MPIC to work within new gov’t infra framework

MANILA, Philippines -  Metro Pacific Investments Corp. (MPIC) said it is willing to work within the government’s new framework for infrastructure projects.

MPIC chairman Manuel V. Pangilinan said that while some projects would be undertaken by government, the company would still be able to participate in other big-ticket infrastructure.

“I think despite the expressed desire of the government to undertake the larger infrastructure items like the Clark airport and commuter rail, there are still projects in the water side and the toll road side and rail side that seem to be available. We have submitted plans to develop in those areas so I don’t think it’s fair to say the well has run dry,” Pangilinan said in a briefing late Friday.

Pangilinan, who initially expressed concern over the government’s new hybrid approach for infrastructure projects, said the new approach could be good because funding for the large ticket items would come from official development assistance (ODA).

Under the Dutertenomics’ hybrid  approach, the government will build the projects and them bid out the operations and maintenance to the private sector.

Funding for the projects to be developed by the government will come from a mix of sources such as bilateral loans, ODA and own government funds.

This potentially takes away some business opportunities for Filipino businessmen, some of whom had been excited by the Duterte administration’s vow to usher in the so-called golden age of infrastructure in the country and its move to welcome unsolicited proposals.

Taking a softer stance on the matter, Pangilnan said there are arrangements that could be viable, citing for instance the Subic-Clark Tarlac Expressway. MPIC, through Manila North Tollways Corp. is the concessionaire of the 94-kilometer-SCTEX.

“SCTEX it was in the case of a concession agreement and not O and M because in O and M, you only manage the assets owned by the government and you get a fee. In a concession agreement, they (government) are still the owners but you have full economic rights – quasi-economic ownership benefits. From an investor standpoint, there is a build up of equity value because they are quasi owner of the assets,” Pangilinan said.

With the government’s new approach for infrastructure, MPIC is still keen on participating in some big-ticket infrastructure projects.

MPIC president and CEO Jose Ma. Lim said for instance the company has resubmitted its proposal to rehabilitate Metro Rail Transit Line 3 (MRT-3), which runs from North Avenue in Quezon City to Pasay.

The railway has been hounded by a series of breakdowns and service interruptions.

Aside from MRT3, the conglomerate has also submitted an unsolicited proposal to the Quezon City government for a waste-to-energy project.

“We submitted the MRT3 and the waste to energy project,” Lim said in the same briefing.

“Were are prepared to work with the LGU level. Hopefully it can inspire other LGUs,” Pangilinan added, noting that projects outside Metro Manila are in line with President Duterte’s thrust to spread economic development across the country. – Iris Gonzales