Wednesday, October 22, 2014

Energy crisis next year could cost economy up to P23.3B -- Aquino

Business World Online
Posted on October 22, 2014 11:27:00 PM

ECONOMIC LOSSES from a power shortage that is expected to strike Luzon in summer next year could total as much as P23.3 billion, President Benigno S.C. Aquino III said yesterday.

Speaking before a Foreign Correspondents Association of the Philippines forum, Mr. Aquino said estimated costs range from P9.3 billion to P23.3 billion, depending on duration of outages.

“The lower figure assumes power outage of two hours a day on average for three months. The higher figure assumes a worse scenario of five hours a day also for three months,” he explained.

The estimates, he added, do not include “foregone investment and tourist arrivals arising from negative impact of the power outage on the country’s image as investment and tourist destination.”

Socioeconomic Planning Secretary Arsenio M. Balisacan confirmed the estimates, saying via text they “pertain to... GDP (gross domestic product) lost from stoppage of economic activities.”

Asked if the estimates put 2015’s 7-8% growth goal at risk, Communications Secretary Herminio B. Coloma, Jr. said: “Those figures apply to projected 2015 full-year GDP.” -- Imee Charlee C. Delavin source

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