By Neil Jerome C. Morales (The
Philippine Star) | Updated July 3, 2014 - 12:00am
MANILA, Philippines - Property giant
Ayala Land Inc. (ALI) stands to benefit from a P65-billion mass transit
infrastructure project that will be awarded to conglomerates Metro Pacific
Investments Corp. (MPIC) and Ayala Corp. (AC).
The real estate arm of the Ayala
conglomerate will introduce a retail concept in railway stations while
additional Public-Private Partnership (PPP) projects will improve access to its
properties, an official leading AC’s infrastructure businesses said.
“ALI is our retail partner, the
leasing partner,” Noel Eli B. Kintanar, executive vice-president of AC
Infrastructure, said in a briefing.
The assets up for redevelopment into
commercial areas are part of the concession agreement for the P65-billion Light
Rail Transit Line 1 (LRT1) Cavite extension project, Kintanar said.
Specifically, there are plans to put
up shopping centers or district mall concepts in LRT-1 stations, he said.
Early last month, the Light Rail
Manila Consortium formed by MPIC and AC offered to pay a P9.35-billion premium
for the PPP mass transit project.
The LRT-1 Cavite extension project
would increase the span of Line 1 to 32.4 kilometers from 20.7 km with a new
south endpoint in Niog, Bacoor, Cavite. Approximately 10.5 km of the Cavite
extension system would be elevated while 1.2 km would be at grade level.
The government, which will award the
32-year concession to the consortium this month, has set aside P30 billion to
acquire up to 39 new light rail vehicles.
Kintanar said a retail concept could
be put up in the seven-hectare LRT train depot in Zapote, same with the Trinoma
shopping mall development of ALI beside the MRT depot in Quezon City.
AC is also looking at creating a new
source of steady and inflation-adjusted cash flows, a hedge against business
cycles, by targeting tollroad, railroad, airports and other transport-related
projects, Kintanar said.
Aboitiz Land Inc. and AC, through
joint venture Team Orion, topped the recent bidding for the P35.4 billion
Cavite-Laguna Expressway. Team Orion submitted a concession payment of P11.659
billion for the PPP project and is currently awaiting the notice of award from
the Department of Public Works and Highways.
AC Infrastructure is also the company
behind the P2-billion Daang Hari South Luzon Expressway, the first PPP project
awarded by the government, and the P1.72-billion Automated Fare Collection
System for elevated railways in Metro Manila in partnership with MPIC.
“We hope in the medium term,
[infrastructure projects] will be a significant contributor to AC,” Kintanar
said.
AC is also into banking (Bank of the
Philippine Islands), telecommunications (Globe Telecom Inc.), utilities (Manila
Water) and electronics (Integrated Microelectronics Inc.). – With Lawrence
Agcaoili
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