MVP, Gokongwei firm up joint venture

Bidding for P17.5-B Mactan airport project


Manuel V. Pangilinan. INQUIRER file photo

After their game-changing partnership in telecommunications, businessman Manuel V. Pangilinan and tycoon John Gokongwei have formed a new alliance to jointly bid for the P17.5-billion Mactan Cebu International Airport passenger terminal redevelopment project.

Pangilinan-led Metro Pacific Investments Corp. and Gokongwei-led JG Summit Holdings disclosed to the Philippine Stock Exchange Monday the signing of a deal to create a joint-venture firm called MPIC-JGS Airport Consortium Inc., which will be their local infrastructure-building platform.

The consortium formed by two of the country’s biggest conglomerates intends not only to bid for the rehabilitation and expansion of the Mactan-Cebu International Airport but to explore other airport projects that may be rolled out by the government in the future.

MPIC-JGS will be majority-owned by MPIC while JG Summit will own 33 percent. An airport operator partner will be given a 10-percent stake.

With a combined market capitalization of P398 billion, MPIC and JG Summit are pooling resources in what is expected to be a stiff race to redevelop the Mactan-Cebu airport, the country’s second-biggest international gateway, under a public-private partnership (PPP) framework. The Ayala and Aboitiz conglomerates earlier teamed up for the project while another strong contender is San Miguel Corp., the lead operator of the Caticlan airport, the gateway to the world-famous Boracay island.

MPIC’s experience as the leading infrastructure investment company transforming regulated businesses in water utilities, electricity distribution, toll roads and other public infrastructure projects combined with the expertise of JG Summit in the fields of commercial real estate, hotel and property development, and air transportation can create a strong alliance in the government’s airport rehabilitation project.

In 2011, Philippine Long Distance Telephone Co., which is also led by First Pacific Co. Ltd., forged an alliance with the Gokongweis on the telecom business.  PLDT took over majority control of Gokongwei-led Digital Telecommunications Philippines Inc. (Digitel) in a share-swap deal that made JG Summit a minority investor in PLDT. The consolidation gave the PLDT group 70-percent control of the country’s wireless phone market.

Meanwhile, MPIC has earlier formed a separate alliance with the Ayala group that intends to vie for 10 potential railway projects in Metro Manila under the master plan made by the government for urban railways.

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  • stoich_craw

    I still bet with the Ayala-Aboitiz partnership. They dont have (as far as I know) major interests in major airlines unlike JG. Kahit iparada pa ni Aboitiz yung barko nila sa Mactan airport, basta ala Greenbelt ang itsura ng airport, ayos lang.

  • Yobhtron

    More infra projects, more jobs for the Filipinos.  Taas Pinas!

    • frank

      marami nga infra mahal nmn singil… look at toll ways

      • WeAry_Bat

         Yes, toll fares are isolating areas which had been isolated before by years of the road construction.  Not so fast growth in Alabang, after Caloocan there seems to be wilderness. 

        This is not yet considering the effect of expressways are the same with flyovers, they make business slow in the side of their roads. 

  • Jasper Cuña

    ang bagal ng devlopment talaga sa province compare to there priorirty sa Metro Manila

  • NeilLuna

    At last we, Cebuanos will be getting a world-class airport terminal! I hope this will further boost tourism in the Visayas area.

    • WeAry_Bat

       Sir, there is a saying I heard in the comments some time ago and to be concise, it was like this, mey konting embellishment lang:

      Where there is MVP,
      there is PI (price increase)
      and consumers go PI (tagalog word)

  • Yxon

    this is good for the progress, however, please avoid having an airport exclusive for a specific airline, there is just too much hassles to the weary passengers, as in the NAIA 1,2,3 case

  • barok

    where does MVP get all these $$$? TV5 is a billion peso losing business and yet here he is bidding for another billion peso project.

    • bicolokano

      puro loans yan.  Pag mga ganyang project kasi, okay lang sa mga banks ang magloan since yung project mismo magiging collateral – syempre andun na rin yung reputation ni MVP as a businessman.

      TV5 naman, di tatakbo na palugi for too long,  malamang projected na nila kung kelan magkick in and “kita”.     

      • WeAry_Bat

         hehe, especially if the sister companies will also have their ads in the station.

      • bicolokano

        tama ka diyan!  and all other activities na pwedeng pagkakitaan ng iba’t iba nila kumpanya:  concessions, outsourced services, etc.. 

      • WeAry_Bat

         nagpalitan lang o pinaikot lang nila ang mga pera nila sa isa’t isa hehehe

  • go88

    when two chinks band together to plunder filipinos are on the loosing side

    • NeilLuna

      Making racists comments like that is irresponsible. Why can’t you just make sensible posts?

      • go88

         Who’s more racist than the chinese themselves?

        Ok, I’ll reformulate … how about this … Two oversea chinese  -one a well known  marcos crony, the other a money-washing dummy of the chinese salim familly (cronies of ousted indonesian dictator suharto)- firm up in order to obtain from their chinese friends in the government, with help of the usual gifts, building contracts for the airport in Mactan and other places in the Philippines?

    • Handiong

      Stop being a victim. That’s the trouble with some of us, Filipinos. They see themselves as victims of the success of others. Instead of taking responsibility for their own lives, they always blame their condition in life on others, and it’s always the Chinese who are the culprits. They see the Chinese working hard and succeeding in business and they feel victimized. They see the Chinese earn profits from legitimate businesses and they call it “plunder”.

      • go88

        I’d like to see the percentage of chinese legitimate businesses … the majority of the big chinese business players were marcos cronnies. Other made their money in different illegal ventures usury,smuggling, drugs, price fixing … the list is long.
        Maybe some of their mature businesses seem legitimate but the capital that funded them was not.

        Chinese thrive in corruption, they won’t do that well in an environment with a fair market and where the law can’t be bent with the help of bribes. Those chink immigrants illegally took control of our economy and now want  you to believe in that hard work as their sole factor of success. If you believe in those fairy tales you let them win.

      • Handiong

        Even before Marcos, the Chinese have always dominated business in the Philippines. Even before and during the Spanish and American colonial periods, the Chinese had dominated business in the Philippines. Go to any town in the Philippines and, more often than not, the businesses are owned by the local Chinese.

        Corruption, illegal ventures, usury (by the way, the anti-usury law has long been repealed), smuggling, drugs, price-fixing, and all the other things in your long list are not Chinese monopolies. And guess who facilitate these nefarious activities? The Filipino bureaucrats who got their jobs in government through their political padrinos because they cannot hack it in the private sector and cannot take personal responsibility for their lives. Stop looking for scapegoats for your failures. Stop being a victim of the success of others. Stop being a cry-baby. Get out of your deep sense of victim-hood.

        Now, tell me in all honesty, that you DON’T patronize, 100%, any of the Chinese businesses. Tell me, in all honesty, that you DON’T benefit from any of their products and services. Tell me that, and I’ll call you a LIAR.

  • Weder-Weder Lang

    “After their game-changing partnership in telecommunications, businessman Manuel V. Pangilinan and tycoon John Gokongwei have formed a new alliance . . . ”

    Doris Dumlao does it again. This time cheering the gobbling up of Sun by Smart as a game-changing triumph. A triumph for the telco duopoly (Globe & Smart). A game changer that deprived the Filipino consumers of more competition, cheaper rates and better quality of service. Aside from cheering the PSEi bubble, Doris Dumlao is now the cheerleader for Manny Pangilinan. Kung sa bagay, PDI is partially owned by Manny Pangilinan and Doris Dumlao is just doing her job.

    Incidentally, what’s Manny Pangilinan still doing in the Philippines? Sabi niya babalik na sya ng HK. Ang gulo-gulo talaga ni Manny.

    • frank

      mas marami resources sa Pinas kay sa HK

    • WeAry_Bat

       It looks like a megamonopoly linking with other monopolies.  The lamentable thing is, it is not an industrial zaibatsu that is forming up.  It is still similar to a middle man business.

      But come 2020, the real president of the Philippines will be MVP. 

      • Weder-Weder Lang

        Or, the money behind MVP. Either way, san pa lulugar si Juan dela Cruz. Haaay.

  • mamamiamia

    Wow, this is music and $$$ (off course naman ano!)to my ears (and eyes na rin) ! Excellent Alliance mga amiga!

  • Mamerto

    Has any-one or any-body(?) checked the fundings/financing of this guy.?
    It’s either “tax-evasion” or a “foreigner’s dummy”…!

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