For P122.8-B Laguna Lakeshore dike project: GT Capital, possible partners hold talks

MANILA, Philippines - GT Capital Holdings Inc. of tycoon George S.K. Ty is in talks with two other conglomerates for a possible partnership in bidding for the P122.8-billion Laguna Lakeshore Expressway Dike project.

GT Capital president Carmelo Maria Luza Bautista said discussions are going on with two firms, one local and the other a foreign company, for a potential joint venture.

“You can consider them conglomerates, both the onshore and the offshore one,” Bautista said.

GT Capital and 23 other groups have bought bid documents for the government’s largest Public-Private Partnership (PPP) project.

Bautista said GT Capital is keen on securing a partner for the Laguna Lakeshore project given its scale.

He said both firms they are currently in talks with would be able to provide financial muscle and technical know-how to the group.

“Nothing has been signed yet. We’re still in the process of meeting and trying to find if there’s a match,” Bautista said.

The Laguna Lakeshore project is seen to mitigate flooding in the Laguna Lake coastal towns, particularly in southern Metro Manila and Laguna, improve the environmental condition of the lake, and promote economic activities through the efficient transport of goods and people.

GT Capital is into banking (Metropolitan Bank & Trust Co.), property (Federal Land), power generation (Global Business Power Corp.), automotive assembly and imports (Toyota Motor Philippines), life insurance (Philippine AXA Life Insurance), non-life insurance (Charter Ping An Corp.) and automotive distribution (Toyota Manila Bay Corp. and Toyota Cubao Inc.).

Profits of the holding firm slipped in the first nine months of 2014 despite posting higher revenues.

GT Capital allotted P50 billion for its capital expenditures last year, and is earmarking about the same amount this year.