GSIS plans more infra investments

State pension fund Government Service Insurance System (GSIS) is eyeing increased investments in the infrastructure sector to improve returns as well as support the administration’s big-ticket projects.

“We are looking at some of the public private partnerships (PPP),” GSIS President and General Manager Robert G. Vergara said. “We are looking at some of the bigger ones (to be developed jointly) with other groups,” he added.

“Where we are invited, and if it suits our return expectations, or if we are invited to join consortia where we feel we have value to add, we will participate,” he said at a press conference Monday.

In particular, Vergara said the GSIS-led Philippine Investment Alliance for Infrastructure (Pinai) was in discussions with several groups to participate in the Light Rail Transit (LRT) Cavite Extension project.

The LRT extension, at an estimated cost of P60 billion, is the most expensive PPP in the government’s pipeline.

This follows the recent signing of a joint venture deal between conglomerate Ayala Corp. and an investment vehicle backed by the GSIS for the development of wind power projects in northern Luzon.

The planned 200-megawatt wind farm in Ilocos Norte, to be developed by Ayala-led AC Energy Holdings Inc., Universal Philippines Wind Holdo IBV, and Pinai, will be the pension fund’s first foray into infrastructure.  Pinai intends to hold 32 percent of the wind power venture.

“What’s exciting is that we have proven that the team managing the portfolio has a lot of value to add for infrastructure projects,” Vergara said. The GSIS’ main partner in Pinai is Macquarie Infrastructure Philippines, a unit of multinational investment bank Macquarie group. Paolo G. Montecillo