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Meralco, Hitachi unveil PH’s first grid-scale energy storage system in the distribution network

In another example of its relentless pioneering spirit, the Manila Electric Company (Meralco) introduced the Philippines’ first grid-scale distribution-connected Battery Energy Storage System (BESS), a technology for storing electric charge through special batteries.

Commissioned in San Rafael, Bulacan, the utility’s two 1-megawatt (MW) lithium-based BESS units were launched September 6 in partnership with Japanese multinational conglomerate, Hitachi, through a Memorandum of Agreement.

BESSs are a sub-set of Energy Storage Systems (ESSs), the general term for systems that store energy to be consumed at a later time. Storing energy defers or reduces the need to buy capacity from the electricity marketplace.

BESS holds an advantage over other storage technologies due to its generally smaller footprint and a lack of restrictions regarding where these may be installed. Although versions are available, those of lithium-ion, a newer technology and the kind set up by Meralco, offer greater energy storage for their size and can be charged and discharged many times in their lifetime compared to most ESS technologies.

Lithium-ion batteries are currently the most cost-effective with the best energy density. They have been seen in a variety of consumer electronics applications such as in smartphones, tablets, laptops, digital cameras, and electric vehicles; with designs ranging from a few kilowatts with a few minutes of storage, up to multi-megawatt solutions with hours of storage that may be used at a utility substation or a wind or solar farm.

As a result, Bulacan’s lithium-ion BESS will be connected to the Meralco network spanning from Cruz-na-Daan (CND) Substation, where the 3.8 MW SPARC solar farm is also hooked up.

SPARC-generated power will be delivered and sold through the Meralco distribution system via the CND interconnection, where excess will presumably be stored at the San Rafael BESS.

Not only does the BESS project ensure a sustainable energy supply, the initiative aligns perfectly with Meralco’s affirmative action to prefer green in support of the country’s growth.

 

Revving up for a new generation in vehicle technology

It is an exciting time for the automotive industry. Great leaps in technology have allowed what was once science fiction to become reality, from electric, autonomous vehicles to artificial intelligence-driven digital services and platforms.

And while automobiles and vehicles have always been at the forefront of innovation, the potential for revolutionary developments in the industry has never been higher. Below, we take a look at the most promising trends and developments in the industry.

The electric-powered future

Switching to more sustainable sources of energy is among the world’s top priorities, as exhaust from automotives being one of the leading sources of the carbon emissions that are causing climate change.

Forbes, in an article describing the electric car rush in countries like China, wrote, “All across the global economy, titans of the fossil-fuel era are scrambling to adapt to an existential shift: the soaring economic viability of clean alternatives to dirty energy. Electricity and oil producers are struggling to ride — rather than be crushed by — a renewable energy wave.”

“Automakers, though, are at a particularly scary fork in the road. The rise of electric vehicles — machines with multiple small motors instead of one big engine; with batteries instead of a fuel tank; with unprecedentedly extensive software systems instead of a transmission — is poised to redefine car making.”

According to energy data firm Wood Mackenzie, combined sales of passenger EVs — including full-electric vehicles, which have no combustion engine, and “plug-in hybrid-electric” vehicles, which augment their battery system with a combustion engine — are on the rise, jumping 47% from the first half of 2018 to the first half of 2019, to 1.1 million. A combination of factors like declining cost and improving technology, notably for batteries; increasingly convenient electric-charging infrastructure, particularly in large cities; and hefty government support are driving that surge.

In places like India, ambitious government plans like the National Electric Mobility Mission Plan seek to put six to seven million electric vehicles on roads by 2020, in pursuit of an e-mobility target of 30% in the country by 2030.

The self-driving revolution

Some of the world’s biggest companies are leading the charge towards autonomous vehicles. Google, Uber, and Tesla are making headlines with self-driving vehicles outfitted with A.I.-enabled devices that allow them to safely navigate the roads without human intervention.

Technologies such as machine learning, cloud-based computing, and smart technologies show limitless capacities in improving vehicles into mobile platforms of the future. Such tech-enabled vehicles are equipped with sensors and cameras for recording vast amounts of data before, during, and after each trip, while radar systems use radio waves to detect the presence, speed, and distance of surrounding vehicles and objects.

Advanced local data processors can then perform calculations based on the collected data in real time, enabling precise, safe, and real-time on-the-road decisions. Afterwards, the onboard artificial intelligence can enact those decisions and ensure regular software and algorithm updates for continuously improved vehicle performance. In certain cases, some self-driving vehicles are even outfitted with smart technologies that interface with traffic lights, signs, and lane markers.

According to data from KPMG International, the Netherlands is leading the way as the country that is most ready to support driverless cars, followed by Singapore and the United States. China ranks 16th.

A connected, smarter journey

With so many cars coming equipped with revolutionary technologies, manufacturers are finding new ways to connect people and their devices while on the road. The Internet of Things (IoT), one of the most promising fields in emerging technologies today, can create smarter transportation fleets that use GPS tracking to monitor road conditions, vehicle information, and driving habits in real-time. This works by allowing cars and smart-enabled devices to work in tandem with one another, keeping track of sensors connected to the road and traffic conditions, and even drivers’ health.

An estimate by the World Economic Forum predicts that by 2025, the number of IoT devices will exceed 40 billion, fueled by continued technological advances and the plummeting costs of computing, storage and connectivity.

The rise of 5G networks, which will allow faster transmission of larger amounts of data, can only further drive the development of more accurate and helpful devices.

Even for conventional cars without autonomous capabilities, 5G networks can improve route navigation, safety protocols, and can keep track of vehicle status. Vehicle to vehicle (V2V) communication will lead to fewer accidents on the road, as cars will now be able to share information about pedestrian crossings, infrastructure, and roadblocks to avoid. Sensor technology will do more than sensing what’s in its line of sight, as a fully-capable V2V network can allow a car to get a sense of not just its distance from other vehicles, but also what’s even further down the road, allowing for a safer, more informed journey. — Bjorn Biel M. Beltran

Advancements in safe driving

In choosing a car, features that help motorists drive safely are worth considering, especially as cars continue to innovate in each of its aspects and functions. Recently, local automotive buying and selling platform Philkotse.com listed down high-tech safety features of modern cars that are now considered as must-haves.

First among these is the forward collision mitigation or forward collision warning. Sensors in cars detect objects in front of the vehicle (e.g., walls, lampposts, pedestrians or other cars) and signal the car’s onboard computer to calculate the time remaining before a car hits an object.

“When the system determines that there is a danger of crash or collision, it will trigger an audible or visual signal to alert the driver,” Philkotse continued. “If the driver is not able to take appropriate measures immediately, the system will automatically apply the brakes to avoid or minimize the crash/collision’s severity.”

Adaptive headlights, another helpful tool especially in low-light conditions, “pivot in the same direction as the steering wheel, providing better illumination on the road.” Sensors are also used here, detecting the steering angle and eventually activating electric motors that turn the headlights.

Blind-spot warning — philkotse.com

Blind spot warning alerts drivers of cars approaching its blind spot from behind by signaling a flashing light or warning on the side mirror of the car. An upgraded version of this uses haptic feedback, which delivers a vibration through the seat or steering wheel and notifies of a potential hazard on the adjacent lane.

To keep cars in the proper lane, lane departure warning and lane-keeping assist technologies go hand-in-hand. “Lane departure warning uses a forward-facing camera to scan road markers, and notifies the driver with an audible or visual warning when it senses that the car starts to veer away from its current lane,” the article explained. However, if the driver does not heed such warning, “lane keeping assist feature takes over either by applying brakes to one side of the car to nudge it back into position or by using the steering wheel.”

For cars encountering one or more vehicles in their path, especially those in a parking lot, rear cross-traffic alert aids in preventing the car from hitting a vehicle that can hardly be seen by the driver. This is possible through sensors located at the car’s rear, which can detect such obstacles and then give an audible and visual signal.

In case of unexpected accidents to the point of incapacitating a car’s occupants, the automatic collision notification is a very accessible emergency tool. “When the system detects that the car has experienced a frontal crash (whether through airbag deployment or sudden deceleration), it will automatically contact an emergency operator who can speak to the driver or passenger,” Philkotse explained.

When before drivers rely on mirrors near their seats to keep their cars safe, rearview cameras now allow them to see the traffic or obstacles behind their cars. These cameras also display lines representing the car’s width (in some systems), night vision capability for low-light conditions, and a warning sound when the car gets too close to an object.

EO presses state offices to spend on time

MALACAÑANG has moved to ensure that government offices spend within the fiscal year what they are given under the national budget, by formally adopting the cash budgeting system (CBS) starting this year through Executive Order No. 91.

Signed by President Rodrigo R. Duterte on Sept. 9 and distributed to journalists on Thursday, EO 91 noted that “significant gaps” between what the annual budget provides and what state offices actually spend “translate to billions of pesos in delayed and foregone services, which should have been delivered to the general public.”

Hence, it added, the need to set “deadlines for obligation of funds and execution of projects during the fiscal year, in order to speed up the implementation of programs and to promptly deliver goods and services…”

“All authorized appropriations shall be available only until the end of each fiscal year,” the EO read, with procurement to be implemented, as well as goods and services corresponding to such obligations “delivered or rendered, inspected and accepted by the end of each fiscal year.”

Payments for such obligations will have a grace period of three months after the end of each fiscal year “unless another period has been determined by the Department of Budget and Management (DBM), upon consultation with relevant agencies.”

“Any unreleased appropriations and unobligated allotments at the end of the fiscal year, as well as unpaid obligations and undisbursed funds at the end of the extended payment period shall revert to the National Treasury and shall not thereafter be available for expenditure, except by subsequent legislative enactment,” the order read further.

Projects whose procurement requirements run for more than a year will require a multi-year contractual authority to be issued by the DBM.

The same EO formalizes an early procurement scheme by authorizing state offices “to undertake procurement activities, short of award” that “cover goods to be delivered, infrastructure projects to be implemented and/or consulting services to be rendered in the following fiscal year, pending approval of the corresponding general appropriations act.”

The government of President Rodrigo R. Duterte has moved since it assumed office in mid-2016 to spur expenditures after years of chronic underspending that has capped overall economic growth.

But a shift to CBS late last year for the 2019 national budget led to a tiff between the DBM and the House of Representatives, since the new scheme slightly reduced appropriations from 2018. Then Budget Secretary Benjamin E. Diokno, now central bank chief, had explained that the new system bases appropriations on state offices’ track record in spending. That, plus subsequent accusations by the House and the Senate that the other had illegally inserted funds in the 2019 budget resulted in late enactment of the spending plan.

The government operated on a reenacted 2018 budget from January to April 15, when Mr. Duterte signed this year’s national budget into law but vetoed P95.3 billion in funds that were not in sync with state priorities, slashing the total to P3.662 trillion.

Delayed enactment has been blamed for the muted 5.5% economic growth last semester, which compared to an already-reduced official 6-7% full-year target.

The DBM on Thursday said it had already released P3.345 trillion, or 91.4%, of this year’s national budget as of Aug. 31.

“It follows the normal pattern we have been seeing… where at least 85% of department budgets are considered released during the first day of budget effectivity,” DBM Undersecretary Laura B. Pascua said in an e-mail when sought for comment. “On the average, the NG (national government) obligates about 95% of the budget. We end allotment releases in November.”

Allotment releases to line departments totaled some P1.971 trillion, while releases from special purpose funds (SPFs) amounted to about P244.642 billion. SPFs are budget allocations for support of state firms, local governments, the Miscellaneous Personnel Benefits Fund and Contingent Fund, among others.

Allotment releases for automatic appropriations — like local governments’ annual share from national tax collections, interest payments for government debt and subsidies to cover duties and taxes on state transactions — totaled P1.069 trillion.

The DBM also released P29.072 billion for unprogrammed appropriations, consisting of authorized additional expenditures for priority programs and projects. — A. L. Balinbin and Beatrice M. Laforga

Automobile sales post seasonal dip in August

CAR SALES dropped in August for the first time in seven months, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) reported on Thursday, describing the reduction as seasonal.

Data the groups released showed that overall sales dropped 2.4% to 29,599 units in August from 30,313 vehicles a year ago, and seven percent from July’s 31,810 total.

It was the first year-on-year drop since January’s 15% fall.

But increases from February to July resulted in a 2.44% increase in industry sales to 235,544 vehicles as of August from 229,941 units in last year’s comparable eight months.

“Supply constraints and the run-out of outgoing models of some brands have hampered the industry’s rate of recovery in August,” CAMPI President Rommel R. Gutierrez said in a statement. “Together with that, the reality of seasonal trends in the industry continue to hold true, despite the boosted sales and marketing campaigns during the off-peak month of August.”

August last year saw sales drop 14.04%, as the industry reeled from higher automobile excise tax rates that kicked in at the start of 2018.

However, August 2017 saw sales grow 8.7% year-on-year.

August sales of commercial vehicles — which accounted for 70.33% of the industry total — dropped by 3.8% to 20,818 from 21,635 in the same month last year. Sales of Asian Utility Vehicles rose by 8.6% to 3,236 vehicles from 2,981 units, while those of light commercial vehicles dropped by five percent to 16,488 units from 17,354 vehicles.

In contrast, passenger vehicle sales grew by 1.2% to 8,781 units from 8,678 vehicles.

Toyota Motors Philippines Corp. continued to have the biggest vehicle market share at 44.2%, selling 13,083 units in August, 6.2% more than a year ago. It was followed by Mitsubishi Motors Philippines Corp. with 17.09% share though with sales dropping 7.3% to 5,057 units from 5,456 last year. Nissan Philippines, Inc. followed with 11.83% share, dropping by 22.2% to 3,501 from 4,500 units. Suzuki Philippines, Inc. sold 7.26% of the total, increasing its sales by 17% to 2,149 units from 1,836 a year ago. Ford Motor Company Philippines, Inc. came next, contributing 7.28% to the total with 1,515 units sold, 14.4% more than the 1,324 vehicles sold a year ago.

“Traditionally, August has been a challenging month for the industry. However, we expect a positive turnaround this September until the last quarter of the year as the industry introduces new car models…” Mr. Gutierrez said, saying the group’s of 410,000 unit sales goal “remains… highly achievable goal for the industry and we expect the road to recovery to continue until the end of the year.” — Jenina P. Ibañez

Philippines advised to further diversify its energy sources

By Victor V. Saulon
Sub-Editor

AUSTIN, TEXAS — Over-reliance on one type of energy or dependence on one country as an energy source is a threat to national security, an official of the US Department of State said here, as he pointed to alternative models of resource development that the Philippines can adopt.

“We think that it’s better for the country when you have the best choice of all of the different companies to look at — to look at the bids, to look at the offers — and then make the best choice for the country’s development and for the development of whatever resource you’re talking about,” Kent D. Logsdon, principal deputy secretary of the Bureau of Energy Resources (ENR), said in a briefing.

Mr. Logsdon was responding questions from visiting journalists from countries in Asia and Europe where the bureau hopes for greater engagement. ENR leads the State department’s efforts to forge its international energy policy to boost US and global energy security.

“We know there are lots of countries out there, several in particular, with state-owned enterprises who are very aggressive and who will come in with a checkbook,” he said.

He pointed to China and concerns from the United States about resource development models that offer terms to countries in the region, particularly those with territorial claims in the South China Sea, that center on joint exploration between a Chinese state-owned enterprise and a local company.

“We find that troubling,” Mr. Logsdon said.

He said the United States has been clear about its stand that the South China Sea is an international open waterway.

“US companies and other international companies should also be free to operate there. We continue to make that very clear, I think, in both word and deed. So we talked to China and we talked to countries in the region to say that,” he said.

For the United States, national security is threatened when its allies lack reliable access to diversified, affordable and reliable energy; foreign energy markets shut out US companies; market-based energy solutions are hindered by poor governance; competition for energy leads to conflict; or terrorists and rogue regimes exploit energy resources to fund violence and destabilizing activities.

ENR serves as the principal advisor of the Secretary of State on energy security, policy, operations and programs. As opposed to domestic concerns of the US Department of Energy, the bureau’s focus is more international.

Mr. Logsdon said the bureau works with governments in setting an enabling environment for companies to do business fairly.

“Sometimes, a state-owned enterprise might win a competition, but if it’s a fair and open competition, that’s what companies are looking for — that they were able to bid, and that they were able to get their bid considered in a fair way and the best company was chosen,” he said.

He said the US is promoting a private sector-led model of energy resource development where its companies, especially the smaller ones, can offer solutions, especially in renewable energy.

Asked about the enabling environment that US firms are looking for, he said these are the same as what other governments and businesses around the world would seek. In energy legislation, for instance, he said these the same as what US companies tell the government.

“But again it’s pretty basic — it’s transparent processes, they’re looking for what is the process if you have a dispute, how do you resolve that,” Mr. Logsdon said.

“They start from the beginning — in the very fairness of getting a contract, that if they put a bid down, it’s an open, transparent competition in order to win that. And then there’s the relationship with the government to figure out how they will share, whether it’s a production sharing agreements, whether it’s just again dispute resolution mechanism, what do you do when there’s a problem.”

Mr. Logsdon said US companies are keen to participate in Philippine projects, including petroleum exploration, if they see “the right kind of structure and enabling framework.”

“The US government can’t direct US companies to any place in the world,” he said.

“They have to see a resource that they think they can develop, and that they can actually be a profitable company there… that’s the bottom line.”

Filipinos dropping out of the work force could benefit the economy

LOW UNEMPLOYMENT in the Philippines may be masking the fact that more people are opting not to work — and preferring to stay in school for longer.

The jobless rate has been fairly steady around five percent for more than a year, down from 6.6% two years ago.

A closer look at the data shows more than 750,000 Filipinos aged 15 or above dropped out of the labor force last year. That means some 28 million people — about 40% of the working-age population — aren’t employed and aren’t looking for jobs.

“Most of the youth stayed out of the labor force,” Socioeconomic Planning Secretary Ernesto M. Pernia told reporters.

“Boys cited staying in school as their reason for not working.”

At first glance, that would seem like a major drag on growth.

But a better-educated workforce would be a significant boost down the line for a country that counts population size as a major driver of its economy.

Traditionally, young Filipino men have worked without pay on family farms or earn meager salaries for manual labor at construction sites, markets or ports.

The number of men aged 15-24 who were not in the labor force — and which would include students — increased by 1.25 million between 2010 and 2018, according to the statistics agency.

At the same time, the number of females joining the labor force climbed: About 1 million more young women actively looked for employment or had joined the workforce in 2018 compared to 2010.

Families may be keeping their sons in school longer as they benefit from a decade-old government cash-transfer program, as well as free tuition at technical schools and state colleges, said Emilio S. Neri, Jr., a senior economist at Bank of the Philippine Islands.

“All of those efforts led to more students gaining more access to tertiary and technical or vocational” education, he said.

In addition, high schools — which used to end at 10th grade — added two extra years of studies several years ago.

That may have kept young people out of the workforce for longer, but wouldn’t have stopped some families from taking teens out of school and sending them to work if necessary.

Among Filipino men, 21% have undertaken college or other post-secondary education, compared to 25% of women, the latest data from the statistics agency show.

Most male students in tertiary education are studying information technology, while most women are in business administration and related fields.

There are signs that the programs are slowly translating to a better-educated labor force. “It’s to the country’s advantage to make the best of the increasing labor force to boost economic output,” Mr. Pernia said, adding that the government intends to invest more in educational programs.

Better education and training will surely deepen the available talent pool. But the key test will be whether the economy can create enough jobs outside service industries like tourism and call centers.

“The challenge is really to continue generating the opportunities for higher-skilled workers,” Mr. Neri said. — Bloomberg

SFEx expansion to be completed by Sept. 2020

NLEX Corp. is targeting to complete the P1.6-billion Subic Freeport Expressway (SFEx) capacity expansion project by September next year.

The company started “full blast” work on the enhancements yesterday, with a groundbreaking ceremony in Subic, Zambales joined by officials from NLEX Corp. and the Subic Bay Metropolitan Authority (SBMA). Sta. Clara International Corp. has been tapped as the project contractor.

The SFEx capacity expansion project involves the construction of two additional lanes, two new bridges at Jadjad and Argonaut, and a new tunnel on the 8.2-kilometer toll road.

“We at MPTC (Metro Pacific Tollways Corp.) and NLEX Corp. believe that one of the key drivers of economic growth is the network of high quality roads,” NLEX Corp. President Luigi L. Bautista said in his speech at the ceremony.

“By increasing the road capacity of SFEx…the transport of goods in and out of the Subic Freeport will be faster and simpler,” he added.

Subic is home to the Subic Bay Freeport Zone, a special economic zone that facilitates trade in the Central and North Luzon through shipping.

SBMA Chairman Wilma T. Eisma said aside from helping the smooth flow of goods in and out of the province, the SFEx expansion is expected to make Subic a more viable tourist and investment destination because of improved connectivity.

“I could guarantee you that there will be an increase, not just in investors, but (also in) tourism. Because connectivity is really important for mobility of people. As companies continue to come in, it is very important for us to grow Subic as a tourism destination for Filipinos and foreigners alike,” she said.

NLEX Corp. said it will also improve the existing SFEx by adding LED lights and enhancing its drainage system to address flooding in the area.

NLEX Corp. is under MPTC, the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

It sequel floats to $91 million

LOS ANGELES — Leave it to Pennywise to deliver a much-needed jolt to the domestic box office. Warner Bros. and New Line’s It: Chapter Two arrived with $91 million, a promising start after a lackluster summer moviegoing season.

While those ticket sales are behind the jaw-dropping $123 million launch of its predecessor, 2017’s It, the follow-up still ranks as the second-best horror opening in history, as well as the second-highest gross for the month of September (both behind It). Directed by Andy Muschietti, It: Chapter Two was also a necessary win for Warner Bros. following a dismal summer that saw disappointments such as The Kitchen, Godzilla: King of the Monsters, and Shaft.

Overseas, It: Chapter Two scared up a solid $94 million for a global debut of $185 million.

“We’re absolutely thrilled with our result,” Jeff Goldstein, Warner Bros.’ President of Domestic Distribution, said on a Sunday morning call. “Andy Muschietti and New Line, as well as the marketing team led by Blair Rich, created one of those moments where it all works. We’re proud of it.”

The R-rated horror sequel didn’t receive the same critical love as the first (It: Chapter Two carries a 64% on Rotten Tomatoes compared to an 87% for the original). However, audiences were more favorable, giving the same B+ CinemaScore as It.

STRONG MILLENNIAL AUDIENCE
Over half of opening weekend crowds were male, while 33% were under the age of 25. Younger moviegoers appeared to be even more enthusiastic: Ticket buyers 25 years old and younger awarded the film with an A- CinemaScore and those under the age of 18 gave it an A.

“The Pennywise character really speaks to [younger audiences] in a big way,” Goldstein said. “We have such a strong millennial audience, which tells us we should have a long play in front of us.”

It: Chapter Two clocks in at a lengthy two hours and 50 minutes, nearly 30 minutes longer than the first film. While longer runtimes could result in less screenings and therefore fewer tickets sold, the studio bypassed that by securing 4,570 theaters, the widest September release to date.

“The movie was long, but we strategically dealt with that by adding a lot more showtimes, which gave audiences an opportunity to see it at a time that works for them,” Goldstein added.

Based on the second half of Stephen King’s novel, It: Chapter Two picks up 27 years after the Losers’ Club thought they rid their small town of the terrifying clown known as Pennywise (Bill Skarsgård). When the sewer-dwelling, shapeshifting demon resurfaces, the unlikely heroes return to their hometown of Derry, Maine to get rid of the evil force once and for all. The sequel stars Jessica Chastain, James McAvoy, Bill Hader and Isaiah Mustafa as the adult version of the kids who took on Pennywise over a quarter of a century before. — Reuters

Ayala, SMC units bag Meralco supply contracts

By Arra B. Francia, Senior Reporter

MANILA Electric Co. (Meralco) has awarded power supply agreements (PSA) covering 1,200 megawatts (MW) to units of San Miguel Corp. (SMC) and Ayala’s AC Energy, Inc.

In a disclosure to the stock exchange on Thursday, the listed company identified the winning bidders during the competitive selection process (CSP) for its power requirements to be Phinma Energy Corp., San Miguel Energy Corp. (SMEC) and South Premiere Power Corp. (SPPC). AC Energy owns Phinma Energy, while SMEC and SPPC are both units of SMC.

Phinma Energy will supply Meralco with 200 MW, while SMEC and SPPC will tender 330 MW and 670 MW, respectively. The ten-year contract will run from Dec. 26, 2019 to Dec. 25, 2029.

Meralco said the three firms were issued their respective Notices of Award after passing the post-qualification evaluation. They will then require approval from the Energy Regulatory Commission (ERC).

A total of five companies participated in the bidding process, with the other two being SMC Consolidated Power Corp. and Masinloc Power Partners Co. Ltd.

The company earlier said that Phinma Energy’s bid was at a rate of P4.7450 per kilowatt-hour (kWh). SMEC’s bid was at P4.6314 per kWh, while SPPC’s was at P4.6314 per kWh.

The resulting prices from the selection process are lower than Meralco’s current average generation cost of about P5.84 per kWh. Once implemented, the new supply agreements could lead to savings of more than P9 billion annually for a 10-year period.

This is expected to reduce costs for consumers.

Should the power suppliers fail to provide their contracted capacity, they shall pay a fine of P908 multiplied by each MW-hour per day. This will be used to reduce the generation charge to consumers.

Meanwhile, Meralco also said that there were three winning bidders to supply their mid-merit power requirement of 500 MW from Dec. 26, 2019 until Dec. 25, 2024. This includes First Gen Hydro Power Corp for 100 MW, Phinma Energy for 110 MW, and SPPC for 290 MW.

They will still undergo a post-qualification evaluation and need approval from the ERC.

Meralco has another 20-year contract for 1,200 MW of its power requirements up for bidding.

Meralco’s net income attributable to the parent was flat at P12.007 billion in the first half of 2019, as revenues went up 9.57% to P164.95 billion.

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 interest in BusinessWorld through the Philippine Star Group, which it controls.

Shares in Meralco fell 0.99% or P3.60 to close at P360 each at the stock exchange on Thursday.

Burn

By Menchu Aquino Sarmiento

Movie Review
ALIPATO — Ka Luis Taruc
Directed by Dik Trofeo

THIS DOCUMENTARY consists mainly of interviews with the former Huk Supremo Luis Taruc which were conducted during the last years of his life. By then, the filmmaker Dik Trofeo had grown so close to Taruc that he called Trofeo his second son. (Taruc had only one son: Romeo, by his first wife Feliciana Bernabe. He had three wives.) Other producers have attempted to make unauthorized bio-pics of Taruc, including one with action star Senator Lito Lapid, but Trofeo’s film has Taruc’s imprimatur. “Ka Dik” and his camera crew tagged along with the peripatetic Taruc on his provincial sorties to stomp for peasant cooperatives. By then, he had ceased to be either Maoist or Marxist and was inducted by the National Historical Commission into our National Hall of Heroes.

“The Philippine revolution needs to be indigenized,” observed National Artist for Literature F. Sionil Jose who was a young journalist during the post-WWII pistaym (peacetime) when the Huk was an armed force of 12,000 strong, with at least two million peasant and civilian sympathizers, or about 10% of our population then. Thousands had demonstrated when Taruc and his second-in-command, Casto Alejandrino, were detained by the Quirino Administration. Former South African President Nelson Mandela acknowledged his debt to Born of the People, written by Taruc under the pseudonym “Alipato (meaning ‘spark’ or ‘ember’), with help from the American sympathizer William Pomeroy who was married to an amazona (a female Huk). Mandela used Taruc’s book as a valuable resource on guerilla warfare for the armed wing of the South African National Congress.

Much of the film consists of Taruc reminiscing on the history he’d lived through, or expounding in extreme close-up, on his own political beliefs. He was an avid reader of the newspaper op-ed pages. He compared then newbie President Gloria Macapagal-Arroyo (GMA) to a harlot too quick to spread her thighs, upon her volunteering Philippine support for the US President George W. Bush, without even being asked, in the aftermath of the 9-11 terrorist attack on the Twin Towers in New York. This ungallant remark ostensibly reached GMA, who instead of getting mad at Taruc, offered him a Land Bank directorship.

Taruc refused: “You can’t buy me with dirty politics.” This line might be his meme, as it’s repeated throughout the film. Unfazed, GMA asks Taruc’s permission to offer the Land Bank board seat to his son Romy instead, who accepts. Perhaps it was GMA’s way of making up for her father, former President Diosdado Macapagal’s refusal to pardon Taruc during his term, despite their both being Kapampangan. President Ferdinand E. Marcos released Taruc in 1968, and he became the Apo’s poster boy for Marcosian agrarian reform. He explained that working with Marcos was necessary to get the Huk recognized as a legitimate guerilla force so that they could collect benefits as WWII veterans.

Taruc also explained the infamous massacre of former First Lady Doña Aurora Aragon Quezon and her entourage in April 1954. Quezon City Mayor Ponciano Bernardo, a member of Dona Aurora’s group, was said to closely resemble former President Elpidio Quirino who was purportedly the real target of the ambush. Doña Aurora’s ill-fated party was escorted to Baler by two army transport trucks which further misled the rebels into believing that they were there to protect Quirino himself. Taruc surrendered soon after the Quezon tragedy. He claimed that the late Benigno “Ninoy” Aquino, Jr. double-crossed him by failing to come through with the promised pardon from President Ramon Magsaysay.

Apart from the occasional archival footage, there are attempts at recreating history. Particularly moving is the re-enacted scene from Taruc’s boyhood, of his barely literate parents, who were tenant farmers, using kernels of corn to calculate what their portion of the harvest would be, vis-à-vis what they would have to give to their landlord, mostly in usurious interest payments. Sionil Jose, who calls Taruc a true nationalist, complained that the two-hour documentary was too long. Actually, given Taruc’s place as a leader of the prevalent counter-force to the infant Philippine government, this documentary might have worked better as a longer mini-series in the Ken Burns mode, so that every episode might focus in greater detail on an early developmental stage in our continuing struggle for democracy and nationhood. The events of 1946 when Taruc attempted to participate in legitimate government are barely mentioned. He was elected congressman then, but President Manuel A. Roxas maneuvered to immediately unseat him along with other members of the oppositionist Democratic Alliance. In the documentary, Taruc recounts how Roxas had earlier asked him to run as his vice-president. Taruc went underground again. In less than a decade, the Huk was decimated by infighting.

In “The Philippines A Century Hence,” our national hero Dr. Jose Rizal declared that: “All the petty insurrections that have occurred in the Philippines were the work of a few fanatics or discontented soldiers, who had to deceive and humbug the people or avail themselves of their powers over their subordinates to gain their ends. So, they all failed. No insurrection had a popular character, or was based on a need of the whole race, or was fought for human rights or justice; so it left no ineffaceable impressions… when they saw that they had been duped, the people bound up their wounds and applauded the overthrow of the disturbers of their peace! But what if the movement springs from the people themselves and based its causes upon their woes?”

Given its unprecedented numbers, the Huk was such a movement of the people. Taruc was not a fundamentalist though, of any school of Communist ideology. He deplored the hard-core intolerance of other Philippine Communist leaders for any dissent or perceived deviation from the book or the party line. Think of the NPA purges. Taruc’s vice, Casto Alejandrino, personally carried the order from the PKP (Partido Komunista ng Pilipinas) secretariat, to arrest his Supremo on charges of deviating from the party line, which led to Taruc’s surrender to the Magsaysay government.

A 1952 report on Philippine peasants noted “that the rank and file of tenants seek to become individual owners of the land they cultivate was proof against their adherence to, or understanding of the basic principles of communism. This knowledge, however, adds little comfort, for the fact remains that the strength and bulk of rebellious tenants are being used to support the communism which champions their cause.” This is still happening 70 years later. These may not be the last days though, when “our sons and our daughters shall prophesy, and our young men shall see visions.” Meanwhile, in Alipato, our old men dream their dreams.

Filinvest Land expands project in Pampanga

FILINVEST Land, Inc. (FLI) has broken ground for the second phase of its Hampton Orchards project in Pampanga.

In a statement issued Thursday, the Gotianun-led property developer said the 18-hectare project will offer lots for sale ranging from 156 to 469 square meters (sq.m.) each. The project, located between the cities of Angeles and San Fernando, is a joint venture with film producer and director Ben Yalung.

FLI is targeting families, overseas Filipino workers, and investors for the project.

Amenities in Hampton Orchards include an amphitheater, sundial, pocket parks, outdoor gym, and central orchard. This is in addition to the adult and kiddie pool, clubhouse, children’s playground, pool deck, multi-purpose court, gazebo, picnic huts, trellis, and mango orchard found in the first phase of the project.

“Hampton Orchards Phase 2 is currently in the pre-selling stage where buyers can still enjoy investment growth until the project nears its completion,” FLI Senior Vice-President and North Luzon Cluster Head Tristan Las Marias said in a statement.

“Furthermore, we foresee an upsurge in the project’s investment value as this project is ideally situated to take advantage of the opportunities abounding in the two highly urbanized centers of Angeles and San Fernando, especially that progress for the province of Pampanga, and Region 3 as whole, are fast gaining momentum and its economy is set to take flight.”

Hampton Orchards is part of the P30 billion worth of projects FLI committed to launch this year, almost double the P16 billion it unveiled in 2018. Its residential projects are under the brands Futura and Aspire, which cater to the affordable and middle-income markets.

Aside from the expansion of its residential business, FLI is also ramping up its recurring rental income business so that it would contribute 50% of the company’s total earnings in the future. The company targets to end 2023 with about 1.6 million sq.m. in gross leasable area.

Incorporated in 1989, FLI is the real estate arm of Filinvest Development Corp., which also has investments in banking, power, sugar, and the hospitality sector.

FLI’s net income attributable to the parent rose 15% to P3.1 billion in the first half of 2019, after gross revenues jumped 26% to P11.81 billion.

Shares in FLI dropped by a centavo or 0.60% to close at P1.65 each at the stock exchange on Thursday. — Arra B. Francia