North Harbor group needs P12 billion to take over

MANILA, Philippines - The consortium of Metro Pacific Investments Corp. (MPIC) and the Romero family’s Harbour Centre Port Terminals Inc. will need to shell out P12 billion to rehabilitate and operate the Manila North Harbor, one of the country’s largest and oldest ports.

MPIC president Jose Ma. K. Lim said while talks between the consortium and the Philippine Ports Authority (PPA) remain ongoing for the resumption of the bidding process for the Manila North Harbor, the project could require an investment of P12 billion, which would be equally shared by the consortium.

The privatization of the Manila North Harbor had been delayed after the PPA declared a bidding failure when Harbour Centre and MPIC emerged as the lone bidder for the 25-year concession to modernize and operate the port. The consortium elevated this matter to the courts.

In December 2008, the Manila Regional Trial Court approved a compromise agreement between the consortium and the PPA.

MPIC is the local flagship of the Hong Kong-based conglomerate First Pacific Co. Ltd. while Harbour Centre is a port and terminal operator dedicated to serving local maritime traffic.

The PPA is seeking the privatization of Manila North Harbor to make it more productive and efficient.

The North Harbor currently accounts for more than half of the total domestic port business servicing the Metro Manila area and nearby provinces of Bulacan, Pampanga, Tarlac, Nueva Ecija  and Nueva Vizcaya, Rizal, Cavite, Laguna, Batangas and Quezon. It can accommodate all types of inter-island vessels and has six main piers to cater to coastwise cargo and passenger ships.

The port business is one of the sectors identified by MPIC as new engines for growth alongside tollways, water, healthcare and eventually, mining.

MPIC aims to become the country’s top infrastructure firm. Its recent acquisition – Manila North Tollways Corp. (now known as Metro Pacific Tollways Corp.) operates the North Luzon Expresway, an 83.7- kilometer tollway system that runs from Balintawak, Quezon City to Sta. Ines, TArlac.

The company is seeking to grow its investment portfolio with plans to invest in power utility giant Manila Electric Co. (Meralco).