Corporate Roundup

By: Sheilah Takeuchi | 04 Aug 2020

Converge allots P33B capex

Fiber internet service provider Communication Technology Solutions Inc. (Converge ICT) has allocated P33 billion for capital expenditures (capex) for the remainder of 2020 and for 2021.

In a statement, the company said the capex will enable it to complete its primary nationwide backbone loop which will connect Luzon, Visayas and Mindanao by the end of 2021.

“This network expansion gives us the confidence that we can deliver on our commitment to foster simple, fast, and reliable connectivity for both existing and potential customers,” said Dennis Anthony Uy, Converge ICT founder and chief executive officer.

The company commissioned an innovative and flexible high capacity backbone to give Filipino consumers and enterprises their most powerful connection yet.

The new 400G metro backbone utilizes industry-leading optical solutions from a United States-based networking systems, services and software company, paving the way to support current and future requirements from a range of applications.

As demand for bandwidth increases, the 400G optical solution allows Converge ICT to be flexible and efficiently improve the capacity of its nationwide backbone to deliver a more seamless user experience.

 

Aboitiz Power, Ilocos Sur reach compromise

Aboitiz Power Corp. said  the Regional Trial Court of Tagudin, Ilocos Sur has approved the compromise agreement between its subsidiary, Luzon Hydro Corp. (LHC) and the provincial government of Ilocos Sur over unpaid real property taxes (RPT).

No details were provided but Aboitiz Power told the Philippine Stock Exchange  the compromise will not have any material impact to its business and operations.

LHC  and the local government of Alilem were locked in a debate over an alleged P82.3-million unpaid RPT and accrued penalties on seven properties from 2004 to September 2019.

Aboitiz Power challenged the valuation citing the enforcement of the executive orders issued by the Office of the President reducing the RPT on property, machinery and equipment actually and directly used by independent power producers under build-operate-transfer contracts.

LHC argued  the provisions of the orders cover all liabilities for RPT, including any special levies accruing to the special education fund for calendar year 2017 and prior years.

In relation to the  dispute, the Power Sector Assets and Liabilities Management Corp. also urged the municipality of Alilem to reconsider the auction of the levied assets, in consideration of the ownership rights and interest of the government over the assets.

 

MORE Power debunks claims on outages

Iloilo City power distribution utility (DU) More Electric and Power Corp. (MORE Power) said it recorded  182.13 hours of power interruptions between February 29 and  July 16, 2020.

The company debunked claims of the former DU the outages totalled  412.20 hours.

MORE Power said under the rules of the Energy Regulatory Commission, scheduled outages are also excluded in the determination of reliability index.

“Scheduled outages contributed a large portion of the duration of the power interruptions under MORE. These scheduled outages were necessary because of the need for urgent maintenance works on various aspects of the dilapidated distribution system that MORE took over (from) Panay Electric Co.,” MORE Power said.

The company added other power supply interruptions happened due to scheduled or unscheduled outages on lines or substations owned by the National Grid Corporation of the Philippines or from a generator’s fault, force majeure and other factors such as defective equipment that MORE Power inherited from the old distributor.

Defective equipment comprises of primary wire down, neutral wire down, sagging primary and neutral wires; rotten and leaning poles, broken cross-arms; busted fuse; damaged pin insulators; among others.

“All these defective equipment resulted to about 51.57 hours of interruptions,” MORE Power further stated.

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