The government cut its economic growth target for 2007 to 5.7 percent yesterday from an earlier goal of 6.1 to 6.5 percent annual growth. Budget Secretary Rolando Andaya gave the lower forecasts in a statement outlining his P1.137 trillion spending plan for next year. The government expects gross domestic product to rise by between 5.5 and 6.2 percent this year from 5 percent in 2005. GDP expanded a seasonally adjusted 0.9 percent in the first quarter from the previous three months and 5.5 percent from a year earlier, boosted by exports, higher farm output and consumption. Andaya said the 2007 budget, which has yet to be agreed by Congress, was anchored on annual average inflation next year of between 4.3 and 4.8 percent compared with an earlier target of between 4 and 5 percent. Philippine consumer prices in June rose 6.7 percent from a year earlier and the central bank expects inflation to ease in the second half of 2006 and into 2007. Inflation averaged 7.6 percent in 2005.

Seven interested parties recently attended the second pre-bid conference conducted by PSALM for the proposed sale of the 100-megawatt Pantabangan and the 12-megawatt Masiway Hydroelectric Power Plants located in Pantabangan, Nueva Ecija. "We thank the companies for expressing their continued interest in bidding for the hydroelectric power assets of the government," said Froilan A. Tampinco, PSALM vice president for Asset Management and Electricity Trading. PSALM, the agency tasked to privatize the generation assets of National Power, discussed with the investors the provisions contained in the revised draft of the Operation and Maintenance Agreement (O&M) for the two hydropower plants. The terms and conditions set by the National Irrigation Administration (NIA) regarding the commercial and technical operation and maintenance of the non-power components of the plants were also threshed out. Under its charter, the NIA administers all irrigation systems and other pertinent non-power components of multi-purpose hydropower facilities. These include the Pantabangan and Masiway Dams that supply the water used by the two hydropower plants to generate electricity. "PSALM will always endeavor to settle in a timely manner any unforeseen plant specific issues through consultation and dialogue with the interested bidders and concerned agencies of the government," Tampinco said.

With the current low prices of copra and other coconut products, Senator Edgardo J. Angara called yesterday for financial support for coconut farmers, including projects on income supplement, transportation allowance and marketing assistance to coconut farmers. Angara also called for direct buying of copra from the National Food Authority at a threshold price determined by the Philippine Coconut Authority. Angara, a former Department of Agriculture secretary, noted that copra prices have declined due to the proliferation of more competitively-priced tropical oils in the world market, based on reports of Philippine Peasant Institute (PPI), a farmer-based research and advocacy institution. Angara said that copra is now selling between P2.50 to P3.00 per kilogram while production cost is at P5 per kilogram. With break-even at P6.04 per kilogram as farmgate price, farmers are no longer harvesting coconuts. He said that more farmers are now cutting their trees and selling them as lumber instead of harvesting the coconut.

The merger between Sanofi-Synthelabo Philippines, Inc. and Aventis Pharma Inc. takes effect on August 1, 2006. The newly-merged entity has adopted the corporate name Sanofi-Aventis Philippines Inc. As a result of the successful merger, Sanofi-Aventis Philippines Inc. hopes to build on the solid foundations of shared experience and technology in confronting today’s major public health challenges. The combined strength of the two merged companies makes Sanofi-Aventis a leader in seven major therapeutic areas: cardiovascular disease, thrombosis, metabolic disorders, oncology, disorders of the central nervous system, internal medicine and vaccines. Sanofi-Aventis Philippines is an affiliate of the global pharmaceutical company Sanofi-Aventis, the world’s third largest pharmaceutical group and the largest in Europe. Ranked 5th in the local pharmaceutical market, Sanofi-Aventis Philippines Inc. is committed to ensuring what really matters: health.