Power sector financing

Global project finance continues to be a relatively stable sector for investors because of its high-percentage of investment-grade ratings and stable outlooks.

In the Asia-Pacific market, there has been little change in the second quarter of 2005, according to a recent report from Standard & Poor’s (S&P).

Three Philippine companies were included in the analysis, all in the power sector. Here are excerpts from the report: "Quezon Power Co.’s operating performance in the second quarter was robust, with availability ranging above 90 percent following the repair of the plant’s electrostatic precipitator.

Termination of Meralco’s (off-taker) power purchase agreement with the state-owned generator in 2004 resulted in higher dispatch rates from Quezon Power.

In the first half of 2005, electricity dispatch was close to full capacity during peak hours. Project cash flow in first half also benefited from payment of deferred transmission charges by Meralco.

"Between January and May, the project’s debt service coverage ratio averaged a strong 1.75x. "Last July 11, S&P revised its outlook on the $85-million senior secured notes issued by Bauang Private Power Corp. to negative from stable.

Bauang’s outlook revision from stable to negative is in line with a similar revision on the foreign currency rating of its offtaker Napocor as well as that of the Philippines. Bauang’s performance remained stable, with a debt service coverage ratio of about 2.5x in the first quarter of 2005.

During the period, the company maintained plant availability of more than 96 percent. "CE Casecnan Energy and Water Co.’s project operations continued to be smooth with reliability factor of about 100 percent in the first quarter of 2005.

Revenue is expected to improve in the second half of 2005 with the onset of the wet season. Going forward, debt service coverage ratio is likely to remain at 1.3x-1.5x for 2005, before improving significantly in 2006 as more debt is amortized.

Casecnan’s current rating is B+/positive."

Stop the sexual innuendoes

Pampanga Rep. Francis L. Nepomuceno, chairman of the House committee on civil service and professional regulation, has urged the National Telecommunications Commission and the Kapisanan ng mga Brodkasters sa Pilipinas (KBP) to crack its whip on abusive radio hosts and disc jockeys who are engaged in sexual innuendoes and dirty jokes.

The NTC has the power to cancel the franchise of erring radio stations while the KBP Code regulates these kinds of remarks. According to Rep. Nepomuceno, numerous reports have reached his office from parents and various civic oriented groups on the rampant abuses in the airwaves.

As early as six in the morning, irresponsible radio talents in Love Radio at DWRR, FM 90.7 and other radio stations lambasted their listeners with wide array of unwholesome commentaries. A concerned parent told the solon that highly questionable hosts and DJs maliciously explain sex acts with their boisterous laughter in the background.

I fully agree. I regularly tune in to FM stations in the morning on the way to work and there is one station that should be closely monitored by the NTC.

It’s this station that seemed so desperate that it had to hire a starlet, Asia Agcaoili, to be one of its DJs. The endless exchange of sexual innuendoes between her and her guy co-host makes me puke.

Some guys may find Asia’s moanings early in the morning and revelations of her exploits amusing, but I don’t.

Everybody knows that Asia is one of those talentless starlets who have to strut their "stuff" just to get noticed, so we know what the intention of the station management is.

Use sex to attract listeners. Like television stations, radio stations have a huge responsibility to their listeners.

And if a station cannot live up to that responsibility, it has no right to abuse the airwaves. It has to go.

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