MANILA, Philippines - Listed conglomerate Ayala Corp. is laying down a post-Aquino administration plan as its $1-billion investment commitment for major power and infrastructure projects is set to be completed this year.
Ayala managing director John Eric Francia said in a press conference that the conglomerate is finalizing a plan for 2016-2020 covering major power as well as infrastructure projects particularly railway projects under the public private partnership (PPP) program.
“Now we are looking at projects that we will be committing to from 2016 to 2020, that one is still a work in progress,” Francia said.
According to Francia, the Ayala Group has yet to finalize the amount of investments after committing $1 billion for six power and three infrastructure projects worth $4 billion between 2011 and 2016.
“I think we need to review it (equity investments) first. Right now it is difficult to peg a number,” he said.
For power projects, Francia said that the group is looking at further expanding its 1,000-megawatt commitment by another 500 MW after 2016.
“Based on our current pipeline, our target is 1,000 MW attributable to us. Our existing platforms should be able to expand by another 500 MW. 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 Inc. together with partners in GN Power Kauswagan Ltd Co., South Luzon Energy Corp. (SLTEC), and Northwind Power Development Corp. is pursuing several power projects with a combined capacity of 2,000 MW by 2016.
According to Francia, the company expects power projects to contribute at least 10 percent to its equity earnings by 2020.
In terms of infrastructure projects, Francia said the company is looking at major railway projects including the P171 billion North – South rail project as well as the operation and maintenance (O&M) of the Light Rail Transit line 2 (LRT-2) of the Department of Transportation and Communications (DOTC).
“In the field of infra, we want to expand the rail platform that is why we are bidding for PNR and LRT-2,” he said.
The proposed P171 billion covers a 653-kilometer stretch from Tutuban in Manila all the way to Legazpi City in Albay that has already been approved by the National Economic and Development Authority (NEDA).
The company, Francia added, would also take a look at the viability of the proposed P370-billion subway project dubbed as the Mass Transit Loop System connecting the central business districts in Manila including the Bonifacio Global City in Taguig, the Makati CBD, and the Mall of Asia area in Pasay.
He said the company is also looking at expanding its tollroad business as the P2.01 Muntilupa – Cavite expressway (MCX) would be completed in June.
The Ayala Group has interest in three of the nine PPP projects worth P135.5 billion awarded by the Aquino administration.
Ayala together with infrastructure giant Metro Pacific Investments Corp. (MPIC) through Light Rail Manila Consortium and Macquarie Infrastructure Holdings Philippines signed a concession agreement with the DOTC for the LRT-1 Cavite expansion project.
Read more on The Philippine Star