Tag Archives: infrastructure projects

WB support for Mindanao

BusinessWorld Online
July 16, 2014

THE WORLD BANK Group has proposed a $119-million (P5.17 billion) funding for infrastructure projects in Mindanao, in support of the peace process between the Philippine Government and the Moro Islamic Liberation Front.
The World Bank Group, in a press release, said the funding will support farm-to-market roads, bridges, communal irrigation systems and potable water in the region, including areas in the Autonomous Region in Mindanao (ARMM).

World Bank President Jim Yong Kim said in a press conference the funding is part of the Washington-based multilateral’s support of the peace process in Mindanao.

“When there’s no peace, there’s no prosperity,” Mr. Kim said.

“We think these are the kinds of investments that are critical in moving forward,” he added.

The $119-million grant forms part of the $508 million earmarked under the proposed Philippines Rural Development Program (PRDP), a six-year program for infrastructure projects and livelihood programs.

The PRDP will be presented to the World Bank Group’s Board of Executive Directors next month for approval.

The International Finance Corp. (IFC), the WB’s private sector arm, is also looking at proposing investments that will generate at least 6,000 jobs in Mindanao.

The WB has formed a new country partnership strategy (CPS) in the Philippines where the multilateral has committed to provide $3.2 billion in assistance from 2015 to 2018 and another $1 billion for investments in business and industry. — Mikhail Franz E. Flores

Ayala mulls bid for O&M contract of Laguindingan airport

BusinessWorld Online
November 01, 2011

AYALA CORP. is looking to bid for the operation and maintenance (O&M) contract of an airport that will serve Cagayan de Oro, an area where the conglomerate is already building a mall and housing complex.
This comes on top of the firm’s interest in other infrastructure projects lined up by the government for privatization, marking a further foray out of its core businesses.

“We are looking at the new airport in Cagayan de Oro that will start operating I think in 2013,” Delfin C. Gonzalez, Jr., Ayala’s chief finance officer, told reporters last week, referring to the Laguindingan facility in Misamis Oriental, roughly 50 kilometers away from the existing Lumbia airport.

“It actually sits on a property that we donated to the government,” Mr. Gonzalez said.

“[Ayala] also owns about 500 more hectares around it,” he said. “We are also looking at participating in that so that it can also help to spur the development of [the area].”

The Aquino government has included the privatization of Laguindingan Airport’s operation and maintenance project among the 10 vital infrastructure projects to be opened for private investment under the Public-Private Partnership (PPP) program.

The 20-year operations concession is seen to reduce government expenditures and improve the quality of service at the airport.

According to PPP Center, the new airport on a 393-hectare property is seen to accommodate 1.2 million passengers per year based on its master plan.

The tender period had earlier been slated to end by next month but a government decision to review all projects up for bidding is expected to delay the contract’s awarding.

Ayala, through its subsidiaries, is already building a mall in the area via a joint venture. It is also developing a subdivision and is looking to construct a hotel as well, earlier reports show.

Ayala officials have said that the company is interested in other PPP projects offered by the government, particularly the Daang Hari-South Luzon Expressway road project.

“We need an operator partner [which is a] foreign [firm],” Mr. Gonzalez said, when asked about the firm’s progress in bidding for the road project.

The interest in infrastructure comes as Ayala is looking to venture into other industries including power.

The conglomerate announced in March its bid to build a portfolio of over 1,000 MW in generating assets. It has already formed joint ventures with partners for coal, wind and hydroelectric power projects.
Mr. Gonzalez reiterated the company would spend P100 million in the next five years for its power ventures.

“But there is no immediate fund raising that we are looking at right now,” he said
Ayala’s first-half net income climbed by 12% to P4.9 billion over year-ago levels, propelled by its property, banking, water distribution and telecom units.