Meralco unit to bid out deal for 460 Megawatt Mauban Coal-fired power plant facilities

Mauban Quezon Coal Fired power plant. Photo: alvinrexlucero.wordpress.com

The power-generating arm of the Manila Electric Co. (Meralco) will bid out the engineering, procurement and construction (EPC) contract for the 460-megawatt (MW) coal-fired power plant in Mauban, Quezon, before the year ends.

Meralco PowerGen (MGen) and New Growth B.V., a wholly owned subsidiary of the EGCO Group of Thailand, agreed in August to develop the coal-fired power plant targeted for commissioning in 2017.

MGen Executive Vice President and General Manager Aaron Domingo said last week that full development activities are currently underway.

For instance, the company has started to issue bid invites for the EPC contract.

"Invitations to bid to a short-list of EPC candidates have been issued. Firm EPC bids are due by the last quarter of this year," Domingo said.

The company has also issued bid invites for interested financial advisors. "Invitations to bid to a shortlist of potential financial advisors have been issued. Financial advisor to be appointed within the last quarter of this year," added Domingo.

The target financial closing for the project is expected by the second or third quarter of 2014.

MGen will own 51 percent of the power facility, including rights to assign up to 2 percent to an approved assignee, while New Growth B.V. holds the remaining 49 percent.

EGCO, the owner and operator of Quezon Power Philippines Ltd. (QPPL), also owns a coal plant in the same municipality that the Thai firm acquired from US-based Intergen last year. The same power plant has a 25-year agreement to supply Meralco with electricity.

Back then, QPPL Managing Director Frank Thiel said EGCO intends to partner again with Meralco. "We don't consider Meralco just as an offtaker. Meralco has been a partner all along. Without them, this project will not exist. We're working with them, we engage with them every other week to update them on where we are in the project,"  Thiel said.

Thiel said EGCO intends to expand its presence in the Philippines, whether in traditional or renewable power generation. These may include hydropower and natural gas power sources. – Business Mirror

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Philippines to pursue two Free Trade Agreements (FTA) in Europe

Philippine Government is sending a team to Europe later this month for talks about possible free trade agreements (FTA) with two European blocs, a Trade official said last week.

           "We will be sending a delegation to Europe third or fourth week of November to continue technical discussions on a possible Philippines-EU (European Union) FTA in Brussels and Philippines-EFTA (European Free Trade Association) FTA in Geneva," Trade Undersecretary Adrian S. Cristobal, Jr. told reporters last week.

Mr. Cristobal said the Philippines is still at the scoping stage, or determining which sectors will be part of an FTA, with the 28-member European Union.

Talks about a possible trade agreement between the Philippines and the EU first began on Feb. 9, 2009, after the latter's plan of pursuing a region-to-region approach with the ten-member Association of Southeast Asian Nations (ASEAN) failed due to the political difficulties of negotiating an FTA that included Myanmar.

ASEAN groups the Philippines, Singapore, Malaysia, Indonesia, Thailand, Brunei, Cambodia, Myanmar, Vietnam, and Lao PDR.

Singapore is the first ASEAN country to conclude an FTA -- signed December 2012 -- with the EU.

The EU is also currently negotiating FTAs with Malaysia, Vietnam, and Thailand.

For the EFTA, Mr. Cristobal said the mission will continue to explore the benefits of forging an FTA with the four-member economic bloc composed of Switzerland, Liechtenstein, Iceland, and Norway.

The Trade official earlier said that talks about a possible trade pact with EFTA began during the World Trade Organization Ministerial Conference in Geneva, Switzerland in 2011 but was "fast-tracked" by the visit to the Philippines of Swiss State Secretary for Economic Affairs Marie-Gabrielle Ineichein-Fleisch in June.

Trade Secretary Gregory L. Domingo and Ms. Ineichen-Fleisch signed in June a memorandum of understanding to start dialogues for a potential FTA between the two countries which, if approved, could be the Philippines' first such agreement with a European country.

Currently, the Philippines has only one bilateral FTA, the Japan-Philippines Economic Partnership Agreement.

However, as an ASEAN member, the Philippines also enjoys the bloc's trade agreements with Japan, China, South Korea, Australia, New Zealand, and India.

Meanwhile, Mr. Cristobal said that the market share of garments, electronics, and furniture exporters, among others, will be reduced should the Philippines remain outside the US-led Trans-Pacific Partnership agreement (TPP).

"If we're not going to be part of the TPP, our neighbors -- Vietnam, Malaysia, and Brunei -- will get preferential tariff for their goods, and our market share will be diminished," he said.

"We cannot afford not to be part of that agreement. If and when they open a second batch of members, we intend to be part of that second batch. We've been doing consultations and we're going to commission specific impact studies," he added.

In April, the government said the country is not yet ready to join the TPP given structural limitations and will require changing the country's laws.

"We're not yet ready for the TPP, we have to do some more homework first on our environment, labor and investment, on the equity side because we have many restrictions," Mr. Domingo had earlier said.

Negotiations are ongoing for the establishment of the TPP, which aims to further liberalize trade in the Asia-Pacific region. Twelve countries -- Australia, Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the US -- are currently in talks to form the TPP, which are slated to be concluded by year's end.

The trade pact, once it materializes, would cover two-fifths of the world economy. –

By: Daryll Edisonn D. Saclag / Business World Online

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Hong Kong will BAN Pinoy entry's visa-free access Scheme beginning November

Reported in the South China Morning Post(SCMP) said that Hong Kong Lawmakers are rallying behind a call to withdraw visa-free access for Filipino visitors to Hong Kong despite reports of progress towards a compensation deal for victims of the 2010 Manila hostage siege.

A non-binding Legislative Council motion urging the suspension of the visa-free scheme looks set to be passed on Wednesday after parties from across the political spectrum indicated they would support it.

Lawmakers want the government to put pressure on the Philippine leadership and Manila city government to compensate families of eight Hongkongers killed by sacked policeman Rolando Mendoza, as well as the injured.

The call comes despite a joint statement on Thursday by Manila City Council representative Bernardito Ang and Democratic Party lawmaker James To Kun-sun, who is working with the victims and families, indicating that a deal was getting closer.

Former security chief Regina Ip Lau Suk-yee, will move the call to stop visa-free access as an amendment to radical pan-democrat Albert Chan Wai-yip's motion seeking sanctions on the Philippines. She has won the support of two leading Beijing-loyalist parties, the Democratic Alliance for the Betterment and Progress of Hong Kong and the Federation of Trade Unions. Pan-democrats are also expected to support her amendment.

Chan's motion is expected to pass. But DAB chairman Tam Yiu-chung says his party may not support an amendment by Democratic Party lawmaker Sin Chung-kai as it "might infringe the existing trade agreements".

Sin wants the government to stop buying Philippine products, halt negotiations on air routes and trade and urge the public to boycott Philippine goods.

But FTU lawmaker Wong Kwok-kin will support both amendments.

"Though the motion has no binding effect, it will exert pressure not only on the Hong Kong government but also the Philippines - as pan-democrats and the pro-establishment camp join forces on this issue," he said.

Security minister Lai Tung-kwok would not comment on the amendments until the meeting.

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