Maharlika sets sights on airport investments

MANILA, Philippines — State-run Maharlika Investment Corp. (MIC) could make its first investment on tourism infrastructure, particularly airports, given the immediate returns that these assets can bring to the economy.

In a press briefing, MIC president and CEO Rafael Consing Jr. said the Maharlika Investment Fund (MIF) can invest on four industries: agriculture, energy, information and communications technology and tourism.

He said priority would be given to some of the 197 flagship infrastructure projects approved by the National Economic and Development Authority Board.

In particular, Consing said he is interested in the economic viability of airport undertakings and is considering placing funds from the MIF on the New Manila International Airport (NMIA) being built in Bulacan by San Miguel Corp. (SMC).

Further, the MIF may be invested in the Ninoy Aquino International Airport (NAIA) that will be turned over to a private concessionaire within the first quarter of 2024. Consing is also looking at the business potential of the Laguindingan Airport and Laoag International Airport, both slated to be privatized under the Marcos administration.

San Miguel Aerocity Inc., a subsidiary of San Miguel Holdings Corp., is spending P735.6 billion to build NMIA, soon to become the largest airport in the Philippines.

On the other hand, the Department of Transportation is leading the P170.6-billion privatization of NAIA in an effort to nearly double its passenger capacity to 62 million a year.

“Obviously, Bulacan is being funded by the SMC Group. We have already NAIA, currently going through its own (privatization) process. We got two remaining airports that are there: Laoag and Laguindingan. Those are the four that we will look at. We also have quite a number of roads and bridges that are out there,” Consing said.

Consing is also studying the economic viability of the Agus-Pulangi Hydropower plant complex and the Caliraya-Botocan-Kalayaan power project. He said the energy segment should be looked at given that the load requirement of the population is growing.

Consing said the MIF maintains a little over P100 billion in funding mainly from the contributions of the Land Bank of the Philippines and the Development Bank of the Philippines. The MIC will go on investment roadshows in the future to attract foreign businessmen to bet on the MIF.

Consing also confirmed that the MIC will make no investments in the stock market, leaving that job to state-run insurers Government Service Insurance System and Social Security System.

Over the weekend, President Marcos tapped Consing as president and CEO of the MIC, tasked to mobilize and oversee the country’s first-ever sovereign wealth fund.