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Payment surplus narrows to $8 million in July

By Beatrice M. Laforga, Reporter

The balance of payments (BoP) posted an $8-million surplus in July, the smallest in more than seven years, amid a surge of inflows from foreign borrowings of the National Government to fund its coronavirus pandemic response, according to the Philippine central bank.

The July figure was lower than the $248-million surplus in July last year and the $80-million excess in June. The payment position has been in surplus for four straight months now.

“The BoP surplus in July 2020 reflected mainly the inflows from the National Government’s foreign loan proceeds that were deposited with the BSP as well as the BSP’s income from its investments abroad,” the central bank said in a statement on Friday.

It said this was partly offset by foreign currency withdrawals by the government to settle some of its maturing foreign debt that month.

The seven-month BoP surplus has fallen by 18% to $4.12 billion from a year earlier.

The central bank also traced the BoP surplus to the lower merchandise trade deficit aside from the forreign borrowings between April and July.

“These positive outcomes negated fully the impact of higher net outflows of foreign portfolio investments, and lower net inflows from foreign direct investments, trade in services, and personal remittances,” the BSP said.

The government has raised $8.83 billion from foreign sources as of Aug. 27 to support its battle against the coronavirus, according to data from the Finance department.

The central bank expects the overall BoP position to post a surplus of $600 million by year-end, or equivalent to 0.2% of the gross domestic product.

Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. traced the smaller surplus to the sluggish economy.

The country plunged into a recession in the first half after economic output shrank by 16.5% in the second quarter. The economy is expected to shrink by 5.5% this year.

“This describes the lack of economic activity even though it is largely good, because the BoP is a surplus,” Mr. Asuncion said.

“However, the BoP includes the trade balance, foreign portfolio investments and government foreign currency operations and transactions,” he said in an e-mail. “It can be surmised that the benefits of a healthy BoP is not being maximized because of subdued economic growth and prospects.”

GOLD TRADE

Also on Friday, Mr. Diokno said the central bank would cut its gold reserves to 10% of the gross international reserves from 12%.

“Right now, we can buy from small miners,” he told a budget hearing at the House of Representatives. “But we’re not actively buying from the external market,” he added in Filipino.

“Our reserves are so big, we don’t have to buy more gold at this time,” Mr. Diokno said. “In terms of policy, we have excess gold as part of the gross international reserves,” he said in mixed English and Filipino.

Gold has broken above $2,000 an ounce in the world market, with some traders fearing a correction, but many analysts predict more gains as a global coronavirus pandemic spurs investors to buy into gold’s relative safety.

“Because of the attractiveness of gold trading now owing to its high price, in response to recent developments, the Monetary Board decided to shift from passive to active trading,” Mr. Diokno said in a mobile phone message.

The central bank’s 10% gold holdings are based on the World Bank’s recommendations, he said. “The BSP has always taken an opportunistic position in our reserve management.” — with Luz Wendy T. Noble

Coronavirus infections top 232,000

The Department of Health (DoH) reported 3,714 coronavirus infections on Friday, bringing the total to 232,072.

The death toll rose by 49 to 3,737 while recoveries increased by 1,088 to 160,549, it said in a bulletin.

There were 67,786 active cases, 90.7% of which were mild, 6.9% did not show symptoms, 0.9% were severe and 1.4% were critical.

Metro Manila had the highest number of new cases with 1,797, followed by Negros Occidental with 390, Batangas with 248, Laguna with 247 and Cavite with 150, DoH said.

Of the new reported deaths, 31 came from Metro Manila, seven from Central Visayas, and three each from Central Luzon and the Calabarzon region, the agency said.

One death each was recorded in Western Visayas, the Zamboanga Peninsula, Northern Mindanao, the Davao region and Mimaropa region.

More than 2.56 million individuals have been tested for the COVID-19 virus, it said.

The coronavirus has sickened 26.4 million and killed almost 900,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO). About 18.6 million people have recovered, it said.

Meanwhile DoH said it may start clinical trials for the Japanese flu drug Avigan this month as a treatment for the coronavirus.

Health Undersecretary Maria Rosario S. Vergeire said the clinical trial agreement was under final review by the agency’s legal service.

The insurance policy for trial participants was being studied and the database containing details of the participants and monitoring of the drug’s effects were also being readied, she told an online news briefing.

A hundred patients aged 18 to 74 were expected to participate in the trials, which did not start as scheduled on Tuesday.

Meanwhile, there are two clinicals trials for virgin coconut oil as treatment for COVID-19, Ms. Vergeire said.

The first one at Sta. Rosa Community Hospital started in May and will end on Dec. 31, while the second at the Philippine General Hospital started on June 1 and will end on May 31. — Vann Marlo M. Villegas

Philippine dengue cases drop

Dengue cases in the country dropped by 76% to 59,675 as of mid-August from a year earlier, according to the Department of Health (DoH).

Deaths due to dengue also fell by 78% to 231 during the past seven months, Norielyn Evangelista, program manager of the National Aedes-borne Viral Diseases Prevention and Control Program, told an online news briefing on Friday.

Cases this year have been managed properly, unlike last year when the government declared a dengue outbreak after cases surged, she said.

Filipinos have stayed home for the most part since President Rodrigo R. Duterte locked down the main island of Luzon and other areas in mid-March to contain a coronavirus pandemic.

The death rate for dengue has fallen to 0.37% from 0.5% last year, Ms. Evangelista said.

Ms. Evangelista traced the drop to better surveillance, case management and diagnosis, outbreak response, research and health promotion. — Vann Marlo M. Villegas

Pemberton opposes appeal vs his release

Convicted killer US marine Joseph Scott Pemberton opposed the appeal of the family of his victim to stop his early release for good conduct.

In six-page opposition, he said the family of his victim had failed to prove that he was not entitled to an early release.

“The Bureau of Corrections certification of good conduct carries with it the presumption of regularity that the private complainant failed to rebut,” Mr. Pemberton said through his lawyer.

“The private complainant’s speculative and personal opinion of what ought to constitute good conduct cannot overcome such presumption,” he added.

He said he should not be treated differently from other convicts who had benefited from the law on time credits.

Mr. Pemberton also said he was neither convicted of a heinous crime nor was he a recidivist, habitual delinquent and escapee who was disqualified for time credit.

An Olongapo trial court convicted Mr. Pemberton for homicide in 2015 in a case that had ignited anti-American sentiment in the former US colony. The court sentenced him to six to 10 years in jail.

Mr. Pemberton could have faced a life sentence had the judge granted prosecutors’ request for a murder conviction. The court cited mitigating circumstances, saying Mr. Pemberton was drunk and got confused after discovering that the person he had hired for sex was male.

Jeffrey Laude, a 26-year-old male sex worker who identified as a woman, was found strangled in October 2014 in a motel.

The court on Tuesday ordered Mr. Pemberton’s release for good conduct.

Justice Undersecretary Markk L. Perete on Thursday said the American soldier would remain detained pending the appeal of the family’s victims.

Justice Secretary Menardo I. Guevarra said the agency would separately appeal Mr. Pemberton’s release next week. — Vann Marlo M. Villegas

Pag-IBIG sees loan levels returning to normal in Sept.

The Home Development Mutual Fund (Pag-IBIG) said it expects loan approvals of as much as P6 billion in September after a shortfall during the two-week return to a stricter form of quarantine in August.

“We are confident na babalik na s’ya level na tipong P5-6 billion, if not P7 billion (We are confident that it will return to the level of around P5-6 billion, if not P7 billion),” Pag- IBIG Chief Executive Officer Acmad Rizaldy P. Moti said at an online briefing Friday. He described the push to issue loans as an aid to economic recovery in the next two years.

Mr. Moti said loans granted in January and February averaged P6 billion, but fell to P3 billion in March after the declaration of the lockdown. The low point was P800 million in April.

“Tumaas ito nung June, umakyat sa almost P3 billion. Nung July umakyat to almost P5 billion,” he said. (It increased in June, up to P3 billion. In July, it rose to almost P5 billion)

“Pabalik na sana tayo kaso nitong August ay nagkaron ng two weeks na MECQ (Modified Enhanced Community Quarantine) kaya bumaba ulit.” (We expected a recovery, but we were in MECQ for two weeks in August so it went back down.) The Luzon lockdown started in March and led to the suspension of work, classes and public transportation.

Restrictions in Metro Manila were gradually lifted in June, but were re-imposed for two weeks in August to arrest the increase in the number of cases.

Mr. Moti said Pag-IBIG implemented a three-month loan moratorium after the quarantine started, which was availed of by some 300,000 members.

A 60-day grace period on loan payments will be implemented, once President Rodrigo R. Duterte signs the proposed Bayanihan to Recover as One (Bayanihan II) legislation.

“Sa madaling salita, okay pa ang mga myembro, may mga dumudulas, na hindi nakakabayad religiously, pero ang Pag-IBIG ay naghahanap ng pamamaraan para matulungan.” (In other words, our members are all right, some are slipping in their payments, but Pag-IBIG is looking at ways it can help)

Bayanihan II forms part of the government’s stimulus plan to recover from the crisis brought by the pandemic. It will grant up to P165 billion assistance to various hard-hit sectors. — Charmaine A. Tadalan

M3 growth slows in July to 14.5%

Money supply growth decelerated in July as the slowdown in economic activity continued following the easing of coronavirus disease 2019 (COVID-19) lockdown.

Domestic liquidity or M3, the broadest measure of money supply, rose 14.5% year-on- year, slowing from 14.9% in June, according to the Bangko Sentral ng Pilipinas (BSP) Friday. M3 rose 0.5% month-on-month.

The July M3 reading ended a streak of increased rates of expansion dating to March.

Demand for credit continued to prop up the money supply, the BSP said.

Growth in domestic claims increased 12.3% from 13.3% in the prior month.

Net borrowing by the central government expanded 51.7% in July, against 53.2% in the previous month. The central bank said this partly reflected the government’s higher funding requirements during the COVID-19 pandemic.

Meanwhile, growth in claims on the private sector, driven mainly by lending to non- financial corporations and households, also slowed to 6.1% in July from 7.2% in June with business operations were hampered by quarantine measures.

On the other hand, net foreign assets (NFA) rose 23% in July, against 15.7% growth in June.

“The continued expansion in the NFA reflected the increase in gross international reserves. Meanwhile, the growth in the NFA of banks accelerated as banks’ foreign assets rose on account of higher deposits with other banks, as well as interbank loans,” the BSP said.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the central bank’s accommodating lending policy was insufficient in encouraging spending from consumers and businesses.

“Domestic liquidity showed double-digit growth but judging from the deceleration in loan activity, this may be more attributed to the reserve requirement ratio reductions carried out by the BSP.

However, throwing money at the problem will not solve the woes of the public if end-user demand remains largely absent amidst the decrepit labor market while uncertainty over the virus remains in the air,” Mr. Mapa said.

The central bank’s Monetary Board, at its fourth policy meeting for the year, kept the rates on the BSP’s overnight reverse repurchase, lending and deposit facilities at their record lows of 2.25%, 2.75% and 1.75%, respectively.

Bank lending slows further

Bank lending continued to ease for the fourth consecutive month in July, reflecting the deepening impact of the virus on economic activity.

Outstanding loans disbursed by universal and commercial banks and net reverse repurchase (RRP) placements with the BSP grew b6.7% in July, against 9.6% in June.

Loans for production activities also expanded 5.9% in July from 8.2% in the prior month.

The BSP said this was driven by lending to sectors including real estate (11.5%), information and communication (18.4%); financial and insurance (6.3%); electricity, gas, steam, and air conditioning supply (4.4%); human health and social work (46.7%); and transportation and storage (9.7%).

Loans to households grew 17.3% in July from 27% in June as demand for credit card, motor vehicle and salary loans weakened.

The central bank expects growth in bank lending to accelerate as quarantine measures loosen.

“Sustained monetary and fiscal policy support should likewise help shore up market sentiment as the economy gradually reopens” the BSP said.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said aggressive funding from the government reduced reliance on private banks.

“Increased fund-raising activities in the capital markets, especially thorugh bond markets, equity markets, and other securities, by the biggest companies in the country may have also resulted in the much lower demand for loans, as these big businesses have learned to reduce their reliance on traditional bank loans as a source of funding,” Mr. Ricafort said.

He added low interest rates on government securities turned borrowers away from private banks.

However, Mr. Ricafort sees bank lending expanding in the next few months as the government balances pandemic containment with the need to kickstart consumer spending.

“As an offsetting positive factor for loans growth, the government signalled that it would like to keep the economy as open as possible, even if new COVID-19 cases (arise), provided that stringent health protocols are strictly followed to prevent the further spread of the virus,” he said. — Kathryn Kristina T. Jose

Peso weaker on Moody’s GDP forecast downgrade

The peso weakened further Friday after Moody's Investors Service projected a deeper contraction for the economy than initially expected.

The currency closed at P48.62 to the dollar Friday, against its P48.58 close a day earlier, according to data from the Bankers Association of the Philippines.

The peso opened Friday at P48.63, trading between the high of P48.55 and the low of P48.64.

Dollar trading volume fell to $453.5 million Friday from $647.05 million Thursday.

BDO Chief Market Strategist Jonathan L. Ravelas said the peso weakened after Moody’s cut its 2020 forecast.

"The currency (has fallen) 0.28% in 12 weeks,” Mr. Ravelas said in a text message, noting the “Moody's forecast of a deeper contraction this year by 7% from earlier projection of 4.5% drop in GDP.”

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the dollar strengthened on expectations the US economy will bounce back after speculation about the rollout of vaccines against coronavirus disease 2019 (COVID-19).

The US Centers for Disease Control and Prevention (CDC) has asked state public health officials to prepare to distribute a potential coronavirus vaccine to high-risk groups as soon as late October, Reuters reported.

Drug developers including Moderna Inc., AstraZeneca Plc and Pfizer, Inc. are thought to be making progress in developing a vaccine against COVID-19.

White House Chief of Staff Mark Meadows also said that President Donald J. Trump is "right now willing to sign (a relief aclage of) $1.3 trillion" Reuters reported.

Mr. Ricafort also said US employment is expected to pick up again as other economic indicators improved in August, particularly those dealing with manufacturing.

"The markets are also anticipating the latest jobs data on Friday which are expected to show a continuing recovery," Mr. Ricafort said in a text message.

The Institute for Supply Management (ISM) reported a factory activity index of 56.0 in August from 54.2 in July, the highest reading since November 2018 and a third straight month of growth, Reuters said.

Mr. Ricafort expects the peso to trade between P48.45 and P48.75 on Monday, while Mr. Ravelas sees a range of P48.50-P49.70. — Kathryn Kristina T. Jose

Consumer group alleges MORE Power overcharged for system loss

A consumer group in Iloilo City sought the help of the Energy Regulatory Commission (ERC) to look into alleged system loss overcharges by the city’s power distributor.

Koalisyon Bantay Kuryente (KBK) on Friday filed with the regulator a complaint against Razon- led MORE Electric and Power Corp. (MORE Power) for the supposed 60% increase in system loss charges in the past billing months.

In a virtual briefing, it also alleged the company of breaching the government-mandated cap in system loss, which the ERC pegged at 6.25% for the utility.

MORE Power’s system loss rate in its May bills increased to P0.7612 per kilowatt-hour (kWh) from April’s P0.4719/kWh, it noted based on consumer bills.

According to its computation, multiplying the rate by the city’s monthly average power consumption of 54,000 megawatt-hours, the utility is estimated to have collected around P41 million in said charges.

“From April to May, there is a staggering increase of 60% in the system loss charges collected from consumers of Iloilo. These are indications that MORE has already exceeded the cap being imposed by the ERC,” said Estrella C. Elamparo, the group’s legal counsel, who also advises Panay Electric Co., Inc. (PECO), Iloilo City’s former power distributor.

“The actual increase from one bill to the next is huge. Where did that come from? That is a question that MORE must address and answer,” Marcelo U. Cacho, PECO’s head of public engagement and government affairs said in the same briefing.

Mr. Cacho said the amount represents an estimated overcharging of over P13 million when compared to PECO’s system loss rate at P0.5178/kWh previously.

Adding what MORE Power supposedly collected from system loss recoveries in July – estimated at P7.7 million – it may have over-collected P20.9 million from consumers, he added.

The June rate was out of the computation as bills for the month are yet to be delivered, the consumer group noted.

“(S)hould it be confirmed that they have been charging the hapless Iloilo consumers for systems loss over and above the cap imposed by the commission, MORE should be made to refund the excess charges to the consumers,” KBK said in its complaint.

MORE Power’s franchise may also be investigated should it be proven to have overbilled consumers, Ms. Elamparo said.

Last week, the Energy Regulatory Commission (ERC) confirmed that MORE Power’s system loss charges in June, the amount recovered from consumers from generated power that dissipates during distribution, is at 6%, which is below the maximum cap.

MORE Power recently said in a statement that it would bring down system loss charges over the next three years as it undergoes modernization.

In 2018, the ERC ordered the gradual reduction of system loss charges. By 2021, private electricity distributors will charge up to 5.50% for system loss recovery from a 6.50% cap, while electric cooperatives will recover the cost at an 8% limit in 2022 from 12%.

The commission has based its mandated caps on load density, sales mix, cost of service, delivery voltage, and other technical considerations.

The latest power rate issue comes as Iloilo City is also facing frequent outages and delayed electric utility deliveries. — Adam J. Ang

Filinvest prepares offshore bond offering

Filinvest Development Corp. (FDC) is preparing to put up senior dollar bonds abroad, the proceeds of which will be used to invest in infrastructure projects, it said on Friday.

In a stock exchange disclosure, the Gotianun-led holding firm said it would issue the US dollar- denominated unsecured notes via Filinvest Development Cayman Islands, its special purpose vehicle.

It tapped UBS AG Singapore as the sole global coordinator for the bond sale. The bank is joined by Standard Chartered Bank as lead manager and book-runner.

The company has yet to price the Reg-S only bonds, which will be offered elsewhere outside the US. The notes are expected to be unrated, it said.

Besides using the proceeds from the issuance of the bonds for refinancing its existing debts, it will also be used to funnel investments in digitalization, renewable energy, water, desalination and wastewater, district cooling, and other infrastructure projects.

The company’s board signed off the planned issuance of the bonds in July.

In the second quarter, it reported a 39% growth in attributable income to P4.21 billion, despite recording a 24% decline in revenues to P14.72 billion.

This increased its attributable earnings between January and June by 24% to P7.2 billion. Its property, banking, and sugar businesses helped lift its earnings, while its power segment posted a lower contribution, and its hospitality unit incurred a loss.

Its year-to-date revenues dropped by 16% to P31.89 million, though, it was offset by a 6% cut in total costs and expenses at P30.61 billion.

Shares in FDC inched down 0.59% to close at P8.45 on Friday. — Adam J. Ang

San Miguel seeks stock trading suspension

Ramon S. Ang-led San Miguel Corp. (SMC) sought to suspend the trading of some of its shares on Sept. 9.

On Friday, the listed conglomerate requested the Philippine Stock Exchange to halt the trading of its 89.33 million preferred series 2 shares, subseries D (SMC2D). This will give it time to pay off shareholders for selling their securities back to the company.

“In order for the Company to process the payment of the proceeds from the redemption of the SMC2D Shares to the stockholders of record, the Company requests that the trading of SMC2D Shares be suspended beginning September 9, 2020 which is the ex-date,” it said.

The record date of the redemption of the shares is Sept. 14.

Shares under the said series inched down 0.20% to close at P75.15 each on Friday.

Two weeks ago, the conglomerate filed for the shelf registration of half of its 533.33 million preferred shares, the proceeds of which will be used to add capital into its subsidiaries.

It will be putting up 266.66 million shares, which already include an oversubscription option, at

P75 per share with a par value of P5 each. The securities are cumulative, non-voting, non- participating, nonconvertible, redeemable, peso-denominated, and perpetual.

The shares sale will run from September 29 to October 9. On Friday, shares in SMC rose by 2.83% to close at P101.80 apiece. — Adam J. Ang

PSEi ends higher on ‘positive’ prices, jobs data

Philippine shares ended the trading week in positive territory as investors responded favorably to recent reports on the country’s lower inflation and unemployment rates.

The bellwether Philippine Stock Exchange index (PSEi) rose 12.23 points or 0.21% to 5,785.09 while the broader all-shares index climbed 4.21 points or 0.12% to 3,493.73.

In a mobile phone message, PNB Securities, Inc. President Manuel Antonio G. Lisbona said the market ended in the green as investors focused on favorable labor and inflation statistics.

“Latest unemployment figures are taken as a positive cue for investors to buy the market while the recent inflation rates imply that the national government’s stimulus efforts have not yet caused the prices of commodities to rise,” Mr. Lisbona said.

“The latest inflation rate also keeps the likelihood of the monetary tightening low for the meantime,” he added.

On Thursday, the Philippine Statistics Authority (PSA) reported a 10% unemployment rate for the month of July, which is equivalent to 4.6 million jobless people.

The latest figure is higher compared with 5.4% in the same period last year. It is significantly lower than the record 17.7% in April this year.

PSA chief Claire Dennis S. Mapa said the easing of quarantine restrictions contributed to the current unemployment figures.

Meanwhile, the PSA reported on Friday that the country’s inflation rate eased to 2.4% in August, lower than the previous figure of 2.7% in July.

The PSA said the lower inflation rate was due to the decelerated price increases for the heavily weighted food and non-alcoholic beverages index.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said that aside from the unemployment figures and inflation rates, the local market rose on last-minute bargain hunting.

“Last-minute bargain-hunting lifted the bourse, up by 0.21%. Investors hunted bargains after the PSEi declined near the 5,700 support level,” Ms. Alviar said.

On Friday, most of the market’s sectoral indices declined except for property, which rose 46.25 points or 1.78% to 2,636.27 and holding firms at 35.35 points or 0.59% to 5,998.23.

Mining and oil dropped 170.65 points or 2.76% to 5,992.08; industrials shrank 82.35 points or 1.04% to 7,814.5; services declined 19.48 points or 1.32% to 1,455.41; and financials fell 5.27 points or 0.46% to 1,126.41.

Trading value was at P5.45 billion on Friday with 554.57 million shares changing hands, against Thursday’s P5.27 billion with 961.02 million shares.

Decliners outpaced advancers, 104 versus 77, while 51 names ended unchanged.

Net foreign selling dropped to P770.19 million against P1.12 billion during the previous day.

“We may have to observe next week if the market would hold above the support at the 5,700 area. Nearest resistance may be pegged at the 6,000 level,” Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said in a mobile phone message.

“We expect the market to move within 5,500 to 5,800 barring any shocks or surprises,” PNB’s Mr. Lisbona said.
— Revin Mikhael D. Ochave

AboitizPower remits P508.2-M direct benefits to LGUs

Aboitiz Power Corporation’s fund remittances to its host communities have reached P508.2 million to date, highlighting the organization’s commitment to supporting its stakeholders and helping the country recover from the impact of COVID-19.

Through the Department of Energy’s (DOE) Energy Regulations 1-94 (ER 1-94) program, AboitizPower and its partners have directly downloaded P148.2 million to 174 host beneficiaries across the country, with around P34 million still awaiting turnover.

Meanwhile, another P359.97 million from various AboitizPower-led generation companies, accumulated as of 2019, has already been remitted by the DOE to the host beneficiaries.

“We are glad that these funds are now with our communities as these will ensure they have the resources to fund crucial projects in their areas. Recent developments have also allowed them to use these remittances specifically to bolster their campaign against COVID-19,” AboitizPower President and CEO Emmanuel V. Rubio said.

The ER 1-94 Program is a policy under the DOE Act of 1992 and the Electric Power Industry Reform Act of 2001 (EPIRA), which stipulates that host communities will get a share of one centavo for every kilowatt-hour (P0.01/kWh) generated by power plants operating in its area.

The fund can be used by host beneficiaries for the electrification of areas or households that have no access to power, development and livelihood programs, as well as reforestation, watershed management, health, and environmental enhancement initiatives.

“Given the severity of the COVID-19 crisis, we at the DOE came up with the necessary circular that would enable host LGUs to use their available ER 1-94 funds to augment their COVID-19 response funding. We are pleased to learn that our vision is being fully realized. Malayo ang nararating ng bawat tulong sa panahon nitong pandemya (Every help goes a long way during this pandemic),” DOE Secretary Alfonso G. Cusi said.

With the new circular covering ER 1-94 funds, host LGUs can now use these shares to help manage the effects of the new virus, in accordance with the Bayanihan to Heal as One Act. This includes the facilitation of mass testing by providing and constructing facilities, as well as acquiring proper medical testing kits.

“More than the fact that this is the obligation of power generation companies to its host communities, this is a manifestation of our commitment to supporting our partners in any way we can, especially during these challenging times,” Rubio added.

AboitizPower subsidiaries Therma South, Inc. (TSI) and Hedcor were the latest to remit to their host communities, with about P26 million already downloaded to Davao City alone. Around P36 million has also been remitted by TSI and DOE to other various local governments in the Davao region.

These financial benefits have funded several projects across AboitizPower’s host communities, including COVID-19 initiatives in some cities and municipalities, which AboitizPower and its partner local government units work closely on to identify and implement.

The LGUs of Navotas in Metro Manila, Maco in Davao de Oro, and Nasipit in Agusan del Norte recently turned over relief goods to over 7,600 households in their respective communities through funds from the AboitizPower Oil Business Unit.

AboitizPower’s solar and geothermal units have also helped LGUs in Albay, Batangas, Laguna, and Negros Occidental build holding areas and distribution centers, provide medical and PPE supplies to frontline workers, decontaminate facilities, and distribute relief goods to feed low-income households during the quarantine period.

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