MVP keeps faith: Massive Mindanao project a go amid martial rule

Metro Pacific Investments Corp. is set to announce its largest investment in Mindanao—a major infrastructure project—appearing to buck worries that business prospects in the southern Philippine island would be hurt following President Duterte’s declaration of martial rule.

Metro Pacific chair Manuel V. Pangilinan said during the company’s annual meeting on Friday an announcement would soon be made. He declined to say more ahead of the announcement, which was expected within days or weeks, people with knowledge of the matter said.

One said the project would be aligned with Metro Pacific’s existing investment portfolio, spanning water, tollroads, power, hospitals, logistics and railways.

On the size of the project, a second source said: “It’s big.”

Pangilinan described the investment as a long-term project, suggesting that it was so far insulated from the martial law declaration, made in response to a Muslim extremist attack in Marawi City early this week.

“It’s a cause for concern, but we need to understand the situation better,” Pangilinan told reporters in response to queries over recent developments in a restive part of Mindanao.

“We need to have faith in the country and leadership. Most likely [the investment] will proceed,” he added.

The upcoming Mindanao project comes on the heels of a string of big ticket proposals from Metro Pacific and other conglomerates made to President Duterte, whose government signaled a willingness to entertain offers that were shunned by former President Aquino.

So far, no new unsolicited projects have been accepted by Mr. Duterte, while others have been rejected, including airport offers to modernize and operate Clark International Airport made by Megawide Construction Corp. and India’s GMR Infrastructure and a consortium formed by JG Summit Holdings and Filinvest Development Corp.

Metro Pacific had made its own offer for Clark via a partnership with the Bases Conversion and Development Authority. The offer included a railway connection from Buendia, Makati to Clark Airport.

The Transportation Department, meanwhile, said it would develop Clark on its own and bid out the operations and maintenance contract later on.

On Friday, Metro Pacific president Jose Ma. Lim said the company would also revive an offer to rehabilitate, operate and maintain the troubled Metro Rail Transit Line 3 along Edsa. Metro Pacific and Ayala Corp. already jointly operate the Light Rail Transit Line 1, and were working on extending the railway system to Cavite province.

Metro Pacific earlier announced it was setting aside a capital spending budget of P79 billion for 2017, most of which would be used for power (Manila Electric Co.), water (Maynilad Water Services) and tollroads.