Saturday, November 18, 2017

MPIC plans to spend P653B over next 5 yrs

SYDNEY, Australia: Conglomerate Metro Pacific Investments Corp. (MPIC) on Thursday said it is planning to spend P653 billion over the next five years to fund the projects of all its subsidiaries.

In a news briefing, MPIC Chief Finance Officer David Nicol said that the planned capital expenditure was based on committed projects of the conglomerate’s units in the next five years.

Metro Pacific Tollways Corp. (MPTC) has a total of P125 billion committed projects that need funding, not to mention unsolicited proposals that could be worth another P145 billion, he said.

On the other hand, Light Rail Manila Corp. will need about P70 billion to upgrade LRT-1. This will include station upgrades, new light rail vehicles, reduced journey time, track replacement, and additional beep cards.

The company also seeks to finance substantial operational and infrastructure upgrade requirements of the Metro Rail Transit 3 (MRT 3).

Meanwhile, water projects, including those outside Maynilad Water Services, Inc., will need P45 billion for the increase of water supply and waste and sewerage services coverage.

Energy from waste, MPIC’s new planned investment, will need P20 billion for the construction of an integrated solid waste management facility in Payatas, Quezon City where the old landfill is located.

Its power unit, meanwhile, will require P380 billion as the company continues to look to expand renewable energy sources in its portfolio.

Hospital arm Metro Pacific Hospital Holdings, Inc. will need P13 billion to fund expansion, alongside putting up primary care clinics and specialty treatment centers.

“So for us, P653 billion—that’s committed … that’s over a five- to six-year period,” Nicol said.

Of the total amount, P100 billion will be allocated for 2018, a huge chunk of which will be taken by MPTC. MPIC’s tollroad unit will have P38 billion, Manila Electric Co. gets P21 billion, LRMC will get P17 billion, Maynilad will get P12 billion, and hospital and logistics units will get P6 billion each.

“Some of that will come from equity partners. Approximately P90 billion of it comes from MPIC. Some of it comes from project financing,” Nicol said, when asked how MPIC intends to source the funds for the spending program.

MPIC is the conglomerate led by businessman Manuel V. Pangilinan.

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