Stock News 2013: MVP, SMC units in dead heat over Naia project

The Skyway System. (Photo credit: Wikipedia)

The concessionaire for the Ninoy Aquino International Airport (Naia) stage 2 expressway will be known this week once the Department of Public Works and Highways (DPWH) opens the financial bids of the two firms vying for the deal.

Manuel V. Pangilinan’s Manila North Tollways Corp. (MNTC) and San Miguel Corp. subsidiary Optimal Infrastructure Development Corp. were the only two bidders that submitted technical and financial bids for the P13.61-billion project last week.

Public-Private Partnership (PPP) Center Executive Director Cosette Canilao said both have passed the government’s post-qualification checks of their respective technical proposals.

Whether one technical proposal is better than the other will not be taken into account, Canilao said.

“In accordance with the BOT (Build-Operate-Transfer) law, it’s just pass or fail. Once a bidder passes, the opening of its financial bid will be allowed,” Canilao said over the weekend.

The DPWH’s technical working group (TWG) has gone through the technical proposals of both firms, she said. Both proposals contain details of where the road will pass through, where the off-ramps will be located, and other features.

The TWG has not found any deficiency in either of the two technical bids, Canilao said.

MNTC currently manages the North Luzon Expressway (NLEx). Meanwhile, the San Miguel group, through various units, operate and manage the Metro Manila Skyway, the South Luzon Expressway and the Southern Tagalog Arterial Road (Star toll).

Both groups are also building similar “connector roads” that would link the NLEx with Skyway, easing traffic in different parts of Metro Manila.

Conglomerate Ayala Corp. and Indian-owned M/S IL and FS Transportation Network were prequalified to bid for the project but both later on withdrew their respective proposals.

The Naia Expressway is the second phase of an existing project that will link Metro Manila Skyway, Manila’s airport complex and the Entertainment City—the country’s answer to Asian gaming centers like those in Macau and Singapore.

http://business.inquirer.net/116797/mvp-smc-units-in-dead-heat-over-naia-project

Related articles

• Naia Expressway contractor known Monday - DPWH (business.inquirer.net)
• Winning bidder of NAIA Expressway known this week (rappler.com)
• Stock News 2013: SMC puts airport plan on hold (investingstocksinphilippines.blogspot.com)
• PPP: Program hurt by careless 'news' (opinion.inquirer.net)
• 3-vehicle smash-up slows down NLEx traffic (newsinfo.inquirer.net)
• Stock News 2013: PAL plans to build Philippines' biggest airport (investingstocksinphilippines.blogspot.com)
• MNTC mulls over P10-b loan in 2014 (manilastandardtoday.com)
• Don't change rules in the middle of the game (opinion.inquirer.net)
• Bloomberry Corp to help fund elevated airport road to Pagcor's Entertainment City (bonusrepublic.com)
• SLEX, NLEX traffic fast-moving as vacationers return to Manila (newsinfo.inquirer.net)

Stock News 2012: DOTC moves to address San Miguel-MIPC row

200 px (Photo credit: Wikipedia)

The Department of Transportation and Communications (DOTC) has come out with a compromise solution to the issue on the funding of the shared portion of two separate roads that will link highways north and south of Metro Manila.

The issue had put two of the country’s top conglomerates—San Miguel Corp. and Metro Pacific Investments Corp.—on a collision course that threatened to delay the implementation of their respective projects both seen as cornerstones of the Aquino administration’s economic agenda.

San Miguel Corp., through subsidiary Citra Metro Manila Tollways Corp. (CMMTC), plans to extend the Metro Manila Skyway from Buendia, Makati to Balintawak, Quezon City, creating a nearly-seamless link with North Luzon Expressway.

MPIC, for its part, has a pending proposal to connect the NLEx with the Skyway via an alignment that follows the existing Philippine National Railways line from Tondo, Manila to Makati.

MPIC, through Metro Pacific Tollways Corp., holds the concession to NLEx, while CMMTC holds the concession to the Skyway.

Transportation Secretary Jun Abaya this week said the compromise deal would be incorporated in CMMTC’s revised concession for the Skyway. The deal will also be part of the Department of Public Works and Highways “Swiss” challenge for MPIC’s proposed connector road.

CMMTC’s planned project is part of its original concession deal for the Skyway. MPIC’s project, however, is an unsolicited proposal to the government and will, therefore, have to undergo a “Swiss” challenge, where other interested parties will be given the chance to submit better offers.

Abaya declined to give further details on the compromise deal. Officials from both CMMTC and MPIC were not available for comment to confirm if the concerned parties had accepted the government’s compromise proposal.

Worth about P7 billion, the 5-kilometer extension will be shared by Citra and MPIC, before their respective connectors veer off to their separate alignments.

http://business.inquirer.net/100041/dotc-moves-to-address-san-miguel-mipc-row

Related articles

• Stock News: SMC, MPIC clash on road projects (investingstocksinphilippines.blogspot.com)
• MVP group invests P6.77-B in Manila-Cavite toll road (rappler.com)
• MVP group sees deal on common alignment for NLEx-SLEx road by yearend (rappler.com)
• MVP invests P6.77B in Cavitex (business.inquirer.net)
• NEDA OK'd NLEx-SLEx road link projects - MVP group (rappler.com)
• Andrews Avenue now more driver-friendly (newsinfo.inquirer.net)
• Multimillion investment fund competition closes January 7 (leytesamardaily.net)
• Stock News 2012: Palace OKs proposed gov't takeover of MRT-3 (investingstocksinphilippines.blogspot.com)
• Stock News 2012: MPIC net income up 22% in Q3 (investingstocksinphilippines.blogspot.com)

Stock News: SMC, MPIC clash on road projects

The Skyway System. (Photo credit: Wikipedia)

Conglomerates Metro Pacific Investments Corp.  (MPIC) and San Miguel Corp. are on a collision course again over differing proposals on how to fund and build the shared portion of two north-to-south connector roads.

San Miguel-led Citra Metro Manila Tollways Corp. said it planned to build the shared Metro Manila Skyway extension from Buendia to the Polytechnic University of the Philippines (PUP) on its own and just get a reimbursement from MPIC after construction has been completed.

“I think our proposal is fair and makes the most sense. Everybody wins,” Citra president and CEO Shadik Wahono said at a press conference. “If we pay 50 percent of the cost, but receive less than 50 percent of the traffic, then it will be a negative investment on our part,” he said.

He said both firms would end up splitting the cost of construction of the shared road, with their respective contributions being determined by how much traffic they would separately bring in.

Worth an estimated P7 billion, the 5-kilometer extension will be shared by both Citra and MPIC, which both have approved proposals to construct roads on separate alignments that aim to connect the Skyway with the North Luzon Expressway (NLEx).

Both proposed roads, named the “connector road” for MPIC and Skyway Phase 3 for Citra, will start at the end of the shared portion before veering off in different directions to their respective alignments.

MPIC holds the concession to NLEx while Citra controls the Skyway.

“If more of the cars go to their connector, then they will have to pay a bigger portion of the bill. Conversely, if they have fewer cars, then their share will be smaller,” Wahono said. “The same goes with us.”

As with the cost of construction, Wahono said Citra’s proposal to the government also indicated that revenues from toll to be collected from motorists should be split between the two companies based on the share of traffic.

MPIC, chaired by Manuel V. Pangilinan, disagreed with Citra’s proposal, adding that the shared portion of both connectors should be built under a 50-50 joint venture.

“What we want is to be treated as a co-equal in this project. They want to go solo and just ask for a reimbursement from us [after construction]. We won’t allow that,” said Ramoncito Fernandez, president of MPIC unit Metro Pacific Tollways Corp., the unit handling the group’s road assets.

Fernandez went as far as to accuse Citra of “bad faith” for submitting a proposal to the government while negotiations with the MPIC group were still ongoing.

In a statement, Citra said its officials met with counterparts from MPIC several times to discuss the revenue-sharing scheme. The meetings happened on September 20, October 24 and November 14.

Citra claimed that last November 20, MPIC president and CEO Jose Ma. K. Lim agreed that the new Citra offer was superior to what MPIC had originally proposed.

In the earlier meetings, Citra said MPIC acknowledged the San Miguel group’s prior rights and concession over the so-called common alignment and it accepted that Citra would construct the common segment provided MPIC would be given proper connection at PUP.

MPIC also agreed that both parties would have toll plazas after the common segment and the common segment would charge based on an “open system” or fixed tolls to avoid interoperability issues.

http://business.inquirer.net/94971/smc-mpic-clash-on-road-projects

Related articles

• NEDA OK'd NLEx-SLEx road link projects - MVP group (rappler.com)
• MVP group sees deal on common alignment for NLEx-SLEx road by yearend (rappler.com)
• Stock News 2012: MPIC net income up 22% in Q3 (investingstocksinphilippines.blogspot.com)
• San Miguel, infra partner to raise up to $1-B for projects (rappler.com)
• MPIC to delist subsidiary Metro Pacific Tollways from PSE (business.inquirer.net)
• MPIC net income rises by 45% in 1st 9 months (business.inquirer.net)
• MPIC offers to buy minority owners’ shares (business.inquirer.net)
• Andrews Avenue now more driver-friendly (newsinfo.inquirer.net)

Stock News 2012: MPTC earnings up 37% to P549M in Q1

Aerial View of Balintawak Toll Barrier, NLEx (Photo credit: Wikipedia)
Metro Pacific Tollways Corp. said its first quarter net earnings went up 37 percent to P549 million, fueled by increased toll revenues, lower financing costs and reduced provisions for probable losses on input value-added tax.

In its financial report submitted to securities regulators, MPTC said net toll revenues rose four percent to P1.67 billion, mainly due to the record-high traffic volume in the first quarter this year. Despite the increase in fuel prices, traffic volume was maintained due to the continuous efforts to make the North Luzon Expressway (NLEX) a better and safer travel route than alternative free roads.

Sales of trasnponders and magnetic cards declined 85 percent due to the outsourcing of the supply, sales and marketing of tarnsponders to Easytrip Services Corp.    

Cost of services likewise went up four percent due to higher operator’s fees brought by the increase in parameters used in the escalation formula and increase in additional services rendered by Toll Management Corp. (TMC).

Operator’s fee increased nine percent to P375 million while repairs and maintenance decreased 36 percent to P21 million.

Equity in net earnings of affiliate TMC rose 21 percent to P52 million, driven by the increase in revenues from additional services rendered to Manila North Tollways Corp., Bases Conversion Development Authority and subcontractors.

MPTC earlier said it was eyeing revenues of more than P7 billion. MNTC holds the concession to operate and maintain NLEX and is owned 67.1 percent by MPTC.

TMC operates the NLEX for MNTC.

http://www.philstar.com/Article.aspx?articleId=808341&publicationSubCategoryId=66

Related articles

• Meralco Q1 core net income up 5% (business.inquirer.net)
• Lopez Holdings nets P2.63 B in 1st Q (business.inquirer.net)
• Meralco bill to go down in May as generation charge dips (newsinfo.inquirer.net)
• Meralco to cut rates this month (business.inquirer.net)
• £41m more losses for the M6 Toll (expressandstar.com)
• Traffic on NLEx remains heavy, says tollway official (newsinfo.inquirer.net)
• Meralco expanding prepaid electricity scheme pilot testing (business.inquirer.net)

Stock News 2012: MPIC open to partnership with SMC-Citra

Aerial View approaching Dau Barrier, NLEx (Photo credit: Wikipedia)
Metro Pacific Investments Corp. (MPIC) said it is open to the possibility of teaming up with the San Miguel Corp.-backed Citra Metro Manila Tollways Corp. (CMMTC) in the construction of a toll road that will connect North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX).

In an interview, MPIC chairman Manuel V. Pangilinan said that while the government is inclined towards approving the respective toll road projects proposed by MPIC and SMC-CMMTC, “we are open to partnership.”

But he emphasized that the possibility of a partnership has never been discussed with SMC nor brought up in any of the meetings with the government. “But if brought up, we are open to it,” he said.

In an interview with The STAR, Metro Pacific Tollways Corp. (MPTC) president Ramoncito Fernandez said their proposed connector road project is currently on hold and is awaiting a “formal go or no objection” from the Department of Transportation and Communications (DOTC). MPTC is the toll road subsidiary of MPIC.

The Department of Public Works and Highways (DPWH) has accepted the unsolicited proposal submitted two years ago by Metro Pacific Tollways Development Corp. (MPTDC), a wholly-owned subsidiary of MPTC, to construct, manage, and operate the P17-billion connector road project.

The connector road project involves the construction of a 13.2-kilometer elevated road linking NLEX to SLEX.

MPTC said the road will run along the Philippine National Railway (PNR) tracks within Manila’s central business district, from the end of NLEX at C3 to the beginning of Skyway 1 at Buendia.

The DOTC earlier announced plans for a new high-speed rail project in place of the suspended NorthRail linking the Ninoy Aquino International Airport (NAIA) and the Diosdado Macapagal International Airport (DMIA)in clark The project would cost about $2 billion, DOTC Secretary Mar Roxas said.

Roxas said the exact amount is uncertain in the absence of a detailed engineering design but the Chinese government said it is open to funding this.

He revealed that talks between the Philippine and Chinese governments have been continuing since Chinese officials informed the government last year that it could provide bigger funding for a high-speed rail.

For his part, Fernandez said the express train can co-exist with MPTC’s expressway and that they can be put on the same alignment.

The plan is to finish negotiations with the DPWH on the specifications of the road project after which a “Swiss challenge” will be conducted. It is only after MPTC successfully hurdles the Swiss challenge that the company can proceed with the project.

Fernandez also stressed that if they start now, they can finish the connector road project in two-and-half years’ time.

Earlier, CMMTC said it supports a plan for government to allow the construction of two major tollways connecting NLEX and SLEX.

“Having two major tollways linking the North and South will indeed be very beneficial to the public. Not only will we decongest EDSA, we will also hasten the flow of traffic and commerce between North and South,” CMMTC president Shadik Wahono said

“San Miguel Holdings - Citra Skyway 3 project and the ‘connector’ road of Pangilinan’s Metro Pacific Tollways Corp. (MPTC) will cater to different markets and therefore, serve different purposes, he added.

Citra’s proposed North-South link, a 14-kilometer, six-lane tollway with exits in Quirino in Manila and Plaza Dilao, Aurora Blvd., E. Rodriguez Ave., Quezon Blvd., Sgt. Rivera, and Balintawak in Quezon City, is seen to greatly decongest EDSA. MPTC’s connector road, on the other hand, will have four lanes and three exits in Quirino, Espana, and 5th Ave.

“We don’t mind if the government will allow both Citra and MPTC to undertake their projects. The more that the roads complement each other, the better the traffic throughput would be,” he said.

This was also the position that the San Miguel Holdings - Citra consortium adopted when it announced late last year that it was prepared to spend $1.5 billion for infrastructure acquisitions and development in the country for 2012.

http://www.philstar.com/Article.aspx?articleId=805307&publicationSubCategoryId=66

Related articles

• DPWH chief not sitting in TRB to avoid 'conflict of interest' (newsinfo.inquirer.net)
• Traffic on NLEx remains heavy, says tollway official (newsinfo.inquirer.net)
• Lenten exodus causes traffic in tollways (newsinfo.inquirer.net)
• Traffic along SLEX, NLEX still normal (newsinfo.inquirer.net)
• DPWH reopens bridge in Tondo (newsinfo.inquirer.net)
• NLEX on Maundy Thursday (mytropicalhome.wordpress.com)
• The Major (major) roads of Metro Manila (njytolentino.wordpress.com)
• First Pacific to invest P73B in big-ticket infra projects in Philippines (business.inquirer.net)
• PNR pushes for negotiated deal to secure air rights over train tracks (business.inquirer.net)

Stock News 2012: EEI profits reach P740 million in 2011

South Luzon Expressway Southbound lane from Susana Heights to San Pedro. (Photo credit: Wikipedia)
Yuchengco-led construction firm EEI Corp. said it posted net earnings of P740 million last year, up 12.6 percent from P657 million in 2010.

In a disclosure to the stock exchange, EEI also said its board approved the declaration of a cash dividend amounting to 10 centavos per share.

EEI expects to sustain its upward trajectory this year, driven by increased construction activity by the private sector coupled with improving operations overseas.

Total construction backlog from domestic projects amounted to P11.62 billion as of end-September 2011.

EEI’s 49-percent owned subsidiary in Saudi Arabia had a backlog worth P13.61 billion while its units in Singapore and New Caledonia reported backlogs worth a combined P566.7 million.

EEI is keen on bidding for road and expressway projects under the government’s Public-Private Partnership (PPP) program as it seeks to further boost its profitability.

The Aquino administration is targeting to bid out up to 16 PPP projects worth as much as P142 billion. Among these include the P20.18-billion North Luzon Expressway-South Luzon Expressway Connector Road; P19.69-billion CALA (Cavite and Laguna Side) Expressway; P11.3- billion Light Rail Transit 2 East Extension; P10.15-billion Mactan Terminal 2 Airport Development; and P8-billion New Bohol Airport.

http://www.philstar.com/Article.aspx?articleId=790654&publicationSubCategoryId=66

Related articles

• Enrile: VAT on expressway toll illegal (business.inquirer.net)

Stock News 2012: SMC, MVP back Roxas' tollway links proposal

Aerial View of Balintawak Toll Barrier, NLEx (Photo credit: Wikipedia)
Citra Metro Manila Tollways Corp. (CMMTC), backed by the San Miguel Group, and Metro Pacific Tollways Corp. (MPTC) of businessman Manuel V. Pangilinan, have expressed support to a proposal by Department of Transportation and Communication (DOTC) Secretary Manuel Roxas II for government to allow the construction of two major tollways connecting the South Luzon Expressway and the North Luzon Expressway.

“Having two major tollways linking the North and South will indeed be very beneficial to the public. Not only will we decongest EDSA, we will also hasten the flow of traffic and commerce between North and South,” CMMTC president Shadik Wahono said. “Since the San Miguel Holdings-Citra Skyway 3 project and the ‘connector’ road of MPTC will cater to different markets and therefore, serve different purposes, we support the position of Secretary Roxas and Mr. Pangilinan,” he added.

Citra’s proposed North-South link, a 14-kilometer, six-lane tollway with exits in Quirino in Manila and Plaza Dilao, Aurora Blvd., E. Rodriguez Ave., Quezon Blvd., Sgt. Rivera, and Balintawak in Quezon City, is seen to greatly decongest EDSA. MPTC’s connector road, on the other hand, will have four lanes and three exits in Quirino, Espana, and 5th Avenue.

“We don’t mind if the government will allow both Citra and MPTC to undertake their projects. The more that the roads complement each other, the better the traffic throughput would be,” he said.

This was also the position that the San Miguel Holdings-Citra consortium adopted when it announced late last year that it was prepared to spend $1.5 billion for infrastructure acquisitions and development in the country for 2012.