Japanese Firm Shelves Plan To Expand Due To Power Crisis

[Mr Lee]

Poor planning on the part of the government has caused a power crisis and it is sure to cause the loss of many jobs and businesses. I wonder how many businesses will follow this ones lead? IMO this is sad for the whole Philippines and not just Mindanao because even our cable in Cebu keeps going off for hours each day.

[mike]

Poor planning on the part of the government has caused a power crisis and it is sure to cause the loss of many jobs and businesses. I wonder how many businesses will follow this ones lead? IMO this is sad for the whole Philippines and not just Mindanao because even our cable in Cebu keeps going off for hours each day. I wonder how many people are shelving their plans for a move to the Philippines because of the power problems here? "This is really sad for Mindanao. Investors' confidence has gone down. Unless permanent and long-lasting solutions are put in place to address this power issue, Mindanao's competitiveness as an investment destination will continue to erode," Soldevilla said.Power crisis is going to cost many jobs

The cost of power in Mindanao has risen by over 23% in 4 months. Despite many places having a 20% reduction in power supply the monthly bill is now higher than ever. Loss of business due to lack of power and steep increase in prices for what they have got means economic melt down.The power companies say they cannot afford to see an income reduction in line with the low supply so the price has to go up!! Nice for a monopoly to get away with this. Businesses that do have to compete will have to bite the bullet rather than hit customers with the passing on of the higher operating costs. Business activity is slowing dramatically in Mindanao as the high costs of power are hitting households in the shorts.2009 saw a 62% reduction in non agri business activity over 2008. The present power shortages will ensure that there is no recovery during 2010. During 2009 agri business was the only bright spot. This year agri is decimated by el nino and higher costs of doing business. 2010 will be the hardest year for Mindanao, may make 2009 look like a banner year despite it being in economic recession.Belt tightening is strangling the Mindanao economy. Elections will not give the traditional financial boost this time around. Donations to political parties from business will be well down on previous years etc.m Edited April 16, 2010 by Mr. Lee
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[retired]

Poor planning on the part of the government has caused a power crisis and it is sure to cause the loss of many jobs and businesses. I wonder how many businesses will follow this ones lead? IMO this is sad for the whole Philippines and not just Mindanao because even our cable in Cebu keeps going off for hours each day. I wonder how many people are shelving their plans for a move to the Philippines because of the power problems here? "This is really sad for Mindanao. Investors' confidence has gone down. Unless permanent and long-lasting solutions are put in place to address this power issue, Mindanao's competitiveness as an investment destination will continue to erode," Soldevilla said.Power crisis is going to cost many jobs

The cost of power in Mindanao has risen by over 23% in 4 months. Despite many places having a 20% reduction in power supply the monthly bill is now higher than ever. Loss of business due to lack of power and steep increase in prices for what they have got means economic melt down.The power companies say they cannot afford to see an income reduction in line with the low supply so the price has to go up!! Nice for a monopoly to get away with this. Businesses that do have to compete will have to bite the bullet rather than hit customers with the passing on of the higher operating costs. Business activity is slowing dramatically in Mindanao as the high costs of power are hitting households in the shorts.2009 saw a 62% reduction in non agri business activity over 2008. The present power shortages will ensure that there is no recovery during 2010. During 2009 agri business was the only bright spot. This year agri is decimated by el nino and higher costs of doing business. 2010 will be the hardest year for Mindanao, may make 2009 look like a banner year despite it being in economic recession.Belt tightening is strangling the Mindanao economy. Elections will not give the traditional financial boost this time around. Donations to political parties from business will be well down on previous years etc.m

Is there a link available for the quotes given ? I do know that despite Region 10 , which includes Cagayan de Oro , being the fastest growing region in the country economically , the area has received 0 % foreign investment thru the 1st quarter of 2010 . That does not include the recent pull out of a bio -mass facility due to 'red tape' and and another company that has 'put on hold' its expansion , costing hundreds of jobs , because it can not get an assurance from the local provider that it will have power . Meanwhile , the local 'officials' continue to fiddle about exactly what to do while asking business to change work schedules , decrease working hrs , etc . Seems like i ran across that "fiddle while it burns' theme somewhere else along the line . :-) Edited April 16, 2010 by Mr. Lee
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