Metro Pacific sets P73.2-B capex for this year

Singapore—Hong Kong’s First Pacific Co. Ltd. is investing an additional P73.2 billion in the Philippines in the form of its subsidiaries’ capital expenditures, mainly covering the expansion of the local unit’s public utility businesses.

In a briefing with Manila-based journalists here, top officials of First Pacific’s Philippine unit Metro Pacific Investments Corp. (MPIC) said these funds would help support the government’s plans of increasing investments in much-needed infrastructure projects.

Of the total amount, P36.3 billion was earmarked for the capex of MPIC and its subsidiaries. This is up by 58 percent year-on-year.

Philippine Long Distance Telephone Co. will get P28.6 billion while the rest will go to First Pacific’s mining subsidiaries in the Philippines—Philex Mining Corp. and Philex Petroleum Corp.

All these companies are chaired by Manuel V. Pangilinan.

MPIC chief financial officer David Nicol said Maynilad Water Services Inc., a joint venture between MPIC and DMCI Holdings, would spend P17.2 billion for the expansion of its water distribution business and sewerage facilities.

MPIC president Jose Ma. Lim said that, aside from expanding Maynilad’s water distribution network, the company was also pursuing various bulk water supply projects through Philippine Hydro Inc.

The company is looking into water supply and distribution deals in Nueva Vizcaya, Nueva Ecija, Norzagaray and Sta. Maria in Bulacan, and in Legaspi City.

Lim said there were currently 6,000 water concessionaires around the country, operated mostly by local governments.

“They are very tiny, fragmented, and politicized. We want to organize them in a way that makes water distribution efficient,” Lim said.

Maynilad is also planning to increase its stake in Subic Water to as much as 70 percent. The company has also teamed up with the Ayala group for a bulk supply project in Carmen, Cebu.

For other subsidiaries, Nicol said P2.6 billion would be earmarked for Metro Pacific Tollways Corp., P12.9 billion for Manila Electric Co. (Meralco), P1.5 billion for MPIC’s healthcare business, and P2.1 billion for infrastructure projects being pursued by MPIC.

MPIC’s infrastructure projects include the P60-billion Light Rail Transit (LRT) line 1 Cavite Extension, which will be auctioned off by the government later this year. MPIC has partnered with the Ayala Corp.  to pursue the bid for the LRT project.

For its road investments, Lim said MPTC was working to have its concession contract for the Subic-Clark-Tarlac Expressway approved this year.