Thursday, April 27, 2017

2 foreign firms eyeing PLDT stake in Meralco



By ABERON VOLTAIRE PALAÑA, TMT on April 26, 2017

THE head of the Philippine Long Distance Telephone Co. (PLDT) said Tuesday two foreign companies were interested in buying its remaining stake in power distribution utility Manila Electric Co. (Meralco).
“There are two serious foreign companies,” PLDT Chairman and Chief Executive Officer Manuel V. Pangilinan told reporters.
The stake is equivalent to about eight eight percent of Meralco, through shareholder Beacon Electric Asset Holdings Inc. PLDT.
PLDT owns 25 percent of Beacon, a joint venture between unit PLDT Communications and Energy Ventures and affiliate Metro Pacific Investments Corp.
“The sale of Meralco shares is really being undertaken by PLDT. Selling its 25 percent stake in Beacon…Beacon in turn owns approximately 35 percent of Meralco, so we are talking about a little over 8 percent of attributable interest in Meralco,” Pangilinan explained.
Pangilinan said no other company in the PLDT-Metro Pacific group, which is controlled by Hong Kong’s First Pacific Co. Ltd. of the Salim group of Indonesia, would like to buy the PLDT stake in Meralco.
Aside from Beacon, the other major stockholder in Meralco is JG Summit Holdings Inc. of the Gokongwei family.
The sale of PLDT’s stake in Meralco will be used to cut debts and support massive capital spending amid a shifting telecommunications landscape, Pangilinan said.
“Well, essentially to reduce debt at the PLDT level because the proceeds will have to go to PLDT and there might be a portion that will be devoted to payment of the balance installments due to San Miguel Corp. in respect of the telco acquisition,” Pangilinan said.
Last year, PLDT and Globe Telecom acquired in a joint deal San Miguel’s prized 700-megahertz 4G Long-Term Evolution frequency for P69.1 billion.

Mining groups to Lopez: Provide more details on area development, biochar program implementation



By Jonathan L. Mayuga - April 25, 2017

While Environment Secretary Regina Paz L. Lopez has shown much enthusiasm in implementing her so-called area-development approach and biochar livelihood program, mining companies appear to be oblivious about it.
Ronald Recidoro, vice president for policy and planning of the Chamber of Mines of the Philippines (COMP), which represents the mining industry’s big players, for one, said mining companies have not seen the program’s “blue print” and how the Department of Environment and Natural Resources (DENR) plans to implement the program in mining communities.
“There are a few mining companies that entered into an agreement with [the] DENR, but most are still unaware of the specifics,” he told the BusinessMirror in a telephone interview.
The DENR is aggressively promoting its concept of area development through the sustainable integrated area development (SIAD) and biochar program as part of its thrust to turn the DENR from a mere regulatory into a development agency.
Lopez, an environmental advocate who has ordered the closure or suspension of 28 operating mines so far as a result of a mining audit last year and cancellation of 75 mining contracts to protect watersheds, wants the agency to shift from a mere regulatory agency to a development-oriented one under her watch.
Recidoro said COMP member- companies and even players outside the group are not aware of the specifics as to mining companies’ would-be roles.
He said mining companies are willing to see Lopez’s plan in black and white for them to appreciate the shift.
“We’ve only heard about it from Secretary Lopez through the media. But we really still don’t know how it will help mining or the people in mining communities,” he said.
Likewise, he said the DENR chief’s plan to apply the biochar technology should be discussed thoroughly with mining companies.
“What I know about charcoal-making is it is produced by burning.  So are we burning materials now to make charcoal?  What’s the technology?  Who is going to make biochar?” Recidoro said.
“Even if it works, it should not be monopolized in such a way that it will benefit one company or group,” he added.
Environmental groups under the Kalikasan-People’s Network for the Environment (Kalikasan-PNE) group are also unaware of the details of SIAD or biochar.
Clemente Bautista, national coordinator of Kalikasan-PNE said their group will request for an audience with Lopez to know more about SIAD and biochar. They said they need to know more as to how it will help boost the livelihood of rural folks, particularly in mining-affected areas.
“I’ve heard about it from Secretary Gina, but I still do not know the details of the program.  Maybe we need to know more about it first,” Bautista said.
Kalikasan-PNE supports Lopez’s antimining stance and her proenvironment policy, such as the dismantling of fish cages in Laguna de Bay.
The group also supports Lopez’s idea of promoting social justice by giving premium to environmental protection and conservation, while promoting the welfare of the communities who seldom benefit while being at the losing end of destructive development projects.
The antimining group, Alyansa Tigil Mina (ATM), meanwhile, welcomes Lopez’s plan to implement SIAD.
Jaybee Garganera, national coordinator of ATM, said it is an “innovative approach” and is welcomed by many civil-society organizations (CSOs) and even local government.
“My impression is that there is a positive synergy and positive reaction from the departments of Health, Agriculture, Social Welfare and Development  and even Education working together in specific geographic sites,” he said.
Garganera said he knows of the general framework of SIAD wherein the DENR will download programs in selected and specific sites, with the community and even local government units  having broader and direct participation in managing their natural resources.
“This is very participatory.  Even agencies outside [the] DENR welcome this approach,” he said.
According to Garganera, SIAD is popular among CSOs.
Garganera said he became familiar with SIAD because of his previous engagement with the Philippine Partnership for Development of Human Resources in Rural Areas,  which implemented it as a  main strategy for development from 2001 to 2006.
“That is why when Secretary Lopez mentioned about SIAD, I know what she’s talking about,” Garganera said.
However, he said he is still unaware of the details of how the DENR chief plans to execute SIAD.
“We plan to seek an audience with her about it to learn more,”  Garganera added.
In an interview with Lopez during her interaction with mining-affected communities in Mogpog and Santa Cruz town in Marinduque on Monday, Lopez said area development simply means the people will be given jobs, livelihood and benefit from the natural resources, which they will protect and conserve.
Lopez said in rehabilitating abandoned or mined-out areas, biochar will be used by the DENR under her watch, but expressed concern that without former DENR Undercretary for Field Operations Philipp Camara, may prove to be a tough job.
“Only Philipp knows how to make biochar work. The DENR doesn’t know anything about biochar,” Lopez said.  Camara’s appointment was rejected by the Civil Service Commission and a protest launched by DENR employees forced Camara to quit his bid for the position.
Lopez said she intends to talk to Camara to convince him to help the DENR in his capacity as a private individual.
Last month the DENR issued policy guidelines for the two major programs—the SIAD and biochar programs—which it says were “designed to provide communities with sustainable livelihood opportunities while protecting the environment”.
Department Administrative Order (DAO) 2017-02 calls for the formulation and implementation of a six-year SIAD action plan by the government, civil society and the private sector, and DAO 2017-05 laid down the guidelines on the implementation of the biochar program, an initiative that uses the SIAD approach.
Lopez said the SIAD strategy aims to apply area-based interventions, concepts on its natural resources development programs including the Enhanced National Greening Program  and integrated island development.
SIAD will cover, but is not limited to, river basins and watersheds, and will be initially implemented within 29 priority sites and expansion areas identified by the DENR last year.  SIAD shall also be implemented in other areas of the Philippines, Lopez said.
Meanwhile the biochar program calls for the efficient utilization of abundant agricultural waste materials into marketable products created by rural communities for green energy, soil enhancement, mine revegetation, and a host of environmental products and services, making it a remarkable climate-change mitigation technology with a poverty alleviation through community enterprise.
Biochar is charred biomass strictly from agricultural wastes like rice hull and straw, bagasse, pili shell, mango seed, coconut husk and shell and corn cobs, which are produced by high heating (>500 degrees Celsius) with very limited oxygen.
Lopez said biochar has 52 known uses, including as feed additive in animal farming, carbon fertilizer, insulator, protection against electromagnetic radiation, water decontaminant, biomass additive, ingredient in cataplasm for insect bites and abscesses, fabric additive for functional underwear and filling for mattresses and pillows.
Biochar also draws carbon from the atmosphere, providing a carbon sink on agricultural lands. After its initial or cascading use, biochar can be recycled as soil conditioner.

PNOC plans to ‘equitize’ banked gas in LNG tie-up deal



Published April 25, 2017, 10:00 PM By Myrna M. Velasco

State-run Philippine National Oil Company (PNOC) is contemplating to convert into equity its “banked gas”that may be utilized in the next chain of infrastructure investments for the gas sector – including a liquefied natural gas (LNG) import terminal and offtaker gas-fired power projects.
PNOC President Reuben S. Lista said it will be one of the major bargaining chips they will have with prospective partners in the planned LNG ventures.
The company previously penciled in potential proceeds of P29 billion-P30 billion for its banked gas sale. And in the process of tapping partners for the proposed LNG facilities, Lista said they have been planning to equitize it.
The chief executive of the state-owned company said that could redound to 40 percent equity share in the project company of the LNG ventures – if the upper cost of investment would be at $2.4 billion. Definitely, he stressed, PNOC will negotiate for equity that will not put the government at a losing end.
The company previously said it has 98 gigajoules (GJ) of banked gas that it can draw from the Malampaya field’s production – and that would be good to fuel a power plant of 200-megawatt capacity over the short- to medium-term.
Lista indicated of the 34 interested parties in the blueprinted LNG projects, he is expecting at least four to six groups likely ending up as “the real serious investors” – and that entails “separating the real men from the boys.”
Among those reportedly pursuing LNG investment deal with keen interest include a Spanish firm, a consortium of Indonesian-Turkish-Omani investors, a Singaporean firm; Japanese and Chinese investors; and local firms like First Gen Corporation.
Based on initial discussions with the interested parties, Lista noted that the preference would be a combination of floating regasification and storage unit (FSRU) and eventually an onshore terminal – and the capacity shall be of scale that could meet the country’s gas needs post-Malampaya.
On any greenfield power plant that must be initiated by government, Lista said the proclivity is for a generating facility with 600 to 700 megawatts of installed capacity.
“That’s the scale that will make it viable,” he said, adding that the government is by far inclined to change its position on an earlier planned 200MW capacity.
Lista emphasized though that part of the market they want to cater to would be the industrial zones as well as some areas that have marginal energy access, including the off-grid areas served by the Small Power Utilities Group of the National Power Corporation.