MPIC allots P45 B for capex next year

MANILA, Philippines - Infrastructure giant Metro Pacific Investments Corp. (MPIC) expects a 29- percent increase in its capital expenditures next year with the start of the P65-billion project to extend the Light Rail Transit line 1 (LRT-1) all the way to the province of Cavite.

MPIC president Jose Maria K. Lim said in an interview with reporters that the budget for capital expenditures of the conglomerate could reach P45 billion next year from P35 billion this year.

Lim said MPIC has earmarked P10 billion next year for the LRT-1 extension project.

Without the budget for LRT-1, he pointed out that MPIC would spend P35 billion for its capital expenditures next year. This year, MPIC has earmarked P35 billion for its capital expenditures of which P18 billion would go to water or Maynilad, P11 billion for electricity through Manila Electric Co. (Meralco), P3 billion for toll roads via the Metro Pacific Tollways Corp. (MPTC), and P2 billion for the hospital group.

“If we start LRT-1, that is another chunk.  It (capex) would be closer to P50 billion for MPIC Group next year, including the LRT-1 extension project,” he added.

 According to him, the Light Rail Manila Consortium is looking at taking over the mass transit system as early as June next year instead of the original target of October next year under the concession agreement signed with the Department of Transportation and Communications (DOTC) as well as Light Rail Transit Authority (LRTA) last Oct. 2.

MPIC’s Metro Pacific Light Rail Corp. controls 55 percent of the consortium followed by Ayala’s AC Infrastructure Holdings Corp. with 35 percent and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. with 10 percent.

The group has incorporated Light Rail Manila Holdings Inc. (LRMH) as the corporate entity for the project. LRMC control’s 60 percent of LRMH while MPIC owns 30 percent and Macquarie with 10 percent.