Business confidence picked up in first quarter—BSP

By Julito G. Rada

MORE companies expressed confidence the economy will perform better in the coming months amid the continued return to pre-pandemic normalcy, according to the latest Business Expectations Survey conducted by the Bangko Sentral ng Pilipinas. The overall business confidence index rose sharply to 34 percent in the first quarter from 23.9 percent in the fourth quarter of 2022. This means that the percentage of optimists increased and outweighed the percentage of pessimists.

“For Q1 2023, the more upbeat outlook of respondents was attributed to expectations of higher consumer demand for products and services, full reopening of the economy and return to pre-pandemic normalcy as more CO-

VID-19 restrictions are lifted, increased business activities and sustained economic recovery, and expansion and new business opportunities in healthcare, manufacturing and construction subsectors,” the BSP said.

The business sentiment for the second quarter of 2023 also turned more optimistic as the overall confidence index improved to 49 percent from 31.3 percent a quarter ago.

“With the full reopening of the economy due to the easing of pandemic restrictions, respondents’ more optimistic outlook for the next quarter was attributed primarily to expectations of higher volume of sales [such as food and beverages, electronic parts, computers and laptops, paint, garments, airline tickets, and loan products], improved business activities and operations and seasonal

DOE, Danish company sign $5b worth of offshore wind service contracts

THE Department of Energy on Thursday signed three offshore wind service contracts with combined capacity of 2,000 megawatts and investment value of $5 billion with Copenhagen Infrastructure New Markets Fund.

CINMF is the first 100-percent foreign-owned company to invest in the country’s OSW development.

“These agreements represent an additional strategic investment and a firm commitment to strengthen the renewable energy sector in the country, particularly the development of OSW. They provide a significant contribution towards a low carbon future as well as encourage the development of the local supply chain,” Energy Secretary Raphael Lotilla said.

The 25-year OSW contracts are expected to accelerate the implementation of the thrust of President Ferdinand Marcos Jr. to develop indigenous and renewable sources of energy.

CINMF, an affiliate of Danish fund manager Copenhagen Infrastructure Partners, entered the Philippine market following the lifting of foreign ownership restrictions on RE development.

The three OSW projects will be developed in offshore Camarines Norte and Camarines Sur (1,000 MW), offshore of Northern Samar (650 MW) and offshore of Pangasinan and La Union (350 MW).

The DOE awarded 57 OSW SCs to date with a total potential capacity of about 42,000 MW that will be developed in the coming years.

uptick in demand over the summer months,” the BSP said.

It said that for the next 12 months, business sentiment turned more buoyant as the overall confidence index increased to 61.9 percent from the previous quarter’s survey result of 46.2 percent.

“The respondents’ more buoyant business confidence for the next 12 months was also attributed to their optimism about higher demand/sales, a fully reopened economy, better business conditions and new business opportunities,” the BSP said.

The Q1 2023 Business Expectations Survey was conducted from Jan. 13 to March 6, 2023, involving 1,554 firms surveyed nationwide, consisting of 582 companies in the National Capital Region and 972 firms in the provinces.

Construction Trade

SHOW. Philippine Constructors Association Inc. president Junn Elepaño announces the staging of Philconstruct Luzon 2023 in Clark Freeport, Pampanga. This year’s iteration is the second hybrid format to be mounted simultaneously virtually and through VX Events, an online platform that expands reach to stakeholders and off-site participants. The three-day expo, from March 30 to April 1, aims to connect people in the building and construction industry to discover new opportunities and learn new innovations. The event has become a one-stop destination for all construction needs, attracting thousands of industry players. It will feature indoor and outdoor displays from various brands, ranging from small to the country’s largest suppliers and manufacturers. The show also includes a variety of construction seminars designed to keep attendees up to date on the latest industry trends.

The DOE aims to bring the RE share in the power generation mix to 35 percent by 2030 and 50 percent by 2040 from 22 percent.

The three projects are expected to create around 4,500 jobs during the development and operations period, generate enough power to supply about one million households and offset about 2.9 million ton in carbon dioxide emissions a year.

Lotilla said CINMF, a dedicated fund manager with greenfield renewable energy investments and one of the global leaders in OSW, would bring in “financial muscle and technological heft and will be working with Filipino partners throughout the construction and operation phases.” Alena Mae S. Flores

Gov’t debt soared to all-time high of P13.75t in February

THE government’s outstanding debt swelled to a new record of P13.75 trillion as of end-February 2023, as it borrowed more to finance the budget deficit, the Bureau of the Treasury said Thursday.

Data showed the February debt level was higher than P13.70 trillion registered in January.

The Treasury said in a statement the national government’s total outstanding debt for the month increased by P54.26 billion or 0.4 percent “primarily due to the net issuance of domestic securities.”

It said of the total debt stock, 31.3 percent was sourced externally, while 68.7 percent represented domestic borrowings.

Domestic debt increased by 0.6 percent or P57.22 billion to P9.44 trillion as of end-February from the previous month due to the net availment of domestic financing amounting to P55.88 billion and the P1.34-billion effect of local currency depreciation against the US dollar on onshore foreign denominated securities.

Domestic debt also went up by P233.78 billion or 2.5 percent from the end-December 2022 level.

External debt declined by 0.1 percent or P2.96 billion to P4.31 trillion from the previous month due to the P21.15-billion net repayment of foreign loans and P32.32-billion impact of third-currency adjustments against the US dollar.

These outweighed the effect of local currency depreciation against the US dollar, which amounted to P50.51 billion. Compared to the end of December 2022, the country’s external debt increased by P100.12 billion or 2.4 percent, the Treasury said.

Julito G. Rada

DOTr taps Australian firm as consultant for MRT 4 traversing eastern part of NCR

By Jenniffer B. Austria

THE Department of Transportation said

Thursday it signed a consultancy contract with Ricardo Rail Australia Pty. Ltd. for Metro Rail Transit Line 4—a mass transit system that will serve the eastern section of Metro Manila.

It said the shadow operator consultant contract with Ricardo Rail Australia is a 12-month agreement that aims to identify, define and develop internationallyaccepted best practice operational and maintenance requirements of MRT-4.

Transportation Secretary Jaime Bautista said the experience and expertise of the shadow operator consultant would help elevate MRT-4 operations to international standards.

Under the contract, Ricardo Rail Australia will prepare for handover to the operations and maintenance concessionaire and ensure that the designs of the engineering and architectural consultant are followed.

The MRT-4 project, which is an Asian Development Bank-funded big-ticket railway, will serve the eastern side of the metropolis and the highly-populated areas of Rizal province. The project is also expected to alleviate traffic problem along Ortigas Ave. in Pasig and Mandaluyong cities and encourage car users to take the train.