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Tech competency program offers Industry 4.0-related courses

SkillAssure, an online technology competency development program, offers a free, five-day intensive training and assessment period where students can pick from around 150 information technology (IT) certificate courses in Industry 4.0 fields such as blockchain, machine learning, and big data. 

The program, which launches this October, is open to senior high school graduates, technical or vocational course completers, college students, and professionals. 

After completing the free assessment, students can proceed to the main SkillAssure Program which runs from three to five months. This is followed by an apprenticeship, job placements among partner companies, and guaranteed employment for the first 300 graduates. Aspiring entrepreneurs may also enroll in SkillAssure’s incubator program once they have attained their certificates.

Developed by Pratian Technologies, a tech solutions provider based in India, SkillAssure was brought to the Philippines in partnership with Rabah Consulting, a local digital marketing company.

Pratian Technologies believes that technological innovation in tourism and agriculture can unlock even more opportunities for Filipinos. Agricultural technology entrepreneurs previously identified gaps in the agricultural supply chain, such as wastage and continued use of traditional distribution channels, which can be improved by new technologies.

In the short term, SkillAssure aims to address employment challenges posed by COVID-19, with the goal of upskilling at least 10,000 people. The unemployment rate rose to 17.7% in April, which is equivalent to a total of 7.25 million jobless Filipinos.

“As the coronavirus pandemic persists, threatening livelihood and businesses, Filipinos need to equip themselves with better skill sets to thrive in the new normal,” said Andrea Trinidad, chief executive officer of Rabah Consulting.

This goal includes potential partnerships with the Technical Education and Skills Development Authority (TESDA) and the Department of Labor and Employment (DOLE). “We want to work together with our government because we believe that we have the capability, because of Pratian… They have all the technology available to help us navigate through these very difficult times,” said Ms. Trinidad. — Mariel Alison L. Aguinaldo

A fighting spirit amid the crisis

Kiefer Ravena  believes the Filipino will thrive through the pandemic

After a long break from the court, renowned athlete and Cocolife brand ambassador Kiefer Ravena was set to get back in the action after he was appointed as the captain of the Gilas Pilipinas men’s basketball team last January. But then the coronavirus disease 2019 (COVID-19) pandemic suddenly entered the country, putting almost everything to a stop — from outdoor activities right to sporting events.

But the pandemic does not stop anybody from becoming part of the solution using whatever resources they have, Mr. Ravena realized. As he adapts in the crisis off the court, he did his share in helping and in bringing hope to his fellow Filipinos. In his own little way, he has been serving as a good teammate for his family, his community, and his nation.

He believes that the fighting spirit of the Filipino will carry the nation through this ongoing pandemic, as long as Filipinos work together to heal and recover as one.

Likewise, Cocolife, the leading Filipino-owned stock life insurance company, believes in the Filipino — their dreams, aspirations, and goals in life. With its complete array of life insurance, non-life insurance, healthcare, and mutual fund products, Cocolife is ready to help clients achieve their goals, whatever circumstances that might get in their way, including COVID-19.

“Our brand ambassador, basketball pro Kiefer Ravena, has always been focused on his goals — on the court and as a young man,” Atty. Jose Martin A. Loon, president and chief executive officer of Cocolife, said. “He tells us that he earnestly believes in the importance of investing in one’s health, education, savings, and retirement. As successful as he is now, Kiefer’s dreams are the same as yours and ours.”

As Cocolife believes in Filipinos, its wide range of services help them plan for a future where these dreams are triumphantly achieved.

When planning for your future, have someone who believes in your dreams. Explore Cocolife’s insurance and investment plans. Check the official Cocolife website www.cocolife.com.

Regional Updates (09/30/20)

Road to Aklan beach and park

THE PAVED 550-meter road leading to Baybay Beach and Alibagon Bakhawan Park, both tourist destinations in Makato, Aklan, has been completed, according to the Department of Public Works and Highways (DPWH). “With this newly-constructed road, we hope to encourage more visitors to come and appreciate some of Aklan’s hidden tourist spots, boosting the local tourism industry and helping small and medium enterprises in the area,” DPWH Secretary Mark A. Villar said in a statement on Wednesday.

Medical frontliners, essential workers do not need  travel  authority to take provincial buses

MEDICAL FRONTLINERS and other essential workers are not required to secure a travel  authority when taking provincial buses, the Philippine National Police (PNP) said on Wednesday. PNP deputy chief for administration Lt. Gen. Guillermo T. Eleazar said these workers only have to present their company ID and certificate of employment to be allowed on the bus. Mr. Eleazar made the clarification after receiving reports that all passengers going to Metro Manila are being required to have a travel authority before given entry to bus terminals. “We would like to remind the bus companies that all medical frontliners and essential workers have to present are valid identification cards or certificates of employment proving that their travel is work-related,” he said in a statement. Essential workers, as defined by government guidelines, include employees of supermarkets, drugstores, utility companies, agriculture, and food production, among others. “The travel of medical frontliners and essential workers must be less restricted since they play a key role in the effective response of the government on COVID-19 (coronavirus disease 2019),” he said. A travel authority, he added, is only required for locally stranded individuals and those that do not fall under the essential category. Twelve provincial bus routes between Metro Manila and neighboring provinces have been opened. — Emmanuel Tupas/PHILSTAR

Metro Manila mayors hopeful of shifting to lowest quarantine level by Nov.

THE HEAD of the Metro Manila Council said mayors in the nation’s capital are hopeful of a continued downtrend in coronavirus cases and be able to shift to the lowest quarantine level by November. “Hopefully by October, matapos na itong GCQ (we can end the general community quarantine),” Parañaque City Mayor Edwin L. Olivarez, who chairs the council composed of 17 mayors, said in a briefing on Wednesday. A modified General Community Quarantine (GCQ) is the less stringent level, with business establishments allowed to operate at 50% capacity, higher than the 30% under GCQ. Metro Manila, also referred to as the National Capital Region, was first placed under a strict lockdown in mid-March, halting most economic activities in the region that contributes the highest to the country’s gross domestic product. Mr. Olivarez, however, said the recommendation of the Department of Trade and Industry that more industries be allowed to operate at 100% capacity under GCQ will have to be set aside for now, even with a shift to MGCG. “Kasi ang MGCQ naka-quarantine pa rin po tayo, hindi pa tayo doon sa (Even under GCQ, we are still under quarantine, we are still not in the) new normal,” he said. Metro Manila accounts for more than half of the country’s over 309,000 coronavirus cases as of Sept. 29. The University of the Philippines-OCTA Research team said earlier this week that while there is a downtrend in the daily reported cases, Metro Manila must remain under GCQ as the outbreak has yet to reach a manageable level considering such factors as hospital capacity. — Gillian M. Cortez 

Red Cross to build COVID-19 lab in Passi City to boost Western Visayas testing capacity

THE PHILIPPINE Red Cross (PRC) will set up a testing laboratory for coronavirus disease 2019 (COVID-19) in Passi City, the Iloilo provincial government announced Wednesday. Iloilo Governor Arthur R. Defensor Jr. requested for the facility, citing the need to increase the testing capacity in the province and the Western Visayas Region as a whole. Philippine Red Cross Chair and Senator Richard J. Gordon, in a letter to Mr. Defensor, said, “I am pleased to inform you that PRC will establish one in Passi City in our PRC Regional Logistics and Disaster Management Training Center to serve the adjacent provinces of Antique, Aklan, and Capiz.” The laboratory is expected to be operational within October, with a capacity of 2,000 tests daily. Mr. Defensor, in a statement, said there is “a pressing need to increase the testing capacity of the province with the ongoing arrival of Returning Overseas Filipinos (ROFs) and locally-stranded individuals from Metro Manila and other high risk areas.” The provincial government is also building its own laboratory at the Iloilo Provincial Hospital. Existing laboratories in the region are located at the Western Visayas Medical Center and two private hospitals. “(T)hese are not sufficient for the requirements as we transition to a new normal,” Mr. Defensor said. As of September 29, Western Visayas recorded 11,413 COVID-19 cases, of which 4,161 are active. Bacolod City has the highest total cases at 3,712, followed by Iloilo City with 2,264. There are 1,942 classified under returning residents, both locally stranded and overseas workers. The rest are in the following provinces: Negros Occidental, 2,099; Iloilo, 826; Capiz, 348; Guimaras, 89; and Antique, 40.

Gov’t seeks P540B advance from BSP

Benjamin Diokno, governor of the Bangko Sentral ng Pilipinas, said the National Government is seeking another provisional advance of P540 billion. Photo taken on Feb. 5. — GERIC CRUZ/BLOOMBERG

THE National Government (NG) is asking the Bangko Sentral ng Pilipinas (BSP) for P540 billion in additional financial assistance to help plug the widening budget deficit due to the coronavirus disease 2019 (COVID-19) pandemic.

“The NG has requested for a fresh provisional advance of P540 billion to be settled on or before 29 December 2020, at zero interest,” Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said in a Viber message to reporters.

Mr. Diokno said the NG’s request will be formally submitted to the Monetary Board “soon.”

The debt plan comes immediately after the Bureau of the Treasury repaid the P300 billion it borrowed from the central bank in March through a repurchase agreement of government securities. A pandemic relief law signed earlier this month also temporarily raised the cap on advances the central bank can provide the government, while lengthening the repayment period to as long as two years.

Republic Act (RA) 11494 or the Bayanihan to Recover as One Act allowed the BSP to lend 30% of its average revenue, an increase from the 20% limit under RA 7653 or The New Central Bank Act. This would allow the BSP to lend up to P850 billion from the previous cap of P540 billion.

If the new request is approved, direct provisional advances from the central bank to the NG will reach P840 billion, only P10 billion short of the P850-billion limit.

The fresh financial assistance from the BSP would boost the country’s coffers in its fight against the pandemic, according to UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion.

“We’re in a crisis, and all possible ways to survive this crisis needs to be explored. Of course, it has to be within the rules,” Mr. Asuncion said in a text message.

The economy is facing its steepest contraction in over three decades, as the pandemic drags on. The Health department on Wednesday reported 2,426 new coronavirus infections, bringing the tally to 311,694.

The government expects this year’s budget deficit to reach up to 9.6% of gross domestic product (GDP).

In a note on Tuesday, Hongkong and Shanghai Banking Corp. analyst Noelan Arbis warned that increased additional direct provisional advances could erode the BSP’s credibility as an independent institution from fiscal authorities “if it is repeated beyond the current crisis.”

“For now, the fact that the additional amount is only accessible to the government within the next two years provides a somewhat credible exit strategy,” Mr. Arbis said. — Luz Wendy T. Noble with Bloomberg

PHL stock market seen improving in 4th quarter

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES are expected to return to the 6,000 level in the fourth quarter, but will continue moving within a tight range unless the third-quarter gross domestic product (GDP) results surprise the market.

As 2020 heads to its last three months, investors are seen to remain cautious but optimistic towards the Philippine Stock Exchange index (PSEi), barring unforeseen events.

“Range trading would likely continue unless we see any surprises in third-quarter GDP and corporate earnings,” Alvin Joseph A. Arogo, vice-president and head of equity research division at Philippine National Bank (PNB), said in an e-mail.

The statistics agency will release third-quarter GDP results on Nov. 10.

“We believe that the market will find it challenging to consistently rally above our 6,700 bull case fair value estimate mainly due to the persistent net foreign outflow,” he added.

The local bourse has recorded 153 days of net foreign selling out of the past 183 trading days of 2020. All 20 trading days of the month of April recorded net foreign selling.

“At this level, the index will trade at a 2020 and 2021 price-to-earnings (P/E) of 22.3x and 16.8x, which are at a 31.2% premium and a slight 1.2% discount to the past 15-year average of 17.0x, respectively,” Mr. Arogo said.

PNB is setting a 5,600 base case fair value estimate as a key support level for the PSEi.

Similarly, First Metro Investment Corp. (FMIC) is expecting the index to move “upward and back to above 6,000” in the fourth quarter, said Cristina S. Ulang, FMIC head of research.

“There’s solid upside once the vaccine is implemented, the virus infection curve is flattened and economic indicators return to the path of recovery,” Ms. Ulang said in an e-mail.

Among the factors investors will consider are improvements in manufacturing data and remittances, the softening of interest rates and the signing of legislation addressing bank bad debts.

“Local and foreign funds won’t miss the signs of a recovery and will load up ahead,” Ms. Ulang said.

In the past three quarters, the PSEi has been very volatile due to foreign selling, which is approaching $2 billion and has not abated, Ms. Ulang said.

More specifically, PNB’s Mr. Arogo said the coronavirus pandemic resulted in a 31.9% quarter-on-quarter drop for the PSEi during the first quarter. It recovered by 16.7% in the second quarter due to bargain hunters. Come third quarter, investors generally booked some of these profits, he said.

“At the start of the year, we had a positive view on the market as we assumed then that there would be earnings growth, which was backed by our view at that time of a robust macro environment,” Mr. Arogo said.

“However, although news about (the coronavirus pandemic) appeared earlier, it was only in March that it became clear that the virus would create a ‘black swan’ event (highly unlikely but massive impact on business and society),” he added.

But FMIC’s Ms. Ulang noted the market’s resilience, as the PSEi was still able to hit 6,500 in mid-May.

The PSEi closed at 5,864.23 on Wednesday, up 22.63 points or 0.38% from the previous day. Net foreign selling was sustained for the 14th straight day at P585.58 million.

NG’s outstanding debt hits P9.6 T as of end-Aug.

THE National Government’s (NG) outstanding debt reached P9.615 trillion as of end-August, as it continues to borrow to fund the fight against the coronavirus disease 2019 (COVID-19).

In a report released on Wednesday, the Bureau of the Treasury (BTr) said outstanding debt rose 5% to P9.615 trillion from P9.16 trillion as of end-July. This is also a fifth more than the P7.93 trillion logged in August 2019.

The higher NG debt is attributed to the net issuance of domestic securities, as the government sought to raise more funds for its pandemic response.

Two-thirds of the debt were sourced domestically, while the rest came from external sources.

Outstanding domestic debt jumped 7.3% to P6.71 trillion from end-July’s P6.25 trillion, and 27% up from P5.27 trillion in the same month a year ago. This was due to an increase in the issuance of local government securities to P6.4 trillion, 7.7% higher from July and 21.6% up from August 2019.

The National Government’s external debt reached P2.9 trillion as of end-August, slipping 0.2% from July due to the stronger peso. Year on year, it rose 8.8%.

“For August, the decline in external debt was attributed to the P37.36-billion net effect of local currency appreciation. Meanwhile, net availment of external loans added P27.07 billion, alongside the P4.64-billion effect of appreciation on third-currency denominated external loans,” the Treasury said.

Meanwhile, total guaranteed obligations of the National Government as of end-August stood at P447 billion, 2.6% lower month on month.

“The lower level of guarantees was due to the net redemption of both local and external guarantees amounting to P8.59 billion and P0.42 billion, respectively. Local currency appreciation further reduced the value of external guarantees by P2.85 billion, offsetting the effect of third-currency appreciation amounting to P0.03 billion,” the BTr said.

The Development Budget Coordination Council (DBCC) projected outstanding debt to balloon to a record P10.16 trillion or 53.9% of gross domestic product (GDP) by end-2020.

The government plans to borrow P3 trillion this year to plug its budget deficit, seen to hit 9.6% of GDP.

Debt watchers flag risks from consumer, SME loans

A customer walks through the Venice Grand Canal Mall operated by Megaworld Corp. in Taguig City, on June 22. — VEEJAY VILLAFRANCA/BLOOMBERG

By Luz Wendy T. Noble, Reporter

THE asset quality of local banks is expected to deteriorate in the coming months, as the consumers and small businesses struggle during the economic slowdown, global debt watchers said.

“The Philippine banking sector’s asset quality is likely to deteriorate amid the economic slowdown, weighing on profitability. Consumers and businesses will feel the pain from a weak economy, rising unemployment, and declining remittances from overseas…. We expect the consumer and SME (small and medium enterprises) loan portfolios to contribute to higher NPLs (nonperforming loans) in the coming quarters,” S&P Global Ratings said in a report.

In a separate note, Fitch Ratings noted the Philippines saw rapid loan growth in the last decade “which will now put the quality of lending over the period to the test, especially in the more vulnerable consumer and SME segments.”

Gross NPLs in the local banking industry climbed by 32.1% to P290.1 billion in July, data from the Bangko Sentral ng Pilipinas (BSP) showed, bringing the gross bad loan ratio to a six-year high of 2.67% as of end-July.

The country’s jobless rate was at 10% in July, equivalent to 4.571 million unemployed Filipinos.

Remittances are also taking a beating as more Filipino workers are repatriated. Year-to-date remittance inflows fell by 2.4% to $16.802 billion in the first seven months of 2019.

“Support measures from the government and the central bank should reduce the risk of defaults. Forbearance on loans will provide a breather, especially for rural and thrift banks that typically lend to weaker quality borrowers,” S&P said.

The central bank has been encouraging lenders to support small businesses through regulatory relief measures — this includes allowing MSME (micro-, small-, and medium-sized enterprise) loans as alternative reserve compliance and reducing the credit risk weight for borrowings disbursed to the sector.

“We expect large conglomerates, which account for the bulk of the banking sector’s loans, to weather the challenging operating conditions because of their strong business profiles, diversified revenue streams, solid liquidity buffers, and moderate leverage,” S&P said.

However, S&P warned a deeper recession could mean bigger damage for Philippine banks.

“A longer or deeper economic slowdown in the Philippines than our current forecasts could set off a sharper deterioration in the banking sector’s asset quality due to potentially higher large corporate defaults,” it said.

S&P expects the economy to shrink by 9.5% this year, much steeper than the 4.5% to 6.6% contraction estimate by the government.

HIGH CREDIT COSTS
Most banks in emerging markets in the Asia Pacific (APAC) have seen an increase in credit costs as of end-June, with the Philippines seeing the steepest rise, according to Fitch.

“This partly reflects the severe economic impact the pandemic has had in the country,” Fitch said.

In July, banks’ provision for credit losses surged by 59% to P321.85 billion from the P202.22 billion they have set aside in the same month of 2019.

Fitch pointed out Philippine banks opted to have general provisioning rather than specific provisioning for loans that are already underperforming.

“The rise in general provisioning is a reflection of banks preparing themselves for tougher times ahead,” Dan Martin, Regional Credit Officer for APAC at Fitch Ratings, said in an e-mailed reply to questions.

Mr. Martin said there is also the possibility that these expected credit losses will not materialize in case of a strong recovery and the reversal of expected credit losses would even bolster banks’ profitability.

“Equally, if banks have underestimated the future deterioration in asset quality, they’ll continue to face elevated credit costs in coming quarters,” he said.

Inflation likely settled at 1.8-2.6% in Sept. — BSP

A vendor wearing a protective mask arranges vegetables at a stall at Quiapo Market in Manila, July 27, 2020. — GERIC CRUZ/BLOOMBERG

HEADLINE INFLATION in September likely settled between 1.8% and 2.6% due to the lower prices of basic goods and the continued appreciation of the peso, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Wednesday.

The BSP point inflation projection for the month is at 2.2%, he said in a Viber message to reporters.

“Lower rice and oil prices as well as Meralco (Manila Electric Co.) power rates, along with the continued appreciation of the peso are expected to be the primary sources of downward price pressures for the month,” Mr. Diokno said.

Meralco earlier said September electricity rates dropped by P0.0623 per kilowatt-hour (kWh) to P8.4288/kWh from the rates in August. September rates were at its lowest in three years amid lower generation charge as supply contracts were relaxed due to the pandemic.

Meanwhile, total year-to-date price adjustments for domestic oil products as of Sept. 29 stood at a net decrease of P4.42 per liter for gasoline, P10.71 per liter for diesel, and P14.39 per liter for kerosene, according to the Department of Energy.

Rice products also saw lower prices, with average farmgate palay prices down by 2.2% week on week to P17.64 per kilogram in the first week of September. Average wholesale price of regular-milled rice also slipped 0.7% to P34.99 while its retail price inched down by 0.5% to P37.91.

The peso has been playing around the P48-per-dollar level in recent weeks. On Wednesday, it ended trading at P48.495 against the greenback, appreciating by 0.5 centavo from its P48.50-per-dollar finish on Tuesday.

On the other hand, Mr. Diokno said a partially offsetting factor could come from higher prices of liquefied petroleum gas (LPG).

The consumer price index rose by 2.4% in August, easing from the 2.4% increase in July but still quicker compared with the 1.7% pace seen a year ago. This brings the year-to-date average inflation to 2.5%, well within the 2-4% target set by the BSP for this year.

The Philippine Statistics Authority is set to report the September inflation data on Oct. 6. — Luz Wendy T. Noble

SEC orders shutdown of Forsage ‘gullibility’ scheme

THE Securities and Exchange Commission (SEC) has ordered the closure of Forsage and Forsage Philippines for activities involving the illegal solicitation of investments.

In a statement Wednesday, the corporate regulator said it issued a cease-and-desist order to Forsage on Sept. 17, ordering it to stop selling securities to the public in the form of investment contracts.

The company was also prohibited from using funds from its depository banks to preserve the assets it took from investors.

The SEC first issued a warning to the public against engaging with Forsage in June, noting it received several complaints about the group’s investment activities. At the onset, the SEC said Forsage was not a registered business with the commission.

It found through its investigation that Forsage invites investors to take part in a crowdfunding platform that uses blockchain technology. Through selling commission programs, the group promises passive income to investors.

However, the SEC said Forsage’s income relies on the membership fees it collects from investors, which makes it unsustainable. Its activities are also unauthorized, as the selling of securities is regulated by the SEC.

“Forsage is not registered…, nor has it been issued a secondary license to operate as a broker dealer of securities or issuer of any securities or of mutual funds,” the SEC said.

Despite the warning of the SEC in June, the company continued to operate, hence the decision of the regulator to issue a cease-and-desist order.

“[T]he investment practices of Forsage, if not restrained, will operate as a fraud on investors or to the investing public as it utilizes a ‘Ponzi scheme’,” the SEC said.

“It is not an investment strategy but a gullibility scheme, which works only as long as there is an ever increasing number of new investors joining the scheme,” it added.

Forsage is the latest in the SEC’s list of unauthorized investment operators ordered to shut down this year. The others are Fast Track Worldwide, Inc.; JOCALS688 Beauty and Wellness Products Trading, Inc.; Building Our Success Stories Network, Inc.; CROWD1 Asia Pacific, Inc.; Lion City Finance Group, Inc.; and Payasian Pte. Ltd. Corp. — Denise A. Valdez

MWSS to water firms: Extend grace period for bills payment

Regulator says order gives customers ample time to pay water bills that fell due from Aug. 4 to 18. — PHILSTAR/MICHAEL VARCAS

By Revin Mikhael D. Ochave, Reporter

THE regulatory office of the Metropolitan Waterworks and Sewerage System (MWSS) has directed Maynilad Water Services, Inc. and Manila Water Co., Inc. to provide customers with a grace period and a three-month installment mode for the payment of bills that fall during the stricter lockdown periods.

In a statement on Wednesday, MWSS Chief Regulator Patrick Lester N. Ty ordered the water concessionaires to provide customers with a 30-day grace period to pay their bills during the enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ) periods.

Mr. Ty also told the water providers to implement a three-month installment payment method after the grace period for all cooperatives; micro, small, and medium enterprises (MSMEs), and domestic customers.

He added that the order is in accordance with the intentions of Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II).

A provision under Bayanihan II mandates all utility companies providing electricity, water, and telecommunications services, among others, to provide a minimum 30-day grace period for the payment of bills that fall during the ECQ or MECQ periods.

“The said directives will provide customers ample time to update payments for water bills that fell due within August 4 to August 18, or the MECQ period, without incurring interests, penalties and other charges,” Mr. Ty said.

Sought for comment, representatives of the two water concessionaires said that they would fully comply with the MWSS directive.

“We will comply with the guidelines, as we have always done,” Maynilad Head of Corporate Communications Jennifer C. Rufo said in a mobile phone message.

Meanwhile, Manila Water Corporate Strategic Affairs Head Nestor Jeric T. Sevilla said in a mobile phone message that the company would abide with the directive in accordance with Bayanihan II.

Mr. Sevilla said that Manila Water had also postponed disconnection activities, adding that it had been practicing extended payment terms for customers.

“All bills during the ECQ since March were given initially six months to settle their bills until September 30. The 30-day grace period especially for those MECQ bills covering August 4 to 18 will provide them further relief,” Mr. Sevilla said.

“Before any current bill gets disconnected, there is already a 60-day window for customers to pay their bills,” he added.

Meanwhile, MWSS’ Mr. Ty assured that the regulatory office would do everything to lessen the financial burden on consumers resulting from the coronavirus disease 2019 (COVID-19) pandemic.

Pandemic prompts “paced” construction of PetroWind project

PetroEnergy Resources Corp. has “paced” the construction of its latest wind project in Aklan because of the global coronavirus pandemic, the Yuchengco-led listed company said, though it is committed to meet its target commercial run.

PetroWind Energy Inc., a joint venture of the company’s renewables arm PetroGreen Energy Corp., Thai firm BCPG Wind Cooperatief U.A., and EEI Power Corp., is developing the second 14-megawatt unit of its existing Nabas wind power facility.

“Actual development of the project had to be paced due to the Covid-19 (coronavirus disease 2019) pandemic, but when resumed, it is expected to generate additional employment during construction, add to the LGUs (local government units) tax and royalty base, and stimulate business from local suppliers,” said Paul Elmer C. Morala, assistant vice president for power operations of PetroGreen.

The Department of Energy on May 13 issued PetroWind with a certificate of commerciality for the project. PetroGreen wants it to go online over the next two years, in time for the completion of improvements in the Cebu-Negros-Panay interconnection project of the National Grid Corporation of the Philippines.

PetroGreen also holds a portfolio of geothermal and solar power facilities. In its stockholders’ meeting in August, PetroEnergy said its green projects were “not seriously affected” by the pandemic.

Besides renewables, PetroEnergy is also engaged in petroleum development.

In the first semester, the company saw around 19.6% decline in attributable profits to P161.30 million due to the slump in its oil revenues. Its total revenues stood at P1.08 billion, or 3.6% lower from a year ago.

Its electricity sales between January and June were slightly lower by 2.6% to P912.08 million, mainly brought by the repricing of its geothermal plant’s electricity price. Depressed crude oil prices dragged down its petroleum revenues by 6.1% to P171.12 million in the period.

Meanwhile, PetroWind was named among the Top Community Care Companies in the 2020 Asia Corporate Excellence and Sustainability Awards (ACES) in Kuala Lumpur.

PetroEnergy said ACES described PetroWind as among Asian companies that “have enriched the communities through various outreach initiatives and which epitomize the mission and values of an organization that…demonstrate exemplary active citizenship in promoting the wellbeing of society at large.”

Shares in PetroEnergy were unchanged at P3.11 each on Wednesday. — Adam J. Ang

Bulacan airport’s franchise bill set for Senate plenary discussion

THE bill granting a 50-year franchise to the San Miguel Aerocity, Inc. has been endorsed for plenary deliberation in the Senate on Tuesday.

The Senate Committee on Public Service adopted House Bill No. 7507, allowing the San Miguel Aerocity to construct, develop, establish, operate, and maintain the Bulacan airport and “airport city.”

The new airport is expected to decongest the Ninoy Aquino International Airport (NAIA), Senator Grace S. Poe-Llamanzares said in her sponsorship speech, Tuesday evening.

“The only option for NAIA is to find another site, the route two of the world’s mammoth, modern and newest airports — Istanbul and Beijing — has taken. Or reclaim the sea beside it, as what Hong Kong is doing,”

The proposed P1.5-trillion Bulacan airport and airport city are expected to accommodate 100 million passengers annually. San Miguel Aerocity will also build an expressway that will link it to North Luzon Expressway and a rail link through Metro Rail Transit-7.

Ms. Llamanzares also raised its importance in terms of helping the tourism industry and other related sectors to recover from the coronavirus pandemic that locked down the country.

“The employment and tourism-generating capacity of this airport are far-reaching at a time when we are badly hit by the pandemic,” she said.

The 50-year franchise is inclusive of a 10-year maximum period for the design, planning and construction of the airport and airport city. It will also exempt the grantee from direct and indirect taxes during the 10-year construction period.

The franchise may also be revoked should San Miguel Aerocity fail to start construction within one year or start operation within one year after securing a permit from the Civil Aviation Authority of the Philippines.

Other conditions for revocation are the failure to start operating within 12 years from the enactment and the failure to continuously operate for two years.

The grantee will also be entitled to a revenue share worth 12% of the internal rate of return (IRR) annually, upon determination by a competent authority that San Miguel Aerocity has recovered the investment cost. Amount in excess of the 12% IRR will be remitted to the government.

Further, the grantee is mandated to report annually to Congress and may be penalized with a fine of P1 million per day for every day it fails to submit a report.

Also on Tuesday evening, Ms. Llamanzanres recommended the 25-year franchises for the Cruz Telephone Co., International Communications Corp., Tandag Electric and Telephone Co., Inc.  FBS Radio Network, Inc. Century Communications Marketing Center, Inc., Caceres Broadcasting Corp., Negros Broadcasting and Publishing Corp., Philippine Collective Media Corp., Davao Light and Power Co., Inc., and the Metro Manila Turf Club. — Charmaine A. Tadalan

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