Aboitiz to bid for more PPP projects
MANILA, Philippines – Aboitiz Equity Ventures (AEV) said it is eyeing more public-private partnership (PPP) projects as it sees infrastructure development as a key source of growth.
Participating in more PPP projects is in line with AEV’s thrust of focusing on infrastructure to grow its business, and also to support the Philippine economy.
Specifically, AEV’s AboitizLand has allotted a capital expenditure budget of P5.4 billion ($123.66 million) in 2014, a 35% rise from 2013 as it sets its sights on expanding nationwide.
“We remain bullish on the property sector and want to enter the market nationally,” AboitizLand President and Chief Executive Officer Andoni Aboitiz said Wednesday, July 2.
As such, infrastructure development is also increasingly becoming part of AboitizLand’s portfolio as it looks into more PPP projects.
“We are looking at more airport and toll road projects,” Aboitiz added.
AEV’s property arm AboitizLand and Ayala Corporation submitted the highest bid for the P35.4 billion ($810.63 million) Cavite-Laguna Expressway project under Team Orion.
Team Orion submitted on June 13 a concession payment of P11.66 billion ($267 million) for the PPP project.
The Department of Public Works and Highways (DPWH) though has indefinitely suspended the awarding of the Calax project to Team Orion after disqualified bidder San Miguel Corporation (SMC), whose appeal was rejected by the DPWH several times, elevated the issue to Office of the President.
More than 50% of AboitizLand’s capital expenditure is allocated to residential development, while the rest will go to industrial and commercial projects.
Apart from its existing land bank in Cebu, it is now looking at gaining a foothold in Mindanao through residential and industrial developments in Davao City.
In Luzon, it recently expanded its LiMA Technology Center to 486 hectares in Batangas, through the acquisition of another 153 hectares to take advantage of the growing demand for more industrial space in Luzon.
AboitizLand is also looking at venturing into residential and commercial developments in Mega Manila in the medium-term.
“Our vision is not just to build, but to establish thriving communities where we are located,” Aboitiz said.
AboitizLand currently has 8 ongoing residential projects in Cebu, comprised of both vertical and horizontal developments. It recently opened Phase 2 of its Pristina North Residences in its integrated community Pristina North.
Through a joint venture with Ayala Land, AboitizLand is also developing a new business district on a 15-hectare lot in Mandaue City, Cebu, to be launched in 2015.
AboitizLand reported a 181%-increase in its bottomline in the first quarter to P121.1 million ($2.77 million) from P43.1 million ($984,660) in the same period last year. The growth was mainly due to the 100% consolidation of LiMA Land, Inc – Rappler.com
Infrastructure image via Shutterstock