Ayala Corporation finalizes post-Aquino investment plan
MANILA, Philippines – Ayala Corporation is laying down its investment plan to be completed this year.
The listed conglomerate is finalizing a plan for 2016-2020 covering major power and infrastructure projects, particularly railway projects under the public-private partnership (PPP) scheme, Ayala Managing Director John Eric Francia said.
The Ayala group has yet to finalize the amount of investments after committing $1 billion for 6 power and 3 infrastructure projects worth $4 billion between 2011 and 2016.
For power projects, the group is looking at further expanding its 1,000-megawatt (MW) commitment by another 500 MW after 2016.
“We would need to have new location for power plants or as much as possible near the existing sites since we know the community,” he said.
The Ayala Group through AC Energy Holdings Incorporated, along with partners in GN Power Kauswagan Limited Company, South Luzon Energy Corporation (SLTEC), and Northwind Power Development Corporation are pursuing several power projects with a combined capacity of 2,000 MW by 2016.
According to him, the company expects power projects to contribute at least 10% to its equity earnings by 2020.
For infrastructure projects, Francia said the company is looking at major railway projects including the P171 billion ($3.82 billion) North-South rail project.
It is also interested in the operation and maintenance of the Light Rail Transit Line 2 (LRT2) of the Department of Transportation and Communications (DOTC).
Francia added it is also looking into the viability of the proposed P370-billion ($8.28-billion) subway project dubbed as the Mass Transit Loop System connecting the central business districts (CBDs) in Manila including the Bonifacio Global City in Taguig, the Makati CBD, and the Mall of Asia in Pasay.
The company is also looking at expanding its toll road business as the Muntinlupa-Cavite expressway (MCX) would be completed in June.
The Ayala conglomerate has interest in 3 of the 9 PPP projects worth P135.5 billion ($3.03 billion) awarded by the Aquino administration.
Ayala, together with infrastructure giant Metro Pacific Investments Corporation (MPIC) through Light Rail Manila Consortium and Macquarie Infrastructure Holdings Philippines signed a concession agreement with the DOTC for the LRT1 Cavite expansion project.
Ayala also bagged the South Luzon expressway (SLEX) link road as well as the Automated Fare Collection System (AFCS) project through a joint venture with MPIC.
The Ayala Group, together with various partners formed a “superconsortium” has also been prequalified in the P123 billion ($2.75 billion) Laguna Lakeshore expressway dike project as well as the LRT2 O&M project.
“By 2016, there will be more meaningful contribution from power and 2017 for infrastructure,” Francia said. – Rappler.com