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Cleveland Bridge secures major bridge contract

According to a report issued by UKTI, Cleveland Bridge has secured a major bridge contract in the Philippines.

“Philippine Government approves Cleveland Bridge £120 million bridge project after extensive negotiations.. A strong signal that the Philippines’ public-private partnership (PPP) programme in infrastructure will proceed and that UK companies can compete and win.Cleveland bridge

After extensive negotiations the National Economic and Development Authority  (NEDA) Board, chaired by President Aquino, recently approved  a £120 Million contract for Darlington-based Cleveland Bridge UK to provide new and replacement road bridges in the Philippines. 

This was part of a £1 billion package of  infrastructure and PPP projects for metro rail extensions, national roads and regional airports, the Manila flood-control master plan as well as the calamity-damaged bridge projects.

The deal continues the tradition of UK bridge building expertise in the Philippines, with more than 1,000 having been supplied over the past decade, many through DFID funding under the former President’s Bridge Program.   In addition to the dogged persistence by the British company over several years  another key factor was support from ECGD and the financing arranged through Deutsche Bank in the UK.  

Inadequate infrastructure has been a major development constraint for the Philippines. Infrastructure development has not kept pace with population growth and urbanization. From a peak of 6% of GDP in 1998, infrastructure investments have declined to around 2% of GDP. 

The  Aquino administration has said it will  prioritise infrastructure investments through PPPs. While the speed of implementation has been relatively slow to date this week’s decision to approve projects signals a determination to move forward.”

Cleveland Bridge

Cleveland has remained at the forefront of bridge building technology for more than a century. Three of the world’s seven longest suspension bridges have been fabricated, engineered and constructed by our engineers, a record of innovative engineering.tower bridge

Cleveland Bridge has been associated with retrofit work on many historic bridges including the Menai Straits Suspension Bridge and Tower Bridge in London. Such projects range from minor works to major long duration contracts, but every one presents risks for the client and requires a competent and experienced bridge contractor.

Cleveland has a long history of successful projects in the high-rise commercial building market. From projects such as Canary Wharf Office Towers in London (Cleveland were involved in building seven of them including the tallest office building in the UK), the Natwest Building in London, and the most challenging projects – such as the Hong Kong & Shanghai Bank Building, one of the world’s great architectural structures.

Cleveland has a business strategy which is dedicated to the supply and erection of quality steelwork for medium to large scale commercial building projects including retail and car parking structures, office towers, warehouses and factories.

The long history of the Cleveland Group in bridge engineering, which includes the world-wide experience of Redpath Dorman Long and the Cleveland Bridge & Engineering Company, has led to considerable expertise in Mechanical, Hydraulic, Electrical, Structural and Civil disciplines.

This expertise extends to dynamic structures where there is a requirement to move, such as flood opening gates, container and overhead gantries, opening bridges such as bascule, swinging and lift span and heavy transportation platforms.

A strong in-house design resource brings together the skills necessary to provide multi-disciplined turnkey solutions. Cleveland also undertake refurbishment and supply of all configurations of structures, either with dynamic or static characteristics.

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Agriculture in The Philippines – an overview

Agriculture in the Philippines

UKTI has just released this overview of the Agriculture sector in the Philippines. Agriculture is one of the sectors for collaboration and support identified by the Philippine British Business Council.

  • The Philippines is primarily an agricultural country despite the plan to make it a industrialised country in 2000. The country’s agricultural sector is divided into: farming, fisheries, livestock, and forestry making up 20 % of the country’s gross domestic product.

Market overview

Agriculture is a main driver of the Philippine economy and for 2012, the government increased the agriculture and agrarian reform budgets by over 50% to boost food production. The government has also allocated funding for irrigation, farm-to-market roads, and related infrastructure; and has included these in the administration’s PPP project offering.

Key opportunities

The Agriculture and Fisheries Modernisation Act of the Philippines encourages private sector to invest in new technologies for livestock raising, aquaculture, food processing & packaging, quality assurance, bio-security, logistics and agri-waste management. The growing compulsion to raise the productivity and competitiveness of farm operators offers a mix of opportunities for UK exporters in the following areas:

Genetics & Biotechnology – There is strong demand for better pig breeds. The increasing pork requirement of domestic & export markets fuelled the recent dramatic expansion of pig farms. The British Pig Association has successfully penetrated the market through the assistance of UKTI. As a result of UKTI’s continued support to the BPA, the Philippines has become their biggest market worldwide.

Another opportunity in agri-biotech is the development and propagation of high-yielding crop varieties, pest-resistant, as well as flood & drought- resistant grains and vegetables.

Aquaculture – UK exporters are yet to tap opportunities in genetic improvement & biotech applications to fisheries & aquaculture sectors, in terms of better breeds, feeds and propagation methods.

Quality Assurance & Traceability Systems – Farmers & food processors now realise the urgency to install quality control, as well as traceability systems in their operations as required by both local and export buyers. This is an opportunity for UK consultants and service providers on HACCP, logistics, and bio-security.

Agriculture Waste Management & Waste-to-Energy Conversion -The recent strict implementation of environmental regulations and increasing need for renewable energy resources are forcing farm operators to install waste management systems and waste-to-energy facilities; e.g. for biogas.

Find out about the latest business opportunities by using UKTI’s opportunity search facility on these links.

Latest export opportunities – Agriculture

Latest export opportunities – Philippines

Getting into the market

  • Doing business in the Philippines is highly relational. A formal and personal introduction or partnerships with an established local firm are preferred ways to enter the market.
  • Appointments are required and should be made at least two weeks in advance.
  • English is the language of business.
  • The Philippine government encourages inbound foreign investment and a wide range of incentives are readily available.

UKTI has produced a very helpful guide to doing business in the Philippines, including an overview of the Philippines’ economy, business culture, potential opportunities and an introduction to other relevant issues.

Contacts

Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).

To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.

Joyce Guzon-Tolentino, British Embassy Manila.

Martyn Skinner,PBBC,Co-chairman, Agribusiness

 

 

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Philippines President and London’s Lord Mayor visits

The summer of 2012 proved a popular time for senior visits between The Philippines and the UK. The Lord Mayor of London, Alderman David Wootton, visited Manila in May and the president of the Philippines, Noynoy Aquino, visited London in June 2012. Both visits reflect the increasing importance of business links between the two countries.

President Aquino’s visit

President Aquino’s first, and so far only, visit to Europe gives a strong push to UK-Philippine relations. Business announcements demonstrate the depth of British commercial engagement across energy, power and aerospace.aquino

President Benigno Noynoy Aquino visited London as a guest of the British Government on 5-6 June 2012, accompanied by seven of his cabinet ministers.

Arriving during the Jubilee celebrations, he and his party were able to meet the Prime Minister and Foreign Secretary at No.10, attend a business lunch hosted by Jeremy Browne and the Lord Mayor of London, call on HRH the Duke of York, witness a number of UK-Philippines business deals being signed and pay a private visit to the Imperial War Museum. 

A visit to St Pancras gave the president a close-up view of British infrastructure capability as the Philippines takes forward its PPP plans. As important as the programmed activities was the symbolism of President Aquino making his first ever visit to Europe, with London as the only stop. 

The visit reinforced Britain’s position as leading EU investor in the Philippines.  Shell signed an MoU with the Philippines government for a feasibility on LNG worth US$30m.   A strong boost to exports was given with two other announcements:  Rolls Royce signed a service support contract with Cebu Pacific worth US$280m and GazAsia signed an MoU with  Aboitz for a Joint Venture for a biomethan project worth US$150m.   The visit paved the way for inward visits by the Department of Public Works and Highways Secretary Singson in June and Health Secretary Ona in July – both having a strong PPP focus. 

The PM lobbied in support of a series of individual UK projects and issues. The Philippine side reacted positively. President Aquino painted an upbeat picture of the Philippines economy, with 6.4% growth in the first quarter. He hoped the number of UK companies doing business in his country would increase.

The Lord Mayor’s visit

Lord Mayor’s visit gives a strong push to UK engagement with Philippines, highlighting the relevance of the City to the Philippines’ economic development plans, especially in the area of infrastructure and PPP. Some promising areas for commercial follow-up were identified, including professional education and qualifications. Plaudits from Asian Development Bank for DfID and DECC.lord mayor david wootton

The Lord Mayor of London visited Manila for a busy programme of high-level calls and speaking engagements on 21/22 May.   As well as the civic party, he was accompanied by representatives of Standard Chartered, the Chartered Institute for Securities & Investment (CISI) and the Philippines British Business Council.   The delegation called on President Aquino (together with the Foreign Secretary, Finance Secretary and DTI Secretary), called on Secretary for Transport Mar Roxas, and met senior financial figures over dinner, including the insurance regulator, Securities and Exchange Commission (SEC) chairwoman, and the head of the PPP Centre (which oversees PPP projects for the government).   He opened trading at the Philippine Stock Exchange and held discussions with its Chairman and President. 

In these and separate speaking engagements with the legal community, the main Philippine business associations and the British Chamber of Commerce, Alderman Wootton delivered compelling messages about British engagement with the Asian emerging powers, and the relevance of the City offering to Philippine development needs.

UK expertise in PPP 

Philippine Ministers highlighted the administration’s commitment to transparency and infrastructure development.  The Finance Secretary paid tribute to the UK’s expertise in PPP, including the assistance provided by the Embassy and Infrastructure UK to shape Philippine thinking.  It was confirmed that the first rail PPP (Light Rail Transit line 1) would be bid out this week.  UK companies could bid for this and other projects alone; they did not have to partner with Philippine companies.  The Philippine side identified other opportunities, from airport slot management, to rehabilitation of commuter rail links and conversion of buses to compressed natural gas. 

 Financial training and qualifications

The Finance Secretary, SEC Chair, Stock Exchange management and banking representatives showed significant interest in the financial qualifications provided by CISI.   These qualifications meet a need in the local financial sector to strengthen capacity.  CISI’s regional representative has already established some good leads which UKTI will help follow up.

Philippine Stock Exchange (PSE)

The Chairman confirmed the PSE’s commitment to strengthening corporate governance.  They will establish a board with stricter listing standards than the main exchange: the ground-work for this was laid by an Embassy project with PSE. It also became clear that there is a real opportunity to help the Exchange upgrade its technical (i.e. fibre optic) connections to other exchanges, to support international trading.  The City is well placed to respond to this need, and the party will follow up in London.   There may be a similar opportunity to deliver services on a regional basis with other ASEAN exchanges.

Transparency and Corruption

At the Lord Mayor’s breakfast meeting with lawyers and legal practitioners there was interest in UK expertise in the area of anti-corruption and transparency, including the Bribery Act and opportunities to extend cooperation against money-laundering.   We have been active in this area (including through the visit by SFO head Richard Alderman); the imminent entry into force of the UK-Philippine Mutual Legal Assistance Treaty will give efforts a further boost.  We will explore opportunities to expand cooperation, given the extent to which corruption is an issue for British business here.

Asian Development Bank

The Lord Mayor called on the President and senior officials of the Asian Development Bank (ADB), headquartered in Manila.   They were enthusiastic about their links with HMG, highlighting cooperation with DFID and DECC, and welcoming the UK’s contribution to replenishment of the Asian Development Fund (ADF) (we were the fourth largest contributor).   Tribute was paid to UKTI’s work in linking British consultants and service providers to the Bank: in 2011 the UK was second only to the US in securing ADB contracts.  

ADB staff expressed concern about the impacts of the Eurozone crisis on their work.  ADB projects typically require long-term funding commitments in more difficult markets.  Many banks were now stepping back from cross-border risk and ADB was finding it more difficult to mobilise longer term co-financing (though this was less of a problem with their UK lenders – HSBC, RBS etc).  

It is six years since the last Lord Mayor visit, and with prospects for the Philippine economy and financial sector looking up, this was the right time to re-establish contact.    The high-level access and excellent media coverage demonstrate the regard in which the UK is held here.

 

Credit to UKTI for reporting on the visits.

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Oil & Gas News from UKTI May 2012

DOE to open bidding for oil and gas explorationoil & gas news

The Philippine Department of Energy (DoE) is set to open the bids for oil and gas exploration in the country this April.  Part of the Philippine Energy Contracting Round (PECR) 4, there are 15 areas for bidding – 3 onshore and 12 offshore sites. These areas are estimated to generate investments worth USD500 million per area. 
There are 41 prequalified exploration companies including British firms, Shell and
Pitkin Petroleum.   

Galoc resumes production

According to Galoc Production Company, operator of the Galoc oil field, it will resume production in Galoc this April after a refurbishment shutdown.  Forum Energy has 2% interest in the production. Its refurbishment included maintenance and inspection works and upgrade of systems.  A plan to move to Phase 2 development of the oil field is underway. Galoc field is located offshore Palawan and is under the Service Contract 14C.  

Natural Gas Reserves in Recto Bank

UK registered firm, Forum Energy, reported that Recto Bank may have 16 trillion cubic feet of natural gas.  This is based on the interpretation of the 3D and 2D data acquired from the Sampaguita Gas Field. Recto Bank under SC 72 is within the Spratlys Group of Islands, part of which is in dispute due to territorial claims of various Asian countries including China.  Local company, Philex Mining has major interest in Forum Energy are now looking for
funding to push through with the exploration. SC 72 covers 880,000 hectares of Recto Bank.  This is within the country’s 200-nautical-mile exclusive economic zone based on Republic Act 9522, or the Philippine Archipelagic Baselines Law, signed on March 10, 2009.

 

Information from the UKTI Asia Pacific Oil & Gas Newsletter.

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