The government is not ruling out the possibility of moving its target for a balanced budget to 2010 from 2008 as it pursues more infrastructure and social services spending, two budget officials said yesterday. The government is also open to raising next year’s budget deficit target from the programmed 63 billion pesos ($  1.2 billion) to increase spending, they told Reuters. "We have to catch up and increase spending for education, health and infrastructure," Budget Secretary Rolando Andaya said. "The proposal for the balanced budget was to expand it to 2010." The government originally planned to wipe out its budget deficit by 2010 but adjusted the goal to two years earlier given extra revenues from a broader and higher national sales tax, as well as new tax laws.

The government will not terminate nor seek changes in its power purchase agreements with Mirant Philippines, despite the expected change in ownership of Mirant’s power plants, Energy Secretary Raphael Lotilla said. US power company Mirant Corp. has announced plans to sell its businesses here and in the Caribbean. The assets of Mirant Philippines include two coal-fired power plants, one with a capacity of 1,218 mw and the other with a capacity of 735 mw, and a stake of 20 percent stake in a natural gas facility. "The move was not entirely unexpected, given the financial condition of Mirant Philippines’ mother company in the US, which has prompted the latter to come up with a strategic plan to enhance its company’s shareholder value after emerging from a bankruptcy protection in the US in January," Lotilla said in a statement. However, he said the buyer will be "qualified to perform the obligations of Mirant Philippines to the National Power Corp, which include the buyer’s maintenance of the contracts attached to the assets on sale." The government believes that the plants to be sold remain profitable, and foresees keen interest among investors, he said.

Chairman Miguel Varela of the Philippine Chamber of Commerce and Industry (PCCI) will lead the international business community in opening Franchise 2006 Expo at the World Trade Center today. Varela, PCCI chairman emeritus Serge Ortiz-Luis and Pasay City Mayor Wenceslao "Peewee" Trinidad will cut the ribbon signaling the opening of this international event shortly after the invocation by expo co-chair Lin Deres, welcome remarks by expo chairman Les Reyes, and inspirational messages from Secretary Arthur Yap of the Presidential Management Staff and Ambassador and PCCI president Donald Dee. Joining them at the opening are officers and members of the Asia Pacific Franchise Confederation, World Franchise Council, and the Philippine Franchise Association (PFA), the country’s premier trade organization of the franchising industry. Participating in the expo are some 200 highly successful local and foreign franchises, according to PFA chairman emeritus Samie Lim and chairperson Bing S. Limjoco.

Philex Mining Corp said it is looking into the possibility of reopening its Bulawan gold mine in the central province of Negros Occidental in light of rising prices of the precious metal. The mine was operated from 1996 to 2002 by Philex Gold Philippines Inc., a wholly owned unit of Philex Gold Inc, which is a subsidiary of publicly-listed Philex Mining. It was shut down because of lower gold prices at that time. "Because of the currently encouraging level of gold prices, Philex Gold is reviewing the possibility of reopening the Bulawan mine, but there has been no decision yet in this regard," Philex Mining told the stock exchange. Gold futures rallied overnight, closing at their highest level in more than a month, as political instability in the Middle East, India and North Korea fuelled safe-haven demand. Gold for August delivery closed up 8.10 usd at 651.20 usd an ounce on the New York Mercantile Exchange, its highest level since May 30.

Vivant Corp said its board has approved a cash dividend of P0.05862 per share to be paid on July 26 to shareholders on record as of July 19. Vivant is a major shareholder of Visayan Electric Co (VECO), the country’s second-largest private distributor of electricity whose franchise covers the central province of Cebu.

The 2006 celebration of the Small and Medium Enterprise (SME) Development Week will be held on July 17 — 23, 2006 with the theme "Sulong Negosyo". The weeklong celebration will be highlighted with an "SME EXPO" at the Market! Market! Bonifacio Global City and will feature various activities such as skills and entrepreneurship seminars, business counseling, business forum and a selling fair showcasing various regional products of over 100 SMEs.