Biz Buzz: More power
The group of businessman Manuel V. Pangilinan, aka MVP, is making plans to build another 600-megawatt coal-fired power plant somewhere in Luzon as an alternative to the stalled power project of Redondo Peninsula Energy Inc. (RP Energy) in Subic.
“We’re looking at an alternative of a similar magnitude to bring to the grid,” said Metro Pacific Investments Corp. chief finance officer David Nicol, adding that the group (through Meralco Power Gen) now has a location in mind.
As the 460-MW plant to be developed in partnership with Thailand’s Electricity Generating Public Co. (Egco) will start soon, and with the Redondo project still in the doldrums (due to the Writ of Kalikasan case filed by militant groups and environmentalists), the group has started looking elsewhere in Luzon.
The group’s first greenfield power plant will likely become operational by 2018, at the earliest.
Investment in a new coal-fired power plant, as a rule of thumb, costs as high as $2 million per megawatt.
“Much of it depends on whose technology you use. There are some countries that can produce cheaper but they have reliability problems,” Nicol said.
Meanwhile, the group also conducted a lot of feasibility studies on building a liquefied natural gas-fired power plant but found out that while they were more environment-friendly, the cost was still prohibitive.–Doris C. Dumlao
Watering Jakarta
MVP’s group is keenly awaiting the forthcoming presidential elections in Indonesia (to be held on July 9, 2014) because this is linked to the group’s aspirations to bring its water utility business to Southeast Asia’s biggest economy.
MPIC president Jose Ma. Lim said the group—which has built expertise in the water business through Maynilad Water Services Inc.—was looking at some of the concessions in Jakarta. “We’re waiting for the elections to happen to resume our initiatives,” Lim said.
Note that rival Manila Water Co. earlier attempted to take over one concessionaire in Jakarta previously but the government disapproved its buy-in deal.
The MVP group’s principal investors, the Salim family, however, are rooted in Indonesia and probably more familiar with the business terrain and may have better luck in Jakarta.
Anthoni Salim, Indonesia’s third-wealthiest man according to Forbes, was, by the way, recently in town to attend the state dinner for outgoing Indonesian president Susilo Bambang Yudhoyono who was here for the World Economic Forum.–Doris C. Dumlao
Deep BSP bench
Truly, there is no shortage of talent at the Bangko Sentral ng Pilipinas (BSP).
At ceremonies in Hong Kong’s Ritz Carlton last week, BSP Assistant Governor Ramona “Winnie” Santiago, head of the central bank’s treasury department, was named one of Asia’s 25 Most Influential Women in Asset Management by AsianInvestor, a magazine.
Those on the list were considered “movers and shakers who are shaping the asset management industry today,” according to AsianInvestor, which chooses awardees through consultations with senior industry practitioners.
To be sure, Santiago has been instrumental in maintaining the economic stability the country enjoys. As head of the BSP’s treasury department, she oversees functions that have “far-reaching impact on the country’s monetary and financial stability,” the BSP said.
Among others, she manages the country’s $80 billion in international reserves and the BSP’s open-market operations, a major factor that keeps the peso stable despite turbulent financial market conditions.
Of course, BSP is no stranger to excellence. After all, its head, Governor Amando M. Tetangco Jr., is regarded as one of the world’s top central bankers, so you can bet that he expects nothing short of excellence from every member of his staff. We at Biz Buzz are glad that they’re all up to the task.–Paolo Montecillo
3rd Bell Awards
As part of a continuing campaign to boost good corporate governance practices among listed companies and trading participants, the Philippine Stock Exchange will hold this year’s Bell Awards for corporate governance on Nov. 10 at the Makati Shangri-La.
“I think the awareness level is certainly growing, judging from the expanded corporate governance-related activities that companies are reporting,” said PSE president Hans Sicat.
Competition in Bell Awards was probably not best measured via the number, but rather by the practices, processes and board or management input being exercised by these firms, he said.
“Good governance remains to be one of the reasons why the country is getting a lot of interest from investors. Through the PSE Bell Awards, we are telling the global investing community that good governance is supported and adhered to across all sectors of the economy including businesses and the private sector,” he said.
The PSE will shortlist 10 finalists from among all listed companies and 12 finalists from its trading participants.
For the PSE Bell Awards in 2013, the awardees in the listed companies category were Aboitiz Equity Ventures, China Banking Corp., Manila Electric Co., Manila Water Co. and Philippine Long Distance Telephone Co.
Awardees from the large trading participants category were BDO Securities, COL Financial Group, and Maybank ATR Kim Eng Securities while A.T. de Castro Securities Corp., R.S. Lim & Co., and Salisbury BKT Securities Corp. received the Bell Awards for the small trading participants category.–Doris C. Dumlao
Opposing all proposals
That the country badly needs a new international airport is not a subject of debate. One look at the sad state of the Ninoy Aquino International Airport and both local and foreign travelers agree: The country’s main international aviation gateway is one of its biggest weaknesses.
Of course, there is a proposal from San Miguel Corp. for a spanking new $10-billion international airport to be built on reclaimed land in Manila Bay, but this early, forces—belonging to rival camps or their allies in government—are already positioning to block the proposal (President Aquino’s apparent favorable initial response, notwithstanding).
So, with that project likely to be years away, focus is now shifting to the proposal to build a third runway on the existing site of Naia.
Under the proposal, a shorter runway (approximately 2.1 kilometers long) would be constructed parallel to the existing 3.6 kilometer-long Runway 06-24, which is used for international flights.
We understand the critics have begun to point out that the proposed third runway was too close to the existing one, with the 200-300 meter gap between them supposedly too narrow to allow for simultaneous flight operations, and negating the benefits that an additional runway would bring.
Not so, say the proponents of the “third runway” concept. In fact, they point to large international airports overseas like Los Angeles, Las Vegas and San Francisco, which all have parallel runways close to each other, and operating simultaneously.
The key to this is a computer program that ensures that aircraft are kept a safe distance from each other, both in the air and on the ground.
Note, of course, that all airlines presently flying into and out of Naia stand to benefit from the proposal to build a third runway because this will reduce congestion and cut waiting times.
But even this proposal for a stopgap measure to alleviate the plight of long-suffering air travelers is starting to draw in critics.
These include some of the same critics who are unhappy with the Manila Bay reclamation project, apparently.
So some naughty wags are asking: Could the opposition to both proposals be due to the fact that they were suggested by San Miguel Corp. head honcho Ramon Ang? Just asking.–Daxim L. Lucas
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