February 25, 2018, 6:00 am
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Investment firm readies P820B infra spending

Metro Pacific Investments Corp. (MPIC) is looking at a capital spending P820 billion over the next five years for its various infrastructure-related ventures in the Philippines. 

David Nicol, MPIC chief finance officer said of the amount, P653 billion covers committed projects, with P100 billion calendared for spending next year. 

The rest of the amount covers prospective projects the company is looking at as well. 

“In terms of committed project we’re taking of P653 billion of projects. Of the P653 billion, the group is spending P100 billion of that next year, and that is  accelerating. This year we spent about P63 billion,” he said. 

Nicol said about P12 billion  will go to Maynilad Water Services Inc., P78 billion to the tollroad business under Metro Pacific Tollways Corp., P21 billion for Manila Electric Co., (Meralco), P6 billion for the hospital business, P17 billion for the light rail business, and P6 billion for the logistics business.

“If you add up PLDT, Philex (Philex Mining Corp.) and others that’s P545 billion next year,” he said. 

Nicol said MPIC is focusing primarily in the Philippines for its spending, about 67 percent of the total amount. 

Nicol said the company’s focus is on “high quality infra projects” that are well-built, efficiently run, and fairly priced. 

“We have over P200 billion (worth) of unsolicited proposals that are working their way through the administration at the moment. In addition to that we did submit early in the year for the Clark Airport, a P330-billion, 115 million-passenger development program that hasn’t been taken up but our strategy is (to invest in) areas where the infra is inadequate and we will keep submitting those proposals to the government,” said Nicol. 

Nicol said about P90 billion of the amount that will be needed to fund the spending will come from MPIC itself. 

“Some of that will come from equity partners. Some of it from project financing,” he said.

Nicol said the spending will change MPIC’s earnings profile from the current 23 percent contribution from the tollroad business, 52 percent from the power business, 20 percent from the water business, and 5 percent from the rest of its ventures. 

By 2021, the company expects the tollroad business to increase its contribution to  34 percent. The power  business will account for the biggest at  42 percent ; water,  15 percent and its other businesses, 5 percent.

MPIC last week said profit for the first nine months of the year reached P11.1 billion, up 17 percent from last year’s P9.5 billion. 

Core profit hit P11.3 billion, up 22 percent from last year’s P9.3 billion.
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