# Presentation: 695351

## Philippines: Medical Market

- U.S. Commercial Service
- U.S. Embassy Manila, Philippines

- www.buyusa.gov/philippines

## Market Overview

- Total Market: US$88 million
- Total Imports: US$125 million
- Total Exports: US$37 million
- Local Production: *
- *Insignificant amount:  Medical equipment market is almost 100% imported
- Total Market = Local Production + Imports – Exports
- The above are 2006 estimated data

**Notes:**
On its sixth year of implementation, the Electric Power Industry Reform Act (EPIRA) continues to be the country’s blueprint for the restructuring of the generation, transmission and distribution of electric power. To date, the EPIRA-created Power Sector Assets and Liabilities Management Corporation (PSALM), tasked to sell the assets of state-owned National Power Corporation (NPC), has so far awarded 11 percent out of a total required 70 percent of all of NPC’s generating assets.  Among those lined up for the auction block within 2007 are two coal plants (including a re-bid of the 600 MW Masinloc plant after the original winning bidder failed to deliver upfront payment) and a geothermal plant. 

Efforts to effect open access and retail competition are now under way. In June 2006, the Wholesale Electricity Spot Market (WESM) commenced its commercial operations initially to serve the main Luzon grid.  

Meanwhile, PSALM is also preparing to award a 25-year concession to operate and maintain the country’s transmission facilities (currently under the National Transmission Corporation or TransCo). In early February 2007, a fourth re-bid was declared a failure after only one of three pre-qualified parties tabled a bid.  As of this writing, government is still contemplating on its next steps. 

In December 2006, U.S. based Mirant Corporation, the Philippines’ largest private independent power producer (IPP), announced that it has sold its power plants in the Philippines to a Japanese consortium led by Marubeni Corporation and Tokyo Electric and Power Company (Tepco). The sale of Mirant’s assets in the Philippines and elsewhere in the Pacific follows the parent company’s strategy of consolidating its finances, improving liquidity and focusing on its existing U.S. businesses. 

The Asian Development Bank (ADB) recently approved a $450 million loan to mobilize the Power Sector Development Program for the Philippines. The funds will be used mainly to assist the Philippine government in its power restructuring efforts and introduce a competitive market for electricity. Specifically, the loan proceeds will help the government absorb a significant portion of the liabilities incurred by state-owned NPC.

Demand for power continues to surge, and would require additional capacities in the main grid areas (Luzon, Visayas and Mindanao) within the next five years or so, while old power plants are being retired or decommissioned.  DOE projects critical periods for the main grids Luzon (2010), Visayas (2011) and Mindanao (2009) where power supply and demand are expected to reach equilibrium and there are no new generating capacities added.  Meanwhile, the DOE reports that several indicative power projects (mainly using coal, hydropower and geothermal) have been identified and are expected to become operational between 2008 and 2012.  Among the recent capacity additions is a 210 MW coal plant built by German firm Steag in Misamis Oriental launched in January 2007. 

##  Best Sales Prospects 

- Medical, Surgical, and Laboratory Sterilizers
- Ultrasonic scanning apparatus
- Electrodiagnostic/Electromedical apparatus
- Mechano-therapy appliances
- Ozone, oxygen, and aerosol therapy eqpt
- Orthopedic/fracture appliances
- Alpha, Beta/gamma radiography equipment

**Notes:**
On its sixth year of implementation, the Electric Power Industry Reform Act (EPIRA) continues to be the country’s blueprint for the restructuring of the generation, transmission and distribution of electric power. To date, the EPIRA-created Power Sector Assets and Liabilities Management Corporation (PSALM), tasked to sell the assets of state-owned National Power Corporation (NPC), has so far awarded 11 percent out of a total required 70 percent of all of NPC’s generating assets.  Among those lined up for the auction block within 2007 are two coal plants (including a re-bid of the 600 MW Masinloc plant after the original winning bidder failed to deliver upfront payment) and a geothermal plant. 

Efforts to effect open access and retail competition are now under way. In June 2006, the Wholesale Electricity Spot Market (WESM) commenced its commercial operations initially to serve the main Luzon grid.  

Meanwhile, PSALM is also preparing to award a 25-year concession to operate and maintain the country’s transmission facilities (currently under the National Transmission Corporation or TransCo). In early February 2007, a fourth re-bid was declared a failure after only one of three pre-qualified parties tabled a bid.  As of this writing, government is still contemplating on its next steps. 

In December 2006, U.S. based Mirant Corporation, the Philippines’ largest private independent power producer (IPP), announced that it has sold its power plants in the Philippines to a Japanese consortium led by Marubeni Corporation and Tokyo Electric and Power Company (Tepco). The sale of Mirant’s assets in the Philippines and elsewhere in the Pacific follows the parent company’s strategy of consolidating its finances, improving liquidity and focusing on its existing U.S. businesses. 

The Asian Development Bank (ADB) recently approved a $450 million loan to mobilize the Power Sector Development Program for the Philippines. The funds will be used mainly to assist the Philippine government in its power restructuring efforts and introduce a competitive market for electricity. Specifically, the loan proceeds will help the government absorb a significant portion of the liabilities incurred by state-owned NPC.

Demand for power continues to surge, and would require additional capacities in the main grid areas (Luzon, Visayas and Mindanao) within the next five years or so, while old power plants are being retired or decommissioned.  DOE projects critical periods for the main grids Luzon (2010), Visayas (2011) and Mindanao (2009) where power supply and demand are expected to reach equilibrium and there are no new generating capacities added.  Meanwhile, the DOE reports that several indicative power projects (mainly using coal, hydropower and geothermal) have been identified and are expected to become operational between 2008 and 2012.  Among the recent capacity additions is a 210 MW coal plant built by German firm Steag in Misamis Oriental launched in January 2007. 

## Number of Licensed Hospitals and Authorized Bed Capacities

| Number of Hospitals: |  |
| --- | --- |
| Government | 640 |
| Private | 1,068 |
| TOTAL | 1,708 |
|  |  |
| Number of Authorized Bed Capacities: |  |
| Government | 40,202 |
| Private | 39,242 |
| TOTAL | 79,444 |

**Notes:**
On its sixth year of implementation, the Electric Power Industry Reform Act (EPIRA) continues to be the country’s blueprint for the restructuring of the generation, transmission and distribution of electric power. To date, the EPIRA-created Power Sector Assets and Liabilities Management Corporation (PSALM), tasked to sell the assets of state-owned National Power Corporation (NPC), has so far awarded 11 percent out of a total required 70 percent of all of NPC’s generating assets.  Among those lined up for the auction block within 2007 are two coal plants (including a re-bid of the 600 MW Masinloc plant after the original winning bidder failed to deliver upfront payment) and a geothermal plant. 

Efforts to effect open access and retail competition are now under way. In June 2006, the Wholesale Electricity Spot Market (WESM) commenced its commercial operations initially to serve the main Luzon grid.  

Meanwhile, PSALM is also preparing to award a 25-year concession to operate and maintain the country’s transmission facilities (currently under the National Transmission Corporation or TransCo). In early February 2007, a fourth re-bid was declared a failure after only one of three pre-qualified parties tabled a bid.  As of this writing, government is still contemplating on its next steps. 

In December 2006, U.S. based Mirant Corporation, the Philippines’ largest private independent power producer (IPP), announced that it has sold its power plants in the Philippines to a Japanese consortium led by Marubeni Corporation and Tokyo Electric and Power Company (Tepco). The sale of Mirant’s assets in the Philippines and elsewhere in the Pacific follows the parent company’s strategy of consolidating its finances, improving liquidity and focusing on its existing U.S. businesses. 

The Asian Development Bank (ADB) recently approved a $450 million loan to mobilize the Power Sector Development Program for the Philippines. The funds will be used mainly to assist the Philippine government in its power restructuring efforts and introduce a competitive market for electricity. Specifically, the loan proceeds will help the government absorb a significant portion of the liabilities incurred by state-owned NPC.

Demand for power continues to surge, and would require additional capacities in the main grid areas (Luzon, Visayas and Mindanao) within the next five years or so, while old power plants are being retired or decommissioned.  DOE projects critical periods for the main grids Luzon (2010), Visayas (2011) and Mindanao (2009) where power supply and demand are expected to reach equilibrium and there are no new generating capacities added.  Meanwhile, the DOE reports that several indicative power projects (mainly using coal, hydropower and geothermal) have been identified and are expected to become operational between 2008 and 2012.  Among the recent capacity additions is a 210 MW coal plant built by German firm Steag in Misamis Oriental launched in January 2007. 

##  Market Entry   

- Distributors
- Tariff Rates + Value-Added Tax (VAT) (3% tariff duty and a 12% value‐added tax or VAT on imported medical equipment.
- Medical equipment (except for a radiation emitting device) is not subject to registration requirements.
- Guidelines for registering x-ray equipment may be viewed in this website:  http://www.doh.gov.ph/hosp/checklist.doc

**Notes:**
On its sixth year of implementation, the Electric Power Industry Reform Act (EPIRA) continues to be the country’s blueprint for the restructuring of the generation, transmission and distribution of electric power. To date, the EPIRA-created Power Sector Assets and Liabilities Management Corporation (PSALM), tasked to sell the assets of state-owned National Power Corporation (NPC), has so far awarded 11 percent out of a total required 70 percent of all of NPC’s generating assets.  Among those lined up for the auction block within 2007 are two coal plants (including a re-bid of the 600 MW Masinloc plant after the original winning bidder failed to deliver upfront payment) and a geothermal plant. 

Efforts to effect open access and retail competition are now under way. In June 2006, the Wholesale Electricity Spot Market (WESM) commenced its commercial operations initially to serve the main Luzon grid.  

Meanwhile, PSALM is also preparing to award a 25-year concession to operate and maintain the country’s transmission facilities (currently under the National Transmission Corporation or TransCo). In early February 2007, a fourth re-bid was declared a failure after only one of three pre-qualified parties tabled a bid.  As of this writing, government is still contemplating on its next steps. 

In December 2006, U.S. based Mirant Corporation, the Philippines’ largest private independent power producer (IPP), announced that it has sold its power plants in the Philippines to a Japanese consortium led by Marubeni Corporation and Tokyo Electric and Power Company (Tepco). The sale of Mirant’s assets in the Philippines and elsewhere in the Pacific follows the parent company’s strategy of consolidating its finances, improving liquidity and focusing on its existing U.S. businesses. 

The Asian Development Bank (ADB) recently approved a $450 million loan to mobilize the Power Sector Development Program for the Philippines. The funds will be used mainly to assist the Philippine government in its power restructuring efforts and introduce a competitive market for electricity. Specifically, the loan proceeds will help the government absorb a significant portion of the liabilities incurred by state-owned NPC.

Demand for power continues to surge, and would require additional capacities in the main grid areas (Luzon, Visayas and Mindanao) within the next five years or so, while old power plants are being retired or decommissioned.  DOE projects critical periods for the main grids Luzon (2010), Visayas (2011) and Mindanao (2009) where power supply and demand are expected to reach equilibrium and there are no new generating capacities added.  Meanwhile, the DOE reports that several indicative power projects (mainly using coal, hydropower and geothermal) have been identified and are expected to become operational between 2008 and 2012.  Among the recent capacity additions is a 210 MW coal plant built by German firm Steag in Misamis Oriental launched in January 2007. 

## Product Registration Requirements

- Except for radiation emitting devices, medical equipment is not subject to registration requirements
- Guidelines for registering x-ray equipment may be obtained from the Department of Health:  http://www.doh.gov.ph/hosp/checklist.doc
- For registration of Biologicals, Diagnostics and other medical products, please refer to Bureau of Food and Drugs website: http://www.bfad.gov.ph/regulated%20products.htm

**Notes:**
On its sixth year of implementation, the Electric Power Industry Reform Act (EPIRA) continues to be the country’s blueprint for the restructuring of the generation, transmission and distribution of electric power. To date, the EPIRA-created Power Sector Assets and Liabilities Management Corporation (PSALM), tasked to sell the assets of state-owned National Power Corporation (NPC), has so far awarded 11 percent out of a total required 70 percent of all of NPC’s generating assets.  Among those lined up for the auction block within 2007 are two coal plants (including a re-bid of the 600 MW Masinloc plant after the original winning bidder failed to deliver upfront payment) and a geothermal plant. 

Efforts to effect open access and retail competition are now under way. In June 2006, the Wholesale Electricity Spot Market (WESM) commenced its commercial operations initially to serve the main Luzon grid.  

Meanwhile, PSALM is also preparing to award a 25-year concession to operate and maintain the country’s transmission facilities (currently under the National Transmission Corporation or TransCo). In early February 2007, a fourth re-bid was declared a failure after only one of three pre-qualified parties tabled a bid.  As of this writing, government is still contemplating on its next steps. 

In December 2006, U.S. based Mirant Corporation, the Philippines’ largest private independent power producer (IPP), announced that it has sold its power plants in the Philippines to a Japanese consortium led by Marubeni Corporation and Tokyo Electric and Power Company (Tepco). The sale of Mirant’s assets in the Philippines and elsewhere in the Pacific follows the parent company’s strategy of consolidating its finances, improving liquidity and focusing on its existing U.S. businesses. 

The Asian Development Bank (ADB) recently approved a $450 million loan to mobilize the Power Sector Development Program for the Philippines. The funds will be used mainly to assist the Philippine government in its power restructuring efforts and introduce a competitive market for electricity. Specifically, the loan proceeds will help the government absorb a significant portion of the liabilities incurred by state-owned NPC.

Demand for power continues to surge, and would require additional capacities in the main grid areas (Luzon, Visayas and Mindanao) within the next five years or so, while old power plants are being retired or decommissioned.  DOE projects critical periods for the main grids Luzon (2010), Visayas (2011) and Mindanao (2009) where power supply and demand are expected to reach equilibrium and there are no new generating capacities added.  Meanwhile, the DOE reports that several indicative power projects (mainly using coal, hydropower and geothermal) have been identified and are expected to become operational between 2008 and 2012.  Among the recent capacity additions is a 210 MW coal plant built by German firm Steag in Misamis Oriental launched in January 2007. 

## Government Contacts

- Dr. Francisco T. Duque, Secretary
- Department of Health (DOH)
- San Lazaro Hospital Compound
- Rizal Avenue, Sta. Cruz, Manila
- Phones: (632) 743-8301 to 23 / Fax: (632) (632) 743-1829
- E-mail: ftduque@co.doh.gov.ph
- Website: www.doh.gov.ph
- Professor Leticia Barbara B. Gutierrez, Director
- Bureau of Food and Drugs (BFAD)
- DOH Compound, Civic Drive Filinvest Corporate City
- Alabang, Muntinlupa, Metro Manila
- Phones: (632) 807-0725; 807-0726 / Fax: (632) 807-0751
- E-mail: lbgutierrez@bfad.gov.ph
- Website: www.bfad.gov.ph

**Notes:**
On its sixth year of implementation, the Electric Power Industry Reform Act (EPIRA) continues to be the country’s blueprint for the restructuring of the generation, transmission and distribution of electric power. To date, the EPIRA-created Power Sector Assets and Liabilities Management Corporation (PSALM), tasked to sell the assets of state-owned National Power Corporation (NPC), has so far awarded 11 percent out of a total required 70 percent of all of NPC’s generating assets.  Among those lined up for the auction block within 2007 are two coal plants (including a re-bid of the 600 MW Masinloc plant after the original winning bidder failed to deliver upfront payment) and a geothermal plant. 

Efforts to effect open access and retail competition are now under way. In June 2006, the Wholesale Electricity Spot Market (WESM) commenced its commercial operations initially to serve the main Luzon grid.  

Meanwhile, PSALM is also preparing to award a 25-year concession to operate and maintain the country’s transmission facilities (currently under the National Transmission Corporation or TransCo). In early February 2007, a fourth re-bid was declared a failure after only one of three pre-qualified parties tabled a bid.  As of this writing, government is still contemplating on its next steps. 

In December 2006, U.S. based Mirant Corporation, the Philippines’ largest private independent power producer (IPP), announced that it has sold its power plants in the Philippines to a Japanese consortium led by Marubeni Corporation and Tokyo Electric and Power Company (Tepco). The sale of Mirant’s assets in the Philippines and elsewhere in the Pacific follows the parent company’s strategy of consolidating its finances, improving liquidity and focusing on its existing U.S. businesses. 

The Asian Development Bank (ADB) recently approved a $450 million loan to mobilize the Power Sector Development Program for the Philippines. The funds will be used mainly to assist the Philippine government in its power restructuring efforts and introduce a competitive market for electricity. Specifically, the loan proceeds will help the government absorb a significant portion of the liabilities incurred by state-owned NPC.

Demand for power continues to surge, and would require additional capacities in the main grid areas (Luzon, Visayas and Mindanao) within the next five years or so, while old power plants are being retired or decommissioned.  DOE projects critical periods for the main grids Luzon (2010), Visayas (2011) and Mindanao (2009) where power supply and demand are expected to reach equilibrium and there are no new generating capacities added.  Meanwhile, the DOE reports that several indicative power projects (mainly using coal, hydropower and geothermal) have been identified and are expected to become operational between 2008 and 2012.  Among the recent capacity additions is a 210 MW coal plant built by German firm Steag in Misamis Oriental launched in January 2007. 

**Thank you &****See you in the Philippines! **

**Judy Reinke **
- Judy.Reinke@mail.doc.gov
- Commercial Counselor

**Dey Robles **
- Dey.Robles@mail.doc.gov
- Commercial Specialist

**U.S. Commercial Service**
**U.S. Embassy Manila, Philippines**

**Notes:**
On its sixth year of implementation, the Electric Power Industry Reform Act (EPIRA) continues to be the country’s blueprint for the restructuring of the generation, transmission and distribution of electric power. To date, the EPIRA-created Power Sector Assets and Liabilities Management Corporation (PSALM), tasked to sell the assets of state-owned National Power Corporation (NPC), has so far awarded 11 percent out of a total required 70 percent of all of NPC’s generating assets.  Among those lined up for the auction block within 2007 are two coal plants (including a re-bid of the 600 MW Masinloc plant after the original winning bidder failed to deliver upfront payment) and a geothermal plant. 

Efforts to effect open access and retail competition are now under way. In June 2006, the Wholesale Electricity Spot Market (WESM) commenced its commercial operations initially to serve the main Luzon grid.  

Meanwhile, PSALM is also preparing to award a 25-year concession to operate and maintain the country’s transmission facilities (currently under the National Transmission Corporation or TransCo). In early February 2007, a fourth re-bid was declared a failure after only one of three pre-qualified parties tabled a bid.  As of this writing, government is still contemplating on its next steps. 

In December 2006, U.S. based Mirant Corporation, the Philippines’ largest private independent power producer (IPP), announced that it has sold its power plants in the Philippines to a Japanese consortium led by Marubeni Corporation and Tokyo Electric and Power Company (Tepco). The sale of Mirant’s assets in the Philippines and elsewhere in the Pacific follows the parent company’s strategy of consolidating its finances, improving liquidity and focusing on its existing U.S. businesses. 

The Asian Development Bank (ADB) recently approved a $450 million loan to mobilize the Power Sector Development Program for the Philippines. The funds will be used mainly to assist the Philippine government in its power restructuring efforts and introduce a competitive market for electricity. Specifically, the loan proceeds will help the government absorb a significant portion of the liabilities incurred by state-owned NPC.

Demand for power continues to surge, and would require additional capacities in the main grid areas (Luzon, Visayas and Mindanao) within the next five years or so, while old power plants are being retired or decommissioned.  DOE projects critical periods for the main grids Luzon (2010), Visayas (2011) and Mindanao (2009) where power supply and demand are expected to reach equilibrium and there are no new generating capacities added.  Meanwhile, the DOE reports that several indicative power projects (mainly using coal, hydropower and geothermal) have been identified and are expected to become operational between 2008 and 2012.  Among the recent capacity additions is a 210 MW coal plant built by German firm Steag in Misamis Oriental launched in January 2007.