BusinessWeek
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www.businessweekmindanao.com Issue No. 115, Volume III • Oct. 12-14, 2012
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AS OF 5:46 PM OCT. 10, 2012 (Wednesday)
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Briefly Fitch rating
Fitch Ratings on Tuesday said clinching peace in Mindanao may boost investments in the area, but warned that any lasting contribution to the Philippine economy would depend on addressing the “weak overall investment climate and low fiscal revenue base.” “A lasting peace deal in the Philippine island group of Mindanao would be supportive of both public and private sector investment in the area, and may boost the investment rate for the economy as a whole, supporting economic growth,” the international credit rating firm said in a statement. Having said the above, Fitch said “a permanent deal” remains uncertain, citing the experience of the 2008 settlement forged by the previous administration that the Supreme Court junked because of the shallow consultation done on the terms of the accord.
By NELSON V. CONSTANTINO, Editor-in-Chief and BONG FABE, Correspondent
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USINESS and civic leaders have expressed optimisms that the newlysigned peace agreement between the government and the Moro Islamic Liberation Front (MILF) would help generate more investments and jobs and thereby promote lasting peace in Mindanao.
2-hour brownout
THE National Grid Corporation of the Philippines has announced the need to implement a two-hour power outage in most areas of Mindanao daily following the shutting down of one independent power producers since October 6 for consumers to cope with the shrinking supply of electricity. Bambi Capulong, spokesperson of the NGCP-Southern Mindanao Field Office said the shutting down of the Steag State Power Incorporated based in Villanueva, Misamis Oriental since October 6 due to preventive maintenance impacts more on the diminishing power supply in Mindanao. She said the NGCP has to ration the available power provided by the National Power Corporation as SSPI’s preventive maintenance will go on until November 4, 2012.
Bigger infra budget THE Department of Public Works and Highways in the Region is expecting a bigger infrastructure budget for 2013. DPWH Region XI Director Mariano Alquiza said that for 2013 there will be an allocation of P7.280 billion worth of projects spread out across the different engineering districts in the region. About P4.2 billion was allocated for the region in 2012. Alquiza said the increase in the infrastructure budget is in line with President Benigno Aquino’s promise in his 2012 State of the Nation Address that by 2016 all national roads should have been paved.
PEACE AT LAST? Internally displaced persons affected by war in a remote town in the southern part of Mindanao. The unstable peace and order situation, ongoing threats to human security, lack of livelihood and employment have slowed the pace of development in Mindanao. The new peace accord is seen as the first big step towards the island’s growth. ( PHOTO COURTESY OF ASIAN INSTITUTE OF MANAGEMENT)
In a press statement, Philippine Chamber of Commerce and Industry president Miguel B. Varela said the “Framework Agreement on the Bangsamoro” is a way to a lasting peace and prosperity on the island. “This is a very good opportunity, a road to political stability. More investors will be encouraged to invest in Mindanao,” Varela said. “The lack of peace and order has been a concern among potential investors in the island. Many parts of Mindanao have also lagged behind in infrastructure, resulting in high shipping costs,” Varela pointed out. But with peace in Mindanao on the horizon, sectors such as agriculture, power and tourism will likely benefit from more investments, Varela said. Among the major roadblocks that hinder the island’s development are the lack of power supply and the continued atrocities in some areas that scare away
investments. Varela said investors from Islamic countries such as Saudi Arabia and the United Arab Emirates have expressed interest to do business in mainly Muslim Mindanao, especially in the food and agriculture sectors. “They are interested in the development of agricultural lands,” he said. Malaysia’s Felda Global Ventures, the world’s largest crude palm oil producer, is the first foreign investor to express interest in Mindanao after Manila agreed on the framework of a peace deal, potentially opening up tracts of farm land. Conflict-wracked Mindanao has the most suitable land in the Philippines for oil palms, Sabri Ahmad, chief executive of cash-rich Felda Global, told Reuters in an interview. “We will go there for oil palms,” he said in the Malaysian capital late on Monday. PEACE/PAGE 6
Additional power plants to curb Diesel-fired barges to rotating brownouts in Mindanao save Mindanao woes By MIKE BAÑOS, Correspondent
The 102 MW Iligan Diesel Power Plant (IDPP) in Iligan City is soon back to normal operation.
ROTATING brownouts in the Mindanao grid could be a thing of the past as more generating plants come online in the short and medium term. For 2012, the 102 MW Iligan Diesel Power Plant POWER/PAGE 6
By CARMELITO Q. FRANCISCO and BUTCH ENERIO Correspondents
A POWER generator is set to do overtime to cushion the impending shortage of power in Mindanao as a result of a more than a month preventive maintena nce system (PMS) that the Mindanao Power
Therma Marine’s power barge in Nasipit town.
Corporation-Steag Inc. is BARGES/PAGE 6