The bidding for the first phase of the $2.

1-billion Batangas-Manila (BatMan 1) natural gas pipeline project

may be delayed anew as the state-run Philippine National Oil Co. (PNOC) has yet to conduct a study to
determine the most feasible mode for the project.
According to Zenaida Y. Monsada, director of the Oil Industry Management Bureau at the Department of
Energy, PNOC is now preparing for a feasibility study that will look into the merits of various options being
considered by the government.
One option is to bid out the BatMan 1 project, a critical infrastructure that can boost the Philippines
natural gas industry, under a public-private partnership (PPP).
Another mode being considered, according to Monsada, is through an official development assistance
(ODA), which is defined as a loan or a grant administered with the objective of promoting sustainable
social and economic development and welfare of the Philippines.
Under the law, ODA resources must be contracted with governments of foreign countries with whom the
Philippines has diplomatic, trade relations or bilateral agreements, or which are members of the United
Nations, their agencies and international or multilateral lending institutions.
There are prospective volunteers who can conduct the feasibility study and were studying [their
proposals], Monsada told the Inquirer.
Their offers differ in terms of the timetables as to how long the study will be conducted and the scope of
the study. There are groups that have offered to conduct the feasibility study for free but we have to look
into their proposals first.
Once the study is completed, PNOC may already be able to proceed with the bidding for the first phase of
the BatMan 1 project, which will involve the construction of the 100-kilometer pipeline.
PNOC has yet to announce whether it will still create a separate subsidiary to be called PNOC Pipeline
Corp. (PNOC PC) to handle the operations of the natural gas pipeline.
Based on previous plans, the PNOC PC is expected to bid out the engineering, procurement and
construction contract, as well as the technical and maintenance agreement this year. It will take about
three years to finish the pipeline.

The second and third phases of the Batman 1 project will involve the construction of the receiving terminal
and power plant, respectively.
The Philippine government is bent on pursuing the use of alternative fuels, such as natural gas, given the
current global oil price volatility, to which the Philippines is highly vulnerable.
The country sources more than 90 percent of its fuel requirements abroad.
Natural gas has been deemed to be among the more feasible alternatives that will allow the Philippines to
diversify its energy and transport fuel sources.
The Philippine affiliate of Japan's Universal Entertainment Corp, controlled by billionaire gaming magnate
Kazuo Okada, said it expected to open its $2 billion casino-resort project along Manila Bay in 2016, a
year later than planned.
The Universal-affiliated company, Tiger Resorts Leisure and Entertainment Inc, holds one of four licenses
to operate a casino complex in Entertainment City, the Philippines' answer to gaming hubs in Las Vegas
and Macau. Development of Okada's Manila Bay Resorts began in 2012.
Tiger expects to launch the first phase of the casino-resort only in late 2016, Adrian Ort, general manager
for hotel and food and beverage operations at Tiger, said earlier this week. He declined to give specific
reasons for the delay.
But regulators say that even if the project is finished and ready, it cannot start operations if it does not get
a local partner to address land ownership restrictions that it is currently in violation of.
"We've told them as early as 2012 that we won't give them the notice to commence operations until they
settle the land ownership issue," Francis Hernando, the gaming regulator's vice president for licensed
casino development, said in a phone interview late on Thursday.
The Philippine constitution bars foreign entities from owning more than 40 percent of land. In 2012, an
arm of the Philippine justice department published a legal opinion indicating the Okada group had
breached the constitution.
It said Aruze USA, a U.S. firm controlled by Okada, effectively held 64 percent direct and indirect shares
in Eagle I Landholdings Inc, the registered owner of the 44-hectare lot where the casino-resort project is
being built.
The Okada group has since approached local firms Empire East Land Holdings Inc, Robinsons Land
Corp and Century Properties Group Inc for a partnership. But negotiations have persistently run into
snags due to disagreement over terms.

A Robinsons Land official said it is no longer in talks with Tiger, while Century Properties has yet to return
to the negotiating table, its spokesperson said.
Century had taken Universal to court after the Japanese group terminated a deal with the Philippine firm
to build luxury residential and retail projects within the casino-resort complex. But Century is open to an
out-of-court settlement.
"The chairman is talking to a lot of people who are interested. I'm sure they'll bring value to the project but
we just have to find the right mix," said Matt Hurst, executive vice president for casino operations and
marketing at Tiger.
Tiger plans to kick off the first phase of the project with the launch of two hotels with a total of 1,000
rooms and a casino with 500 gaming tables and 3,000 slot machines, company officials said.
Three other groups hold licenses to operate in Entertainment City.
The joint venture of local firm Belle Corp and Melco Crown Entertainment Ltd is expected to open the City
of Dreams Manila casino-resort this year, a project worth over $1 billion.
Alliance Global Group Inc and Genting Hong Kong Ltd , partners in casino-hotel firm Travellers
International Hotel Group Inc, expect to complete their casino-resort project in Entertainment City by
2017.
Bloomberry Resorts Corp opened the first phase of its $1.2 billion casino-resort last year. (Additional
reporting by Rosemarie Francisco in MANILA; Editing by Ryan Woo)

AES earmarks $700M for Masinloc plant

expansion
By Danessa O. Rivera (The Philippine Star) | Updated November 25, 2015 - 12:00am

MANILA, Philippines - The local unit of American energy giant AES Corp. is earmarking at least $700 million for
the initial 300-megawatt (MW) expansion of the 630-MW Masinloc coal-fired power plant in Zambales, a
ranking official said yesterday.
The company has decided to start with a 300-MW single unit expansion from the original plan of 600 MW, AES
Philippines managing director Neeraj Bhat said on the sidelines of a forum organized by the European
Chamber of Commerce of the Philippines yesterday.
Right now, were going to start with 300 MW and as we line up contracts, we have the option to go for the full
600 MW, he said.
For the initial 300 MW, investment cost is pegged north of $700 million which will be a combination of 70
percent debt and 30 percent equity, the company official noted.
(Debt) will be locally funded by local banks. Signing will be very soon, before the end of the year, Baht said.
Meanwhile, equity will be shouldered by the project proponents.
AES has a 51-percent stake in the plant while Electricity Generating Public Co. Ltd. (EGCO) Group of Thailand
has 41 percent and International Finance Corp. (IFC), eight percent.

Bhat said the Masinloc expansion is on track for full-swing construction in the first quarter of 2016, but early
works will be commenced towards year-end.
Weve signed a number of power sales agreements with northern Luzon and some other customers so we
expect that to enter construction very soon with limited works this year and to be online in early 2019, Bhat
said.
AES is also close to sealing a deal with an engineering, procurement and construction (EPC) contractor, which
the company official declined to name.
Were signing very shortly. Its an international quality. We havent publicly disclosed it yet but its...a Western
and high quality EPC contractor thats done a lot of work with us. We have a strong relationship, Bhat noted.