MANILA, Philippines - Conglomerate Ayala Corp. is taking in foreign partners as it pursues bigger public private partnership (PPP) projects.
John Eric Francia, managing director of Ayala Corp., said the listed conglomerate would partner with foreign strategic investors in bidding for the next “Big 3” major infrastructure project including the proposed P123-billion Laguna Lakeshore Expressway Dike project.
Francia pointed out that the cost of the first “Big 3” projects auctioned by the government including the P17.5-billion Mactan Cebu international airport expansion project; the P65 billion Light Rail Transit line 1 (LRT1) Cavite extension project; and the P35.4-billion Cavite-Laguna expressway project pales in comparison to the next PPP projects.
“These range from a private sector investment perspective from $500 million to $1 billion ticket size. If you look at the next Big 3, it’s not $500 million to a $1 billion but you are looking at $2.5 billion to $3 billion
With such huge resources, he stressed the need to take in foreign partners to take the share in the financial requirement as well as expertise for such infrastructure projects.
“We do have finite resources, be it financial or human resources. That’s an entirely different level. Foreign investors really need to show up for these next big projects because we haven’t really seen them in the first 10 or so PPP projects,” Francis said.
PPP executive director Cosette Canilao earlier said the Aquino administration is set to roll out 18 PPP projects worth P602.2 billion before June next year as part of the inventory of 47 projects already in the pipeline.
These include the North-South commuter rail (P265.3 billion); the subway system Mass Transit loop (P132 billion); the Laguna Lakeshore Expressway project (P123 billion), Integrated Transport System (ITS) – South terminal (P4 billion); the ITS-Southwest terminal (P2.5 billion); and the Bulacan Bulk Water supply project (P24.4 billion).
Other projects include the operation and maintenance of Davao Airport (P39.7 billion), Iloilo Airport (P29.7 billion), Bacolod Airport (P19.8 billion),
Laguindingan Airport (P14.3 billion), Puerto Princesa airport (P5.01 billion), the new Bohol (Panglao) airport (P2.28 billion), the Regional Prison Faciities through PPP (P39.4 billion), the Motor Vehicle Inspection System (P18.9 billion) and the Tanauan City public market (P381.2 million).
The government has yet to determine the cost of several projects including the San Fernando Airport, the Batangas-Manila natural gas pipeline, the Manila Bay-Pasig Ferry-Laguna lake ferry , and the proposed extension of the Light Rail Transit line 1 (LRT1) all the way to Dasmarinas in Cavite instead of only Bacoor City under the P65 billion LRT1 Cavite extension project.