TOKYO: The Hong Kong-based First Pacific Co. Ltd., the conglomerate of tycoon Manuel Pangilinan, is rumping up investments in automation and other infrastructure projects in the Philippines with close to P100 billion set aside for capital expenditure next year.
David Nicol, chief financial officer of Pangilinan’s infrastructure vehicle Metro Pacific Investments Corp. (MPIC), told Philippine reporters in a briefing held here that the group’s 2015 capex will be used to improve and expand existing assets.
First Pacific, known as the MVP Group of companies, will allot its 2015 capex for the following subsidiaries: P53.7 billion for MPIC, P36 billion for the Philippine Long Distance Telephone Co. (PLDT), P5.9 billion for Philex Mining Corp., and P1 billion for its sugar interests in Roxas Holdings Inc. (34 percent) and Victorias Milling Company Inc. (7.48 percent).
MPIC, on the other hand, will also distribute its war chest to its business interests in Maynilad Water Services Inc. (P17.5 billion), Metro Pacific Tollways (P10.2 billion), Manila Electric Co. (P14.7 billion), MPIC Hospital Group (P2.3 billion), and the LRT 1 Cavite Extension project (P9 billion).
The LRT 1 project will be handled by Light Rail Manila Corp. (LRMC), a joint venture company of MPIC, Ayala Corp’s AC Infrastructure Holdings Corp. and Macquarie Infrastructure Holdings (Philippines) PTE Ltd.
Jose Ma. Lim, MPIC president and chief executive officer, said in the same briefing that the MVP Group is hoping for the implementation of tariff adjustments by the second quarter of next year—both for North Luzon Expressway and Cavite Expressway—to raise revenues for the funding requirements of the group, especially for the LRT 1 Cavite Extension project.