Ayala unit to bid for P170.7-B railway contract

Reuters

Posted at Mar 30 2015 07:17 PM | Updated as of Mar 31 2015 03:17 AM

MANILA - Philippine conglomerate Ayala Corp's infrastructure unit intends to bid for a P170.7 billion ($3.8 billion) government railway contract and has started talks with potential partners, the company's president said on Monday.

AC Infrastructure Holdings Corp did not identify its potential partners and the government has yet to set a specific date for the tender, saying it would likely be within the year.

The North-South Railway Project-South Line, however, is one of the biggest road and railway project the government is offering under a private-public partnership program aimed at attract private investment to the country's often decrepit, or lacking, infrastructure.

"To us, it is the most interesting one out of those big ticket projects," John Eric Francia, AC Infrastructure president, told reporters. "If and when that is bidded out, it is something that we would like to take a serious look at."

The project involves rehabilitating and adding railway lines to link Manila to the central province of Albay and areas in between.

Asia's second fastest growing nation has so far awarded nine projects worth P130 billion since it launched the PPP scheme in 2010.

Francia also said the group was committed to expanding its power assets, mainly wind and coal-fired projects, to 1,000 megawatts by 2016 from over 700 MW now.

This figure could rise to 1,500 MW after 2016 depending on a review of the company's long-term development plan, Francia added.