SMC eyes joint venture with MVP Group on infra projects

MANILA, Philippines – Diversified conglomerate San Miguel Corp. is in talks with the group of tycoon Manuel Pangilinan for possible joint venture arrangements in infrastructure projects.

One such project is a new international airport, which can cost anywhere from $2 billion to $10 billion, said SMC president and COO Ramon Ang.

“We are in talks with the MVP Group for possible joint venture in major infrastructure projects such as the international airport.  MVP and I agreed on the airport (project). We are willing to cooperate with whatever way we can,” Ang said.

Aside from this, there are other possible infrastructure projects that the two conglomerates may work on.

“Areas of co-operation like tollways, a common RFID or e-pass and we’re looking at how we can build better and  longer tollways for everybody,” he said.

When sought for comment, Pangilinan said:  “As to infra in general, we are open to that.  There have been some discussions but nothing definite as we speak.”

Re-elected Parañaque Mayor Edwin Olivarez is urging President-elect Rodrigo Duterte to push through with the construction of a new international airport in Manila Bay.

Ang said they would wait for the incoming administration’s go-signal on how they want to go about the new airport project.

“We still have to wait for the government. It depends on what they want,” he said.

Ang said teaming up with the MVP Group for certain projects was better than pursuing big-ticket infrastructure deals on their own.

“All of our projects, we just do on our own but instead of doing projects on our own, we thought we could team up and try other projects as well,” Ang explained.

SMC is also open to teaming up with other conglomerates such as the Ayala Group.

The  proposed airport is envisioned to eventually replace old Ninoy Aquino International Airport in Manila which is currently overcrowded and suffering from decongestion.

Ang presented the airport proposal to the Aquino administration but the project did not materialize due to the government’s preference for solicited projects.

Proposed locations include the Manila Bay and Sangley point in Cavite.

San Miguel already operates the Caticlan Airport near Boracay Island.