MANILA — An Australian and U.S. consortium is in exclusive talks to rescue one of Asia’s most strategically situated shipyards at Subic Bay in the Philippines.

The bid for the Philippines’ largest dockyard by Australian shipbuilder Austal and U.S. private equity firm Cerberus Capital Management will allay concerns over national security that have been triggered by Chinese interest in the shipyard.

It will also raise hopes for the revival of an economically important asset, which at its peak had more than 30,000 workers and was one of the largest employers in the country. The shipyard collapsed earlier this year after its South Korean owned parent defaulted on $1.3 billion in loans.

Subic, a former U.S. naval base, opens to the South China Sea where Beijing is beefing up its military presence to bolster its expansive maritime claims. China’s moves have raised tensions in the region, with Philippines and Vietnam arguing Beijing is infringing on their respective exclusive economic zones.

The Philippine Navy, which is studying the possibility of converting a portion of the 300-hectare shipyard into a naval base, stationed a ship there early this month.

Austal CEO David Singleton told Nikkei Asian Review that his company and Cerberus were in exclusive talks with the creditors of the Philippine unit of South Korea’s Hanjin Heavy Industries and Construction, which had owned the shipyard for 13 years before it collapsed.

The team was expected to finish due diligence in the next three months, after which the bid price and structure of the joint venture would be known, Singleton said. An official from Cerberus and a representative from the creditors did not immediately respond to a request for comment.

“They (Cerberus) will do the financials. We will do shipbuilding and ship repair and the Navy will do their own thing,” Singleton said. “We like the Navy there.”

Asked to confirm information from government sources that a Japanese company will join their consortium, Singleton said: “Maybe in the future, but not now.”

Austal already builds small and mid-size passenger vessels on the central Philippine island of Cebu, where it opened a new $20 million assembly facility on Wednesday.

Austal could use the Hanjin yard to build larger vessels, such as landing helicopter docks and frigates, Singleton said.

Philippine Navy chief Robert Empedrad told Nikkei in February that the Navy could procure frigates from the Hanjin white knight, as the government moves to beef up its naval fleet.

Hanjin collapsed early this year amid industry-wide oversupply in the cargo ships, the type of vessels it builds in Subic. But passenger and military vessels, Austal’s specialty, are still getting robust orders, Singleton said.

France’s Naval Group, Netherland’s Damen Group and at least two Chinese companies were among those that previously expressed interest in the yard, according to government officials. But trade and defense officials have agreed that a Chinese takeover of the yard poses national security concerns.

Hanjin has invested $2.3 billion in the yard since 2006, and delivered 123 vessels through 2018. The company, which employed over 30,000 during its peak, made the Philippines one of the world’s largest shipbuilding nations.

“It’s a fantastic yard,” Singleton said.

Source: asia.nikkei.com

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SUBIC BAY FREEPORT – Automotive trader Velocity Motor Sales Corp. broke ground here on Friday for a P220-million full-scale Isuzu dealership that targets the growing automotive market in the Subic Bay Freeport area and the province of Zambales.

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Wilma T. Eisma graced the ground-breaking rites led by Velocity Motors president Jason Hao and company director Jeffrey Hao Lin at the Subic Gateway District along with guests Isuzu Philippines Corp. president Hajime Koso and Isuzu Philippines Corp. sales division head Joseph Bautista.

“This is a landmark day for all of us, as this shows us how vibrant the business climate in Subic Freeport is,” Eisma said in her congratulatory message.

“This is a signal of the kind of confidence that investors like you have in the Subic Bay Freeport,” she also told Velocity and Isuzu officials.

Velocity top honcho Jason Hao said the company will put up an Isuzu dealership with display showroom and parts and service center. The dealership will conduct all ancillary and related activities for the popular automotive brand.

The company signed a lease term of 50 years for a 5,000-square meter lot at the Subic Gateway District to house the showroom and service center. The facilities are expected to be completed within two years at a total construction cost of P100 million.

Isuzu Philippines President Koso said, “Today we are marking here a milestone for the Isuzu

Philippines Corporation, as we break the ground for the construction of the new Isuzu dealership.

Subic is primed to become the most competitive international service and logistics center in Southeast Asia.”

“With this opportunity, Subic is positioned to become an automotive and transportation solution hub for the growing transportation needs in the province of Zambales,” he added.

Established in 1995, Isuzu Philippines Corp. is into the assembly of commercial vehicles such as the Crosswind AUV and D-MAX pickup truck, along with light- to heavy-duty trucks and buses that provide maximum performance and reliability while on the road.

Isuzu’s Subic dealer is expected to supply much-needed commercial vehicles and trucks for the growing automotive market in the Subic Bay area.

Source: Zambales Herald News Online FB Page

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Photo Credit: theimpactnews.com

MANILA, Philippines – More students will no longer have to pay for their tuition and fees after the Commission on Higher Education (CHED) approved the addition of 27 local universities and colleges to the list of institutions that provide free higher education in the Philippines.

CHED Chairperson Prospero de Vera III made the announcement in a resolution issued Thursday, July 25.

According to CHED, a total of 111 public higher education institutions are now covered by Republic Act No. 10931 or the free tuition law for academic year 2019-2020.

The following have been included in CHED’s list of approved institutions that are covered by the Universal Access to Quality Tertiary Education Act:

NCR

Dr. Filemon C. Aguilar Memorial College of Las Piñas
Navotas Polytechnic College
City of Malabon University
Pamantasan ng Lungsod ng Pasig
Valenzuela City Polytechnic College
Pateros Technological College
Taguig City University

Region III – Central Luzon

Gordon College

Region IVA – Calabarzon

One Cainta College

Region V – Bicol region

Tiwi Community College

Region VI – Western Visayas

Bacolod City College

Region VII – Central Visayas

Mandaue City College
Cordova Public College
Talisay City College
Madridejos Community College
Consolacion Community College
Lapu-Lapu City College
Talibon Polytechnic College

Region VIII – Eastern Visayas

Burauen Community College
Abuyog Community College
Colegio De Las Navas

Region X – Northern Mindanao

Community College of Gingoog City
El Salvador City College
Salay College of Arts and Sciences
Tubod College
Don Carlos Polytechnic College

Region XI – Davao region

Sto. Tomas College of Agriculture Sciences and Technology

“The Commission is committed to fully implement RA 10931 to increase access to higher education so that more Filipino students, particularly those coming from the poor families, can go to college with government support,” De Vera said.

Source: rappler.com

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The world-class athletics stadium at the New Clark City is almost done with Philippine Southeast Asian Games Organizing Committee Chief Operating Officer Ramon Suzara (below) saying the free-port zone would achieve its goal as a sports tourism destination in Asia.

CLARK FREEPORT—The 30th Southeast Asian (SEA) Games is seen to highlight this free port as a sports tourism destination in Asia.

During the Broadcast and Media Conference for the 30th SEA Games at Hotel Sofitel in Pasay City last Tuesday, Philippine Southeast Asian Games Organizing Committee (Phisgoc) Chief Operating Officer Ramon Suzara said they want to promote this free port to be a top sports tourism destination.

“We are now trying to push Clark to be the next sports tourism destination in Asia,” he said as he encouraged delegations from neighboring countries to utilize the Diosdado Macapagal International Airport (DMIA) here.

“For those who are participating in sports and events under the Clark and Subic cluster, we encourage them to use Clark. There are now several international flights at that airport,” Suzara said.

There are a total of 530 events, 56 sports and 44 venues for the SEA Games that are grouped into Metro Manila, Clark and Subic clusters.

For Clark, the venues include the Parade Grounds, Clark Global City, The Villages and Royce Hotel in its cluster, while Subic will have Malwaan Park, Subic Bay Boardwalk, Subic Gym, Subic Tennis Court and Triboa Bay.

Highlighting the Clark cluster will be the New Clark City (NCC) that will open a newly constructed 20,000-seater Athletics Stadium, an Aquatics Center and the National Government Administrative Center.

This will also be the first time that the Philippines will be having brand-new 2,100-bed Athletes’ Village at NCC.

The DMIA has a total of 734 domestic and regional flights per month to 40 destinations.

A new terminal is also being built that will accommodate an additional 8 million passengers yearly. It is expected to be completed by June 2020.

Meanwhile, it can be recalled that this free port has been conferred with awards in sports tourism by various entities.

Source: businessmirror.com.ph

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Paluan, Occidental Mindoro celebrates the completion of Southeast Asia’s largest solar-battery microgrid.

While millions suffer from frequent brownouts, the town of Paluan, Occidental Mindoro is now brownout-free.

In 2018, Solar Para Sa Bayan (SPSB) completed the largest Solar-Battery Microgrid in Southeast Asia at zero cost to the government. With solar panels, Tesla batteries, and backup diesel generators, it serves Paluan 24 hours a day, 365 days a year, at 50% below the full cost of the local electric coop.

Paluan Mayor Carl Pangilinan attested to the project’s benefits: “Throughout our history, our town was denied service by the electric coop because of lack of supply in the whole Occidental Mindoro. Everything changed when Paluan sought Solar Para Sa Bayan to provide stable, cheap, clean energy. Our municipality now enjoys 24/7 electricity, which has opened new opportunities for Palueños.”

SPSB is now serving 24/7 power in over 12 towns, benefiting over 200,000 Filipinos. It has developed projects in 18 provinces and aims to support the Department of Energy’s (DOE) goal for the Philippines to achieve 100% electrification by 2022.

12 Million Filipinos Without Electricity

According to the DOE, an estimated 12 million Filipinos lack access to electricity. This is despite the fact the Electric Power Industry Reform Act (EPIRA) became law in 2001, with its primary objective “to ensure and accelerate the total electrification of the country”.

The National Electrification Administration says it still needs 25 billion pesos to reach the country’s unenergized sitios. The National Power Corporation spends over 20 billion pesos per year serving missionary areas, mostly for less than 24 hours a day given the difficulties of serving off-grid areas.

For years, billions in government subsidies yielded inadequate results. But thanks to advances in technology and SPSB’s initiative, consumers in underserved areas can finally access cheaper, better service at zero cost to the government.

Necessity for a Microgrid Franchise

Despite all this, Occidental Mindoro Electric Cooperative (OMECO) has insisted that SPSB cease its operations because Paluan is part of OMECO’s franchise. In a statement, the Philippine Rural Electric Cooperatives Association said that its members would defend their “electricity franchise privileges” and “cannot be expected to peacefully yield their jobs anytime soon to the private sector.”

In this light, SPSB applied for its own franchise. House Bill 8179 grants SPSB the non-exclusive right to operate microgrids in “remote and unviable, or unserved or underserved areas in selected provinces of the Philippines.” Unlike the existing Qualified Third Party (QTP) program, which has energized just 3 barangays in 18 years and is highly subsidized, this franchise (1) Enables projects without needing the consent of the existing utility, (2) Covers underserved municipalities, not just unserved barangays, (3) Reduces permitting requirements, (4) Creates an effective alternative, while respecting the rights of existing utilities and paving the way for others to offer better service to consumers.

Heavily Amended Version

House Bill 8179’s final version (1) Limits the scope to “remote and unviable, unserved, or underserved areas,” in selected provinces with less than 2% of the power demand of the Philippines, (2) Requires use of renewable energy, (3) Subjects the grantee to regulation by the Energy Regulatory Commission (ERC) and DOE, pursuant to EPIRA, (4) Obligates the grantee to provide reliable service, with financial penalties, (5) Explicitly states the grantee “shall not be entitled to any government subsidy.”

This incorporates inputs of industry stakeholders from extensive congressional hearings, to ensure the franchise is highly regulated and compliant with EPIRA and the constitution, respects existing franchises, and enables DOE and ERC to impose further safeguards. This imposes even greater restrictions on SPSB than existing utilities, limiting it to marginal areas and prohibiting it from receiving any government subsidy.

Overwhelming Consumer Support

Motivating SPSB is the support it has received from consumers in underserved areas. Facebook posts supporting HB 8179 have reached 20 million Filipinos and generated over 2 million likes, comments, shares. Various Local Government Units have attested to the benefits should the bill become a law.

Solar Para Sa Bayan is now operating in over 12 towns, bringing 24/7 power for the first time to over 200,000 Filipinos, at zero cost to the government.

Misamis Occidental Governor and former Tangub City Mayor Philip Tan said: “For several years, Tangubanons experienced extended power outages and exorbitant energy prices. But, with the advent of the Solar Para Sa Bayan Project, these will now become a thing of the past.”

Mayor Shierwin Taay of Dingalan, Aurora said: “We thank Solar Para Sa Bayan for fulfilling the dream of Dingalen?os, by solving our power crisis and reducing the cost of electricity. This is a great help for a town like ours to achieve a stronger economy and better life for our people.”

These sentiments are consistent with the results of a Pulse Asia survey indicating that 82% of Filipinos favor new options for electric service. According to Pulse Asia Director Ana Maria Tabunda, support for new options for electricity is consistent across all demographics in Luzon, Visayas, and Mindanao.

100% Electrification by 2022

Should the bill become a law, SPSB’s commitment is clear. In a statement, it said, “We commit our utmost to support this administration’s goal of achieving 100% electrification and ending energy poverty by 2022, and do this without need for government subsidy.”

For decades, Philippine presidents have tried and failed to reach 100% nationwide electrification. Now, we have a solution, with the potential to energize the entire country by 2022 and add to the list of reasons why this administration will be remembered as the one that did the most to improve the lives of ordinary Filipinos.

Source: technology.inquirer.net

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