Chevron, Spex EYE gov’t stake in PNOC-EC Philippine Star, Feb 22
Shell Philippines Exploration B.V. (SPEX) and Chevron Malampaya LLC have expressed interest in the government’s 60 percent stake in the Philippine National Oil Co.- Exploration corp. (PNOC-EC) which is currently up for grabs, Finance Sec. Margarito Teves said over the weekend. Teves said the two companies have expressed interest in exercising their right of first refusal over the govt’s stake in PNOC-EC.

PNOC bags Mount Isarog geothermal project Business Mirror – Feb 24, 2010
STATE-RUN Philippine National Oil Co. [PNOC] has recently been awarded a geothermal exploration contract by the Department of Energy [DOE]. The deal allows PNOC to develop the Mount Isarog volcanic chain in Camarines Sur.PNOC said the $60-million Mount Isarog geothermal project has a potential capacity of at least 20 megawatts and is estimated to have the capacity to generate 18 gigawatt-hours of electricity per year.The project will be connected to the Luzon grid. PNOC-Renewables Corp., the firm’s renewable energy implementing arm, will be the unit in charge of the Isarog project. The will commence exploration activities in the third quarter.

RP, Spanish players in “Green Business” lead this year’s “Tribuna” in Barcelona Business Mirror, Feb 24
Prospects in renewable energy (RE) and water management top the four-pronged agenda at the V Tribuna España-Filipinas, with some 50 Philippine leaders in business, education, culture and development cooperation engaging counterparts in Barcelona. This is a yearly forum, held alternately in Spain and the Philippines, allows government officials, business leaders, academe and representatives from civil society from both countries to exchange notes and jointly discover possible areas of cooperation. Manila’s contingent to the V Tribuna, which runs until February 23, will be headed by Fundacion Santiago treasurer and former central-bank governor Dr. Jaime Laya.

Mindanao power utilities eye replication of Visayas’ de-loading arrangement Business World, Feb 24
The de-loading program pioneered in Cebu has drawn interest from utilities in Mindanao, which is currently reeling from rotating power interruptions of up to four hours during peak periods. Among those keen on implementing the program as soon as the rules and regulations are approved by the Energy Regulatory Commission (ERC) was the Davao Light and Power Co., Inc., the third largest utility in the country and a unit of Aboitiz Power Corp.

Finance

RP completes 2010 foreign commercial borrowing Manila Times February 24, 2010
The Bureau of the Treasury said the Philippines raised $1.1 billion from the sale of Samurai bonds on Tuesday, allowing the government to complete its foreign commercial borrowing program for this year.The proceeds of the debt paper sale would be used to plug a record budget deficit of P293 billion this year, as the Philippine government struggles to maintain the country’s economic recovery momentum following the worst global slump in decades. According to the Philippine Treasury bureau, Japanese investors showed strong interest for the placement following an extensive marketing effort, including a series of one-on-one investor meetings in Tokyo headed by National Treasurer Roberto Tan and Finance Undersecretary Rosalia de Leon.

PAG-IBIG Fund bullish on P12-B bond offer Business Mirror, February 24, 2010
STATE-ADMINISTERED Home Development Mutual Fund, more popularly known as Pag-IBIG Fund, launched on Tuesday its offer of five-year bonds worth P12 billion, with the auction to price the issue set for March 9. FMIC and state lenders Development Bank of the Philippines and Land Bank of the Philippines are the joint lead underwriters for the bond issue. Proceeds from the bond sale will be used to pay Pag-IBIG’s P7-billion obligations maturing in May, and to augment funds for lending. Read story

RP signs 150-million euro deal with France Philippines Star
The Philippines has signed its very first program loan agreement last week with the Agence Francaise de Developpement (ADF) for a local government financing and budget reform loan of 150 million euros. The program, a co-financing with the Asian Development Bank, aims to contribute to improved efficiency and effectiveness in the delivery of basic public services to residents by increasing fiscal resources and financing options for local government units (LGUs). The loan has a maturity period of 20 years inclusive of a five-year grace period.

Gov’t urged to adopt ‘export recovery’ incentives Business World – February 21, 2010
AN EXPORTERS’ GROUP wants the government to reward firms that bounce back from the economic downturn, proposing tax perks for those that rehire laid-off workers or are able to regain lost markets. The state should likewise assist struggling exporters by easing a rule setting a minimum export sales level before a firm can qualify for incentives, the group said. The petition came as the Board of Investments (BoI) ended the period for accepting position papers on the proposed list of business activities eligible for tax perks this year. The draft Investment Priorities Plan (IPP) for 2010, which the Board of Investments (BoI) presented in a public hearing early this month, no longer carries last year’s provision which awarded incentives to troubled firms that retained or hired workers despite the downturn.

RP raises $1.1 billion from Samurai bonds
The government raised yesterday $1.1 billion from the sale of Samurai bonds to plug its widening budget deficit expected to hit a record P293 billion this year. With the bond issue, the government has completed its programmed $2.5-billion commercial borrowing requirements for the year, Finance Secretary Margarito Teves said. Last month, the government raised $1.5 billion in dollar-denominated bonds. The government earlier raised its 2010 commercial borrowing requirements to $2.5 billion from $2 billion previously following a revision in its budget deficit ceiling for the year to a whopping P293 billion from the already revised P233.4 billion. Borrowings from multilateral lenders will remain at $1.8 billion as earlier programmed.

Five RP banks sign up for ADB finance scheme Business World/ February 23
PHILIPPINE TRADERS can now benefit from the Asian Development Bank's (ADB) $1-billion regional facility which seeks to make credit for bn Bank’s Trade Finance Facilitation Program will have a Philippine presence via local issuing banks: Allied Banking Corp., Development Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine National Bank and Rizal Commercial Banking Corporation. The program will provide credit and guarantees to trade transactions undertaken by the five banks which signed agreements with the multilateral lender on Tuesday.

Nihao unit given 25-year mining contract Business World, Feb 23
A UNIT of Nihao Mineral Resources International, Inc. has obtained the right to explore a mining tenement in Zambales province. Nihao Mineral Resources claimed that the Department of Environment and Natural Resources and wholly owned unit Mina Tierra Gracia, Inc. executed a 25 –year mining production sharing agreement. Mina Tierra Gracia’s contract allows it to explore, develop and utilize the nickel, cobalt, chromite and other mineral deposits of 5,081 hectares of land in Iba and Botolan, Zambales.

Food & Agriculture

Negative Farm growth feared due to El Nino; BAS projects lower rice output Business Mirror, Feb 24
HOPES of a recovery in the farm sector in the first quarter of 2010 will be dashed by the El Niño weather phenomenon, with some economists projecting that the sector will post production declines from January to March. Former budget secretary and University of the Philippines economist Benjamin Diokno said the combined impact of the twin typhoons Pepeng and Ondoy and the raging El Niño will significantly pull down farm-sector growth from January to March. “Output for the first quarter [could be] between -7.5 percent and -2.5 percent. [This will be the result] of the combined effect of Ondoy and Pepeng, and the adverse impact of El Niño,” said Diokno.In a statement issued earlier February, Agriculture Undersecretary Bernie Fondevilla estimated that total production losses under a mild El Niño scenario could reach P8.09 billion, while a severe dry spell could result in losses amounting to P20.46 billion..

Agriculture dep’t pins hopes on high-yield rice varieties Business World
THE GOVERNMENT targets to plant high-yielding hybrid rice varieties in as much as 250,000 hectares (ha) of irrigated land this year -- much of it in Central Luzon -- confident that these will escape the worse effects of the ongoing dry spell. "Our target is to plant hybrid seeds in 185,000 ha in the dry cropping season [December-May] while the balance will be planted during the wet cropping season [June-November]," Frisco M. Malabanan, director of the National Rice Program, said.

Healthcare and Pharma

'Cheaper Medicine Act reduced drug prices' The Philippine Star, February 24
Liberal Party vice presidential candidate Sen. Manuel “Mar” Roxas II insisted yesterday that the Cheaper Medicine Law made the reduction of drug prices mandatory and provided measures against corruption of the regulatory process. Roxas said Congress’ decision to reject the lobbying by Iloilo Rep. Ferjenel Biron for a new Drug Price Regulatory Board removed a layer of bureaucracy that, like other agencies involved in market and price regulation, would have been exposed to corruption and political pressure. He said giving the Department of Health (DOH) and the Office of the President the responsibility to determine what essential drugs must be subjected to price ceilings gave little space, if any, for lobbying from multinational drug firms.

Information and Communications Technology

NTC rules 3G firms can join bid race for last slot Business Mirror, February 24
EXISTING operators of 3G (third-generation) mobile service can apply for the fifth and last available 3G slot. This follows a modification made by the National Telecommunications Commission (NTC) on the proposed rules governing the assignment of the remaining 3G frequency spectrum. With the change, Globe Telecom Inc., Smart Communications Inc., CURE (Connectivity Unlimited Resources Enterprises), which is now a unit of Smart, and Digitel Mobile Philippines Inc. (DMPI) can apply for the paired 10 megahertz (MHz) frequency which is in the 1965–1975MHz/2155–2165MHz or 1890-1900MHz/1970-1980MHz bandwidth. Aside from the existing 3G firms, phone firms with or without a CMTS license can vie also for the remaining 3G slot.

Government warned vs bidding out 3G frequency Philippine Star, Feb 24
Lopez-owned Bayan Telecommunications warned government against bidding out the last remaining third generation of mobile communications (3G) frequency, saying the matter is still the subject of litigation.This developed as the National Telecommunications Commission (NTC) defended its plan to award the last 3G slot via a bidding process, arguing that it is necessary to expedite the award as non-usage of the frequency deprives prospective subscribers of easier access to services it can provide.It noted that the government has lost approximately P300 million in potential income through spectrum user fees, at the current rate of P65 million a year, due to the non-assignment of the last 3G slot for the past five years.

3G Row causes gov’t to lose P300M Buisiness Mirror
THE fifth and last 3G or broad spectrum slot having been unassigned for the last five years, the government has lost over P300 million in spectrum user fees, so it is important to award the last slot as soon as possible.This was stated by the National Telecommunications Commission (NTC) over the weekend, adopting an estimated P65 million in yearly spectrum users’ fee (SUF) as basis for their calculation. Bayan lawyer Ariel Tubayan asked the NTC, meanwhile, to cease from any attempt to dispose of the last 3G slot pending its appeal with the Court of Appeals (CA). “We are continuing to object to this. The NTC should hold in abeyance the awarding of the remaining 3G frequency until the CA has issued its final resolution.”

Globe seeks new permit for international cable landing station in Cagayan The Philippine Star, Feb 24
Globe Telecom is seeking the renewal of its permit to operate an international cable landing station in Ballesteros, Cagayan province to ensure the continued delivery of services that rely on such facility. In its application with the National Telecom-munications Commission (NTC), Globe said the term of its provisional authority to maintain and operate its Cagayan cable landing station will expire on March 10, 2010. Globe is the exclusive landing party in the Philippines of the cable system, investing as much as $90 million in the project. The TGN-Intra Asian Cable System, a trans-Asian submarine cable system, is spearheaded by Tata Communications, a member of the Tata Group of India.

Politics

SC allows GMA to run PhilStar, Feb 23
The Supreme Court clarified Tuesday that elective officials are not covered by its latest decision declaring appointive government officials running in the May 10 polls as deemed resigned upon filing their certificates of candidacy (CoCs). Despite the perceived undue advantage she has over her rivals in Pampanga’s second district, President Arroyo need not resign from her post as she pursues a congressional seat in the May 10, 2010 elections. The Supreme Court clarified Tuesday that elective officials are not covered by its latest decision declaring appointive government officials running in the May 10 polls as deemed resigned upon filing their certificates of candidacy (CoCs).

SC warns gov’t bets vs electioneering PhilStar, Feb 24
MANILA, Philippines - Supreme Court (SC) officials warned of possible cases of electioneering against those who would not comply with the ruling that upheld a provision in election laws requiring Cabinet members and other appointed government officials to resign from their posts upon filing of certificate of candidacy (COC). SC spokesman Jose Midas Marquez, however, said the ruling requiring appointed officials seeking elective positions in the May elections to resign needs clarification.

Others (ASEAN/Editorial/IPR/WTO)

RP anti-piracy effort faulted, Business World, Feb 24
THREE AMERICAN industry groups have urged Washington to keep the Philippines on a watch list of countries notorious for violating patents and copyrights, with one claiming that last year’s losses due to counterfeit goods roughly matched 2008 levels despite anti-piracy campaigns. The groups submitted separate position papers dated February 18 to the Office of the United States Trade Representative (USTR), which is preparing its annual Special 301 report. The Pharmaceutical Research and Manufacturers of America (PhRMA), urged the USTR to move the Philippines to the priority watch list -- alongside India and Indonesia -- for implementing a law which allegedly weakens the protection of drug patents. The PhRMA reiterated claims that the "Universally Accessible Cheaper and Quality Medicines Act of 2008" is inconsistent with the Philippines’ commitments to an international treaty. Another group, the International AntiCounterfeiting Coalition (IACC), also raised concerns over piracy but merely recommended that the Philippines be retained in the ordinary level of the watchlist with countries like Mexico, Brazil, and Turkey.

Push for garment sector perks from US in crucial stage, Business World, Feb 21, 2010
THE PHILIPPINES will have to trim the list of garment tariffs it wants the United States to lower as lobbying now enters advanced stages, public and private sector officials said late last week. A delegation will be heading to Washington later this week with a shorter and hopefully more acceptable list, they said, in the aim of having legislation filed with the US Senate. Read story

Trade barriers expected to increase this year Business World, Feb 22
INDUSTRIES worldwide last year increased demands that their governments block competing imports, but the rise in the number of petitions was slower than when the economic crisis first hit in 2008, a World Bank report released late last week stated. Governments for their part imposed 30% more trade barriers last year, an uptrend which the report predicts will continue in 2010 given the backlog of industry requests for safeguards. This creeping protectionism has yet to be felt by Philippine companies, local officials said, but should be a cause for concern as the measures may indirectly affect supply chains or lead to retaliation. Read story

Customs asks tax appeals court to take over Shell case Businenss Mirror, Feb 24
THE Bureau of Customs (BOC) has asked the Court of Tax Appeals (CTA) to take over the agency’s P7-billion tax case against Pilipinas Shell Petroleum Corp. from the Regional Trial Court in a move to consolidate the case. The latest filing to consolidate was an attempt of the Customs bureau to transfer its case to just one court, the CTA, after the agency was caught by surprise when Shell’s legal team was able to secure a 20-day temporary restraining order (TRO) from the lower court in Batangas earlier this month. The Batangas Court’s TRO prevents the government from seizing the petroleum products of the country’s second-largest refiner, worth about $973 million. Customs wanted to seize the products to satisfy its tax claim, but Shell warned that it would be forced to stop all new importations altogether, and this could mean supply problems in a market where Shell has nearly a one-third share.

Real estate sector to grow 10% this year - CB Richard Ellis PhilStar
The real estate industry grew by 10 percent from January to the second week of February this year when compared to the same period last year, real estate service provider CB Richard Ellis said. CBRE chairman and chief executive Rick Santos said. However, given the expected strong rebound of the industry, Santos said prices may go up during the last two quarters of the year. He said that prices fell last year as demand weakened. Another reason for the strong confidence in the real estate industry is the enactment of RA 9856 which put in place the Real Estate Investment Trust (REIT. The REIT will enable small investors to invest in large scale real estate ventures through stock purchases, more retail investors can now partake of the secured investment opportunities.

Auto industry seeks incentives to boost exports PhilStar
The auto industry is asking the government to provide incentive packages to promote exports of vehicles, a move expected to boost local manufacturing and encourage more investments, the Chamber of Automobile Manufacturers of the Philippines Inc. (CAMPI) said. However, Board of Investments (BOI) managing head Elmer C. Hernandez said that they cannot give what the private sector is asking for because they cannot put specific provisions regarding the excise tax because it is not within their powers. Hernandez explained that only Congress can provide a more concrete tax exemption scheme for the automotive industry. The government is revising its Motor Vehicles Development Plan (MVDP) to help the automotive industry expand in the country and be at par with our ASEAN neighbors.

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