Gov’t eyes $2-b loan for lakeshore road

By Darwin G. Amojelar

THE Department of Public Works and Highways is seeking a $2-billion loan from the Asian Development Bank to build the first phase of the Laguna Lakeshore Road Network project.

It said the construction of LLRN Project Phase 1 would connect the southern province of Laguna to Metro Manila via Laguna Lake along the western coastline and would provide a safer, faster alternative and reliable transportation link.

In Brief

Stocks seen moving sideways this week

SHARE prices may move sideways with an upward momentum on expectations the Bangko Sentral ng Pilipinas will pause its monetary tightening cycle on continued decline in inflation. The market may also take its cue from the first-quarter gross domestic product data as investors were anticipating economic growth to remain strong despite the macroeconomics headwinds.

The government is set to release the firstquarter economic report on May 11.

“The steep decline of our inflation rate to 6.6 percent last April is expected to raise expectations that the Bangko Sentral ng Pilipinas will pause with its monetary tightening in its May 18 meeting. This in turn is seen to help the market climb,”

Philstocks Financial Inc. senior research manager Japeth Tantiango said.

Analysts said the expectation of rate hike pause is supported by the recent decision of the US Federal Reserve to increase rates by 25 basis points, while hinting it would soon end its hiking cycle.

The Monetary Board’s next policy meeting is set on May 18.

Jenniffer B. Austria

URC’s profit flat in Q1 despite higher sales

FOOD manufacturer Universal Robina Corp. said over the weekend net income attributable to equity holders of the parent was nearly flat at P3.4 billion in the first quarter as rising input and financing costs offset higher revenues.

URC said in a financial report filed with the Philippine Stock Exchange first-quarter consolidated sales rose 11 percent to P39.8 billion, sustaining its growth momentum from 2022.

All businesses delivered strong growth despite the continued elevated inflation rates across the region.

Sales from branded consumer foods increased by 7.6 percent to P27.4 billion in the first three months on strong performance from domestic and international operations.

Branded consumer food business in the Philippines rose 6 percent to P18.1 billion in revenues, recording its highest-ever sales in March. International sales jumped 13 percent to P9.8 billion with Vietnam, Malaysia and Myanmar posting double-digit growth in revenues. Jenniffer B. Austria

Semirara not interested in buying power plants

SEMIRARA Mining and Power Corp. is not keen on acquiring any power plant and will instead develop a coal plant in Calaca, Batangas, a top executive said over the weekend.

SMPC chairman Isidro Consunji said the company was open to developing the 700-megawatt coal-fired power plant in Calaca, Batangas under St. Raphael Power Generation Corp.

“Yes, we are open to purchasing other plants, but the prices being offered in the market makes it better for us to pursue developing new plants like our San Rafael, rather than purchase existing plants,” he said.

Consunji earlier said SRPGC was not covered by the moratorium on new coalfired power plants.

“St. Rafael is not part of the ban...The issue of St. Raphael is not a contract with Meralco. We are prepared to build it with or without an off-taker. The issue is it is not yet connected to the grid,” Consunji said. He said the transmission line that would serve the power plant was “maxed out,” and the additional lines were not been built due to delays experienced by National Grid Corp. of the Philippines such as the right of way issues.

“As soon as the grid connection is resolved, then we will build San Rafael, two by 350 [MW] because we already have indications from the banks to fund it,” Consunji said. Alena Mae S. Flores

The project involves the construction of a 21.5-kilometer viaduct and 15.9-kilometer embankment along the west shoreline of Laguna Lake from Barangay Lower Bicutan in Taguig to Calamba City in Laguna.

It will also cover the construction of eight interchanges proposed to connect municipal boundaries to the nearest public road along Lower Bicutan, Sucat, Alabang, Tunasan, San Pedro/Biñan, Santa Rosa, Cabuyao and Calamba for a total project cost of P175.3 billion.

The DPWH said the LLRN 1 project would improve connectivity between Metro Manila and Laguna, thereby reducing transport time and costs and improving access to markets and wider employment talent pools and attracting tourists to the area.

Japan International Cooperation Agency estimated the economic losses due to traffic congestion in Metro Ma- nila at P3.5 billion per day in 2017 and P2.5 billion in surrounding provinces including Laguna. These losses would rise to P5.4 billion a day in the National Capital Region and P5.9 billion a day in surrounding areas by 2035 if no action would be taken.

Meanwhile, the feasibility study for LLRN Phase 2 in the northern to southern coastline via an eastern route is almost complete, and the detailed engineering design would be included in the civil works loan for LLRN Phase 1.

The DPWH submitted the proposed LLRN Project to the National Economic and Development Authority for project approval and endorsement to the Department of Finance for loan application.

“With 85.1 percent of the detailed engineering design for LLRN already complete, DPWH has started negotiations to gather support from possible financing institutions crucial in the realization of this flagship infrastructure project,” DPWH Secretary Manuel Bonoan said.

The ADB is one of the biggest providers of official development assistance to the Philippines. In 2022, its approved its biggest project financing loan for Asia and the Pacific through the South Commuter Railway Project.

By Alena Mae S. Flores

THE country’s net oil import bill soared 64.4 percent in 2022 to $19.023 billion from $11.574 billion in 2021 amid higher world oil prices.

LOAN AGREEMENT. Pueblo de Oro Development Corp., the residential development arm of the ICCP Group, signs a P500million term loan agreement with the Development Bank of the Philippines. The loan proceeds will be used to build more residential projects within the company’s project sites in Cagayan de Oro, Cebu, Pampanga and Batangas. Attending the signing ceremony are are (from left) DBP senior vice president Ma. Lourdes Gumba, PDO president and chief operating officer Prim Nolido, DBP president and chief executive Michael De Jesus, DBP chairman Dante Tinga, PDO chairman and CEO and ICCP Group chairman Guillermo Luchangco, ICCP president and CEO Valentino Bagatsing and DBP vice president Raquel Atienza.