MPTC eyeing more projects in Vietnam

MANILA, Philippines — Metro Pacific Tollways Corp. (MPTC) is open to investing more in Vietnam if opportunities arise, as the country becomes more aggressive on road construction to ease traffic congestion.

MPTC president and CEO Gilbert Santa Maria told reporters that the company is willing to invest in new projects in Vietnam if an offer is made by its affiliate.

“Vietnam is a different story for us. In Vietnam, we are getting dividends. If somebody makes us an offer for assets that are attractive for us, we will acquire it,” Santa Maria said.

Right now, MPTC owns 44.9 percent of CII Bridges and Roads Investments JSC (CII B&R). The joint stock company manages several of the largest toll roads to the south of Vietnam like Hanoi Highway and Rach Mieu Bridge.

CII B&R is also pursuing a $1.5-billion project to build the Ho Chi Minh City-Trung Luong-My Thuan Expressway Expansion Project. The tollway will span 95 kilometers across three sections: Ho Chi Minh City’s Bing Chang District and Tien Gang’s Chau Tranh and Cai Be Districts.

The Vietnamese affiliate of MPTC is eyeing to bid for other projects, including the $635-million elevated road in Dong Nai province and the $401-million expansion work for National Highway 22.

“We are not investing in Vietnam initially. We are enjoying the dividend stream, as it is managed reasonably well. So, we will continue to look at what Vietnam’s plans are,” Santa Maria said.

Further, Santa Maria said that some of MPTC’s projects in Vietnam are seated beside public roads, so motorists prefer to use them over thoroughfares where they have to pay.

However, Santa Maria said these public roads would later on start collecting tolls, too. By then, he anticipates traffic to increase in MPTC’s projects, generating more revenue for the company.

On the contrary, MPTC is disposing of non-road assets in Indonesia, which were included in the projects it invested in. MPTC is the process of selling power and water utilities to raise capital.

MPTC is working on generating cash and reducing liabilities to nurse its balance sheet, which is saddled with a net debt of about P200 billion.

Last week, MPTC raised P20 billion from its maiden sale of bonds through an issuance where the demand thrice surpassed the base amount of P15 billion.