MERALCO TO CHARGE LOWER RATES IN OCTOBER

The Manila Electric Company (Meralco) announced on Oct. 11 that it will charge lower electricity rates this month, after three straight months of power rate increases.

In a statement, Meralco said the rate this October will go down by P0.3587 per kilowatt hour (kWh) to P11.4295 per kWh from P11.7882 per kWh in September.

Lower charges from the Wholesale Electricity Spot Market (WESM) drove the reduction in electricity prices this month, according to the power utility.

“WESM charges decreased by P5.1001 per kWh following the completion last month of the collection of deferred May 2024 costs ordered by the Energy Regulatory Commission,” Meralco said.

“Also contributing to the reduction was the improved supply situation in the Luzon grid as average demand and average capacity on outage went down by 544 megawatts and 519 MW, respectively,” it added.

On the other hand, charges from Independent Power Producers (IPPs) went up by P1.8556 per kWh from higher costs of contracting from the Malampaya gas field.

Power Supply Agreements (PSAs) charges likewise increased by P0.1128 per kWh.

PEZA SEEKS UP TO 80,000 NEW JOBS IN ECOZONES

The Philippine Economic Zone Authority (PEZA) is aiming to add 60,000 to 80,000 jobs this year within the economic zones (ecozones) under its jurisdiction across the country.

In an interview with Bagong Pilipinas Ngayon on Oct. 10, PEZA Director General Tereso Panga said the investment promotion agency (IPA) added 35,871 jobs in ecozones nationwide from January to September this year, with the recent additions tallying to 4,000 to be opened from 16 newly approved projects on Sept. 23.

“So, our ecozone development is pretty much scattered to rural areas and new growth areas although most of it is still in Calabarzon —we have 11 projects there. But we can see that we have two in Cebu, there are also in NCR (National Capital Region) and we have [in] Pampanga in Central Luzon,” Panga said.

PEZA is also optimistic that it will hit its P200-billion investment approvals for the full year of 2024.
As of September this year, PEZA approved a total of P115.89 billion worth of projects that will boost the country’s exports by $2.51 billion.

SOUTH KOREA TO PROVIDE FUNDING SUPPORT FOR THREE MAJOR INFRA PROJECTS

Finance Secretary Ralph Recto and Korea’s Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok have executed agreements for the financing of three big infrastructure projects to improve mobility and support economic development in Luzon and the Visayas.

On Oct. 9, the Department of Finance (DOF) said the agreements were signed in Malacañang Palace and witnessed by President Ferdinand R. Marcos Jr. and South Korean President Yoon Suk Yeol who was on official visit to the Philippines.

Among the projects assured of funding is the P6.34-billion Samar Pacific Coastal Road II Project. This will be supported by the Export-Import Bank of Korea – Economic Development Cooperation Fund (KEXIM-EDCF).

The Samar Pacific Coastal Road II Project will to provide a seamless connection for the transport of people and goods between Laoang Island and Samar mainland.

The MOU also serves as a document for the prospective financing of the other two projects: The P181.03-billion Phase I of the proposed Laguna Lakeshore Road Network Project that covers a 37.6-kilometer (km) viaduct and embankment from Lower Bicutan, Taguig City to Calamba, Laguna; and interisland bridges project in Western Visayas for the construction of two sea-crossing, four-lane bridges spanning 32.47 km combined, including connecting roads and interchanges, which will link the islands of Panay, Guimaras, and Negros, costing P187.54 billion.

MANUFACTURING VOLUME AND VALUE UP IN AUGUST

Manufacturing output in volume and value continued to grow in August, however, at a slower rate than the increase in July.

On Oct. 8, the Philippine Statistics Authority (PSA) said the results of its latest Monthly Integrated Survey of Selected Industries showed an expansion of 1.8% in the value of production index (VaPI) expanded by 1.8%, slower than July’s 6.4%.

This is also slower than the 6.1% increased logged in August last year.

“The slower year-on-year growth rate of VaPI for manufacturing in August 2024 was mainly attributed to the slower annual growth rate of the manufacture of food products industry division at 1.% during the month from an annual increment of 14% in July 2024,” the PSA added.

Among the other factors to the slower VaPI increase are slower annual increases in the manufacture of computer, electronic and optical products industry division at 5.1% from 15.2% in July, and the manufacture of coke and refined petroleum products at 11.6% percent from 19.1% of July.

Meanwhile, the growth of the volume of production (VoPI) slowed to 2.8% from 6.8% in July and 5.6% of August last year.

The PSA said the slower VoPI growth rate was also caused by the slower annual increase of manufacture of food products, computer, electronic and optical products, and coke and refined petroleum products.

GROSS INTERNATIONAL RESERVES HIT $112 BILLION AT END-SEPTEMBER

The country’s gross international reserves (GIR) reached an all-time high of $112 billion as of end-September of the current year, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed on Oct. 7.

Data from the BSP showed that the GIR in August this year reached $107.9 billion. International reserves, referred technically as GIR, are foreign assets of the BSP held mostly as investments in foreign-issued securities, monetary gold, and foreign exchange.

The BSP said the month-on-month increase in the GIR level reflected mainly the national government’s (NG) net foreign currency deposits with the BSP, which include proceeds from the NG issuance of Republic of the Philippines Global Bonds, upward valuation adjustments in the BSP’s gold holdings due to the increase in the price of gold in the international market, and net income from the BSP’s investments abroad.

Meanwhile, net international reserves, which refers to the difference between the BSP’s reserve assets (GIR) and reserve liabilities (short-term foreign debt and credit and loans from the International Monetary Fund), increased to $112 billion as of end-September 2024 from the end-August 2024 level of $107.8 billion.

(PHOTO FROM PNA)