Purge at AGI
Alliance Global Group (AGI) has given David Chua, the chairperson of its unit Travellers International Hotel Group Inc (TIHGI), the pink slip to avoid any potential conflict of interest arising from his role as president of the parent company of Manila casino developer Suntrust Resort Holdings, a nosy Tarsee revealed.
Chua was also removed from TIHGI’s board. He has had close relations with Genting Hong Kong prior to his TIHGI stint.
Parent AGI bought Genting’s stake in TIHGI last year while TIHGI has a lease deal with Suntrust, which is developing a $1.1-billion hotel and casino in Travellers’ Westside City project.
After the transition was finalized (as a result of Genting’s stake sale to AGI), Chua was considered part of the old regime, so he was asked to resign, according to a company insider.
AGI felt a conflict of interest given Chua’s presidency subsequently of the LET Group, the mother company of Suntrust.
Chua was also the former chief operating officer of Malaysia’s Genting Berhad. He was named executive director and CEO of Summit Ascent Holdings — a subsidiary of LET Group and a significant shareholder in Suntrust in March 2021 before being appointed to the Suntrust board two months later.
Exempted from CHEd rule?
Various graduates of the country’s premiere maritime organization, the Philippine Merchant Marine Academy, have questioned the institution why it is still offering senior high school (SHS) programs against a Commission on Higher Education (CHEd) order.
On December 2023, CHEd chairperson Prospero de Vera III ordered all state universities and colleges (SUCs), as well as local universities and colleges (LUCs) to stop offering SHS programs beginning school year 2024-2025.
“Is PMMA exempted? Are we sure that these senior high students are not wasting their time? What if the CHEd orders the course canceled?” said two alumni recently.
PMMA-Cagayan de Oro (CdO) Campus 11th-grade maritime learners recently had a two-week immersion at the PMMA where they experienced the life and daily routine of a cadet.
According to its post on the PMMA Meta page, the comprehensive experience included participating in exercises, adhering to mess conduct protocols, and engaging in various activities that are part of a cadet’s daily regimen, all of which took place from 16 to 27 June.
“It was called immersion for two weeks of PMMA Maritime Senior HS from CdO, meaning from 11th Grade. They have to pass through Grade 12.
“PMMA is a SUC under CHEd so why is it allowed to offer senior HS?” the two argued. “On whose expense is this immersion? Is it PMMA’s budget that will be used here?”
“Will it be automatic for a graduate of the PMMA Maritime SHS to go into the institution without going through a nationwide entrance exam?” an alumni asked.
CSP needs overhaul
Some bidders in the competitive selection process wanted the government to address an irritant in the scheme to choose electricity suppliers.
Recently, at least 2,400 megawatts (MW) out of 3,000 MW were sourced from power plants that run on natural gas, but which are mainly imported liquefied natural gas (LNG) costing more than indigenous natural gas.
The preference for plants that use imported LNG is seen in the fine print of the terms of reference (ToR) of the power supply agreements (PSAs).
In its ToR for bidding for PSAs, a qualified plant is defined as one that is less than 10 years old, which instantly disqualified still efficient power plants that are more than 10 years old, including plants that run on indigenous gas that had been built in the 2000s.
More troubling, according to a bidder is the attempt to paint local gas as the more expensive type of fuel, which is not just an outright falsehood.
The bias towards imported LNG raises concerns, especially when considering the cost implications. Importing LNG incurs additional expenses, such as shipping and conversion costs, which significantly inflate the actual cost of electricity production.
Favoring newer power plants fueled by imported LNG is a stipulation that disqualifies more established plants running on local gas sources. This bias supports the false perception of indigenous gas being expensive.
In March 2024, the effective rate of local gas was barely P5 per kilowatt-hour (kWh) while the effective rate of imported LNG was more than P6 per kWh.
Records would show that in January 2024, the average cost of power generation using local gas is a little over P5 per kWh. Imported LNG, at more than P7 per kWh.
LNG from abroad, is shipped in liquid form and undergoes a process to restore it in gas form for power generation.
The expense involved in this process is nearly as much or more than the basic cost of the fuel. So by the time imported LNG is pumped into power plants, its cost has more than doubled or at least tripled.
Using local gas for electricity generation is more cost-effective than relying on imported LNG, a CSP participant said.
Some of the bidders are now calling for a reform of the CSP rules, ensuring public oversight and accountability, to safeguard the interests of consumers and uphold the principles of transparency in energy supply.