Lucrative tollroads push MVP-led Metro Pacific to extend search outside PH

The tollroad unit of infrastructure giant Metro Pacific Investments Corp. (MPIC) hoped to finalize an investment in a Southeast Asian expressway project within the year, its chair Manuel V. Pangilinan said.

Pangilinan told reporters in a recent interview that Metro Pacific Tollways Corp. is interested in investing more in the region, citing opportunities in Malaysia and Indonesia.

“I am quite optimistic we will have an investment in both countries,” he said.

Metro Pacific Tollways, which operates the North Luzon Expressway, Subic-Clark-Tarlac Expressway and Cavite Expressway, has already invested in roads in Vietnam and Thailand, part of what it called a Pan-Asean expansion strategy.

He said a deal was “imminent” for at least one tollroad “within the Asean region.” He added that another transaction was being targeted for 2018.

“We want to build eventually a Pan-Asean tollways group,” Pangilinan said.

Metro Pacific is eyeing a similar strategy for its water group. Its water portfolio in the Philippines is mainly held through Maynilad Water Services Inc.

In the Philippines, tollroads are located in Metro Manila and nearby provinces. These are controlled by three groups: Metro Pacific and San Miguel Corp. and to a smaller extent, Ayala Corp.

Metro Pacific, which is also involved in power distribution and hospital operations, sees tollroads as a major contributor to earnings.

In Thailand, the company invested in Don Muang Tollway Public Company Ltd., while in Vietnam, it invested in CII Bridges and Roads Investment Joint Stock Co.

Metro Pacific earlier reported core profit in the first half of 2017 hit P7.8 billion, up 17 percent. System-wide revenues rose 10 percent to P184 billion. Its tollroad unit alone posted a core profit of P2.1 billion during the period.