Tuesday, September 14, 2010

PSALM Invested $2.1 Million in Lehman Brothers


By CHARISSA M. LUCI
September 13, 2010, 7:49pm
MANILA, Philippines — The Power Sector Assets and Liabilities Management Corporation (PSALM) paid $2.1 million (approximately P98.7 million) for its $300-million “Principal-Only-Swap (POS) transaction with the bankrupt Lehman Brothers Corp., Eastern Samar Rep. Ben Evardone on Monday bared.
The transaction was confirmed by PSALM officer-in-charge Maria Luz Caminero during the recent hearing of the House Committee on Appropriations.
Evardone questioned why PSALM engaged in “very risky investments” when it was using the proceeds sourced out from the sale of the National Power Corporation (Napocor) assets, which “is not the mandate of PSALM.”
Because of this development, Evardone filed a resolution calling for an investigation on how the proceeds of the privatization were spent.
“I want to make sure that the consumers will not end up paying the huge Napocor debts because I think that the proceeds of privatization are enough to pay the liabilities of Napocor,” Evardone said.
Caminero defended the move, saying it was just part of the PSALM’s “liabilities management mandate.”
“I think the EPIRA Law is very clear that all proceeds from the sale of Napocor assets should be used to pay its debts so that the liabilities of Napocor will not be shouldered by the consumers by way of increases in electricity rates,” Evardone said.
Evardone is among the lawmakers who vowed to file a resolution to block the power rate increase as well to call for an investigation into the alleged abuses committed by the PSALM, a government-owned and-controlled corporation tasked to undertake the privatization of the assets of the Napocor.
The PSALM generated $10.65 billion from the privatization of Napocor assets. In 2009, it obtained $2.2 billion loans and another P30 billion loan in 2010. However, only a total of $4 billion was used to pay the debts of Napocor.

P88B in renewable-energy contracts awaiting approval from Energy dept

Written by Paul Anthony A. Isla / Reporter   
MONDAY, 13 SEPTEMBER 2010 12:31
“BURNING issues” are delaying the infusion of some P88 billion in potential investments into the country’s determined bid to promote and develop renewable-energy sources.
This, according to Energy Secretary Rene Almendras, who said a total of 382 renewable-energy contracts worth P87.74 billion were still awaiting the nod of the Department of Energy (DOE).
Of these pending contracts, 255 were for hydropower projects; 62 for wind; 23 for biomass; 21 for geothermal; 18 for ocean energy; and three for solar-power projects.
Almendras said the contracts could result in the generation of 4,400 megawatts of clean and indigenous power, which would be more than enough to supply the current demand from the Visayas and Mindanao.
The DOE has signed 205 renewable-energy contracts since last year following the enactment of the Renewable Energy Act of 2008.
Almendras said the approval of the pending projects would depend on the resolution of “burning issues” that concern the renewable-energy industry, such as the setting of the “renewable portfolio standard.”
This standard will require distribution utilities to secure power sourced from clean and indigenous-energy sources and feed-in-tariff rates to guarantee the project proponents’ returns through power rates.
Almendras said regulators were still finalizing these policies and they were expected to pass the tariff-incentive scheme for renewable-energy projects early next year.
“There are also other renewable-energy policies that have yet to be put in place, including allowing consumers to choose renewable energy as their power source and selling to the grid any excess power they generate through these sources,” Almendras said.

Monday, September 13, 2010

Renewable energy perks pushed back to next year

It may take five more months before regulators can come up with the tariff incentives for renewable energy projects, the Energy Regulatory Commission (ERC) said. Francis Saturnino Juan, ERC executive director, said the feed-in-tariff (FIT) would be completed by February next year once the National Energy Regulatory Board (NREB) submits its computations by November.


“We’re targeting three months from the submission to conduct the hearings for the setting of the FITs and come [up] with the decision,” he said.


The ERC initially set an August deadline for the NREB to release its FIT figures. The computed FIT would then determine the tariff on different renewable energy projects within a prescribed period to guarantee investors’ returns.


The NREB, however, asked the ERC to extend the deadline by another two months. Once completed, the FIT would be subject to regulatory approval.


The tariff scheme is one of the incentives given under the Renewable Energy Law to promote and encourage the development of clean and indigenous energy sources such as solar, wind, ocean, run-of-river hydroelectric power and biomass.


Under the latest draft rules issued by the ERC, consumers would have to shoulder the FIT enjoyed by renewable energy projects under a uniform charge, which is similar to the universal charge in electricity bills.


The amount collected from this tariff would then be distributed to renewable energy developers, based on their approved FIT.


The draft rules under review at the NREB would establish the incentive for each renewable energy project.
EUAN PAULO C. AÑONUEVO

Sunday, September 12, 2010

9-hour power curtailment in 5 Mindanao provinces on Monday


By Malu Cadelina-Manar | Sunday| September 12, 2010 | Filed under: EnergyTop Stories

KIDAPAWAN CITY (MindaNews/11 September) – The National Grid Corporation of the Philippines (NGCP) will implement on Monday a nine-hour power curtailment in five provinces in Mindanao.
In a letter sent to electric cooperatives and power firms in Mindanao, Maximo Adiong of the NGCP Mindanao System Operations said the load curtailment is due to a scheduled shutdown of the Maramag-Kibawe 138-kilovolt transmission line.
The shutdown, Adiong added, will facilitate the stringing and tapping works, and eventually commissioning, of the new Maramag-Bunawan 230-KV transmission line.
Since transmission loading is limited to only 450 megawatts, the NGCP Mindanao has requested the power firms and cooperatives to implement voluntary load curtailment.
“This will prevent overloading of power transmission highways,” Adiong said in his letter.
The power curtailment will affect the Cotabato Electric Cooperative (Cotelco), South Cotabato Electric Cooperative (Socoteco) 1 and 2, Davao del Sur Electric Cooperative, Sultan Kudarat Electric Cooperative, Maguindanao Electric Cooperative, and the Cotabato Light and Power Company Inc., in Cotabato City.
Since Cotelco may use a loading limit of 16 megawatts on Monday, which is only 40 percent of its daily load, it will implement curtailment in its sub-stations from 9am to 5pm., according to its spokesperson Felix Canja
Cotelco has seven sub-stations in its area of coverage. Each sub-station will experience a one-hour power blackout starting 9am.
Canja has advised power consumers to be extra cautious in using alternative sources of light during blackouts as these may cause fires if left unattended. (Malu Cadelina Manar/MindaNews)

Wednesday, September 8, 2010

DBS, Samsung, Hyundai Engineering, Semirara Mining: Asia Ex-Japan Equity


By Berni Moestafa - Sep 8, 2010 5:34 AM GMT+0800
The following companies may have unusual price changes today in Asian trading, excluding Japan. Stock symbols are in parentheses, and share prices are from the previous close, unless noted otherwise.
Australian mining stocks: Prime Minister Julia Gillard’s government is “determined” to press ahead with its election promise to introduce a mining profit tax in Australia, Treasurer Wayne Swan said after the Labor Party won support from independent members of parliament to form a government.
BHP Billiton Ltd. (BHP AU), the world’s largest mining company, declined 0.3 percent to A$38.44. Rio Tinto Group (RIO AU), the third-biggest miner, dropped 0.9 percent to A$74.35.
Banks: Philippine bank loans, net of overnight placements with the central bank, increased 11.7 percent in July, the fastest growth since June 2009, according to the monetary authority. Banco de Oro Unibank Inc. (BDO PM), the nation’s biggest bank by assets, advanced 0.5 percent to 56.10 pesos. Metropolitan Bank & Trust Co. (MBT PM), the second-largest lender, climbed 1.5 percent to 70 pesos.
DBS Group Holdings Ltd. (DBS SP): The banking unit of Southeast Asia’s biggest lender plans to sell five-year dollar bonds at a spread of between 100 to 105 basis points more than similar maturity Treasuries, according to a person familiar with the matter. DBS Group gained 0.1 percent to S$14.26.
Hyundai Engineering & Construction Co. (000720 KS): The company’s creditors plan to sell their stake in South Korea’s largest builder for as much as 20 percent more than its market value, an official at one of the debt holders said. Hyundai Engineering fell 1.4 percent to 65,300 won.
Samsung Electronics Co. (005930 KS): The world’s largest television manufacturer said an oversupply of chips in 2011 is likely if personal-computer demand slows further, according to Nikkei English News. Samsung Electronics rose 1 percent to 788,000 won.
Semirara Mining Corp.(SCC PM): The Philippine coal producer’s 12-month share-price estimate was raised 50 percent to 150 pesos by Deutsche Bank AG analyst Klyne Resullar on valuations and higher earnings forecasts. “Semirara continues to look attractive,” said Resullar, who kept a “buy” rating on the shares. The stock fell 0.5 percent to 125.50 pesos.
Swire Pacific Ltd. (19 HK): The Hong Kong office landlord said its units have agreed to sell the stakes they hold in Crown Beverage Cans Hong Kong Ltd. and Crown Swire Investment Co. to Crown Packaging Investment (H.K.) Ltd. for $150 million, according to a statement to the Hong Kong stock exchange. Swire fell 0.2 percent to HK$98.50.
To contact the reporter on this story: Berni Moestafa in Jakarta at bmoestafa@bloomberg.net

Saturday, September 4, 2010

Coal-ash regulation pushed

Written by William Fisher / Inter Press Service   
SATURDAY, 04 SEPTEMBER 2010 09:39
NEW YORK—In what promises to be a contentious, high-profile series of debates, the forces of environmental protection will be lining up against those of the electric-power industry over the future status of coal ash.
Environmentalists are urging the US Environmental Protection Agency (EPA) to regulate toxic ash from coal-fired power plants as a hazardous waste. Industry spokespeople are claiming that Federal enforcement of coal-ash disposal rules would mean classifying the waste as hazardous, adding costs and making it harder to recycle some of the waste.
Erich Pica of the advocacy group Friends of the Earth told an EPA panel that the catastrophic 5.4 million cubic yard coal-ash spill at the Tennessee Valley Authority’s Kingston Fossil Plant in December 2008 was a graphic reminder that there are no federally enforceable standards for coal ash.
“It’s time the EPA begin to regulate coal ash as a toxic pollutant,” Pica said at a public hearing.
The EPA is considering adopting the first-ever federal standards for the disposal of coal ash. Opponents of that position are pushing for coal ash to be regulated as a nonhazardous material with enforcement remaining in the hands of individual states.
Environmental groups say the states have failed to protect the public and that the EPA should set a national standard and enforce it.
Monday’s hearing, held in Alexandria, Virginia, on the proposed federal rules was the first of seven that will be held across the country over the next month.
Scott Schlesinger of the Natural Resources Defense Council (NRDC), an environmental group, one of Monday’s witnesses, wrote in his blog:
“What happens to the toxics that utilities remove from their stacks that used to pollute our skies? They now pollute our waters. During the past 30 years, the pollutants that used to go up the stack are now collected in ash. Administrations have been prodded by NRDC lawsuits to regulate these toxic wastes and have found excuses not to do so.”
He added, “Now, with new technology that better predicts the high levels of these toxics reaching groundwater, EPA has come forward with a plan to regulate coal ash and its metal components of arsenic, mercury, lead, antimony and other toxic metals.”
A study released last week reveals that 39 sites in 21 states where coal-fired power plants dump their coal ash are contaminating water with toxic metals, such as arsenic and other pollutants. The study reports that the problem is more extensive than previously estimated. The report shows that, even contained, stored ash can have led to water contamination and negative health impacts.
The electric-power industry is lobbying to keep regulation up to individual states.
But Jeff Stant of the Environmental Integrity Project, director of the new study, contends, “This is a huge and very real public-health issue for Americans. Coal ash is putting drinking water around these sites at risk.”
Most states don’t require monitoring of drinking water near the waste sites. The study found five sites where monitoring figures were available, and all of them had some contamination. In four, tests showed problems at one or more drinking-water wells. In Joliet, Illinois, where the information was too limited for analysis, at least 18 nearby wells were closed because of boron contamination, the report said.
The US burns more than 1 billion tons of coal a year to generate about half of the nation’s electricity. It ends up with at least 125 million tons of coal waste, including ash and the sludge left from scrubbers that remove air pollutants.
The report from the environmental groups said more than a third of the reused coal ash is for structural fill or to fill up empty mines. The report said those uses could result in water contamination.
The report, by the Environmental Integrity Project, Earthjustice and the Sierra Club, documents 39 additional coal-ash dumpsites in 21 states that are contaminating drinking water or surface water with arsenic and other heavy metals.
Experts from those groups found that, at every one of the coal-ash dumpsites equipped with groundwater monitoring wells, concentrations of heavy metals, such as arsenic or lead, exceeded federal health-based standards for drinking water—with concentrations at the Hatfield’s Ferry site in Pennsylvania reaching as high as 341 times the federal standard for arsenic.
This new report comes after a February 2010 report by Environmental Integrity and Earthjustice that documented water contamination from 31 coal-ash dumpsites in 14 states. The report documents 39 additional coal-ash dumpsites in 21 states that are contaminating drinking water or surface water with arsenic and other heavy metals. It also adds to the nearly 70 other sites previously identified by the EPA.
Lisa Evans, senior administrative counsel at Earthjustice, said: “There is no greater reason for coal-ash regulation than preventing the poisoning of our water. We now have 39 more good reasons for a national coal-ash rule. The mounting number of contaminated sites demonstrates that the states are unable or unwilling to solve this problem.”
Environmental groups want to see the Obama administration EPA take a more aggressive stance, and choose to more closely regulate coal ash as a hazardous waste.
Jeff Stant, director of the Environmental Integrity Project’s Coal Combustion Waste Initiative, said: “The contamination of water supplies, threats to people and damage to the environment documented in this report illustrate very real and dangerous harms that are prohibited by federal law but are going on in a largely unchecked fashion at today’s coal-ash dumpsites. Contamination of the environment and water supplies with toxic levels of arsenic, lead and other chemicals is a pervasive reality at America’s coal-ash disposal sites because states are not preventing it.”

Thursday, September 2, 2010

Socoteco-II pushes energy-saving CFLs over incandescent bulbs

By Allen V. Estabillo | Thursday| September 2, 2010 | Filed under: BusinessEnergyTop Stories
GENERAL SANTOS CITY (MindaNews/2 Sept) — Power utility South Cotabato Electric Cooperative (Socoteco)-II has launched the distribution of some 132,000 compact fluorescent lamps (CFLs) here and in nine other towns in Sarangani and South Cotabato provinces as part of a massive nationwide campaign to clear households of the “power-hungry” incandescent light bulbs.
Joy Celeste Alora, Socoteco-II information officer, said Thursday they started the free switch to the energy-efficient CFLs starting September 1.
“This is to encourage our power consumers to rid their households of incandescent bulbs, which use up a lot of energy and eventually increase their power bills,” she said.
Alora said the distribution of the CFLs is part of the “Palit-Ilaw” program implemented nationwide by the Department of Energy (DOE) through local power distribution utilities or electric cooperatives.
The program, which is supported by the United Nations Development Programme (UNDP) and Global Environment Facility (GEF), is among the initiatives introduced by the national government under the National Energy Efficiency and Conservation Program.
The DOE said the program aims to eliminate the use of incandescent bulb, a “very old lighting technology in which 80 percent of the energy used is turned into heat and only 20 percent is converted to light.”
It said the CFLs, which it dubbed as “energy-saver lamp,” may reportedly last up to 6,000 to 10,000 hours while the standard incandescent bulbs are usually good for only 750 to 1,000 hours.
Under the program, Alora said power consumers in the area may avail of at least six CFLs each in exchange for six old but working incandescent light bulbs.
But as required by the DOE, she said only incandescent bulbs with a listed capacity of 25 to 60 watts are qualified for the switch program.
Alora said power consumers may avail of the free CFLs through the claims centers that were established at their main office here and sub-stations within their service area.
Socoteco-II covers this city, the seven municipalities of Sarangani province and two municipalities in South Cotabato’s first district.
“They only need to present their latest receipts and the working incandescent bulbs to avail the free CFLs,” she said.
Alora said they have been actively campaigning among local consumers for the immediate switch to CFLs to help households maintain a more efficient power consumption.
Aside from the households, she said the campaign also covers local companies and government offices in the area. (Allen V. Estabillo / MindaNews)

Tuesday, July 13, 2010

DMCI mulls expansion of Calaca coal-fired plant

DMCI Power Corp. is mulling the expansion of its Calaca coal-fired power plant in Batangas.

Nestor Dadivas, DMCI Power president, said that the company is studying the Luzon grid’s power situation to see if they could expand the 600-megawatt plant. “We are studying the power demand and supply situation in Luzon,” he said.

The company has yet to determine the scale of the plant’s expansion as this would be hinged on the results of the study. 

The electricity supply in the Luzon grid has been unreliable since the start of the year because the recurring power plant shutdowns have reduced the available generating capacity in the country’s biggest island group.

This was also compounded by the prolonged dry spell that has driven up the demand for electricity earlier this year.

DMCI Power is a unit of DMCI Holdings Inc., a Consunji-led company that has interests in construction, real estate and coal mining.

The holding firm acquired the Calaca plant in July last year from a state auction for $361.7 million. 

But this plant was only capable of churning out 340 megawatts of power after years of being run by the government. This has prompted DMCI Holdings to embark on a rehabilitation program to improve the plant’s deteriorating output by 130 megawatts. Dadivas said the $60-million rehabilitation will be completed by February next year.
Euan Paulo C. Añonuevo

DMCI Power to pursue expansion of 600-megawatt Calaca coal facility

By Donnabelle L. Gatdula (The Philippine Star) Updated July 13, 2010 12:00 AM Comments (0) View comments


MANILA, Philippines - DMCI Power Corp., the power generation arm of the Consunji family, will pursue plans to expand the capacity of the 600-megawatt (MW) Calaca coal-fired power facility.
DMCI Power president Nestor Dadivas said they are now finalizing the investment program for the expansion of the coal-run power plant.
The DMCI official, however, said the amount they would invest would greatly hinge on the power situation in Luzon.
“We are studying the power demand and supply situation in Luzon,” he said.
On top of the planned expansion program, DMCI Power is also in the midst of rehabilitating the Calaca power plant to increase its capacity by an additional 130 MW.
Earlier, the power firm said it would set aside some $60 million for the rehab program.
Dadivas said the ongoing rehabilitation is expected to be completed by February 2011.
Based on the rehab plan, the company would jack up the capacity of the Calaca power facility to 470 MW from the current 340 MW.
According to Dadivas, the two units of the Calaca power facility are currently running at a combined capacity of only around 350 MW. He also noted that the two units are sometimes not capable of running at the same time.
At present, the Calaca facility consists of two 300-MW generating units and is primarily designed to run as a base-load plant.
It is also designed to utilize local coal from Semirara Mining Corp., a subsidiary of DMCI Holdings.
In July 2009, DMCI Holdings Corp., the parent firm of DMCI Power, won the Calaca plant in a bidding with an offer price of $361.7 million.
DMCI Power’s investment in Calaca is strategic as DMCI Holdings owns 56 percent of Semirara, which has exclusive rights to explore, mine and develop the coal resources on Semirara Island in Caluya, Antique.
Aside from mining DMCI Holdings is also into the construction business, running the construction component companies, and related interests of the Consunji family. Its core businesses include construction, real estate and coal mining.

Wednesday, June 30, 2010

STEAG to expand capacity of Philippine coal fuelled power station

30 June 2010 – The Philippines’ STEAG State Power Incorporated plans to increase the capacity of its coal fired power plant in Mindanao, reports The Manila Times. The capacity of the 232 MW facility, located in Villanueva, Misamis Oriental, will be expanded by another 150 MW in an effort to help reverse the region’s power supply deficiency.
STEAG State Power is a joint venture between Evonik Steag GmbH of Germany, which controls 51 per cent of the generator, and local partners Aboitiz Power Corporation and La Fiipina Uy Gongco Corporation, which hold the remaining 34 per cent and 15 per cent, respectively.
According to Erramon Aboitiz, president and CEO of Aboitiz Power, Mindanao needs more stable baseload capacity and also needs to diversify its generation sources to be less dependent on hydro.
“This addition to STEAG State Power is the logical way to achieve this. This project assures Mindanao of reliable and cost-effective power to fuel its continued economic advancement.”
STEAG State Power expects to complete the expansion of the coal plant by 2013.
In the first half of this year, Mindanao, which is the Philippines' second largest island, suffered from a severe generation deficit because of low water levels in the region’s hydroelectric power plants, which normally supply up to 70 per cent of power to the grid.
STEAG State Power sells its output to state-owned National Power Corporation, but the new facility will sell power to interested utilities or industries in the form of long-term sales agreements says the company.
Depending on the interest in the market, the consortium may decide to build additional generating capacity, reports the Manila Times.
The expansion of the plant is part the company’s previously announced plan to grow its coal generation portfolio across the country over the next five years.
The group has yet to finalize the financing for the proposed expansion but it is likely to focus on project finance loans. “The funding of that will be a combination of debt and equity,” Aboitiz said.

Tuesday, June 22, 2010

SEMIRARA MINING CORPORATION Stock Rights Offering – Adjustment of Ex-Date

In a letter dated June 21, 2010, the Company, through its legal counsel, Castillo Laman Tan Pantaleon & San Jose, advised the Exchange that, in view of thedeclaration of June 30, 2010 as a non-working holiday, the ex-date will be adjusted from June 28, 2010 to June 25, 2010. Notwithstanding such adjustment in the ex-date, the other material dates for the SRO such as the Record Date, Offer Period and Listing will not be moved. In this connection, please be informed of the following timetable for the Company’s SRO:


Ex-Date June 25, 2010 
Record Date July 1, 2010 
Offer Period July 5 – July 9, 2010 
Listing Date July 19, 2010 

Source: www.pse.com.ph