Stock News 2013: Ayala to bid for more PPP projects

Ayala Mall (Photo credit: cebuparadiseisland_com)

Ayala Corp. is keen on participating in the bidding for a number of upcoming infrastructure projects to be auctioned by the government under the public-private partnership (PPP) framework.

Eric Francia, managing director at Ayala, said the conglomerate and its partners were preparing to bid for the Cavite-Laguna (Cala) Expressway project, the Light Railway Transit 1 (Baclaran to Cavite) extension and the Mactan-Cebu International Airport project. “We will be interested to participate in LRT-2 (extension from Santolan to Antipolo) as and when it gets bid out,” Francia said in an interview on Friday.

On toll roads, the group did not participate in the Ninoy Aquino International Airport (Naia) expressway project. However, Ayala plans to bid for the Cala, a four-lane, 47.02-kilometer at-grade tollroad that will connect the Manila-Cavite Expressway (Cavitex) and the South Luzon Expressway (SLEx) through the Cavite and Laguna provinces.

“We are definitely interested in Cala,” Francia said. “I think it is obvious why Cala is strategic to the Ayala group—it traverses along landbanks of Ayala Land, the largest of which is Nuvali, which is where the road terminates in the Laguna side.”

The estimated project cost is $1.01 billion, of which $504.83 million is the private sector component, based on the PPP website.

For LRT-1, the Ayala group has teamed up with Metro Pacific Investments, Macquarie and foreign group RATF Development SA, which operates the Paris Metro.

The project involves the construction spanning 11.7 kilometers from the end of LRT Line 1 at the Baclaran Terminal to the Niyog Station in Bacoor, Cavite, of which 10.5 km will be elevated and 1.2 km will be at-grade. The whole stretch of the integrated LRT 1 with a total length of 32.4 km will be operated and maintained by the private proponent. Based on the PPP website, project cost is estimated at $1.25 billion.

Asked whether it will be same consortium to bid for LRT 2, he said: “For sure Metro Pacific (will be part) as we have a pan-Manila cooperation but other members have yet to be determined.”

The LRT 2 project seeks to engage the private sector to operate and maintain the existing 13.8 km line 2, which runs from the Recto Station in Manila to the Santolan Station in Pasig City, passing through Magsaysay Boulevard and Marcos Highway. The proposed 4-km extension will be from Santolan to Masinag, Antipolo.

The Ayala group has also teamed up with the Aboitiz group and American airport operator ADC&Has to vie for the P17.5-billion Mactan-Cebu International Airport (MCIA) project.

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

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Stock News 2012: Ayala buys FTI for P24.3B

Map of Metro Manila (Photo credit: Wikipedia)

After lying idle for years,  the sprawling Food Terminal Inc. (FTI )complex in Taguig City will soon be developed into a commercial business district.

Executives of Ayala Land Inc. (ALI) led by  chairman Fernando Zobel de Ayala on Monday agreed to purchase the 74-hectare FTI property for P24.3 billion from the government in a signing ceremony witnessed by President Aquino in Malacañang.

ALI plans to develop the FTI complex into an integrated mixed-use and business district that will feature retail, dining and entertainment.

“We hope the redevelopment of the FTI complex will lead to a surge in economic activity and increase employment in the city of Taguig and the surrounding metropolitan area,” said Karen Singson, chief privatization officer of the Privatization and Management Office (PMO).

Proceeds of the sale will be used to finance the Department of Agriculture’s agriculture and fisheries modernization program and projects of the Department of Agrarian Reform, Singson said.

“The development of what will be the next premiere CBD of Metro Manila is another milestone that we are very pleased to be embarking on,” said ALI president and CEO Antonino Aquino who signed for the company.

The PMO had set a floor price of P10.2 billion for the property. At least seven parties had expressed interest in one of the biggest industrial complexes in Metro Manila.

ALI bested the bids of Robinsons Land (P14.7 billion) and Empire East (P11 billion), the Presidential News Desk said.

Located along the South Luzon Expressway, FTI is envisioned to become a key pivotal convergence point and southern gateway to Metro Manila.

The new ALI development will showcase the largest “intermodal transport system” linking various types of transit options to facilitate commuting from various points. The planned Integrated Transport System project of the Department of Transportation and Communication will be set up adjacent to the FTI property and will be linked to the Philippine National Railway station in the area.

http://business.inquirer.net/92698/ayala-buys-fti-for-p24-3b

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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

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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

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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.

Stock News 2012: EEI eyes 2nd phase of Petron

Kingdom Center , Riyadh , Saudi Arabia . (Photo credit: Wikipedia)
Yuchengco-led construction firm EEI Corp. is eyeing the second phase construction of Petron Corp.’s Fluidized Catalytic Cracker, which alone could double its domestic backlog and boost its overall revenues in the next two years.

EEI is hoping to secure a $200-million to $300-million contract for the Petron project, which is estimated to cost around $1 billion.

The project is seen to increase EEI’s backlog by P8.6 billion to P12.9 billion. Total construction backlog from domestic projects amounted to P11.62 billion as of the end of September 2011.

One of the notable projects bagged in the third quarter last year was JG Summit’s P2 billion naphtha cracker project.

To ensure sustained growth, EEI is seen to bid for road and expressway projects under the government’s public-private partnership (PPP) program.

The Aquino administration is targeting to bid out eight to 16 PPP projects worth around P80 billion to P142 billion. Among these projects 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.

EEI is expected to book strong revenue growth in 2011 and this year on the back of a growing backlog and improving performance of its Middle East-based subsidiary.

In the nine months ending September 2011, EEI reported a 28 percent growth in net profit to P581.53 million. Revenues likewise grew 25 percent to P6.69 billion.

Revenues from the company’s overseas operations, most of which comes from Al Rushaid Construction Company (ARCC), EEI’s 49 percent owned entity in the Kingdom of Saudi Arabia (KSA), surged 67 percent to P243.52 million in 2011.

http://www.philstar.com/Article.aspx?articleId=766068&publicationSubCategoryId=66

Stock News 2011: Vista Land Unveils P10-B Development

Image via WikipediaTop home developer Vista Land and Lifescapes, Inc. is ramping up to P10 billion its investment in the Presidio, a residential and commercial enclave within the 60-hectare Vistaland Lakefront master-planned city in Sucat.

Vista Residences chief operating officer Maribeth C. Tolentino said their vertical housing unit is planning to put up five more mid-rise residential condominium clusters in the 7-hectare Presidio.

She said the additional cluster buildings will range from 5- to 15-storeys each with about 400 units and a total cost of P2 billion for all five buildings. Lakefront features an array of San Francisco-inspired residential enclaves that offer leisure and lifestyle choices.

Lakefront is strategically located in Sucat, which is seen as a natural extension to Makati and Bonifacio Global City.

Sucat is envisioned to be the next central business district due to its easy access to the airport, South Luzon Expressway and the Philippine National Railway as well as schools, malls, and offices in nearby Makati, Bonifacio, Ortigas and Alabang.

Tolentino said Presidio will consist of 12 mid-rise cluster buildings offering a total of 1,200 residential units. Seven cluster buildings with a total of 795 units have already been completed.

http://mb.com.ph/articles/339223/vista-land-unveils-p10b-development

Stock News 2011: Filinvest City introduces California lifestyle

Image via Wikipedia
Californians are known for living the best of both worlds; they enjoy a laid-back, leisurely lifestyle amid the excitement of a cosmopolitan hub. The skyscrapers of Los Angeles and San Francisco complement the sand and surf where residents can unwind.

The Levels of Filinvest Land, Inc. takes inspiration from this popular West Coast state by offering a relaxed suburban living inside the fast-paced business district of Filinvest Corporate City.

The Filinvest Corporate City (FCC) is a masterplanned urban center and central business district sprawled over 244 hectares of land south of Metro Manila. It accommodates an impressive mix of residential, commercial and business establishments, providing round-the-clock amenities within a self-sustaining community.

According to FLI cluster head and senior vice president Francis Ceballos: “The Levels is a perfect residential sanctuary for career-driven individuals who aspire to achieve a balance between professional success and blissful personal life. It allows them to build a career while raising a family or indulging in their passions every single day.”

With FCC at the junction of four major roads, namely: Alabang-Zapote Road, the South Luzon Expressway, the National Highway, and the Skyway, The Levels becomes an enviable home for families with members working in Makati or at CALABARZON industrial and techno zones. In fact, it is an easy half-hour drive from the Makati CBD while situated at the forefront of the country’s next growth region – the South Luzon area.

http://mb.com.ph/node/325756/filinve

Stock News 2011: DPWH to fast-track bidding of projects

Image via Wikipedia
“Bidding should be competitive, no collusion, no favors, no rigging, no negotiated contracts,” said Singson.

DPWH is seeking the support of the civil society organizations, NGOs, and other government officials to monitor and ensure that DPWH projects are bid out competitively which is in line with Pres. Aquino’s “matuwid na daan” policy in reducing or minimizing corruption in the government.

Based on approved government appropriations act, approximately 1,493 projects worth P56.48 billion under the DPWH regular infrastructure program are set for implementation in 16 regions nationwide this year.

In full transparent public biddings, DWPH can achieve more than 20% savings from the budgetary allocations.

http://www.mb.com.ph/articles/307698/dpwh-fasttrack-bidding-projects