investment

Manila Water plans P1.15-trillion investment until 2047

WATER SUPPLY company Manila Water Co., Inc. said it is investing P1.15 trillion between this year and 2047.

This commitment comes as the water supply company seeks approval for the extension of its revised concession agreement (RCA) with the Metropolitan Waterworks and Sewerage System (MWSS).

The east zone concessionaire said it applied for an RCA extension on Aug. 25, as indicated in the company’s position paper posted on its official website and accessed on Monday.

“The application seeks the extension of the expiration date of the RCA from July 31, 2037 to July 31, 2047, to coincide with the term of Manila Water’s 25-year legislative franchise,” the company said.

Specifically, Manila Water hopes to extend the RCA it signed with MWSS on March 31, 2021.

Republic Act No. 11601, which took effect on Jan. 25, 2022, granted Manila Water a legislative franchise for 25 years, extending until 2047.

The franchise provides the company with the privilege to establish, operate, and maintain a waterworks and sewerage system in the east zone service area of Metro Manila and Rizal province.

The company said that the application aligns with Section 5 of the law, which states: “When public interest for affordable water security so requires and upon the grantee’s application, MWSS shall be authorized to approve the amendment of the Concession Agreement to extend its term up to the franchise’s duration, following appropriate notice and hearing.”

In line with the extension application, Manila Water has committed to allocate P1.15 trillion for investments, primarily to ensure the continuous provision of water and wastewater services to its customers in the east zone, it noted.

Of the total, Manila Water plans to allocate P475 billion for the development and maintenance of water facilities from 2038 to 2047 out of the total expenditures.

It has also projected an additional capital expenditure (capex) amounting to P48.1 billion from 2038 to 2043 for the development of the water treatment plant for the Kangan-Agos project, with an estimated capex of P91.1 billion.

The proposed project, which will source water from the Kanan River, is expected to produce 3,000 million liters per day, divided between Manila Water and Maynilad Water Services, Inc.

“With 26 years of improving water and wastewater services, Manila Water is best positioned to continue to serve the East Zone for another 24 years,” the company said.

“Manila Water prays for the extension of the RCA to ensure sustainability of reliable service at an affordable cost,” it added.

At the same time, the company invited the public to submit comments on its proposed extension.

At the local bourse on Monday, shares of Manila Water went down by two centavos or 0.11% to close at P17.70 apiece.

The water concessionaire serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera

#Manila #Water #plans #P1.15trillion #investment

DBP bags five awards for investment deals

State-owned Development Bank of the Philippines (DBP) has won five awards from an association of investment houses for its laudable contributions in advancing the development of capital markets in the country, a top official said.

DBP President and Chief Executive Officer Michael O. de Jesus said the Bank was cited by the Investment House Association of the Philippines (IHAP) for its support to various public-private sector undertakings that promoted innovation in the areas of infrastructure, agriculture, and tourism.

“We are grateful to IHAP for recognizing DBP’s critical role as an essential developer and driver of the Philippine capital markets,” de Jesus said. “We are committed to formulating new and innovative ways to support investment transactions that will boost critical sectors such as infrastructure, agriculture, and tourism.”

DBP is the eighth largest bank in the country in terms of assets and provides strategic financing support to critical economic sectors such as infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.

IHAP is a non-stock, non-profit organization established in 1974 to raise public awareness on the investment houses in the country and their contribution in the growth of Philippine businesses and the economy through the development of the capital markets.

De Jesus said the Bank was cited in the 8^th IHAP Awards for deals completed in 2022 for the Best Fixed Income Deal (Small Mid Cap) for its support to Ada Manufacturing Corporation’s (AdamCo) P1.5-billion Corporate Notes Deal to support farm mechanization of the Rice Competitiveness Enhancement Fund.

He said DBP was awarded Best Project Finance Deal (Large Cap) for its role in SMC SLEX Holdings Company, Inc.’s P20-billion Syndicated Term Loan Facility to finance the expansion of the South Luzon Expressway.

“We are humbled and honored to be recognized alongside other full-service investment houses in the country. These awards truly highlight our unwavering commitment to strengthen and develop the investment banking and capital markets by providing advisory, and debt syndication services to our valued clients,” de Jesus said.

DBP was also cited by IHAP in the 7^th annual awards for the following transactions in 2021: Best Advisory Deal (Large Cap) for Cebu Air Inc.’s P16-billion Business Transformation and Fund Raising Program; Best Advisory Deal (Large Cap) for GMR Megawide Cebu Airport, Inc.’s P23-billion Loan Facility Advisory Deal; and Best Fixed Income Deal awards (Small Mid Cap) for Science Park of the Philippines, Inc.’s P800-million Syndicated Term Loan and Security Arrangement Deal.

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#DBP #bags #awards #investment #deals

PEZA mission to Japan signs up investment pledges worth P10.8B

THE Philippine Economic Zone Authority (PEZA) said it tallied P10.8 billion worth of investment commitments, representing proposed expansions by current locators.

In a statement, the investment promotion agency said that its five-day mission to Tokyo obtained commitments from Terumo Corp. (P1 billion), Taiyo Yuden Co., Ltd. (P1.6 billion), TDK Corp. (P7.2 billion), and Almex Technologies (P1 billion).

PEZA Director General Tereso O. Panga said the planned expansions reflect strong demand for the companies’ products.

“PEZA will make sure that the country will receive these investments, as we have a small window to get (started with) the manufacturing of new high-tech products in the Philippines given the competitiveness of the industry,” he added.

Taiyo Yuden’s investment plan covers 2023 and 2024. Manufacturing company TDK’s first expansion will run between 2023 and 2026, while a second expansion will start in 2024.

The mission, which returned on Sept. 2, included meetings to pursue investment leads. In one case, PEZA met with Sumitomo Corp. and First Philippines Industrial Park, Inc.

PEZA added that it explored collaboration with Tokyo’s Kiraboshi Bank and the Organization for Small & Medium Enterprises and Regional Innovation, known as SME Support.

“Talks with the SME Support led to the possible inclusion of the Philippines in the conduct of CEO Business Meetings that will allow direct linkage between Japanese SMEs and PEZA-registered business enterprises,” PEZA said.

PEZA said the proposed partnership with SME Support will help Japanese SMEs locators meet their staffing needs.

SME Support Senior Director-General Soma Hirohisa said the organization is “looking forward to the possible partnership with PEZA to produce more success stories for Japanese SMEs, similar to those who set up manufacturing facilities in the ecozones to export these products to Japan and other global markets.”

PEZA said it also entered into a memorandum of understanding (MoU) with NEOJAPAN that will allow it to use the latter’s desknet’s NEO and Appsuite, free of charge until the end of 2023.

“The use of these groupware solutions will allow PEZA to digitize, automate, and centralize most of its internal documents and processes under a secure IT environment,” PEZA said.

The MoU will also help PEZA become the first Philippine government agency to use the NEOJAPAN product as a standard operating office system. — Justine Irish D. Tabile

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BoI, PEZA hit 72% of 2023 investment targets

THE two main investment promotion agencies (IPAs) — the Board of Investments (BoI) and Philippine Economic Zone Authority (PEZA) — said they have to date hit 72% of their 2023 investment targets.

The BoI said approved investments in the first eight months amounted to P720 billion, slightly behind the year-earlier pace.

Marjorie O. Ramos-Samaniego, governor of the BoI, said at a forum on Thursday: “We see now a recent positive BoI investment approval performance. (As of) August of 2023, the BoI approved P720 billion in investment projects. This actually amounted to 72% of our original P1-trillion investment target,” she said.

Last year, the BoI approved an estimated P729 billion worth of new investments, which is 11% higher than the P655.4 billion approved in 2021.

In February, the BoI raised its investment target by 50% to P1.5 trillion for 2023. Registered investments at the end of August now account for 48% of the new target.

Ms. Ramos-Samaniego said that the recently amended implementing rules and regulations of the Renewable Energy Act drove the growth of investments.

She said that the amendment allowed 100% foreign ownership in renewable energy projects such as wind, solar, hydro, tidal, and ocean energy.

“With the recent registrations with BoI, we see now that the opening up of these renewable energy projects actually contributed to the growth of our investment projects,” she added.

Meanwhile, PEZA said investments between January and Sept. 7 amounted to P111.21 billion, almost three times the year-earlier level of P39.63 billion.

The approved investments were generated by 144 projects, against 148 projects from a year earlier.

“With our approved investment pledges as of September, we have achieved 72% of our P154.77-billion investment target for 2023,” said PEZA Director General Tereso O. Panga in a statement on Saturday.

“We are confident that we will exceed our conservative 10% growth target this year given the increasing number of ecozone applications filed with our office as well as big-ticket projects that we expect to register in the last quarter of 2023,” he added.

Mr. Panga attributed the performance to macroeconomic stability of the country and the attraction to investors of the forecast 6-7% gross domestic product growth.

“The other contributing factors for our increasing ecozone investments include our accession to free trade agreements, restoration of incentives for investors under the Corporate Recovery and Tax Incentives for Enterprises Act, and the recent proclamation of ecozones providing for the most conducive location and environment for registered business enterprises,” he added.

On Sept. 7, PEZA’s board approved P14.04 billion worth of projects. The approvals covered 27 separate projects expected to generate exports of $174.81 billion and 4,614 jobs. — Justine Irish D. Tabile

#BoI #PEZA #hit #investment #targets

Marcos secures $22M in investment pledges from Indonesian companies

PHILIPPINE President Ferdinand R. Marcos, Jr. secured $22 million (P1.3 billion) in investment pledges from Indonesian companies in the animal health, artificial intelligence (AI) and digital sectors, according to the Presidential Palace.

Mr. Marcos met with top executives of Indonesian companies on the sidelines of the Association of Southeast Asian Nations (ASEAN) Summit in Jakarta.

In a statement, the Palace said PT Vaksindo Satwa Nusantara is planning to invest $2 million as it works with Univet Nutrition and Animal Healthcare Company Philippines (UNAHCO, Inc.) on veterinary vaccines. The company, known as Indonesia’s first animal vaccine maker, is expected to provide the Philippines with an avian influenza vaccine.

Mr. Marcos also met with executives of PT WIR Asia Tbk, described as the first metaverse company in Indonesia. WIR’s subsidiary PT Mata Nilai Republik is planning to invest $20 million in the Philippines in the next five years.

The President also met with executives of satellite company Pasifik Satelit Nusantara (PSN). PSN last year signed a memorandum of understanding (MOU) with WIT Philippines, Inc., which would involve the launch of a satellite by December that would help improve digital connectivity in the country.

Mr. Marcos’ business meetings were led by the Department of Trade and Industry (DTI) through the Philippine Trade and Investment Center-Jakarta.

“The meetings were a follow-up to the President’s state visit to Indonesia, aimed to forge strategic linkages and partnerships between the Philippines and Indonesia in key sectors, such as agriculture, specifically animal vaccine manufacturing, digital technology, and innovation,” the DTI said in a statement.

Separately, the Palace said the Philippine private sector had signed a deal with its Southeast Asian counterparts to improve ties in agriculture and small business development, as the region seeks to promote economic integration.

The memorandum of understanding signed by members of the ASEAN-Business Advisory Council (BAC) aims to jointly conduct studies and mentorship opportunities for potential agriculture, agriculture technology, food security, agri-preneurship business models and value chain development among small, medium, and large farmers, enterprises, and government entities.

The development of trade and investment opportunities in various agricultural commodities including rubber, rice, corn, fruits, vegetables, and other agricultural services is expected under the joint cooperation, the DTI said.

Separate MOUs were signed for each cooperation with Thailand, Brunei, Singapore, Laos, Cambodia, Vietnam, Myanmar, and Indonesia through their respective ASEAN-BAC representatives.

The Philippines was represented by ASEAN-BAC Philippines Chairman Jose Ma. Concepcion III, a member of Mr. Marcos’ Private Sector Advisory Council.

“All member states also agreed to jointly promote effective strategies in addressing climate change and ensure a sustainable agribusiness environment,” the Palace said.

Speaking at the ASEAN-BAC roundtable dialogue, Mr. Marcos said the Philippines seeks to deepen economic ties with ASEAN countries through the Regional Comprehensive Economic Partnership (RCEP).

“It is a catalyst that is seen to bring in even more collaboration amongst ASEAN member states,” he said. “We are positive that RCEP will further deepen economic integration and significantly contribute to the economic growth of the region.”

RCEP, which covers nearly a third of the global population and about 30% of its global gross domestic product, took effect locally on June 2. Participating countries include the members of ASEAN, Australia, China, Japan, New Zealand, and South Korea.

The trade deal is heavily supported by China, whose trade with member countries, according to a May 2022 analysis from China Briefing, accounted for 30.4% of Beijing’s total foreign trade value.

Critics of RCEP have already warned that the trade deal would only make the Philippines heavily reliant on imports from China and prevent the Southeast Asian nation from pursuing trade diversification. — K.A.T. Atienza

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ACEN board clears investment in 335-MW onshore wind farm project

ACEN Corp.’s board has given the green light for the Ayala-led company to invest in a 335-megawatt (MW) onshore wind power project after its subsidiary won in a government auction for renewable energy (RE) capacity.

In a stock exchange disclosure on Tuesday, the company said its unit Giga Ace 6, Inc. had been recently awarded for its successful bid for the second round of the Department of Energy’s green energy auction (GEA-2).

ACEN said its board on Sept. 4 approved the company’s procurement of a performance bond for the benefit of its subsidiary “to enable the latter’s compliance with the requirements of GEA-2.”

The government’s green energy auction program is a competitive process of procuring RE supply by offering capacities to qualified bidders at a set maximum or ceiling price.

Based on the Energy department’s list of winning bidders, Giga Ace won the bid for its Isla wind power project located in the provinces of Laguna and Quezon with an offered capacity of 230 MW for P5.79 per kilowatt-hour.

The wind project’s operation is set to start on Dec. 24, 2026.

ACEN did not disclose more details on the amount of investment and timeline of the operations.

Under GEA-2, which was conducted on July 3, successful bids reached an equivalent of 3,440 MW, or below the 11,600-MW offered capacity.

Earlier, ACEN said that it expects to ramp up its RE expansion after raising P25 billion from a perpetual preferred share offering under the first tranche of its shelf registration of up to 50 million preferred shares.

Currently, ACEN has approximately 4,200 MW of attributable capacity spanning the Philippines, Vietnam, Indonesia, India, and Australia.

The energy company aspires to become the largest listed RE platform in Southeast Asia with a target portfolio of 20 gigawatts by 2030.

The existing capacity attributable to the company has a renewable share of 98%, the company said, claiming the figure to be among the highest in the region.

At the stock exchange on Tuesday, shares in ACEN slipped by four centavos or 0.78% to close at P5.06 apiece. — Sheldeen Joy Talavera

#ACEN #board #clears #investment #335MW #onshore #wind #farm #project

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