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Monday, June 2, 2014

Metro Pacific plans P100B capex for 2015-16

Metro Pacific Investments Corp (MPIC) plans to raise capital spending over the next two years for its infrastructure and power businesses.

David J. Nicol, MPIC chief financial officer, told reporters last week that the company's capital expenditures may reach P50 billion each for 2015 and 2016.

"For the group, I could see that Meralco is investing in power generation, and for AFCS and LRT Line 1 Cavite Extension Project, if it will be awarded to us," Nicol said.

MPIC controls Manila Electric Co, and is part of Light Rail Manila Consortium, the lone bidder for the P64.9-billion LRT1 Cavite Extension Project. MPIC also is part of AF Consortium, which earlier won the bidding for the P1.72-billion Automated Fare Collection System, a project that will provide a common ticket for the LRT and MRT train services.

For 2014, MPIC has set aside a P40 billion capex.

Nicol said MPIC, which owns 55 percent of Light Rail Manila, would infuse P4-5 billion in the consortium. Ayala's AC Infrastructure owns 35 percent, while Australia’s Macquarie Infrastructure Holdings holds the remaining 10 percent.

Nicol said MPIC is optimistic that its proposal for the LRT1 Cavite Extension Project complies with the requirements of the Department of Transportation and Communications (DOTC).

He said the consortium expects to make money in the first 10 years of the 32-year contract, earlier than the other bidders' projection of 20 years.

DOTC said the LRT1 Cavite Extension Project involves the construction of 11.7-kilometer track from the terminus of the LRT Line 1 at the Baclaran Terminal, to the Niyog Station at Bacoor.

More than 500,000 commuters everyday use LRT1, which runs from Baclaran in Pasay City to Roosevelt in Quezon City. The southern part of Metro Manila and neighboring Cavite province is home to nearly four million people.

In the first quarter of the year, MPIC reported a consolidated core net income of P2.2 billion, up 15 percent from P1.9 billion a year ago. The conglomerate attributed the growth to higher traffic and increased ownership in Manila North Tollways Corp (MNTC), higher volumes sold at Maynilad Water Services Inc and Meralco, as well as strong organic growth and new investments in the healthcare business.

- Interaksyon

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