Gov't Renegotiates Power Subsidy to Big Investors, Begs for Understanding

Manila Bulletin, August 30, 2011 | Go to article overview

Gov't Renegotiates Power Subsidy to Big Investors, Begs for Understanding


MANILA, Philippines - The Economic cluster of the Cabinet has approved in principle the planned renegotiation for the reduction in power subsidy to big foreign investors, which was granted by the previous administration in an effort to persuade these huge projects to locate in Clark and Subic freeport zones.

Board of Investments (BoI) managing head Cristino L. Panlilio has confirmed this move by the new administration saying the government is hoping for 'understanding' from the three investors Korean shipbuilder Hanjin Heavy Industries Corp., Texas Instruments and Phoenix Semiconductor of the Philippines.

TI has $1.5 billion expansion facility in Clark, Phoenix with $2 billion, and Hanjin with $1.6 billion in Subic. Under full commercial operation, Phoenix is expected to export $3.5 billion annually. Hanjin is employing more than 15,000 workers in Subic freeport and is exporting ocean-going vessels. TI is also expected to export between $3 to $4 billion worth of exports annually.

"We ask for their understanding," Panlilio said noting that the government is seeking to renegotiate the contract to make it 'mutually beneficial for government and investors who invested billions of pesos and created 30,000 jobs.'

The firms were reportedly agreeable to the government proposal to reduce the subsidy, but have not yet accepted it formally.

The proposal was to reduce the subsidized power rate from P2.15 per kilowatt hour to about P3 per kwh or from an estimated at P40 billion subsidy to P2 billion or P500 million per year for three to four years.

The subsidized power rate of P2.15 per kwh, which is about half the current cost to ordinary consumers, already includes generation, transmission and distribution charges. The subsidy, approved by the Arroyo administration, was supposed to be taken from the Competitiveness Fund.

Under the current contract, TI has six years more to go, Hanjin has 8 years and Phoenix has nine years.

The move to renegotiate the contracts with the country's three biggest investors was called after other companies, particularly electronics firms belonging to the Semiconductor and Electronics Industries of the Philippines Inc. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Gov't Renegotiates Power Subsidy to Big Investors, Begs for Understanding
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.