Spanish firms show interest in energy, infra projects in RP

Several Spanish firms have expressed interest in participating in built-operate-transfer (BOT) projects in the areas of renewable energy and infrastructure following President Arroyo’s official visit to Spain.

According to Trade and Industry Secretary Peter B. Favila, who accompanied President Arroyo in her trip to Spain, several Spanish firms such as Isolux-Corsan, Pro-Intec, Dimetronics and Soluziona expressed interest in participating in the Light Railway Transit (LRT) extension.

Red Nacional de Ferrocarriles Espanoles (RENFE), Spain’s national railway operator; Construccion Y Auxillar de Ferrocarles (CAF) and Soluziona expressed interest in various railway projects.

Spain’s second largest bank, Banco Bilbao Vizcaya Argentaria (BBVA) is extending financing for several projects in oil and gas exploration, hotel and resort development, information and communications technology projects, port projects, energy and other infrastructure projects.

Soluziona, which already has investments in the country, urged other Spanish investors interested in participating in Official Development Assitance (ODA) projects in Asia to set up their base in the Philippines in view of the presence of the Asian Development Bank (ADB) headquarters in Manila.

Soluziona related how they started with five employes in 1995 and have since expanded to 350 employes with projects in energy, banking and information technology.

Soluziona remains confident in the Philippine business environment and intends to expand further in Asia with the Philippines as their base.

Soluziona will bid for the North Rail project and is also exploring a partnership with taipan and retail king Henry Sy for an integrated property development complex.

Soluziona is also interested in BOT investments in the Don Piyo Intermodal Station which will be a hub for intercity and provincial bus transport and track systems.

Isolux-Corsan expressed interest in BOT railway infrastructure and construction investment projects.

It plans to participate in the bidding for LRT Line 1 South extension from Baclaran to Cavite.

Pro-Intec is interested in BOT investments in the LRT Line 1 South and Line 2 West extension, the Laguindingan Airport and Mindanao Airport Development Project in Cagayan de Oro.

It will provide a technical study grant for an agricultural/industrial project in the Cagayan Export Zone Authority.

It is also proposing a technical study grant for the fabrication of oil drilling equipment in Subic.

RENFE is interested in participating in the Iligan-Cagayan de Oro Railway project and in the North Rail project.

It will fund a E 100,000 feasibility study.

CAF, a railroad construction company, is looking at a E 33 million funding for a feasibility study on the Philippine National Railways (PNR).

BBVA signed a Memorandum of Understanding (MOU) Burgundy Global Asset Management Corporation for E250 million funding contract for BOT projects in oil and gas exploration projects in Palawan, hotels and resort development, ICT projects and the development of Port Irene in Cagayan.

BBVA also signed a Joint Declaration with WinAce Holdings Philippines, Inc. for the conclusion of an agreement for a credit line of E280 million for infrastructure and energy projects.

However, the Spanish firms expressed their concern about delays in project approvals.

Favila, however, assured them and offered the assistance of the Department of Trade and Industry as a one-stop contact to help them cut across the bureaucracy.