, reverse parking sensors, and now ESP (electronic stability program). ESP automatically controls engine torque and brakes to suppress wheel slip during slippery conditions or when the tires lose traction.

The Dzire gets dual air bags, hill hold control, and a light and impact-absorbing body of through the company’s proprietary TECT (Total Effective Control Technology) platform, which also mitigates pedestrian injury by efficiently absorbing and dispersing energy in the event of a collision.

Aside from 378 liters of boot space, the Dzire gets multiple storage spaces and features such as a front console box and cup holders, front door pockets, glove box and rear door pockets, and rear arm rest with cup holders. Rear passengers get their own air-con vents along with a 12V accessory socket.

It receives a chrome grille and a new bumper with fog lamps. The Dzire is also fitted with alloy wheels, and now comes in two variants GL (MT) and GL+ (AGS). A variety of colorways for GL variant includes Arctic White Pearl, Premium Silver and Midnight Black Pearl. For the GL+, the New Dzire is available in Sherwood Brown Pearl, Oxford Blue Pearl Metallic, Magma Gray Metallic, and Phoenix Red Pearl. Pricing is P648,000 for the GL MT variant and P708,000 for the GL+ AGS variant.

For more information, visit any of SPH’s 74 dealerships nationwide or http://suzuki.com.ph/auto/. The company is on Twitter (SuzukiAutoPH) and Instagram (suzukiautoph).

DoE orders power firms to carry out ‘no disconnection’ policy

A MAN seen at fruit stand just beside electric wires at Kapalaran St. in Brgy. Commonwealth in Quezon City last February 5. — PHILIPPINE STAR/MICHAEL VARCAS

DISTRIBUTION utilities (DUs) must implement a “no-disconnection policy” for poor electricity consumers whose unpaid obligations must be settled by March this year, the Department of Energy said in an advisory posted on its website on Saturday.

“All DUs are hereby directed to implement a no-disconnection policy due to non-payment of bills falling due by March 2021 for all electricity consumers whose consumption level are within the lifeline rate set by the Energy Regulatory Commission (ERC) for the DUs franchise area,” the department said.

“This shall apply to all unpaid regular bills and installment payments relative to various advisories of the DoE and ERC,” it added.

The one-page advisory, which was signed by DoE Secretary Alfonso G. Cusi on Friday, did not give details on how many months the no-disconnection policy would run for.

The advisory comes days after President Rodrigo R. Duterte expressed his support for the DoE’s recommendation to extend the “no-disconnection policy” for poor power consumers during a Cabinet meeting on Wednesday, according to Cabinet Secretary Karlo Alexei B. Nograles.

In its advisory, the DoE said that all power consumers — both lifeline and non-lifeline — who still cannot pay their bills may “enter into socially equitable and manageable payment terms to prevent eventual disconnection of electricity services.”

Meanwhile, the DoE encouraged consumers who have the capability to pay to settle their bills within their original due dates “to help in managing the flow of cash in the energy supply chain, and ensure a continuous supply of electricity.”

The DoE also directed all DUs to post the advisory in their respective websites and consumer welfare desks.

Last month, Manila Electric Co. (Meralco) said that it had started giving disconnection notices to customers who were falling behind their payments.

Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga previously said that the firm had asked households consuming 201 kilowatt-hours (kWh) or more to settle their obligations in January, while giving those consuming 200 kWh and below until the end of the month to pay.

Meralco’s no-disconnection policy that covered typical households that consumed less than 200 kWh was due to end on Dec. 31, but was extended until the end of January.

On Thursday, Philippine Rural Electric Cooperatives Association (Philreca) said that the prolonged extension of the no disconnection policy “would disrupt the flow of money in the energy supply chain, and that its effects would extend to outside the power sector.”

“There will be a huge implication in the financial stability of all stakeholders in the energy supply chain should a prolonged ‘no disconnection policy’ is imposed by the government. And this disruption — bear in mind — is not just going to affect the energy sector. If electricity consumers default on their utility bills payments, then, the distribution utilities will eventually default as well to its power suppliers,” said Presley C. De Jesus, Philreca president and party-list representative in an e-mailed statement.

He added that the prolonged policy would also affect electric cooperatives, which are “non-profit by nature as they did not have a huge capital to support their operations during the global health emergency, unlike other utilities.”

Meralco’s controlling stakeholder, 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. — Angelica Y. Yang

Facing green pressure, Indonesia halts deep-sea mining disposal

JAKARTA — Indonesia will no longer permit mining waste to be disposed in the ocean to allay concerns about the environmental impact of processing nickel used in electric vehicle (EV) batteries, a government official and a corporate mining source said.

The Southeast Asian nation, the world’s biggest nickel producer, has not officially banned so-called deep-sea tailings (DST) but by not issuing new permits it could delay planned projects and complicate efforts to dispose of waste.

Proponents of DST say it is cheaper and less harmful to pipe waste into the sea, especially on tropical islands where earthquakes or heavy rain limit storage, but critics says the impact of such marine disposal is poorly understood.

“There is no written regulation yet, but the policy is to not issue permits for deep-sea tailing for any future projects,” Jodi Mahardi, a spokesman for the Maritime and Investment Affairs Coordinating Minister, told Reuters.

Up to now only one nickel mine in Papua New Guinea is using DST, according to global producer association the Nickel Institute.

Indonesia currently uses the disposal method at its second-largest copper mine, run by PT Amman Mineral Nusa Tenggara.

Indonesian nickel projects seeking permission for DST did not receive an outright rejection, but a lengthy wait meant that land tailings eventually become “the only option,” according to a corporate mining source familiar with the matter.

Once the world’s biggest exporter of nickel, Indonesia banned ore exports last year amid efforts to develop a full nickel supply chain, starting from extraction, processing into metals and chemicals used in batteries, all the way to building EVs.

At least four high-pressure acid leach (HPAL) plants, which process nickel laterite into chemicals used in batteries, are being constructed in Indonesia led by Chinese investors. Most planned to dispose waste in the sea.

HPAL projects in Morowali, in Sulawesi, have decided to drop DST, said a source familiar with the matter. Meanwhile, an HPAL project in Obi Island is still waiting for the government’s decision.

Changing to disposing tailings on land from the ocean would require a major plant rework, said Angela Durrant, a nickel costs researcher at Wood Mackenzie.

“It would cost a fortune to switch from one established form of tailings disposal to another method,” Durrant said. However, she said that most new HPAL projects in Indonesia are unlikely to have set up any disposal systems yet.

Despite obstacles, Indonesia is expecting investment in nickel processing to double from 2020 to $35 billion by 2033, led by Chinese stainless steel producers and battery makers.

The country also signed a $9.8-billion EV battery deal with South Korea’s LG Energy Solution in December.

Indonesia has also been wooing Tesla, which has been looking to find reliable sources of nickel globally after warning the current cost of batteries remains a hurdle to growth. Tesla has sent an investment proposal and the government will meet with the company next week, Septian Hario Seto, the deputy head for investment and mining coordination said on Friday.

Maritime and Investment spokesman Jodi said that the Indonesian government was well aware of the need to uphold green standards “otherwise, companies like Tesla would not come here.”

Indonesia has a chequered environmental track record in mining so EV companies could be cautious about directly investing given environmentally-conscious consumers, experts say. “There’s potential in Indonesia but there’s also risk involved if they don’t have the right policies,” said Andrew Miller, product director at EV battery metals consultancy firm, Benchmark Intelligence Minerals. — Reuters

1...8,5138,5148,515...14,238Page 8,514 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube