Power projects drive up 9-month investment pledges

BOI notes 25% jump in projects registered

The Board of Investments on Wednesday said it had approved P309.7 billion worth of investments from January to September this year, up by 25 percent from P248.2 billion a year ago.

The BOI’s investment registration performance was boosted by big power projects led by the P41.23-billion, 600 megawatt plant of GNPower Ltd. Co. in Mariveles, Bataan.

Of the total, local investors accounted for P258.7 billion in investments, a 12-percent increase from last year’s P230.5 billion. Foreign investors have pledged P51 billion, up by 185 percent from the P17.9 billion approved in the same period last year.

The United States topped the list of foreign investment sources, accounting for P41.7 billion, or 82 percent of the total foreign investment projects approved during the period. American firm GNPower’s P41.23-billion power project was the biggest project registered during the period.

South Korea contributed P2.26 billion, primarily from its P803 million capital in Mirae Asia Energy Corp.’s (MAEC) solar project in Ilocos Norte and the P284 million infusion in Daesang Ricor Corp.’s glucose syrup project in Cagayan de Oro City.

Australia invested P1.79 billion, mostly from Mindanao Mineral Processing and Refining Corp., which plans to invest P1.78 billion as an expanding export producer of gold bullion with other metal contents in its plant in Agusan del Sur.

The Netherlands committed P1.33 billion in investments through Philnewenergy Inc.’s solar power project in Davao del Sur.

Singapore contributed P492.1 million.

Another major energy project registered was the locally owned 400-MW coal plant of Pagbilao Energy Corp. worth P39.9 billion, followed by the P31.9-billion 405 MW coal plant of FDC Misamis Power Corp., another Filipino-owned company.

Joining the list are the coal-fired power project of San Miguel Consolidated Power Corp. in Malita, Davao del Sur (300 MW), worth P25.84 billion and SMC Consolidated Power Corp.’s coal-fired power plant  in Limay, Bataan (300 MW), worth P25.51 billion.

Both San Miguel Consolidated Power Corp. and the SMC Consolidated Power Corp. are 100-percent Filipino-owned and are controlled by one of the country’s biggest conglomerates, San Miguel Corp.

Trade Undersecretary and BOI managing head Adrian S. Cristobal Jr. said in a statement the said power projects were important in supporting the country’s rising power requirements.

The electricity, gas, steam and air-conditioning supply sector (e.g., power generating plants, renewable energy projects) got the largest share of investment commitments by sector at P250.69 billion, or 80 percent; followed by real estate activities, specifically the mass housing sub-sector, with P34.1 billion, or 11 percent share.

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Source: By Riza T. Olchondra | Philippine Daily Inquirer

3:51 am | Thursday, October 24th, 2013

PH to lead Asean-wide Ro-Ro connectivity

KUALA LUMPUR—The Philippines is all set to lead the Asean Ro-Ro Connectivity launch this month with the opening of the roll-on roll-off route to Indonesia, according to Asian Marine Transport Corp.

“It is confirmed that the launching of the Asean Ro-Ro Connectivity will be on Oct. 18,” the company said via e-mail.

The shipping firm is providing maritime services for the maiden route connecting Davao and General Santos City to Bitung City and Manado City in Indonesia, said Ernesto V. Tan, Asian Marine SVP and CFO.

Asian Marine will also serve the second route for Asean Ro-Ro connectivity, namely Philippines-China-Vietnam, which may be launched in 2015. The Philippine port is Batangas City, which will be connected to Humen town in China and Danang City in Vietnam.

Asian Marine will initially designate one vessel each for the Philippines-Indonesia and Philippines-China-Vietnam routes. The shipping firm may later add more to service growing traffic, Tan said.

Now that intra-Asean trade is expected to boom, the company may post a record revenue this year and next despite tight competition from other shipping firms and from airlines offering freight services, Tan said.

Asian Marine aims to breach the P1 billion mark in revenue this year, representing a 24-percent jump from 2012. For 2014, the company wants to generate P1.5 to P2 billion in revenue.

Growth will come from maximizing the use of the companies’ ships and an overall expansion of the freight business as Philippine industries expand, Tan said. The Philippine economy has been expanding more than 7 percent for the past 4 quarters. Recently, it beat expectations for the April-June period when it grew by 7.5 percent.

Asian Marine has 27 ships in its fleet, all of which can serve long-haul, rough-sea routes similar to those in the Black Sea and other parts of Northern Europe.

Your Wise Investment

Source: By Riza T. Olchondra | Philippine Daily Inquirer

2:54 am | Friday, September 27th, 2013

Nurture economy, US Treasury exec urges PH

US Assistant Secretary for International
Markets and Development
Marisa Lago PHOTO FROM TREASURY.GOV

 MANILA, Philippines—A United States Treasury official has commended the Philippines’ recent strong economic showing, and encouraged the government to sustain the momentum by nurturing a business environment conducive to investment.

Marisa Lago, assistant secretary for international markets and development at the US Department of the Treasury, was in Manila this week for high-level talks with Philippine economic and finance officials aimed at enhancing the longstanding cooperation between the two countries.

“Strong economic leadership in the Philippines is helping to ensure that the reform momentum is sustained,” Lago said in a statement.

“The Philippines has an exceptional opportunity to sustain robust growth by attracting higher levels of foreign direct investment,” she added.

Lago met with top government officials, including Finance Secretary Cesar Purisima, Bangko Sentral Gov. Amando Tetangco and other senior economic officials. She also met with business leaders and US Ambassador Harry Thomas.

“These meetings focused on the government’s economic reform agenda, recent macroeconomic developments, and the Aquino administration’s vision to further economic growth. During these meetings, Assistant Secretary Lago also reaffirmed [the US] Treasury’s support for the Partnership for Growth, including assistance by [the] Treasury’s Office of Technical Assistance,” the US Embassy said in a statement.

Partnership for Growth is a US Department of State program that seeks to promote closer coordination between the US and selected partner countries through “joint analysis of constraints to growth, the development of joint action plans to address these constraints, and high-level mutual accountability for implementation.”

Lago also visited the Asian Development Bank (ADB) headquarters here and met with the bank’s officials including president Takehiko Nakao and executive director Ambassador Robert M. Orr.

She also visited ADB-assisted community programs in Cavite and observed the government’s implementation of the conditional cash transfer program.

Lago was en route to Indonesia for the Asia-Pacific Economic Cooperation (Apec) finance ministers meeting ahead of the Apec Leaders Summit scheduled on Oct. 6 to 8.

Her visit coincided with the arrival this week of representatives from 14 US environment and energy firms, the largest US trade mission to come to Manila in years. The trade delegation was scheduled to be in Manila on Sept. 19 and 20.

The Philippines and the US have maintained steady trade ties in the last century, with total bilateral trade volume estimated at $22 billion in 2011.

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Source: By Tarra Quismundo | Philippine Daily Inquirer

Posted: 5:12 am | Friday, September 20th, 2013