Ayala Corp, JG Summit to invest in PPP program

MANILA, Philippines - Two of the country’s conglomerates are investing in the government’s public-private partnership program (PPP) for infrastructure as they expressed optimism on economic growth prospects for the year.

During the year-end Philippine Economic Briefing yesterday, Ayala Corp. managing director John Eric Francia and JG Summit Holdings Inc. president and chief operating officer Lance Gokongwei revealed their respective companies’ expansion plans for this year.

Francia said the Ayala group is putting in a P200-billion funding for the government’s PPP projects over the next five years.

“We’re looking at investments such as toll roads, water infrastructure and airports,” Francia said.

He said that the Ayala Group is very “happy” with the way the government handled its first PPP project, the P2-billion Daang Hari-South Luzon Expressway Link Road.

In December, the Ayala group bagged the P2-billion project.

“We’re very happy with the transparent, fair and effective process,” he said.

He said the group is more bullish on the Philippines given the Aquino administration’s commitment to good governance.

The optimism is reflected in the Ayala group’s higher capital expenditures for the year of P89 billion, up from 36 percent over last year.

The higher capital expenditures would fund investments in hotel chain and destination resorts, in real estate development projects as well as in water infrastructure projects.

The Gokongwei group, meanwhile, is also boosting its investments in local tourism, Lance Gokongwei said during the forum.

“We’re very optimistic on tourism...We do recognize tourism provides a lot of jobs, local value added. We’re putting our money behind our belief,” Gokongwei said.

He said the group is optimistic on the government because of its push for transparency and a level playing field.

Hitching a ride on the growth momentum in the tourism sector, the group is expanding its Go Hotels, it budget hotel business.

“With regards to hotel sector, we’ve also launched Go Hotels last year in Edsa. Right now were in the midst of rolling six more hotels this year,” he said.

In the next four years, Gokongwei said the group is looking at opening 30 of these budget hotels.