[ Malaya.com.ph ] December 9, 2010
Home Guarantee Corp. (HGC) is willing to sell the "airspace" above the tracks of the Philippine National Railways to Metro Pacific Investments Corp. so the latter can improve the viability of its planned interconnection of the North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX)/
HGC director Mel V. Adriano said acquiring the airspace and selling it to advertisers was part of Metro Pacific’s plan when it originally floated the interconnection project during the Arroyo administration.
Adriano did not say how much is the asking price of HGC, which provided guarantee to a housing development built along one side of the PNR tracks.
Metro Pacific has earmarked P16 billion for the project what will cut the travel time between NLEX SLEX to 15-20 minutes.
The disposal of the airspace is part of HGC’s move to supplement its planned P5.5 billion bond offering.
The proceeds of the offer are supposed to be used to refinance outstanding obligations, and settle unpaid guarantees to the Social Security System.
HGC is also expecting to generate P5 billion from the proposed sale of a 7-hectare lot in Manila on which the Manila City Jail, the Jose Fabella Memorial Hospital, and the Central Market stand
"The problem is that there are five thousand families of informal settlers in the area. How can you sell that?" Adriano said.
Adriano said HGC has an estimated P12 billion worth of assets it can sell.
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