JG Summit continues to look for opportunities in infra sector

MANILA, Philippines — JG Summit Holdings Inc., continues to look for opportunities in infrastructure, Lance Gokongwei, its president, said in a recent interview with reporters.

“We will continue to consider other opportunities,” Gokongwei said when asked what’s next for JG Summit after submitting an unsolicited proposal for the long-term development of the Clark International Airport.

Gokongwei, said that for JG’s next infrastructure venture, it’s not necessarily confined to just airport projects.

He said the conglomerate would look into other infrastructure opportunities as they come.

JG Summit has teamed up with Filinvest Development Corp. (FDC) for the redevelopment of the Clark Airport.

The consortium committed to pour in P839 billion for the long-term development and operations of the airport.

It submitted an unsolicited proposal to the Bases Conversion and Development Authority (BCDA) and the Department of Transportation (DOTr).

The submission contains a detailed proposal for the long-term development of the Clark International Airport through a joint venture agreement.

Aside from FDC and JG Summit, the consortium will also include the Changi Airports International (CAI) as the technical partner for the proposed development.

According to their blueprint, the consortium will build future capacity augmentation, expand airport facilities including terminals and runways, among others, as well as operate and maintain the existing and new passenger terminals.

Furthermore, the consortium also proposed to develop, operate and maintain the commercial assets of the Clark International Airport which include facilities for general aviation and fixed- base operations, and real estate.

Gokongwei did not comment on the status of the Clark proposal.

Last September, JG Summit announced the creation of JG Summit Infrastructure Holdings Corp., an infrastructure subsidiary.

The newly formed infrastructure subsidiary is a reflection of JG Summit’s intention to become a major player in infrastructure even as it had earlier expressed interest to join other groups in bidding for the operations and maintenance of airports that the government is developing.

The Duterte administration has vowed to boost infrastructure spending to seven percent of gross domestic product from five percent at present, as it recognizes the need for infrastructure projects in the country such as roads, bridges, airports, among others.

JG Summit’s businesses include airline, food and beverage, property development, banking, power generation, hotel and petrochemicals.