Solar energy Market Entry Strategy

ASIAN INSTITUTE OF MANAGEMENT & ECONOMIC AND COMMERCIAL OFFICE OF SPAIN

Philippines Solar Energy Opportunity Research for Spanish RE Technology

Compiled By Vinod Krishnan Asian Institute of Management (AIM) Manila, Philippines MBA Class of 2010

Dated September 08, 2010

No. of Pages 58


2

Table of Contents Executive Summary ................................................................................................................................. 4

Significance of the Research Report ................................................................................................... 4

Research Methodology ....................................................................................................................... 4

On-Field Data Collection ..................................................................................................................... 4

Strategic Frameworks Employed ........................................................................................................ 5

Demand Drivers .................................................................................................................................. 5

Research Objectives ................................................................................................................................ 5

Country Overview ................................................................................................................................... 6

Current Status of the Philippines Energy Sector ..................................................................................... 7

Energy supply and demand ................................................................................................................. 7

Electricity Supply and Demand ........................................................................................................... 8

Clean Energy Potential in the Philippines ............................................................................................. 11

Wind Energy ...................................................................................................................................... 11

Solar PV ............................................................................................................................................. 12

Solar Energy Potential ....................................................................................................................... 14

Government Support for Renewable Energy ........................................................................................ 17

Renewable Energy Power Program (REPP) ....................................................................................... 18

Renewable Energy Act 2008 ............................................................................................................. 18

PEST Analysis for Philippines................................................................................................................. 21

Political .............................................................................................................................................. 21

Economical ........................................................................................................................................ 21

Social ................................................................................................................................................. 23

Technology ........................................................................................................................................ 23

Feed – In – Tariff ............................................................................................................................... 24

*Tariff Conditions .......................................................................................................................... 24

Major Target Industries for Solar Power .............................................................................................. 25

BPO Industry and Solar Power .......................................................................................................... 25

Construction Industry and Solar Power ............................................................................................ 29

BTS and Solar Power ......................................................................................................................... 41

Competitor Analysis .............................................................................................................................. 44

International ..................................................................................................................................... 44

Domestic ........................................................................................................................................... 48

Financing Options ................................................................................................................................. 51


3

Conclusion ............................................................................................................................................. 57

End Notes & References ....................................................................................................................... 58


4

Executive Summary

Significance of the Research Report

The Research report is to understand the renewable energy potential of the Philippines

especially for Solar Energy and the possible opportunities available for foreign players such

as Spanish organizations to setup solar energy power plants in the Philippines.

Research Methodology

The data necessary for analysis was gathered by carefully designed personal interviews,

adhering to the highest standards, of significant stakeholders of the renewable energy

business such as energy consultants and DoE.

On-Field Data Collection

Data collection was restricted to execution of personal interviews and opinions of industry

experts.

Some key experts interviewed were,

1. Lea E Ricolcol, Executive Director, Merritt Partners

2. Gladys Blesila, Senior Energy Specialist, Merritt Partners

3. Emmanuel V. Rubio, CEO, SN Aboitiz Power Group

4. Jose D. Leviste III, EVP, Constellation Energy

5. Fortunato S. Sibayan, Officer-in-Charge, Solar & Wind Energy Management

Division, DoE.


5

Strategic Frameworks Employed

In a report of highest standards it is imperative to use significant frameworks which can

explain the industry and help channelize the process to advice realistic recommendations. In-

line with this the following Frameworks have been employed,

PEST analysis

Porters Five Forces

Demand Drivers

The growth of Philippines economy and energy requirement in various sectors.

The Philippines‟ primary energy demand is projected to more than double from

44Mtoe in 2002 to 111Mtoe in 2030, growing annually at 3.4 percent; buoyed mainly

by high growth in the demand for petroleum products in the transport sector.

Between US$68-87 billion in new investment will be required to finance the

economy‟s projected expansion of energy infrastructure; 69 percent or US$61 billion

of which will be allocated to the electricity sector.

Research Objectives

The objectives of this research project are:

1. TO indentify and scan the Solar Energy Potential in the Philippines

2. TO identify the possible foreign competitors who would want to invest in Solar

3. TO provide the financial avenues and procedures of 2 banks (1 Govt. aided and other

private bank) for Solar Energy Investments

4. TO provide an analysis and recommendation that would help the Economic and

General Office of Spain to Guide any Spanish Energy Organization.


6

Country Overview

In 1935 the Philippines became a self-governing commonwealth and gained independence in

1946 after colonial rule that began in the 16th century. It has a population on nearly 90

million people which is growing at 1.9% and has an average age of 22 years.

Geographically the Philippines is an archipelago between the Philippines Sea and the South

China Sea. It is mountainous with narrow but extensive coastal lowlands. The climate is a

tropical marine climate with north-east monsoons from November to April and south-west

monsoons from May to October.

Following the Asian recession, GDP growth in the Philippines accelerated to 4.9% in 2005,

5.3% in 2006 and about 7% in 2007. Due to the sub-prime crisis recession in the US the

Philippines has also been affected, it can be seen that in 2008 the GDP growth has only been

3.8%, in 2009 it is 0.93% but the First Quarter of 2010 has shown some significant growth

of 7.3%.1

In the Philippines, fiscal constraints limit the government‟s ability to finance infrastructure

and social spending as the consistently large budget deficit has produced a high debt level,

which forces a large portion of the national government budget to be spent on debt service.

Large but unprofitable state owned enterprises, especially in the energy sector, contribute to

the government's debt because of slow progress on privatization.

The composition of the economy is dominated by services (50%), industry (32%) and

agriculture (18%)2. However, approximately 40% of the population is considered to be below

the poverty line. Industries include electronics assembly, garments, footwear,

1 http://www.nscb.gov.ph/

2 Ibid


7

pharmaceuticals, chemicals, wood products, food processing, and petroleum refining and

fishing. Table 1.0 shows the summary statistics of Philippines,

Total Population (millions) 93.3

Electricity Production (billion kWh) 61.9

GDP per capita

(PPP US$): 5,473

Electricity Consumption (billion kWh) 46.9

GDP growth(annual %): 7.3

% Urban 63

Human Development Index (Rank 1 - 177): 84

% Rural 52

Life expectancy at birth (years): 70.3

Population w. Electricity 81%

Population below PPP $1 per day (%): 14.8

Rural Electricity Consumption (Per Capita) N/A

Net enrolment ratio in primary education (% both

sexes):

92

Urban Electricity Consumption (Per Capita) N/A

Carbon dioxide emissions per capita (metric tons): 0.971

Unemployment, total (% of total labor force): 7.6

Table 1.0: Summary statistics of Philippines3

Current Status of the Philippines Energy Sector

Energy supply and demand

Total energy available in the Philippines is close to 40 Million Tons of Oil Equivalent (Mtoe)

of this 18 Mtoe is being Imported and 22 Mtoe is being produced4. While most of the other

developing nations import more than they produce, the Philippines sets an example of

producing more than importing. The country imports 41.1% of its energy and produces

58.9% of energy5.

3 Prepared from World Bank Data book for 2009 (Development Indicators 2009 Publication)

4 Average of 2000-2009 from World Bank Data

5 Ibid


8

In the Philippines 57% of the energy used comes from burning Fossil Fuels while 43% comes

from Renewable and Clean Energy sources. In this 43%, 24% comes from Combustible

renewable energy sources and 19% comes from Clean Renewable energy such as Solar and

Wind6. Table 1.1 below shows the split of this energy sources.

Energy Source % of use

Fossil fuel energy consumption (% of total) 57%

Alternative and nuclear energy (% of total energy use) 24%

Combustible renewable and waste (% of total energy) 19%

Table 1.1 Shows the Energy Source and percentage use in the Philippines7.

Electricity Supply and Demand

As per the DoE statistics for 2009 the Power consumption by various segments such as

Residential, Commercial, Industrial etc is around 60 Billion kWh8 as shown in Table 1.2. The

Electricity generation from various sources satisfying this demand is given in Table 1.3.

Note: 1 Gwh is equal to 1 million Kwh.

6 World Bank Data

http://databank.worldbank.org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxSupported=N&CNO=1159 7 Ibid

8 http://www.doe.gov.ph/EP/Powerstat.htm


9

Power Consumption by Sector (Gwh)

2006 2007 2008 2009

Residential 15,830 16,376 16,644 17,504

Commercial 12,679 13,470 14,136 14,756

Industrial 15,888 16,522 17,031 17,084

Others 1,275 1,641 1,395 1,523

Electricity Sales 45,672 48,009 49,206 50,868

Utilities Own Use 4,227 3,994 3,935 3,524

Power Losses 6,885 7,608 7,680 7,542

Total 56,784 59,612 60,821 61,934

Table 1.2 Shows the Electricity Consumption in the Philippines9.

Power Generation by Sources (Gwh)

2006 Percent 2007 Percent 2008 Percent 2009 Percent

Oil-Based 4,665 8.22% 5,148 8.64% 4,868 8.00% 5,381 8.69%

Oil-Thermal 274 0.48% 324 0.54% 658 1.08% 909 1.47%

Diesel 4,152 7.31% 4,162 6.98% 3,660 6.02% 3,771 6.09%

Gas Turbines/CC 239 0.42% 662 1.11% 550 0.90% 700 1.13%

Hydro 9,939 17.50% 8,563 14.36% 9,843 16.18% 9,788 15.80%

Geothermal 10,465 18.43% 10,215 17.14% 10,723 17.63% 10,324 16.67%

Coal 15,294 26.93% 16,837 28.24% 15,749 25.89% 16,476 26.60%

Other Renewables 55 0.10% 59 0.10% 63 0.10% 79 0.13%

Natural Gas 16,366 28.82% 18,789 31.52% 19,576 32.19% 19,887 32.11%

Total 56,784 100.00% 59,612 100.00% 60,821 100.00% 61,934 100.00%

Table 1.3 Shows the Electricity source and percentage use in the Philippines10

.

9 Ibid


10

Sector Usage in GWh/year

Industry 13,627

Transport 1,054

Agriculture 1,993

Commerce and Public Services 6,290

Residential 13,715

Table 1.4 shows the distribution of Electricity use in various industries11

.

From the tables above Table 1.0, Table 1.3, and Table 1.4 it can be inferred that in the

Philippines there is still 19% of the population which lives without electricity. Also there is a

recurring requirement of power and electricity needed in various industries and the country

majorly is dependent on Coal for its electricity supply.

Exhibit 1: Shows the Electricity sources in developing nations12

.

10

Ibid 11

World Bank Data http://databank.worldbank.org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxSupported=N&CNO=1159 12

From World Bank Development Indicators 2009 Publication

Coal 47%

Gas 19%

Oil 6%

Hydropower 21%

Nuclear Power 5%

Other 2%

Sources of Electrcity in Developing Nations


11

From Table 1.1 and Table 1.3 it can be seen that Philippines doesn‟t seem to be using

Renewable and Clean Energy potential for its electricity production.

Clean Energy Potential in the Philippines

Wind Energy Despite minimal use of wind energy in the Philippines, potential is strong. A wind mapping

survey estimated that the Philippines could potentially generate 70,000 MW, equivalent to

seven times current electricity demand (EIA, 2004). The survey identified 47 provinces with

the potential to generate at least 1000 MW. The wind resource is greatest in the north and

northeast of the country, in the regions of the Batanes and Babuyan Islands north of Luzon;

and the interior of Luzon, Mindoro, Samar, Leyte, Panay, Negros, Cebu, Palawan where land

is higher. Areas that face east towards the coast from Luzon to Samar also represent good-to-

excellent wind resources for utility-scale and excellent wind resources for village-scale

applications. Less potential exists in the south and south-west of the archipelago.

Existing use of wind generation includes a 10 kW stand-alone system that provides electricity

to 25 households. Batangas Province has a 25 kW stand-alone system with six different loads.

A 3 kW wind-diesel system is also in use for a telecommunications relay station (DOE,

2000). A 25 MW Wind Farm was inaugurated June 18, 2005 at Bangui Bay , Ilocos Norte. It

is the first wind farm to be fully operational in the Philippines and the biggest in Southeast

Asia . The project was developed by the NorthWind Development Corporation consisting of

15 units of wind turbines arranged in a single row on the shores of Bangui Bay . These

turbines are connected to the Luzon grid and delivers power to the Ilocos Norte Electric

Cooperative via TransCo Laoag. The NorthWind Project is also the first project in the

Philippines to have an Emissions Reduction Purchase Agreement (ERPA) under the Clean


12

Development Mechanism. The ERPA was signed by NorthWind and the International Bank

for Reconstruction and Development through the World Bank Prototype Carbon Fund.

Solar PV

In 2000 the Philippines had an installed PV capacity of 567 kW. Currently there is a 1MW

CEPALCO solar power plant which is located in Cagayan de Oro in Mindanao. The

applications are various including telecommunications, battery charging stations, vaccine

refrigerators, egg incubators, street lighting and PV-powered cinemas. Solar home systems

have been installed through private companies, local and rural electric co-operatives. Whilst

the technical potential is present, prohibitive costs and grid extension of conventional

electricity hinders the commercial potential of solar home systems, which the DOE places at

500,000. The Philippines has one of the longest histories with PV systems in Asia (outside

Indonesia). The majority of its programs have been aid-driven, with mixed results. Many of

the programs have added additional barriers to the implementation of renewable energy

systems in the Philippines, such as the expectation that systems will be „free‟ or that, if

financed, no-one will turn up after a few months to collect the payments.

In 2004, CEPALCO inaugurated the largest solar power plant among developing nations. The

plant produces 1MW of on-grid solar power. The project uses 5 Hectares of land. The project

is a landmark achievement in the Philippines and shows the growth potential of Solar energy

investments in the Philippines. The farm energizes the West central and Northern Mindanao

regions in the mountains. The current Solar power system can energize upto 2 lighting and 1

B/W TV. If technology can be improved and made better efficient then there is lot of scope

of establishment of power in these areas.


13

Exhibit 2: The 1MW Solar power plant of CEPALCO in Cagayan de Oro City, Philippines13

The list of registered RE Developers and the projects for which contracts have been granted

by DoE is present in Appendix – I this data was obtained by interviewing Mr Fort Sibayan,

Officer-in-Charge, Solar & Wind Energy Management Division of DoE

13

http://www.cepalco.com.ph/solar.php


14

Solar Energy Potential

The Exhibit 3 shows the distribution of Solar Energy radiation in East Asia. The Philippines

comes in the range of 4-5 which is high compared to the global average if 2.5. Exhibit 4

shows the sites in the Philippines where the radiation can be extracted for generation of

energy.

Exhibit 3: Showing Solar radiation distribution in East Asia14

14

http://www.solar4power.com/solar-power-global-maps.html


15

Country Solar Radiation Score Installed Capacity

Germany 1.5 8,877 MW15

Spain 3.5 3,200 MW16

Japan 3 2,100 MW17

Australia 5.5 100 MW18

U.S 3.0- 7.0 8,775 MW19

Philippines 3.5 1MW

Table 1.5 Comparison of Installed Solar Capacity of Countries and their Solar radiation score

Exhibit 3 and Table 1.5 strongly suggest that there is excellent potential for Solar power

generation in the Philippines.

15

http://en.wikipedia.org/wiki/Solar_power_in_Germany 16

http://en.wikipedia.org/wiki/Solar_power_in_Spain 17

http://en.wikipedia.org/wiki/Solar_power_in_Japan 18

http://en.wikipedia.org/wiki/Solar_power_in_Australia 19

http://en.wikipedia.org/wiki/Solar_power_in_the_United_States#Availability

http://en.wikipedia.org/wiki/Solar_power_in_Germany

http://en.wikipedia.org/wiki/Solar_power_in_Spain

http://en.wikipedia.org/wiki/Solar_power_in_Japan

http://en.wikipedia.org/wiki/Solar_power_in_Australia

http://en.wikipedia.org/wiki/Solar_power_in_the_United_States#Availability


16

Exhibit 4: Potential Solar Energy Sites in Philippines


17

Government Support for Renewable Energy

The Philippines government has been supportive of Renewable Energy production from early

1990s. The first such support can in the form of Renewable Energy Power Program described

below.

The Philippines expects to generate an initial investment of $277 million and 466 megawatts

(MW) of power from 26 renewable energy projects it finalized on Friday, reported local

newspaper Business Mirror. 20

The newspaper quoted Angelo Reyes, energy secretary, as saying that the department aims to

promote the development, use and commercialization of renewable energy resources and

double up renewable energy capacity by 2020.

The Southeast Asian country targets power generation from renewable resources to increase

from 4,500 MW to 9,000 MW in 10 years. The new contracts include an estimated 6.8 MW

from six hydropower contracts, 315 MW from six geothermal, 40 MW from five wind

projects and 5 MW from one ocean project. Two biomass projects with an unspecified power

capacity were also approved on the same day.

The Energy Department has signed around 180 contracts since the Renewable-Energy Act of

2008 was enacted, including 112 service contracts worth about 66.8 billion Philippines pesos

($1.5 billion) with a combined capacity of 2,264.1 MW agreed earlier this February. The law

offers fiscal and non-fiscal incentives, such as tax holiday, to attract clean energy investors.

The Energy Department awarded the contracts to Bell Pirie Power Corporation, Clean Rock

Renewable Energy Resources Corporation, Energy Development Corporation, Green Power

Panay Philippines Inc., Natural Power Sources Integration Inc., Pan Pacific Power

20

Business Mirror Dated February 19 2010


18

Corporation, PNOC-Renewables Corporation, Phil-Korean Energy Corporation, SKI

Construction Group Inc. and SKI Mini-Hydro Corporation.

Certificates for biomass projects will be awarded to Basecom Inc., Capiz Sugar Central Inc.,

Cotabato Sugar Central Company Inc., Davao Sugar Central Company Inc., Hawaiian

Philippines and Sweet Crystals Integrated Sugar Mill Corporation.

Renewable Energy Power Program (REPP)

As a development from the small hydro legislation the government created the Renewable

Energy Power Program (REPP) in 1993. REPP was designed to provide up to P750 million in

financing for IPP projects using solar, wind, biomass and small hydro resources. Its target is

300 MW of capacity from renewable sources, with up to 50 MW installed annually over six

years. Under the terms of the REPP program, small (<10 MW) power plants can apply to sell

electricity to the NPC at a rate negotiated in a power purchase agreement (PPA). The DOE

then guarantees the purchase of power generated by REPP projects. However, NPC has

suspended the REPP program due in part to the NPC‟s reluctance to acquire additional take-

or-pay liabilities given the pending power sector restructuring and under demand for new

capacity. This program design flaw has obviously deterred serious private sector investment

in renewable energy projects, and only two min-hydro projects have reached the point of

accreditation and construction under the scheme.

Renewable Energy Act 2008

On December 16th

2008 President Gloria Macapagal Arroyo signed into law the much

anticipated Renewable Energy (RE) Bill. Dubbed as the Renewable Energy Act of 2008 it

gives incentives to investors and energy producers to build renewable energy power plants

instead of fossil fuel based ones. And with Philippine power demand targeted to overrun the


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country‟s power supply by 2010, it would be ideal to meet that demand with renewable

energy.

Key Highlights of the Act21

are as following,

1. 7-year income tax holiday

2. 10-year exemption from tariff duties

3. 1 percent of gross income on RE development projects

4. Net operating loss carry over

5. Duty free importation

6. Accelerated depreciation

7. 0% value-added tax rate

8. Cash incentive for missionary electrification

9. Tax credit on domestic capital equipment.

10. Carbon credits generated from renewable energy sources will be free from taxes. A

10% corporate income tax, as against the regular 30%, is also provided once the

income tax holiday expires.

11. Energy self-sufficiency to 60% by 2010 from 56.6% in 2005, by tapping resources

like solar, wind, hydropower, ocean and biomass energy

12. Renewable energy facilities will also be given a 1.5% realty tax cap on original cost

of equipment and facilities to produce renewable energy.

21

http://www.alternat1ve.com/biofuel/2008/12/16/philippine-renewable-energy-bill-to-be-signed-into-law/


20

13. The bill also prioritizes the purchase, grid connection and transmission of electricity

generated by companies from renewable energy sources.

14. Power generated from renewable energy sources will be value added tax-exempt.

15. A net metering scheme will give capable consumers the option to generate their own

power. Net metering will allow renewable energy producers to earn from the power

they contribute to the grid, and are also charged for electricity drawn from the grid.

16. Employment of Foreign Nationals

17. Simplification of Customs procedure

18. Importation of consigned equipment

19. Operate a bonded manufacturing/trading warehouse with ease

An interview with DoE personnel Mr Fortunato S. Sibayan, Officer-in-Charge, Solar &

Wind Energy Management Division of DoE, revealed that, the RE law will lower electricity

costs, is taking into consideration the tariff cuts spelled out in the implementing rules and

regulations (IRRs) of the RE law. For instance, if a wind energy project is selling P7 per

kilowatt hour and after applying the tariff incentives in the RE Act, it went down to P4 to

P4.50 per kWh, then it will be translated to lower rates for consumers. It depends on the

ERC‟s discretion. All rate-related issues are addressed by the ERC, he said.


21

PEST Analysis for Philippines

Political

High level of Bureaucracy: Philippines is the second most corrupt country in Asia

and the twelfth most in the world. This is especially true in the public sector, legal

system and policy making. This leads to a high cost of negotiations with govt officials

as policy making and reforms is a prolonged process.

Renewable Energy Act 2008: In May 2010 Gloria Arroyo came to power and took

radical decisions in the interest of the country. One such decision was to pass the

Renewable Energy Act 2008. This had been pending ever since in the parliament due

various discrepancies within the govt in power during the time. This Act seeks to

liberalise the energy sector in order to promote investments both foreign and

domestic. This would now encourage various investors to look at Philippines as an

opportunity to diversify.

Stand on Renewable Energy: the new government seeks to harmonise their policies

to ensure swift development of renewable energy technologies. In 2007 Philippines

was 57% self-sufficient in energy production and aims increase this capacity by 20

points by 2012 with use of renewable energy.

Economical

GDP Growth: Due to the global recession along with other Asian economies even

Philippines minimal GDP growth of below 1% in 2009. However there was a drastic

increase and the first quarter of 2010 showed a growth of 7.3 %. This was because

they were better protected than other countries as they were not dealing with high risk

securities offered of US financial institutions. This was cushioned by the remittances

from overseas Pilipino workers mostly in Middle East and US.

Inflation rate: According to a report by International Monetary Fund Philippines is

the 6th

largest Economy in South East Asia in terms of purchasing power parity. The

per capita GDP is about 3,500 USD adjusted for PPP22

. Table 2.0 shows the

countries in SE Asia and their Per capita GDP adjusted for PPP. The Philippines have

projected a steady growth over the years and have kept their inflation under control.

22

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita


22

Lower than expected inflation rate of 3.2% in 2009 has kept a check on the consumer

goods prices.

Tax Subsidy on Renewable Energy: The RE ACT 2008 has introduced number of

tax subsidies as explained in section above.

Income Distribution: The Philippines has a very high disparity of income, with a

high percentage of overseas Filipino workers about 2 million according to 2009

estimates23

. The remittances from these workers are very high and contribute towards

the economic growth of the country. The remittances are close to 3 Billion USD (@

exchange rate of 45 Peso per USD)24

.

Unemployment Rate: with a total population of 92 million the unemployment rate is

close to 7.2 % as of 2009. There has been a steady decline in this figure since 2005.

The growth of the outsourcing industry has been a major contributor in curbing the

unemployment rate in Philippines. According to a study by Oracle Corp Philippines is

currently the second largest call center market next to India.

Budget Deficits: The Philippines has had repeated budget deficits which have led to a

sharp rise in public debt. The government reserves up to 20% of its budget for interest

payments on outstanding loans. This has reduced the government funding capacity in

sectors that need public funding. The income tax rates are very high in order to offset

this budget deficit.

23

http://www.census.gov.ph/data/sectordata/2009/sof0901.htm 24

http://www.census.gov.ph/data/sectordata/2009/sof0906.htm


23

Countries Per capita GDP (Adjusted for PPP)

Singapore 50,000

Brunei 49,000

Malaysia 14,000

Thailand 8,000

Indonesia 4,000

Philippines 3,500

Vietnam 2,900

Laos 2,300

Cambodia 2,000

Table 2.0: Shows the Per capita Comparison of SE Asian Countries (Approximated from 3

databases (IMF, WorldBank and CIA handbook)

Social

Adaptability: The Philippines is one of the fastest growing economies in South East

Asia. They have tried to adopt the best industry practices and standards across all

industrial sectors.

Consumer Behavior: Influenced by the western culture Philippines is a consumer

driven economy. Retail sector has seen a constant growth for fast few years because

of this economic behavior.

Technology

Following alternate energy technologies are being used in Philippines:

Wind

Bio-gas

Bio-diesel

Fuel Cells

Solar

Geothermal


24

Feed – In – Tariff

After the RE ACT 200, The Philippines‟ Energy Regulatory Commission has unveiled the F-

i-T regulations to boost the Renewable Energy investments in the country.

A National Grid Corporation of the Philippines (N.G.C.P.) is planned to be set-up to operate,

the Philippine transmission network via the National Transmission Corporation, and other

distribution utilities to incorporate renewable energy into their power networks.

Some of the key highlights of the F-i-T rules are as following,

1. The Tariff will be valid for 20 years from the commencement of operations.

2. The renewable energy projects need to get a compliance certificate in order to avail

the tariffs.

3. Tariff ranges from PHP 7($0.15) to PHP 25 per kWh. Solar will carry the highest

tariff, while wind will have an average tariff of 12 Philippine pesos to 15 Philippine

pesos per kWh*

*Tariff Conditions

1. Tariff is subjected to change based on forecasted revenues.

2. The tariff will also be made sensitive to change in case if inflationary pressures in the

economy.

3. Tariff system will be established after the NREB establishes targets and deadlines for

each Renewable Energy development technology such as Wind, Solar, and

Geothermal etc.


25

Major Target Industries for Solar Power

This section is aimed at providing information regarding the industries where Solar Power

can be utilized. These industries require Power and would benefit maximum by the use of

Solar Energy. The marketing strategy of Spanish Organizations would be to target these

industries.

BPO Industry and Solar Power

The ICT industry is one of the fastest-growing industries in the world with the revenues

expected to top $180 Billion in 201025

. Shared Services and Outsourcing network together

with other international research groups continue to forecast that ICT-enabled services will

become $200billion worldwide by 2010 with the BPO segment contributing $42billion. In

other reports, Everest Consulting projected the worldwide ICT-enabled services industry to

be $220 billion come 2012. While as for the next 10 years the total outsourcing industry is

expected to reach $1.5trillion, said Dr Ganesh Natarajan, chairman of the National

Association of Software and Business Companies (NASSCOM).

At present, the Philippines share in the global off shoring and outsourcing (O&O) market

increased from 5% in 2006 upto 12% in 2012, said BPAP (Business Process Association of

Philippines). They forecasted that the country‟s BPO industry revenues could reach at a range

of $10-$13 billion in 2010 and $21 billion by 2012, said BPAP. This industry revenue

represents about 10% of the worldwide BPO market. This shows there is scope more growth

in this sector.

25

http://www.ssonetwork.com/


26

Exhibit 5: Philippines BPO Growth and forecast26

The increase in the Philippines worldwide share is not only brought about by “the excess

global demand for O&O resources” but also due to the “attractiveness of the resources”

available in the country. Having to be labeled as the “silent knight”, they said that the

Philippines remains unsaturated and is even positioned to grow at a fast phase by 2012.

According to the a 2009 Indian study, the Philippines outsourcing industry is expected to

reach US$100 billion with high value services sectors fueling the robust growth. Currently,

the Philippines still plays an important role in the global arena of the O&O industry. “The

country‟s BPO is still very much in the early stages of growth… we are still poised to

deliver,” said BPAP CEO Oscar Sanez.

Despite the threats from the United States, the European Union, and other industrialized

countries, the outlook in the Philippines for the coming years remains positive. Citing an

ASIA Pulse analyst, the threat to the Philippines refers to the initiatives of the industrialized

countries to “preserve the jobs still available in their countries and craft legislation dissuading

26

BPAP Presentation, April 2010

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2004 2005 2006 2007 2008 2009 2010F 2011F 2012F

Revenue Growth

Revenue Growth


27

their companies from outsourcing jobs to other countries”27

. Notwithstanding the undisputed

lead of India in this industry and the entry of China and Brazil to the market, the Philippines

stand in the global arena remains strong. According to Solutions People Innovation (SPi), this

strength is drawn from the low-cost and highly skilled English-speaking talents in the

Philippines. Moreover, another factor the companies consider is the strong affinity of the

Filipinos to the US culture system and the strong customer service orientation of its workers.

With that competitive advantage, foreign companies are now pouring investments and

expanding in the Philippines especially in the countryside. In the survey conducted by O2P-

BPA/P, results indicated that companies in the BPO industry are positioning to increase

workforce, introduce new services, and accelerate expansion. The primary objective of the

survey was to assess the state of the BPO industry in the Philippines. With an 83%

respondent rate from BPO executives, they highlighted that the industry was not much

affected by the global recession. Despite the global economic crisis, survey shows that 49%

of the firms will expand headcount by at least 11% and upto 200%. As for the remaining 51%

mixed feedbacks said that they will also expand headcount, retain current headcount, or

decrease the size of their workforce.

According to other reports28

, the Table 1.6 shows BPO companies are to expand headcount

within the year and probably extend its expansion process until 2010:

Hinduja Global Solutions 2000 + 900

Wipro BPO +900

WNS global 500 + 1000

UST Global + 1000

Convergys +1000

27

http://www.ssonetwork.com/ 28

BPAP presentation on Human Capital Increase, May 2008


28

JPMC & Co 2400 + 6000

Tech Mahindra 500

Aegis Support +5000-6000

SITEL Philippines 5500 + 650

Table 1.6 Expanding BPO Companies in the Philippines

It is a fact that worldwide demand for O&O services continue to grow at a significant rate.

Sources even noted that the demand for such services exceed worldwide supply. With the

situation at hand, BPO companies from all over the world are now expanding their employee

base as a response to this increase in demand. Conversely, this is understood that expanding

their employee base would need more office buildings for them to carry out their services.

However, cost of service and expenses is the top most concern of these companies that is why

they invest in countries like India and the Philippines.

At present, India is considered the number one BPO destination worldwide with the

Philippines ranking only at second. Even so, growth in the Philippines continues to increase

with sizeable amounts.

In the report, several BPO companies were noted to expand with a considerable number of

employees. In fact, local BPO companies or Philippine-based BPO companies are now

emerging. These expansions are not concentrated in the Metro Manila area but also in major

cities and provinces nationwide. As noted earlier, BPAP projected that the industry would

employ 1,000,000 by 2010 compared the 400,000 BPO-related employees in 2008.


29

Exhibit 6: Philippines BPO Employee Growth and forecast29

A proof of the BPO venturing into Solar Power for their electrification is the Megaworld

project for installing Solar panels in One Campus Place (a construction housing BPOs in

McKinley Hill). Megaworld has installed a 30-kW solar generating system one of the biggest

in the Philippines.

Another example is the Megaworld Green Building. With the installation of dozens of solar

panels at the rooftop of the 8 Park Avenue BPO development in McKinley Hill, Fort

Bonifacio, Megaworld is the first property firm to utilize the power of the sun to electrify a

BPO building – solar power.30

Construction Industry and Solar Power

According to the Philippine Constructors Association (PCA), Construction activities continue

to grow despite the effects of the global recession because of the government‟s initiative to

boost the development of infrastructure. Along with the growth businesses such as tourism

and BPOs, construction activities are buoyed by the demand for the buildings and other

29

BPAP Presentation, April 2010 30

http://www.megaworldcorp.com/real-estate/office.php

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Employee Growth

Employee Growth


30

related infrastructures. This is in addition to the government‟s initiative to build more road

and infrastructure projects for the public. These government projects were funded from the

P330 billion-stimulus package with its focus on the middle-income housing construction.

According to the “Economic Indicators: January 15 2010” prices of several construction

materials in the Metro Manila have risen. This suggests that the construction industry is

maturing and is demanding for more materials. Interestingly, prior to this rise the prices of

construction materials were at a decline for 9 months till November 2009.

The increase in demand for construction materials shows subsequent construction activities

going on in the country. The data has been taken from National Statistics Office of the

Philippines particularly from the Construction Material Retail Price Index (CMRPI).

The data shows a positive outlook for the construction sector and along with it the property

sector is also expected to grow.

In a recent report provided by the NSO, the number of approved building permit applications

as of Q3 is 2009 increased by 18.3% compared to the same period in 2008. All 3 segments in

the construction industry – residential, non-residential and additions, alterations and repairs

grew by 22%, 9.2% and 6.1% respectively31

.

31

http://www.census.gov.ph/data/sectordata/


31

Exhibit 7: Number of Approved Building permits between 2008 and 200932

Exhibit 8: Number of Approved Building permits in 2008 - 2009 segmented by type33

On the regional level, the top 3 highest number of approved building permits were

CALABARZON, region 3, and NCR. In the CALABARZON, there were 6,177 approved

applications which translate to 22.9% of the total applications. Region 3 which includes the

provinces of Aurora, Bataan, Bulacan, Bueva Ecija, Tarlac and Zambales was able to

generate 4,859 approved applications or 18% of the total. At third is the NCR which

represents 12% of the total approved applicants or 3,238 applications.

The NSO also cited seven provinces that registered approved building permits exceeding the

one thousand mark. These provinces were Bulacan (1,069), Pampanga (2,884), Batangas

(1,107), Cavite (2,245), Laguna (1,622), Cebu (1,874) and Davao del Sur (1,336).

In terms of the total value of construction, the NSO estimated it at PHP 34.58 billion as of the

3rd

quarter of 2009, growing by 12% from P30.87 billion during the same quarter in 2008.

Using the 3 segments in the construction sector, the breakdown in terms of the value of

32

http://www.census.gov.ph/data/sectordata/bp09q4tx.html 33

Ibid


32

construction per segment is as follows: Residential – P17.61 billion; Non-residential – P14.32

billion; Additions, alterations and repairs – P2.64 billion.

In terms of the total floor are constructed per segment residential building totaled 2.2 million

square meters and 1.6 million square meters for the non-residential buildings. For the

residential building segment, 1.5 million square meters of Single Residential Units and 441.5

thousand square meters for the Apartment buildings were constructed. As for the Non-

residential segment, the Commercial type units covered a total floor area of 1.1 million

square meters. The Institutional building of the non-residential segment constructed 272.3

thousand square meters in total floor area. Agricultural type of non-residential building

covered a total floor area of about 73.7 thousand square meters34

.

The construction sector is also considered as one of the industries that will thrive along with

the six projected main drivers in the country. One indicator of growth in this industry is the

price of construction materials.

Another indicator is evident in the number of approved building permits which includes those

buildings proposed to be constructed. For the construction industry, the number of approved

building permits stands as an indicator of the potential demand electricity in these buildings.

Construction is strongly related to Utilities industries such as Power and Electricity. This is

due to the fact that all types of infrastructure, especially the residential and commercial

segment, need electricity.

According to NSO, approved building permit applications during the fourth quarter of 2009

in the country rose to 30,499. This number represents a 19.4 percent growth compared to

25,546 applications received during the same period of 2008.

34

Ibid


33

Again according to NSO, the total value of residential building construction was estimated at

PHP23.47 billion with a total floor area of 2.7 million square meters, translating to an average

cost of PHP8778 per square meter. This figure represents an increase of 8.7 percent compared

with PHP8076 per square meter recorded during the same period of 2008. Single type

residential units recorded the most number of residential building constructions during the

fourth quarter of 2009 having 17,719 applications. This type comprised 72.6 percent of the

total approved building permits for residential construction. The total value of construction

for this type reached PHP11.66 billion covering a total floor area of 1.6 million square

meters, resulting to an average cost of PHP7336 per square meter. Apartment/Accessories

ranked second with 6,090 approved building permits representing 24.9 percent of the total

residential construction. This type of residential building construction had an estimated

construction value of PHP3.31 billion with a total floor area of 497.0 thousand square meters,

representing an average cost of PHP6668 per square meter. Exhibit 8 displays the number

and value of residential building construction by type for the fourth quarter of 2009. Value of

non-residential building construction during the fourth quarter of 2009 was PHP13.39 billion

pesos with a total floor area of 1.3 million square meters. This translates to an average cost of

PHP9,973 per square meter.

Commercial type topped the list with 1,624 applications or 60.0 percent of the total approved

building permits for non-residential building construction. Value of construction for this type

was estimated at PHP7.56 billion covering a total floor area of 800.6 thousand square meters

or an average cost of PHP9,445 per square meter. Institutional building construction, which

ranked a far second, had 417 approved building permits, construction value of PHP3.30

billion and a total floor area of 265.8 thousand square meters or an average cost of PHP12418

per square meter.


34

The least number of non-residential building constructions was reported for agricultural type

with 83 or 3.1 percent of the total. Construction value was estimated at PHP0.12 billion

covering a total floor area of 57.3 thousand square meters, translating to an average cost of

PHP2104 per square meter. Figure 5 shows the number and value of non-residential

construction by type for the fourth quarter of 2009.

Exhibit 8: Value of Residential Construction by type in 2009 Q435

Exhibit 9: Value and number of Non-Residential Construction by type in 2009 Q436

35

http://www.census.gov.ph/data/sectordata/bp09q4tx.html 36

Ibid


35

Exhibit 10: Total Number of units, Floor area and value of construction over the 6 yrs

2004-09

HLURB (Housing and Land Use Regulatory Board) has given some estimates of possible

projects. Constructions which have been registered since 2008 will be ongoing or yet to

constructed by 2010. Exhibit 11-13 shows these projects for the years 2010, 2009 and 2008

respectively.

It is also necessary to scope down this huge list of projects. Exhibit 14 shows the list of

projects belonging to main provinces such as Cebu, Metro Manila, Laguna and Davao. This

constitutes around 85 projects from the original list of 167 projects across 3 years 2008-2010.

Exhibit 15 shows Government projects for next 3 years. This comes to about 41 projects in

pipeline from the pool of 167 projects. Exhibit 16 shows the percentage of square area

constituted by the projects in main provinces (85 projects) as of the total projects.


36

Exhibit 11: 2010 Projects in Pipeline registered at HLURB37

37

www.hlurb.gov.ph

PROJ_NAME DATE_ISSUED LOCATION AREA DEV_NAME PROJ_TYPE HL LOTS RES COMM UNITS

QUEENSTOWN HEIGHTS 4/6/2010 Brgy. San Luis 2.5099 City Government of Pasay City EH 40

THE TRIBECA PRIVATE RESIDENCES (CHELSEA PLACE TOWER 3) 1/20/2010 East Service Road, Brgy. Sucat 0.192 Landco Pacific Corporation RCC 216 2

AZURE URBAN RESORT RESIDENCES - BUILDING ONE 5/25/2010 West Service Road, Bicutan 6.0489 Century Limitless Corporation RC 756

ETON PARKVIEW GREENBELT 5/25/2010 Gamboa St., Legaspi Village 0.089 Eton Properties Philippines, Inc. RCC 230 1

SAN JOSE ESTATES PHASE 2 (ST. BERNICE ESTATES) 4/8/2010 Brgy. San Jose 3.4467 Robinsons Homes, Inc. OM 110 102

SOUTH SQUARE PLAZA - 2 1/28/2010 Brgy. Pasong Kawayan II 0.6409 Robinsons Land Corp. CS 33

BALI OASIS - MARCOS HIGHWAY (BUILDINGS 1 AND 2) 6/9/2010 Brgy., Santolan 1.8916 Filinvest Land, Inc. RC 310

BALI OASIS - MARCOS HIGHWAY (BUILDINGS 1 AND 2) 6/9/2010 BRGY. SANTOLAN 1.8916 FILINVEST LAND, INC. RC 310

BALI OASIS - MARCOS HIGHWAY (BUILDINGS 3 AND 4) 6/9/2010 Brgy. Santolan FILINVEST LAND, INC. RC 320

CAPRI OASIS 6/22/2010 BRGY. S. ANTONIO AVE., MAYBUNGA 1.9736 FILINVEST LAND, INC. RCC 313 10

ONE OASIS ORTIGAS 6/2/2010 Ortigas Ext., Brgy. Sta. Lucia Filinvest Land , Inc. RC 399

THE BEAUFORT 4/12/2010 5th Ave., Fort Bonifacio Global City 0.3889 Filinvest Development Corporation RC 145

THE VILLAS (EXPANSION) 6/7/2010 Brgy. San Juan 0.9139 Filinvest Land, Inc. OM 22

PARK TERRACES 1/6/2010 Arnaiz Ave., Ayala Center Ayala Land, Inc. RCC 370 14

PARK TERRACES 5/14/2010 Arnaiz Ave., Ayala Center 0.392985 Ayala Land, Inc. RCC 370 14


37


38

Ibid


LRT/CAVITE PROVINCE RELOCATION SITE 11/24/2009 Brgy. Santiago Provincial Government of Cavite 73

Pamayanang Maliksi 1/9/2009 Brgy. San Paloocan 53.4776 Provincial Government of Cavite SH 99






Pamayanang Maliksi 1/9/2009 Brgy. San Paloocan 53.4776 The Provincial Government of Cavite SH 37



Pamayanang Maliksi (Cluster E) 1/9/2009 Brgy. San Paloocan 53.4776 Provincial Government of Cavite SH 243

Pamayanang Maliksi (Cluster- E) 1/9/2009 Brgy. Pasong Kawayan II 53.4776 Provincial Government of Cavite SH 79

PAMAYANANG MALIKSI (CLUSTER -E) 1/9/2009 Brgy. San Paloocan 53.4776 Provincial Government of Cavite SH

SOCIALIZED HOUSING PROJECT OF PASAY CITY 11/24/2009 Tanay Rizal 0 City Government of Pasay City SHP 10

SOCIALIZED HOUSING PROJECT OF PASAY CITY 11/24/2009 Brgy. Plaza Aldea 3.132 City Government of Pasay SH 447

VILLA DE MAVALOR I 7/9/2009 Brgy. Mavalor 14.1779 Local Government Unit of Rosario, Batangas SH 180

Villa De Mavalor I Subdivision 7/9/2009 Brgy. Mavalor 14.1779 Local Government Unit of Rosario, Batangas SH 10



Villa De Mavalor I Subdivision 7/9/2009 Brgy. Mavalor 14.1779 Local Government of Rosario Batangas SH 64


VILLA DE MAVALOR I SUBDIVISION 7/9/2009 Brgy. Mavalor Local Government Unit of Rosario, Batangas SH 75

Playa Calatagan Phase 2-C 3/17/2009 Brgy. Calumbayan 5.8096 Landco Pacific, Inc. OM 144

Playa Calatagan Phase 4 3/20/2009 Brgy. Calumbayan 12.8976 Landco Pacific, Inc. OM 277

Playa Laiya Residential Phase I-B 3/17/2009 Brgy. Laiya 5.7104 Landco Pacific, Inc. OM 127

Playa Laiya Residential Phase I-C 3/17/2009 Brgy. Laiya 2.0005 Landco Pacific, Inc. OM 54

The Courtyard @Lakewood Golf Estate 1/26/2009 Sta. Arcadia 14.17 Landco Paciifc Corp. OM 334

Waterwood Park Ph. 2-B 1/26/2009 Catulihan 1.1842 Landco Pacific, Corp. OM 48

Waterwood Park Ph. 2-D 1/26/2009 Catulihan 0.6485 Landco Pacific, Corp. OM 27

Waterwood Park Ph. 2-E 1/26/2009 Catulihan 1.2758 Landco Pacific, Corp. OM 56

Waterwood Park Ph. 2-F 1/26/2009 Catulihan 0.9113 Landco Pacific, Corp. OM 42

Woodgrove Park Cluster 2 & 3 1/22/2009 del Carmen 25.03 Landco Paciifc Corp. OM 571

Woodridge Garden Village 2/4/2009 Loozoran 10.805 Landco Pacific Corporation SHP 341

GREENBELT MADISON 6/26/2009 176 Salcedo St., Legaspi Village Megaworld Corporation RCC 282 2

PARKSIDE VILLAS 5/11/2009 Sales Ave., Villamor Airbase, Megaworld Corporation RC 886

THE PARKSIDE VILLAS 5/11/2009 Villamor Airbase 1.534 Megaworld Corporation RC 886

TUSCANY PRIVATE ESTATE 1/23/2009 100 Upper Mckinley Rd., Fort Bonifacio 1.5424 Megaworld Corporation RCC 396 38

TUSCANY PRIVATE ESTATE 1/23/2009 100 Upper Mckinley Rd., Fort Bonifacio 1.5424 Megaworld Corporation RCC 396 38

WHITE PLAINS TERRACES 4/8/2009 Katipunan Avenue, Brgy. White Plains 0.963 Megaworld Corporation OM 20

ETON BAYPARK MANILA 3/23/2009 T.M. Kalaw Ave. cor. Roxas Blvd. 0.07442 Eton Properties Philippines, Inc. RCC 213 3

ONE ARCHERS PLACE 5/12/2009 corner Taft Ave and Castro and Fidela A-Reyes Sts., Malate 0.31338 Eton Properties Philippines, Inc. RCC 665 2

THE ETON RESIDENCES - GREENBELT 3/31/2009 Legaspi St., Legaspi Village 0.1732 Eton Properties Philippines, Inc. RCC 290 2

ASPEN HEIGHTS SUBDIVISION 12/9/2009 DANLAG 14.5515 ROBINSONS LAND, INC. OM 586

Otis 888 Residences 2/13/2009 Paz M. Guanzon cor. Mendoza Sts., Paco, Manila Robinsons Land Corporation OM 179

THE FORT RESIDENCES 9/22/2009 Fort Bonifacio 0.2002 Robinson Land Corporation RCC 235 9

BALI OASIS - MARCOS HIGHWAY (Buildings 1 & 2) 2/4/2009 Marcos Highway, Brgy., Santolan Filinvest Land, Inc. RCC 310 476

IRVINE PLACE II 10/16/2009 San Isidro, Filinvest Land, Inc. OM 22

NUSA DUA PH. 5 12/18/2009 Brgy. Paradahan 5.1436 Filinvest Land Inc. Farmlot 47

One Oasis - Davao (Bldg. 1 and 2) 1/30/2009 Eco-West Drive, Ecoland 0.5287 Filinvest Land, Inc. RC 20

ONE OASIS - ORTIGAS 5/5/2009 Brgy. Sta. Lucia Filinvest Land, Inc. RCC 389

ONE OASIS-MABOLO 11/6/2009 KASAMBAGAN, MABOLO 1.0884 FILINVEST LAND, INC. RC 380

Princeton Heights 8/18/2009 Brgy. Mambog 6.5375 Filinvest Land, Inc. OM 230

Princeton Heights- Commercial 9/22/2009 Brgy. Mambog 1.301 Filinvest Land, Inc. CS 33

Summerbreeze Phase 2- Commercial 3/17/2009 Brgy. Sta. Maria 0.1993 Filinvest Land, Inc. CS 8

Sunrise Place Phase 2 8/27/2009 Brgy. Tres Cruces 10.556 Filinvest Land, Inc. SH 1612

THE GLENS AT PARKSPRING 2 12/18/2009 Brgy. San Antonio (San Vicente) 6.236 Filinvest Land Inc. OM 98 246

Viridian at South Peak 11/18/2009 Brgy. San Antonio 1.0389 Filinvest Land, Inc. OM 25

Santierra Phase I 11/10/2009 Nuvali, Brgy. Sto. Domingo 47.2096 Ayala Land, Incorporation OM 301

The Crestwood at Ayala Westgrove Heights Phase 12 1/28/2009 Brgy. Tibig (Munting ilog) 6.4411 Ayala Land, Inc OM 33 50

The Vistas at Mango Grove, Anvaya Cove 7/28/2009 Sabang 6.827 Ayala Land Inc OM 36

Verdana Homes Asyana Phase I 7/6/2009 Zone 15 4.3895 Ayala Land, Inc. OM 116


38


39

Ibid


Capitol Hills Subdivision 3/7/2008 Lanot 4.956 Provincial Government of Capiz SH 264

DURAVILLE HOMES ANGONO PHASES I AND II 12/17/2008 Brgy. Sabutan, Silang 0 City Government of Pasay City SHP 385

Kabankalan Socialized Housing Project 2 7/3/2008 Bgy. VI 2.0238 Negros Economic Development Foundation (NEDF)/City Government of Kabankalan SH 96 0 0 0 0

Makati Housing Project 11/14/2008 Brgy. Dayap 39.8661 City Government of Makati SH 6193

PAMAYANANG MALIKSI 12/17/2008 Tanay City Government of Pasay City SHP 50

PAMAYANANG MALIKSI 11/28/2008 Brgy. Pasong Kawayan II Provincial Government of Cavite SH 34

Pamayanang Maliksi 11/28/2008 Brgy. Pasong Kawayan II Provincial Government of Cavite SH 173

SOCIALIZED HOUISNG PROJECT OF PASAY CITY 12/17/2008 Tanay City Government of Pasay City SHP 50

Socialized Housing Project of Pasay City 12/17/2008 Plaza Aldea 10.0407 City Government of Pasay sh 34

Socialized Housing Project of Pasay City 12/17/2008 Brgy. Plaza Aldea 10.0407 City Government of Pasay City SH 34

SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Tanay, Rizal 0 City Government of Pasay SHP 35

Socialized Housing Project of Pasay City 12/17/2008 Brgy. Plaza Aldea 10.0407 City Government of Pasay SH 89

SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Plaza Aldea, Tanay, Rizal 0 Pasay City Government SHP 53

SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Plaza Aldea 10.04 City Government of Pasay City SH 104

SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Brgy. Plaza Aldea 10.0407 City Government of Pasay SH 28

Socialized Housing Project of Pasay City 12/17/2008 Brgy. Plaza Aldea 10.0407 City Government of Pasay SH 117

SOUTHVILLE 1 and 1B HOUSING PROJECT 12/17/2008 Tanay City Government of Pasay City SHP 50

SOUTHVILLE 1 HOUSING PROJECT 12/17/2008 Brgy. Sabutan, Silang 0 City Government of Pasay City SHP 75

SOUTHVILLE 1 HOUSING PROJECT 12/17/2008 Tanay City Government of Pasay City SHP 50

SOUTVILLE 1B HOUSING PROJECT 12/17/2008 Tanay City Government of Pasay City SHP 50

PLAYA AZALEA 11/4/2008 BRGY. LIMAO 27.2962 LANDCO PACIFIC CORPORATION OM 574

TRIBECA PRIVATE RESIDENCES (CHELSEA PLACE TOWERS I AND II AND CHELSEA PARKING BUILDING 6/27/2008 East Service Road, Brgy. Sucat 0.6892 Landco Pacific Corporation RCC 432 4

TRIBECA PRIVATE RESIDENCES (CHELSEA PLACE TOWERS I AND II AND CHELSEA PARKING BUILDING 6/27/2008 East Service Road, Brgy. Sucat 0.6892 Landco Pacific Corporation RCC 432 4

Waterwood Park Ph 3-A 10/2/2008 Catulinan & Pagala 3.0339 Landco Pacific Corp. OM 111

Waterwood Park Ph 3-A 10/2/2008 Catulinan & Pagala 3.0339 Landco Pacific Corp. OM 111

Bellagio 3 5/9/2008 Fort Bonifacio 0.3081 Megaworld Corporation RCC 435 4

CITYPLACE AT BINONDO (TOWERS A AND B) 6/27/2008 Calle Felipe and Gen. La Chambre Sts., Binondo 0.49327 Megaworld Corporation RCC 525 12

CITYPLACE AT BINONDO (TOWERS A AND B) 6/27/2008 Calle Felipe and Gen. La Chambre Sts., Binondo 0.49327 Megaworld Corporation RCC 525 12

Eastwood Le Grand 3/5/2008 Brgy. Libis 0.2219 Megaworld Corporation RCC 651 6

EASTWOOD LE GRAND 2 10/14/2008 Libis, Quezon City 0.2351 Megaworld Corporation RCC 537 8

EASTWOOD LE GRAND 2 10/14/2008 Libis, Quezon City 0.2351 Megaworld Corporation RCC 537 8

Eastwood Le Grand 2 4/29/2008 Libis, Quezon City Megaworld Corporation RCC 537 8

Greenbelt Chancellor 4/8/2008 Rada St., Legaspi St., Makati City 0.0919 Megaworld Corporation RCC 328 2

Greenbelt Excelsior 4/8/2008 105 Carlos Palanca St., Legaspi Village 0.0919 Megaworld Corporation RCC 331 2

GREENHILLS HEIGHTS 10/15/2008 Pinaglabanan cor. Msgr. Alvarez Sts., 0.3826 Megaworld Corporation RC 174

GREENHILLS HEIGHTS 10/15/2008 Pinaglabanan cor. Msgr. Alvarez Sts., 0.3826 Megaworld Corporation RC 174

Manhattan Parkview 11/25/2008 Araneta Center, Cubao 1.1257 MEGAWORLD CORPORATION RCC 0 753 28

Mckinley Garden Villas Phase 2 (Clusters 2A to 2D 5/22/2008 Fort Bonifacio 0.4882 Megaworld Corporation RC 112

MORGAN SUITES EXECUTIVE RESIDENCES 8/26/2008 Florence Way, Fort Bonifacio Megaworld Corporation RCC 1080 2

ONE CENTRAL 8/8/2008 Sen. Gil Puyat Ave. cor. Geronimo St. Megaworld Corporation RCC 749 2

ONE CENTRAL 8/8/2008 Sen. Gil Puyat Ave. cor. Geronimo St. Megaworld Corporation RCC 749 2



Stamford Executive Residences 2/29/2008 Fort Bonifacio 0.3239 Megaworld Corporation RCC 980 6

The Clubhouse at Temple Drive 4/2/2008 Temple Drive Bo. Ugong Norte 0.1982 Megaworld Corporation CC 9

THE RESIDENTIAL RESORT AT NEWPORT CITY 10/16/2008 Manlunas St., Villamor Airbase 3.7442 Megaworld Corporation RCC 2404 14

THE RESIDENTIAL RESORT AT NEWPORT CITY 10/16/2008 Manlunas St., Villamor Airbase 3.7442 Megaworld Corporation RCC 2404 14

THE VENICE LUXURY RESIDENCES 10/24/2008 Mckenley Hill, Fort Bonifacio Megaworld Corporation RCC 1988 20

THE VENICE LUXURY RESIDENCES 10/24/2008 Mckenley Hill, Fort Bonifacio Megaworld Corporation RCC 1988 20

Canyon Ranch Expansion 12/12/2008 Brgy. Lantic 3.2515 Century Communities Corporation OM 167

KNIGHTSBRIDGE RESIDENCES 10/24/2008 Spring St. cor. B. Valdez Sts., Poblacion 0.737 Century City Development Corporation RCC 1180 6

KNIGHTSBRIDGE RESIDENCES 10/24/2008 Spring St. cor. B. Valdez Sts., Poblacion 0.737 Century City Development Corporation RCC 1180 6

Knightsbridge Residences 4/24/2008 A. Spring St. cor. B. Valdez St. Century City Development Corporation RCC 1180 6

Pacific Palisades 5/8/2008 No. 1151 Ma. Orosa St., Ermita, Century Pacific Prop. and Development Corporation RCC 80 7

The Gramercy Residences 4/17/2008 Kalayaan Ave. 0.4471 Century City Development Corporation RCC 1270 5

Belton Place 6/25/2008 Malugay St., Eton Properties Philippines, Inc. RCC 606 4

Belton Place 6/25/2008 Malugay St., Eton Properties Philippines, Inc. RCC 606 4

ETON PARKVIEW GREENBELT 10/20/2008 Legaspi Village, Eton Properties Philippines, Inc. RCC 230 1

ETON PARKVIEW GREENBELT 10/20/2008 Legaspi Village, Eton Properties Philippines, Inc. RCC 230 1

ONE ARCHERS PLACE 6/25/2008 corner Taft Ave and Castro and Fidela A-Reyes Sts., Malate Eton Properties Philippines, Inc. RCC 665 2

ONE ARCHERS PLACE 6/25/2008 corner Taft Ave and Castro and Fidela A-Reyes Sts., Malate Eton Properties Philippines, Inc. RCC 665 2

AMISA PRIVATE RESIDENCES 7/21/2008 BRGY. PUNTA ENGANO 4.8381 ROBINSONS LAND CORP. RC 764

East of Galleria 3/3/2008 Topaz and Ruby Road Ortgas Center Robinsons Land Corporation RC 758

Fresno Parkview 10/21/2008 Brgy. Lumbia 13.1375 Robinsons Homes, Inc. MCH 490

MCKINLEY PARK RESIDENCES 10/27/2008 3rd Ave, cor. 31st St., Cresent Park West, Bonifacio Global City 0.16 Robinsons Land Corporation RCC 321 7

THE TRION TOWERS (TOWER I) 10/17/2008 8th Ave. cor. Mckinley Parkway, Bonifacio Global City Robinson Land Corporation RC 736

THE TRION TOWERS (TOWER I) 10/17/2008 8th Ave. cor. Mckinley Parkway, Bonifacio Global City Robinson Land Corporation RC 736

ALTA VIDA PHASE III 3/13/2008 San Roque 3.2195 Filinvest Land Incorporated OM 147

Belvedere Towne Phase II 11/24/2008 Brgy. Paradahan 0.1134 Filinvest Land, Inc SH 30

CLAREMONT SUBDIVISION 2/21/2008 Sta. Maria 8.9166 Filinvest Land Incorporated OM 368

One Oasis Ortigas 12/19/2008 Brgy. Sta. Lucia Filinvest Land, Inc. RC

One Oasis Ortigas 12/19/2008 Brgy. Sta. Lucia Filinvest Land, Inc. RC

Santoso Villas at Nusa Dua Farm Estate 11/12/2008 Brgy. Paradahan 5.451 Filinvest Land, Inc OM 122

SEASCAPE SUBDIVISION 11/10/2008 DAPDAP, MACTAN 2.1377 FILINVEST DEVEVLOPMENT CORP. OM 56

STA. CECILIA PHAS III 10/13/2008 Brgy. San Roque 0.5492 Filinvest Land, Inc. OM 20

STA. CECILIA PHAS III 10/13/2008 Brgy. San Roque 0.5492 Filinvest Land, Inc. RS 20

STUDIO TWO 8/20/2008 Northgate Cyberzone, Filinvest Corporate City, Alabang 0.1113 Filinvest Alabang, Inc. RCC 292 5

STUDIO TWO 8/20/2008 Northgate Cyberzone, Filinvest Corporate City, Alabang 0.1113 Filinvest Alabang, Inc. RCC 292 5

The Enclave at Filinvest Heights 5/8/2008 Brgy. Bagong Silangan 0.97785 Filinvest Land, Inc. OM 38

The Tropics Phase 3 5/28/2008 Brgy. San Isidro 2.5587 Filinvest Land, Inc. OM 97

The Tropics Phase 3 5/28/2008 Brgy. San Isidro 2.5587 Filinvest Land, Inc. RS 97

TREVISO EXPANSION 11/26/2008 Brgy. Batasan Hills 0.7014 Filinvest Land, Inc. OM 26

TREVISO EXPANSION 11/26/2008 Brgy. Batasan Hills 0.7014 Filinvest Land, Inc. OM 26

Tropics Phase 2 2/28/2008 Cainta, Rizal 1.3359 Filinvest Land, Inc. OM 55

Abrio Phase 2-A 7/24/2008 Nuvali, Brgy. Sto. Domingo 8.9116 Ayala Land, Inc. OM 42

Abrio Phase 2-A 7/24/2008 Nuvali, Brgy. Sto. Domingo 8.9116 Ayala Land, Inc. OM 42

Bamboo Grove at Anvaja Cove 7/28/2008 Sabang 6.4742 Ayala Land, Inc. OM 67

Plantazionne Verdana Homes Phase IV 5/9/2008 Zone 15 3.4189 Ayala Land, Inc. OM 0 94 0 0 0

Plantazionne Verdana Homes Phase IV 5/9/2008 Zone 15 3.4189 Ayala Land, Inc. OM 0 94 0 0 0

Sonera 3/4/2008 Ayala Southvale Village 1.3272 Ayala Land, Inc. OM 25

The East Tower at One Serendra 2/29/2008 Fort Bonifacio Ayala Land, Inc. RC 283

THE ORCHARD TERRACES AT AYALA WESTGROVE HEIGHTS (PHASE 11)5/19/2008 Munting Ilog 14 AYALA LAND, INC. OM 158

THE ORCHARD TERRACES AT AYALA WESTGROVE HEIGHTS (PHASE 11)5/19/2008 Munting Ilog 14 AYALA LAND, INC. OM 158


39

Exhibit 14: Projects in Pipeline registered at HLURB for Main Provinces40

40

Ibid

PROJ_NAME DATE_ISSUED LOCATION MUNICIPALITY PROVINCE AREA DEV_NAME PROJ_TYPE HL LOTS RES COMM UNITS

Makati Housing Project 11/14/2008 Brgy. Dayap Calauan Laguna 39.8661 City Government of Makati SH 6193

SOUTHVILLE 1 HOUSING PROJECT 12/17/2008 Brgy. Sabutan, Silang Laguna 0 City Government of Pasay City SHP 75

PLAYA AZALEA 11/4/2008 BRGY. LIMAO ISLAND GARDEN CITY OF SAMAL DAVAO DEL NORTE 27.2962 LANDCO PACIFIC CORPORATION OM 574

THE TRIBECA PRIVATE RESIDENCES (CHELSEA PLACE TOWER 3) 1/20/2010 East Service Road, Brgy. Sucat Muntinlupa City Metro Manila 0.192 Landco Pacific Corporation RCC 216 2

TRIBECA PRIVATE RESIDENCES (CHELSEA PLACE TOWERS I AND II AND CHELSEA PARKING BUILDING 6/27/2008 East Service Road, Brgy. Sucat Muntinlupa City Metro Manila 0.6892 Landco Pacific Corporation RCC 432 4

TRIBECA PRIVATE RESIDENCES (CHELSEA PLACE TOWERS I AND II AND CHELSEA PARKING BUILDING 6/27/2008 East Service Road, Brgy. Sucat Muntinlupa City Metro Manila 0.6892 Landco Pacific Corporation RCC 432 4

Bellagio 3 5/9/2008 Fort Bonifacio Taguig City Metro Manila 0.3081 Megaworld Corporation RCC 435 4

CITYPLACE AT BINONDO (TOWERS A AND B) 6/27/2008 Calle Felipe and Gen. La Chambre Sts., Binondo Manila Metro Manila 0.49327 Megaworld Corporation RCC 525 12

CITYPLACE AT BINONDO (TOWERS A AND B) 6/27/2008 Calle Felipe and Gen. La Chambre Sts., Binondo Manila Metro Manila 0.49327 Megaworld Corporation RCC 525 12

Eastwood Le Grand 3/5/2008 Brgy. Libis Quezon City Metro Manila 0.2219 Megaworld Corporation RCC 651 6

EASTWOOD LE GRAND 2 10/14/2008 Libis, Quezon City Quezon City Metro Manila 0.2351 Megaworld Corporation RCC 537 8

EASTWOOD LE GRAND 2 10/14/2008 Libis, Quezon City Quezon City Metro Manila 0.2351 Megaworld Corporation RCC 537 8

Eastwood Le Grand 2 4/29/2008 Libis, Quezon City Quezon City Metro Manila Megaworld Corporation RCC 537 8

Greenbelt Chancellor 4/8/2008 Rada St., Legaspi St., Makati City Makati City Metro Manila 0.0919 Megaworld Corporation RCC 328 2

Greenbelt Excelsior 4/8/2008 105 Carlos Palanca St., Legaspi Village Makati City Metro Manila 0.0919 Megaworld Corporation RCC 331 2

GREENBELT MADISON 6/26/2009 176 Salcedo St., Legaspi Village Makati City Metro Manila Megaworld Corporation RCC 282 2

GREENHILLS HEIGHTS 10/15/2008 Pinaglabanan cor. Msgr. Alvarez Sts., San Juan City Metro Manila 0.3826 Megaworld Corporation RC 174

GREENHILLS HEIGHTS 10/15/2008 Pinaglabanan cor. Msgr. Alvarez Sts., San Juan City Metro Manila 0.3826 Megaworld Corporation RC 174

Manhattan Parkview 11/25/2008 Araneta Center, Cubao Quezon City Metro Manila 1.1257 MEGAWORLD CORPORATION RCC 0 753 28

Mckinley Garden Villas Phase 2 (Clusters 2A to 2D 5/22/2008 Fort Bonifacio Taguig City Metro Manila 0.4882 Megaworld Corporation RC 112

MORGAN SUITES EXECUTIVE RESIDENCES 8/26/2008 Florence Way, Fort Bonifacio Taguig City Metro Manila Megaworld Corporation RCC 1080 2

ONE CENTRAL 8/8/2008 Sen. Gil Puyat Ave. cor. Geronimo St. Makati City Metro Manila Megaworld Corporation RCC 749 2

ONE CENTRAL 8/8/2008 Sen. Gil Puyat Ave. cor. Geronimo St. Makati City Metro Manila Megaworld Corporation RCC 749 2

PARKSIDE VILLAS 10/24/2008 Sales Ave., Villamor Airbase, Pasay City Metro Manila Megaworld Corporation RC 886



Stamford Executive Residences 2/29/2008 Fort Bonifacio Taguig City Metro Manila 0.3239 Megaworld Corporation RCC 980 6

The Clubhouse at Temple Drive 4/2/2008 Temple Drive Bo. Ugong Norte Quezon City Metro Manila 0.1982 Megaworld Corporation CC 9

THE RESIDENTIAL RESORT AT NEWPORT CITY 10/16/2008 Manlunas St., Villamor Airbase Pasay City Metro Manila 3.7442 Megaworld Corporation RCC 2404 14

THE RESIDENTIAL RESORT AT NEWPORT CITY 10/16/2008 Manlunas St., Villamor Airbase Pasay City Metro Manila 3.7442 Megaworld Corporation RCC 2404 14

THE VENICE LUXURY RESIDENCES 10/24/2008 Mckenley Hill, Fort Bonifacio Taguig City Metro Manila Megaworld Corporation RCC 1988 20

THE VENICE LUXURY RESIDENCES 10/24/2008 Mckenley Hill, Fort Bonifacio Taguig City Metro Manila Megaworld Corporation RCC 1988 20

TUSCANY PRIVATE ESTATE 1/23/2009 100 Upper Mckinley Rd., Fort Bonifacio Taguig City Metro Manila 1.5424 Megaworld Corporation RCC 396 38

TUSCANY PRIVATE ESTATE 1/23/2009 100 Upper Mckinley Rd., Fort Bonifacio Taguig City Metro Manila 1.5424 Megaworld Corporation RCC 396 38

WHITE PLAINS TERRACES 4/8/2009 Katipunan Avenue, Brgy. White Plains Quezon City Metro Manila 0.963 Megaworld Corporation OM 20

AZURE URBAN RESORT RESIDENCES - BUILDING ONE 5/25/2010 West Service Road, Bicutan Parañaque City Metro Manila 6.0489 Century Limitless Corporation RC 756

KNIGHTSBRIDGE RESIDENCES 10/24/2008 Spring St. cor. B. Valdez Sts., Poblacion Makati City Metro Manila 0.737 Century City Development Corporation RCC 1180 6

KNIGHTSBRIDGE RESIDENCES 10/24/2008 Spring St. cor. B. Valdez Sts., Poblacion Makati City Metro Manila 0.737 Century City Development Corporation RCC 1180 6

Knightsbridge Residences 4/24/2008 A. Spring St. cor. B. Valdez St. Makati City Metro Manila Century City Development Corporation RCC 1180 6

Pacific Palisades 5/8/2008 No. 1151 Ma. Orosa St., Ermita, Manila Metro Manila Century Pacific Prop. and Development Corporation RCC 80 7

The Gramercy Residences 4/17/2008 Kalayaan Ave. Makati City Metro Manila 0.4471 Century City Development Corporation RCC 1270 5

Belton Place 6/25/2008 Malugay St., Makati City Metro Manila Eton Properties Philippines, Inc. RCC 606 4

Belton Place 6/25/2008 Malugay St., Makati City Metro Manila Eton Properties Philippines, Inc. RCC 606 4

ETON BAYPARK MANILA 3/23/2009 T.M. Kalaw Ave. cor. Roxas Blvd. Manila Metro Manila 0.07442 Eton Properties Philippines, Inc. RCC 213 3

ETON PARKVIEW GREENBELT 5/25/2010 Gamboa St., Legaspi Village Makati City Metro Manila 0.089 Eton Properties Philippines, Inc. RCC 230 1

ETON PARKVIEW GREENBELT 10/20/2008 Legaspi Village, Makati City Metro Manila Eton Properties Philippines, Inc. RCC 230 1

ETON PARKVIEW GREENBELT 10/20/2008 Legaspi Village, Makati City Metro Manila Eton Properties Philippines, Inc. RCC 230 1

ONE ARCHERS PLACE 6/25/2008 corner Taft Ave and Castro and Fidela A-Reyes Sts., Malate Manila Metro Manila Eton Properties Philippines, Inc. RCC 665 2

ONE ARCHERS PLACE 5/12/2009 corner Taft Ave and Castro and Fidela A-Reyes Sts., Malate Manila Metro Manila 0.31338 Eton Properties Philippines, Inc. RCC 665 2

ONE ARCHERS PLACE 6/25/2008 corner Taft Ave and Castro and Fidela A-Reyes Sts., Malate Manila Metro Manila Eton Properties Philippines, Inc. RCC 665 2

THE ETON RESIDENCES - GREENBELT 3/31/2009 Legaspi St., Legaspi Village Makati City Metro Manila 0.1732 Eton Properties Philippines, Inc. RCC 290 2

AMISA PRIVATE RESIDENCES 7/21/2008 BRGY. PUNTA ENGANO LAPU-LAPU CITY CEBU 4.8381 ROBINSONS LAND CORP. RC 764

ASPEN HEIGHTS SUBDIVISION 12/9/2009 DANLAG CONSOLACION CEBU 14.5515 ROBINSONS LAND, INC. OM 586

MCKINLEY PARK RESIDENCES 10/27/2008 3rd Ave, cor. 31st St., Cresent Park West, Bonifacio Global City Taguig City Metro Manila 0.16 Robinsons Land Corporation RCC 321 7

Otis 888 Residences 2/13/2009 Paz M. Guanzon cor. Mendoza Sts., Paco, Manila Manila Metro Manila Robinsons Land Corporation OM 179

THE FORT RESIDENCES 9/22/2009 Fort Bonifacio Taguig City Metro Manila 0.2002 Robinson Land Corporation RCC 235 9

THE TRION TOWERS (TOWER I) 10/17/2008 8th Ave. cor. Mckinley Parkway, Bonifacio Global City Taguig City Metro Manila Robinson Land Corporation RC 736

THE TRION TOWERS (TOWER I) 10/17/2008 8th Ave. cor. Mckinley Parkway, Bonifacio Global City Taguig City Metro Manila Robinson Land Corporation RC 736

BALI OASIS - MARCOS HIGHWAY (Buildings 1 & 2) 2/4/2009 Marcos Highway, Brgy., Santolan Pasig City Metro Manila Filinvest Land, Inc. RCC 310 476

BALI OASIS - MARCOS HIGHWAY (BUILDINGS 1 AND 2) 6/9/2010 Brgy., Santolan Pasig City Metro Manila 1.8916 Filinvest Land, Inc. RC 310

BALI OASIS - MARCOS HIGHWAY (BUILDINGS 1 AND 2) 6/9/2010 BRGY. SANTOLAN Pasig City Metro Manila 1.8916 FILINVEST LAND, INC. RC 310

BALI OASIS - MARCOS HIGHWAY (BUILDINGS 3 AND 4) 6/9/2010 Brgy. Santolan Pasig City Metro Manila FILINVEST LAND, INC. RC 320

CAPRI OASIS 6/22/2010 BRGY. S. ANTONIO AVE., MAYBUNGA Pasig City Metro Manila 1.9736 FILINVEST LAND, INC. RCC 313 10

One Oasis - Davao (Bldg. 1 and 2) 1/30/2009 Eco-West Drive, Ecoland Davao City Davao Del Sur 0.5287 Filinvest Land, Inc. RC 20

ONE OASIS - ORTIGAS 5/5/2009 Brgy. Sta. Lucia Pasig City Metro Manila Filinvest Land, Inc. RCC 389

ONE OASIS ORTIGAS 6/2/2010 Ortigas Ext., Brgy. Sta. Lucia Pasig City Metro Manila Filinvest Land , Inc. RC 399

One Oasis Ortigas 12/19/2008 Brgy. Sta. Lucia Pasig City Metro Manila Filinvest Land, Inc. RC

One Oasis Ortigas 12/19/2008 Brgy. Sta. Lucia Pasig City Metro Manila Filinvest Land, Inc. RC

ONE OASIS-MABOLO 11/6/2009 KASAMBAGAN, MABOLO CEBU CITY CEBU 1.0884 FILINVEST LAND, INC. RC 380

SEASCAPE SUBDIVISION 11/10/2008 DAPDAP, MACTAN LAPU-LAPU CITY CEBU 2.1377 FILINVEST DEVEVLOPMENT CORP. OM 56

STUDIO TWO 8/20/2008 Northgate Cyberzone, Filinvest Corporate City, Alabang Muntinlupa City Metro Manila 0.1113 Filinvest Alabang, Inc. RCC 292 5

STUDIO TWO 8/20/2008 Northgate Cyberzone, Filinvest Corporate City, Alabang Muntinlupa City Metro Manila 0.1113 Filinvest Alabang, Inc. RCC 292 5

THE BEAUFORT 4/12/2010 5th Ave., Fort Bonifacio Global City Taguig City Metro Manila 0.3889 Filinvest Development Corporation RC 145

The Enclave at Filinvest Heights 5/8/2008 Brgy. Bagong Silangan Quezon City Metro Manila 0.97785 Filinvest Land, Inc. OM 38

THE GLENS AT PARKSPRING 2 12/18/2009 Brgy. San Antonio (San Vicente) San Pedro Laguna 6.236 Filinvest Land Inc. OM 98 246

TREVISO EXPANSION 11/26/2008 Brgy. Batasan Hills Quezon City Metro Manila 0.7014 Filinvest Land, Inc. OM 26

TREVISO EXPANSION 11/26/2008 Brgy. Batasan Hills Quezon City Metro Manila 0.7014 Filinvest Land, Inc. OM 26

Viridian at South Peak 11/18/2009 Brgy. San Antonio San Pedro Laguna 1.0389 Filinvest Land, Inc. OM 25

Abrio Phase 2-A 7/24/2008 Nuvali, Brgy. Sto. Domingo Sta. Rosa Laguna 8.9116 Ayala Land, Inc. OM 42

Abrio Phase 2-A 7/24/2008 Nuvali, Brgy. Sto. Domingo Sta. Rosa Laguna 8.9116 Ayala Land, Inc. OM 42

PARK TERRACES 1/6/2010 Arnaiz Ave., Ayala Center Makati City Metro Manila Ayala Land, Inc. RCC 370 14

PARK TERRACES 5/14/2010 Arnaiz Ave., Ayala Center Makati City Metro Manila 0.392985 Ayala Land, Inc. RCC 370 14

Santierra Phase I 11/10/2009 Nuvali, Brgy. Sto. Domingo Sto. Rosa Laguna 47.2096 Ayala Land, Incorporation OM 301

Sonera 3/4/2008 Ayala Southvale Village Las Piñas City Metro Manila 1.3272 Ayala Land, Inc. OM 25

The East Tower at One Serendra 2/29/2008 Fort Bonifacio Taguig City Metro Manila Ayala Land, Inc. RC 283


40

Exhibit 15: Government‟s projects from HLURB database41

Provinces Area Dollar Value ( Thousands)

Main

Provinces 200.24 $ 5,006,051.88

Total

Projects 1210.32 $ 8,472,243.33

Percentage

16.54% 59.09%

Exhibit 16: Percentage of Area and the possible value of Main Provinces

41

Ibid

PROJ_NAME DATE_ISSUED LOCATION AREA PROJ_TYPE HL LOTS

Capitol Hills Subdivision 3/7/2008 Lanot 4.956 SH 264

DURAVILLE HOMES ANGONO PHASES I AND II 12/17/2008 Brgy. Sabutan, Silang 0 SHP 385

LRT/CAVITE PROVINCE RELOCATION SITE 11/24/2009 Brgy. Santiago 73

Makati Housing Project 11/14/2008 Brgy. Dayap 39.8661 SH 6193

Pamayanang Maliksi 1/9/2009 Brgy. San Paloocan 53.4776 SH 99







PAMAYANANG MALIKSI 12/17/2008 Tanay SHP 50

PAMAYANANG MALIKSI 11/28/2008 Brgy. Pasong Kawayan II SH 34

Pamayanang Maliksi 11/28/2008 Brgy. Pasong Kawayan II SH 173


Pamayanang Maliksi (Cluster E) 1/9/2009 Brgy. San Paloocan 53.4776 SH 243

Pamayanang Maliksi (Cluster- E) 1/9/2009 Brgy. Pasong Kawayan II 53.4776 SH 79

PAMAYANANG MALIKSI (CLUSTER -E) 1/9/2009 Brgy. San Paloocan 53.4776 SH

QUEENSTOWN HEIGHTS 4/6/2010 Brgy. San Luis 2.5099 EH 40

SOCIALIZED HOUISNG PROJECT OF PASAY CITY 12/17/2008 Tanay SHP 50

Socialized Housing Project of Pasay City 12/17/2008 Plaza Aldea 10.0407 sh 34

Socialized Housing Project of Pasay City 12/17/2008 Brgy. Plaza Aldea 10.0407 SH 34

SOCIALIZED HOUSING PROJECT OF PASAY CITY 11/24/2009 Tanay Rizal 0 SHP 10

SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Tanay, Rizal 0 SHP 35


SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Plaza Aldea, Tanay, Rizal 0 SHP 53

SOCIALIZED HOUSING PROJECT OF PASAY CITY 11/24/2009 Brgy. Plaza Aldea 3.132 SH 447

SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Plaza Aldea 10.04 SH 104

SOCIALIZED HOUSING PROJECT OF PASAY CITY 12/17/2008 Brgy. Plaza Aldea 10.0407 SH 28


SOUTHVILLE 1 and 1B HOUSING PROJECT 12/17/2008 Tanay SHP 50

SOUTHVILLE 1 HOUSING PROJECT 12/17/2008 Brgy. Sabutan, Silang 0 SHP 75

SOUTHVILLE 1 HOUSING PROJECT 12/17/2008 Tanay SHP 50

SOUTVILLE 1B HOUSING PROJECT 12/17/2008 Tanay SHP 50

VILLA DE MAVALOR I 7/9/2009 Brgy. Mavalor 14.1779 SH 180

Villa De Mavalor I Subdivision 7/9/2009 Brgy. Mavalor 14.1779 SH 10





VILLA DE MAVALOR I SUBDIVISION 7/9/2009 Brgy. Mavalor SH 75

Legend OM - Open Market MCH - Medium Cost Housing EH - Economic Housing SHP/SH - Socialize Housing Project


41

Construction industry is very strong and sustainable. With the FiT in place there would be

many construction companies who would offer customers the value of FiT ( a source of

income) and install Solar Power Panels as alternate electricity source for these customers.

This would become a key differentiator for many construction contractors such as

Megaworld, AyalaLand, and FILINVEST etc. The Philippines Homebuilders already have

projects in place for Solar Power Panel installations42

. The capacity of these installations

ranges from 10 Watt to 5,000 Watt. The cost of such panels is roughly,

Php 150,000 to power some lights in your house and electric fan, TV, computer,

washing machine, radio.

Php 300,000 if required to include a refrigerator.

Php 1M if required to include an air-conditioner.

BTS and Solar Power

A base transceiver station (BTS) or cell site is a piece of equipment that facilitates wireless

communication between user equipment (UE) and a network. UEs are devices like mobile

phones (handsets), WLL phones, computers with wireless internet connectivity, WiFi and

WiMAX gadgets etc. The network can be that of any of the wireless communication

technologies like GSM, CDMA, WLL, WAN, WiFi, WiMAX etc. BTS is also referred to as

the radio base station (RBS), node B (in 3G Networks) or, simply, the base station (BS).

BTS in Mobile Communication

A GSM network is made up of three subsystems:

The Network and Switching Subsystem (NSS) – comprising an MSC and associated

registers.

42

http://www.sibonga.com/philippines-solar-panels-energy.htm


42

The Base Station subsystem (BSS) – comprising a BSC and several BTSes

The Operations support system (OSS) - for maintenance of the network.

Though the term BTS can be applicable to any of the wireless communication standards, it is

generally and commonly associated with mobile communication technologies like GSM and

CDMA. In this regard, a BTS forms part of the base station subsystem (BSS) developments

for system management. It may also have equipment for encrypting and decrypting

communications, spectrum filtering tools (band pass filters) etc. antennas may also be

considered as components of BTS in general sense as they facilitate the functioning of BTS.

Typically a BTS will have several transceivers (TRXs) which allow it to serve several

different frequencies and different sectors of the cell (in the case of sectorised base stations).

A BTS is controlled by a parent base station controller via the base station control function

(BCF). The BCF is implemented as a discrete unit or even incorporated in a TRX in compact

base stations. The BCF provides an operations and maintenance (O&M) connection to the

network management system (NMS), and manages operational states of each TRX, as well as

software handling and alarm collection. The basic structure and functions of the BTS remains

the same regardless of the wireless technologies.

For the BTS site to work it needs a supply of electric power in a range of 10 to 30kW, this

power is dependent on the area to be covered, the topography of this area, and number of

subscribers. The power supply of BTS site should be highly reliable and secure to keep the

mobile phone of the subscribers working all the time.

Any failure in the supply of any BTS site will lead to loss of GSM signal in the surrounding

area and accordingly complaints from the mobile phone subscribers located in that area. It is

interesting to realize that the subscribers always select the telecom company that they decide

to get their service from according several factors:


43

Price.

Quality of signal.

Covered area.

Service.

Hence, availability of reliable and secure power supply is a determining factor.

A BTS is usually energized by Diesel – Genset. The Exhibit 17 is a sample comparison of

Cost reduction between Diesel – Genset BTS site and Solar Powered BTS site

Cost Line Item Cost Diesel - Genset Cost Solar Powered

Cost to Buy new Unit $ 18,000.00 $ 60,000.00

Cost of Fuel/year $ 11,100.00

Cost of Oil/year $ 1,200.00

Cost of Preventive Maintenance $ 2,000.00

Cost to buy Spare Back-up unit $ -

Cost of Batteries (rectifier) $ 6,000.00

Total cost of Investment in 1st year $ 38,300.00 $ 60,000.00

Opex in 2nd year $ 15,000.00 $ 2,000.00

Opex in 3rd year $ 15,000.00 $ 2,000.00

Opex in 4th year $ 15,000.00 $ 2,000.00

Opex in 5th year $ 15,000.00 $ 2,000.00

Total cost of investment in 6th year $ 98,300.00 $ 68,000.00

Savings $ 30,300.00

Exhibit 17: Projected Sample comparison of Diesel – Genset and Solar Powered BTS

Need for Alternative Energy: Moving from Diesel Generator Paradigm

Pollution - Diesel generators used are noisy, dirty and exhaust harmful hydrocarbons

into the atmosphere during their operation. The BTS telecom operators are

responsible for 2 percent of carbon emission worldwide

Cost – The Diesel generators used for the BTS by the telecom operators are too

expensive and accounts for 35 percent of the total cost of ownership (TCO) of a BTS.


44

Unreliable - Diesel-powered BTS sites are notoriously unreliable. These generators

can suffer a variety of types of failures and are also responsible for 65 percent of the

outages.

Transportation-Getting the diesel fuel to a remote site can be a challenge and

transport & install costs are very high.

Limited Shelf Life - The fuel has a limited shelf life and can quickly degrade and

build up contaminants and thus the fuel goes wasted.

Theft and Vandalism - Theft and vandalism of generators and fuel also pose

significant problems at remote locations.

There is considerable number of BTS sites in the Philippines. The major players are Globe

Telecom and Smart Communications Inc. The strategy of Spanish Organizations would be to

market their technology for these global players and exhibit the cost efficiency in using Solar

Powered BTS.

Competitor Analysis

International

Belgian project developer Enfinity is reportedly seeking partners to develop and finance

renewable energy projects in the Philippines. The firm will focus on solar and wind projects,

and aim to develop 500MW of installed capacity over the next three years. The developments

could require around USD1bn in investment.

In March 2010, Enfinity raised EUR50m (USD67.9m) in funding from private equity firm

Waterland. Earlier this year, the firm teamed up with Energy Conversion Devices to develop

rooftop solar installations in Canada. The projects will have a combined capacity of 10MW.

In related news, Global Business Power, a subsidiary of Philippines-based Metrobank, could

invest between USD250m and USD300m to develop biomass energy and hydroelectric


45

projects in the country. The firm hopes to install 100MW of renewable capacity over the next

three years.

Vestas Wind Systems Asia-Pacific, a Danish wind power solutions provider will build its

second largest IT hub in the country and hire up to 200 local employees by 2011.

The local IT hub will house 100 employees by yearend and up to 200 by 2011, from the

existing 25. This will make the Philippine IT hub the second largest next to its headquarters

in Denmark, said Sean Sutton, the President of Vestas Wind Systems in the region.

The Vestas Services Philippines Inc. will be the fourth Vestas main IT center in the world,

next to Denmark, Singapore, and USA. It will support Vestas‟ global team with IT operations

and back-end support including surveillance, service desk and programming competencies

for the operation of 11,500 turbines worldwide in real-time, said Torben Bonde, chief

information officer and senior vice president for Vestas Wind Systems.

Wind energy comprises about one percent of global power use and is set to grow by 10

percent in Asia by 2020. The location in the Philippines puts Vestas in a strategic position to

gain more inroads in the market while lowering energy generation costs in the country

Aside from after sales support, the company is also seeking to provide the government‟s

power generation target of 417 megawatts by 2013 from wind energy

Currently, Vestas have supplied 20 turbines in the wind farms in Ilocos Norte that generates

33 MW of power, which is capable of supplying energy to households up to tens of

thousands. The Philippines being an abundant source of wind energy, Vestas plans to scale up

and get a significant slice of that 417 MW energy target.

Harnessing renewable energy sources like the wind is imperative to meet the fast rising

energy demands set to double by 2020 amid the diminishing fossil fuel resources.

http://www.vestas.com/en/


46

Compared to oil and gas, energy generation costs using wind turbines are lowered over time

because of total megawatts produced over a 20-year operational life cycle of the turbines,

which are recyclable. Moreover, wind energy generation does not emit greenhouse gases

unlike fossil fuels that has intensified global warming, he said.

Vestas is a provider of wind turbines that could generate energy up to 3MW capacity,

depending on power requirements and the terrain of the target location.

The Northwind Power Development Corp uses Vestas wind turbine-generator units (WTGs)

for the site, similar to those already found in Denmark. Over fifty 750kW wind turbine

generators will be installed. These will have three vertically oriented rotor blades on top of a

50m-high tubular tower. The nacelle (casing), which encloses the generator, the gear box and

the yaw mechanism (which turns the blades into the wind), is at the rear of the rotor blades.

UPC Renewables, an affiliate of Italy's UPC Group, is to build a 40-turbine wind farm in

the Philippines at a cost of about $480m (£287m).

Development on the 80MW project, to be located in Pagudpud town in northern Ilocos Norte

province, is to start by end of the year, with the first wind turbines to be erected by early

2010.

UPC managing director Troels Carstensen told the local Business Mirror newspaper that

project financing will be provided by European export credit agencies and Philippine banks.

Carstensen said UPC hopes to reach an agreement with the Ilocos Norte government to

provide electricity to nearby residents and also neighbouring provinces.

UPC Group already operates 700MW of wind turbine generators in Italy and 300MW in the

US. UPC Renewables operates the group's business interests outside of North America.


47

The Pagudpud wind farm will be the second in Ilocos Norte province, following a 33MW

facility in nearby Bangui Bay that was established in 2004 by NorthWind Power

Development Corp, a joint venture by Filipino and Danish businessmen.

It is the country's first commercial on-grid wind farm, providing about half of the province's

electricity needs and is verified as a clean development mechanism project under the UN‟s

CDM executive board.

Denmark's Vestas Wind Systems provided the equipment for the Bangui Bay farm, which

cost about $44m to build. Most of the funding was provided through a Danish International

Development Agency grant.

A 2000 study by the National Renewable Energy Laboratory - part of the US Department of

Energy - estimated that the Philippines had the potential to generate up to 70GW of energy

from wind power.

The Philippine government hopes to have between 200MW and 400MW of installed wind

power capacity by 2015.

SunPower Solar Wafer Manufacturing Plant Sta. Rosa, Laguna,

Founded in 1985, SunPower Corp. (Nasdaq: SPWRA, SPWRB) designs, manufactures and

delivers the planet's most powerful solar technology broadly available today. Residential,

business, government and utility customers rely on the company's experience and proven

results to maximize return on investment. With headquarters in San Jose, Calif., SunPower

has offices in North America, Europe, Australia and Asia. SunPower has a full-scale solar

cell with a sunlight to electricity conversion efficiency of 24.2 percent at its manufacturing

plant in the Philippines. This is a new world record, confirmed by the U.S. Department of

Energy's National Renewable Energy Lab (NREL), for large area silicon wafers.


48

Domestic

With the advent of the 5th Asia Clean Energy Forum held in ADB Headquarters, Manila,

between 23-25th

June 2010, local investors are seeking an aggregate financing of $157

million for seven renewable projects. The groups presented their projects on Monday to more

than 200 financiers in the second Philippines Clean Energy Investors Forum organized by the

CTI Private Financing Network (CTI).

CTI is a global partnership that screens business plans and links project proponents to

potential investors. The forum‟s objective is primarily to bridge the gap between clean energy

project developers, investors and financing institutions. It has established financing networks

in the Philippines, China, Indonesia, and India, and has been conducting similar forums in

Latin America and Africa.

"These investments are geared not just on lowering climate change, but also assure energy

sufficiency in the Philippines," said Roger Carlson, acting mission director of the United

States Agency for International Development.

With adequate financing and proper implementation, various mid-scale projects in power

generation and clean transport technology, could boost the Philippines' energy supply while

reducing the country's carbon emissions, added Carlson.

Business plans on building biogas, biomass, small hydropower plants as well as clean

transport initiatives were pitched to financial institutions and clean energy experts.

Peter Storey, CTI's global coordinator said the investment priorities in the country are on 3

energy sources - biomass, small hydropower and waste to energy initiatives.

The selected projects endorsed for financing are the First Commercial Multi-feedstock

Anaerobic Digester in Southeast Asia by SURE; an 18-megawaat Timababan Hydropower


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Project by Oriental Energy and Power Generation Corporation; e-Taxicle by E Save

Transport Systems; 10-MW Pangasinan W@E Gasification Facility by Greenergy Solutions;

10-MW Inabasan mini-hydropower Project by Ormin Power; Philippine Biodiesel Initiative

by Eco-Life, and Green Building by Italpinas.

These projects passed a 5-month stringent procedure that required proponents to show their

project's commercial and technical viability, environmental, and social benefits.

CTI said these investments can reduce the Philippines's greenhouse gas emissions by more

than 300,000 metric tons a year, which is equivalent to taking half a million cars off the road,

and making the country a leader in clean energy projects in the region.

"Clean energy is always the way to pursue as it is one of the pillars of energy sufficiency,"

said Mario Marasigan, assistant secretary of the Department of Energy.

The group has recommended more than 30 projects in the Philippines since it was established

in early 2009. Of these prospects, 4 have secured financing with investments totaling to $36

million.

For E.g. a biomass power plant in La Union Province has been financed. This project is

forecast to offset 3,000 tons of CO2 a year that would otherwise be generated by

conventional feedstock, which are mainly coal, petroleum and natural gas. “The Philippines

has tremendous potential for these types of projects and also has a forward-thinking investor

community, so we expect to see more projects secure investment in the near future,” says CTI

chairman Elmer Holt.

Aurora Special Economic Zone Authority (ASEZA) has been recently awarded with an

RE Contract on 25th

March 2010. The contract has been approved to installed 1MW capacity

of Solar resource. The contact details of ASEZA is


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ASEZA,

Ms Althea Barbara E. Acas

Head of Business Development

2/F SSS Makati Bldg, 6782 Ayala Avenue, Makati City, Philippines, 1226

Tel. No. (02) 813-4381

Fax No. (02) 813-3674

Mobile No. 0921-973-2431

Email: [email protected]

Solutions Using Renewable Energy (SURE) Eco Philippines Inc., a renewable energy

company, is earmarking $90 million for its investments. SURE Eco spokesman Clarence de

Guia said the funds will be used for the construction of several biogas-fed power plants. The

funding will be a combination of debt and equity. De Guia said they plan to look for

financing from banks and from multilateral financial institutions like the Asian Development

and World Bank.

He said the plan is construct a 30 megawatt (MW) facility, on top of the four biogas/biomass

project that they are currently undertaking.

The company, together with its joint venture partners, MG Leasing and RLU Group of

Companies have already installed a 400-kilowatt waste-to-energy facility in Lipa, Batangas,

of the first industrial-scale biogas plants in the province.

SURE Eco also tied up with Pepsi Cola Products Philippines Inc. for the construction of a 1.2

MW, rice husk and wood chip-fired cogeneration power plant at a cost of $2.7 million which

mailto:[email protected]


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is expected to be completed in January 2011. This will make Pepsi Cola the first softdrink

bottling plants in the country to have a green cogeneration power facility.

SURE Eco also has an ongoing 1.2-MW build-operate-transfer project with conglomerate

San Miguel Corp. in Vietnam. The company‟s other ongoing projects are in Bukidnon, Nueva

Ecija and Laguna. Its projects have a combined capacity of 1.5 MW and will cost more than

$3 million to complete. They are also involved in other renewable energy development

projects such as solar and mini-hydro.

De Guia said, “We have pipeline projects. Long-term, what we want is to have a centralized

or a bigger capacity, our thrust is to have the most diversified renewable energy portfolio.

We‟re looking at mini-hydro and other forms of renewable energy.”

As mentioned earlier in section, Clean Energy Potential in Philippines, CEPALCO has

also a 1 MW Solar PV plant, with installed costs close to 5.3 Million US Dollars, using 6,500

solar panels on 2 hectares of land.

Financing Options

With the government‟s Renewable Energy Act (passed in December 2008) the Philippines

renewable energy sector has become very attractive to investors. The area has been identified

as a growth opportunity by a number of domestic banks as well. Banco de Oro (BDO) is the

latest Philippine bank to team up with the International Finance Corporation (IFC), which

will provide the bank with advice on financing renewable energy projects. The agreement

follows a similar one between IFC and Bank of the Philippine Islands (BPI), and before that

with Metropolitan Bank & Trust (Metrobank).43

43

http://www.reportsandreports.com/market-reports/philippines-infrastructure-report-q2-2010/


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The International Finance Corporation (IFC) has agreed with Banco de Oro (BDO), the

largest commercial bank in the Philippines, to provide advice on financing energy efficiency

and renewable energy projects. This deal is the third agreement between the IFC and a bank

for energy projects in the Philippines.

Under the agreement, the IFC will provide BDO with advice on lending to the domestic

private sector to finance sustainable energy projects. The areas where BDO sees potential for

investment include renewable energy, energy efficiency and clean development mechanism

finance. Clean Development Mechanism is an arrangement under the Kyoto Protocol which

allows developed countries to invest in carbon mitigating projects in developing countries.

The agreement with BDO follows two prior agreements with Philippine banks for lending to

renewable energy. The first was between the IFC and Metropolitan Bank & Trust

(Metrobank). The agreement, through which the IFC provided Metrobank with advice on

extending loans to independent utilities, started in January 2008 and ended in June 2009 and

early in March 2010, a Metrobank led-consortium started operations at its first power plant

located in the Visayas area. Metrobank, through its power unit Global Business Power Corp,

is also currently eyeing up a power project in the Luzon area.

The second agreement is with the Bank of the Philippine Islands (BPI), which was signed in

December 2009 and runs for two years. The IFC and BPI signed a risk sharing facility

agreement which allows BPI to expand its funding portfolio for sustainable energy projects

with the IFC guaranteeing between 50% and 100% of loans extended. BPI has set an initial

amount of around US$50mn aside to lend to sustainable energy projects, with the potential to

expand this to around US$110mn, according to Philstar reports in December 2009. Prior to

the agreement, the bank had provided around US$25mn financing for sustainable energy

projects including renewable energy.


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The increased interest from commercial banks in lending to sustainable energy projects

reflects the Philippines potential to become a renewable energy hub in Asia. The country is

already second in the world in terms of geothermal energy, behind the US, with over 1,900

megawatts (MW) already installed, according to a recent report by the WWF Philippines and

the Philippines Department of Energy into the Philippines' renewable energy sector. The

report notes that the potential for renewables is enough to meet energy needs in the country a

number of times over. Wind power potential equals 76,000MW, geothermal 4,000MW and

biomass 10,083MW. In addition, there are 888 potential small hydropower sites, with the

potential to generate 1,784MW.

In December 2008, a new law -the Republic Act 9513, which is better known as the

Renewable Energy Act - came into force. Heralded as 'the first and most comprehensive

renewable energy law in South East Asia' by the Philippines President Gloria Macapagal-

Arroyo, as quoted by Power Engineering, the law is targeted at boosting the portion of

renewables in the power mix and therefore reducing reliance on expensive imported fuels.

The Renewable Energy Act provides fiscal incentives for potential investors in the country's

renewable energy such as tax credits, lower taxes on machinery and tax exemption of carbon

credits. Another non-fiscal initiative proposed under the act is the implementation of a

Renewable Portfolio Standard System, which requires an electricity supplier to have a portion

of renewable generating capacity in its portfolio and a feed-in tariff, which is a premium

placed on the price of purchasing renewable electricity from the supplier.

With a comprehensive law in place, and increased opportunity to access project finance from

local banks, the Philippines renewables sector appears very attractive.

Manila Standard Today reported that the Asian Development Bank is looking at financing up

to USD 1 billion of energy efficiency and renewable projects in the Philippines in the next 5


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years.

Mr Sohail Hasnie ADB principal energy specialist for Southeast Asia Department told

reporters during the Asia Clean Energy Forum at the ADB headquarters that the USD 1

billion loan could provide about 1,000 MWs of electricity output and savings from renewable

energy and efficiency projects.

Mr Hasnie said that ADB would coordinate with the Finance Department and the National

Economic and Development Authority in identifying the recipients of the financing, with the

bulk to be lent as loans and rest as grants. He added that "We have worked with your

government and agencies and we are looking at financing up to a billion dollars with our co

financing partners for the Philippines on its energy efficiency and renewable energy

programs. We are waiting for the new government for us to engage and align our priorities

with their priorities." He did not identify ADB's partners.

He said that ADB had had discussions with the Neda for the USD 1 billion financing

window. He added that "We can start preparing the feasibility study in a few months' time.

May be we can implement it end of next year. If your government will agree, we can do a

five-year tranche. You have all the necessary parameters for promoting renewable energy

such as high electricity tariff, a lot of renewable energy available, a good regulatory

framework and as a net importer of oil."

He said the Philippines also needed to reduce its reliance on imported fossil fuel by saving

energy through efficiency programs and looking at alternative and indigenous sources such as

hydro, wind, geothermal and solar. He added that "We are looking at some hydropower and

wind in that portfolio; maybe we'll work with the private sector."

He said the USD 1 billion financing can be used for projects such as large scale air

conditioning use in public offices by reducing consumption, promotion of efficient

refrigerators and electric fans and tricycles using lithium batteries. ADB has received USD


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125 million in support from the World Bank's Clean Technology Fund for a 100 MW solar

power project in the Philippines.44

In a separate interview, Constellation Energy Corp. is considering financing and developing

seven “potential” renewable energy projects in the country, according to its top official.

Jose P. Leviste Jr., president and chair of Constellation Energy, said these projects included a

geothermal power project in Biliran Leyte; a wind power venture in Panglao, Bohol; and five

hydropower projects in Visayas and Mindanao.

According to Leviste, the company refers to these as “potential” projects because

Constellation does not have energy service contract yet, the projects are still under review

and that it is still negotiating with project proponents.

The Biliran geothermal project belongs to Filtech Energy Drilling Corp. (Fedco), he said.

Constellation is expected to provide financial services while Fedco will cover the technical

aspect of the project.

He said the company was in talks with the electric cooperatives for the five hydropower

projects it identified. These are located in Bago, Negros Occidental, the project for which has

a 13.2-MW capacity; Salug Daku 2, 6 MW; Salug Daku 3, 2.5 MW; Salug Daku 4, 4 MW,

and Magpet hydropower project, 5 MW.

Constellation senior VP Annette Manansala-Rafael said the company‟s thrust was to acquire

and finance the development of hydro, wind and geothermal power projects, as well as

provide technical consulting services and political risk management.

“We are focusing on off grid areas. We wanted to contribute to the rural electrification

project of the government and our core business in the acquisition, financing, development of

44

www.manilastandardtoday.com, Jun 25th

2010

http://www.manilastandardtoday.com/


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renewable energy projects. We are into hydro, wind and geothermal projects for now, but we

intend to look at solar and biomass (this year),” Rafael said.

Currently, Constellation already has two service contracts for wind power projects in Ilog,

Negros Occidental, which covers a 2,106-hectare area and in Bayawan-Tanjay-Pamplona,

Negros Oriental, covering a 8,019-ha property.

Aside from wind energy projects, Leviste said Constellation had three pending applications

with the Department of Energy for three proposed hydropower projects.

These are in Dupinga, Gabaldon, Nueva Ecija, where the company expects to generate 3

megawatts of hydropower; in Bongabong, Oriental Mindoro, for a 28-MW capacity; and

Alag, San Teodoro, Oriental Mindoro, for a 39.5-MW capacity.

Leviste however did not cite investment figures, but based on the general rule, a company

would need to invest as much as $176 million (or about P8.2 billion at P47 to a dollar) to 70.5

MW of power from the hydro plants.


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Conclusion

It can be seen that there is immense opportunity in the Philippines for Solar Power. Spanish

Renewable Energy Organizations should make use of the available opportunity. Given the

location of Philippines and the Solar radiation available in the Philippines it is not difficult to

harness Solar energy. The challenge is to find the appropriate sites and install the solar

generation plant. The Philippines government has been very helpful and supportive of

Renewable Energy unlike other developing nations. Given that there are fiscal & non-fiscal

benefits as explained in the above analysis and there is a significant target market demanding

Solar power, it can be safely said that the Solar Power Generation has reached the tipping

point here in the Philippines.


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End Notes & References

National Statistics Board of Philippines, http://www.nscb.gov.ph/

World Bank Data

http://databank.worldbank.org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxS

upported=N&CNO=1159

DoE Philippines, http://www.doe.gov.ph/EP/Powerstat.htm

World Bank Development indicators 2010 Publication

Philippines Census Statistics, http://www.census.gov.ph/data

BPO data from BPAP Presentations, http://www.bpap.org/bpap/index.asp?presentations

Dialog Asia, Asia summit on Renewable Energy,

http://gc21.inwent.org/ibt/alumni/ibt/docs/DIALOG_2_06_As.pdf

BCSE Renewable Energy in Asia, http://tiny.cc/gst8e

http://www.nscb.gov.ph/

http://databank.worldbank.org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxSupported=N&CNO=1159

http://databank.worldbank.org/ddp/home.do?Step=2&id=4&DisplayAggregation=N&SdmxSupported=N&CNO=1159

http://www.doe.gov.ph/EP/Powerstat.htm

http://www.census.gov.ph/data

http://www.bpap.org/bpap/index.asp?presentations

http://gc21.inwent.org/ibt/alumni/ibt/docs/DIALOG_2_06_As.pdf

http://tiny.cc/gst8e

Solar energy Market Entry Strategy

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