Luzon blackout stresses power deficiency

Reading Time: 2 minutes

power blackoutThe Philippine capital of Manila and almost half of Luzon experienced a blackout when about five power stations shut down just after sunset on May 8, creating confusion as traffic lights stopped operating during rush hour.

The blackout illustrates just how much the country’s energy infrastructure is overdue for upgrades and additional capacity.

According to the Philippine Energy Plan for 2013-2030, the Philippines will require $78.5 billion of investments into the energy sector to meet projected demand by 2030.

When asked by Bloomberg during the blackout if foreign investment should play a greater role, President Benigno Aquino III brought up China’s model, which has proven successful at achieving record economic growth despite being layered with red tape on foreign ownership. Similarly, in the Philippines foreigners are in part barred from owning stakes in land, media and telecommunications.

However, the government has had an active, if at times inglorious, history working with foreign investors. The administration’s private-public partnership programme has already contracted three major infrastructure projects, and has a bevy of other projects slated in the pipeline, including the Bantangas-Manila Natural Gas Pipeline project.Large foreign companies, such as those hailing from South Korea, Singapore, the US, Germany and France, have entered bids through joint ventures with local partners.

Over the next three-year term, the Aquino administration is seeking $17 billion of infrastructure investments.

But the country attracted only a marginal $1.87 billion of FDI in 2011, compared with $7.43 billion in Vietnam, according to the World Bank.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

The Philippine capital of Manila and almost half of Luzon experienced a blackout when about five power stations shut down just after sunset on May 8, creating confusion as traffic lights stopped operating during rush hour.

Reading Time: 2 minutes

power blackoutThe Philippine capital of Manila and almost half of Luzon experienced a blackout when about five power stations shut down just after sunset on May 8, creating confusion as traffic lights stopped operating during rush hour.

The blackout illustrates just how much the country’s energy infrastructure is overdue for upgrades and additional capacity.

According to the Philippine Energy Plan for 2013-2030, the Philippines will require $78.5 billion of investments into the energy sector to meet projected demand by 2030.

When asked by Bloomberg during the blackout if foreign investment should play a greater role, President Benigno Aquino III brought up China’s model, which has proven successful at achieving record economic growth despite being layered with red tape on foreign ownership. Similarly, in the Philippines foreigners are in part barred from owning stakes in land, media and telecommunications.

However, the government has had an active, if at times inglorious, history working with foreign investors. The administration’s private-public partnership programme has already contracted three major infrastructure projects, and has a bevy of other projects slated in the pipeline, including the Bantangas-Manila Natural Gas Pipeline project.Large foreign companies, such as those hailing from South Korea, Singapore, the US, Germany and France, have entered bids through joint ventures with local partners.

Over the next three-year term, the Aquino administration is seeking $17 billion of infrastructure investments.

But the country attracted only a marginal $1.87 billion of FDI in 2011, compared with $7.43 billion in Vietnam, according to the World Bank.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid