Who is the busiest tycoon of them all?
Certainly not the semi-retired one who went abroad to spend some quality time with his children or the tycoon who just got home after seven weeks of recuperating in a hospital. The tycoon who just stepped down as CEO of a listed giant also could not be the busiest one; on the contrary, he’s said to be struggling with boredom now.
These days, the busiest tycoon is Enrique K. “EKR” Razon. Like his foot soldiers struggling to catch up with their commander, I’m also having a dizzying time chasing the stories about him.
But “it is what it is,” as he likes to say. There’s no stopping the ports, casino and now water tycoon from expanding his already sprawling business empire.
Manila Water franchise
We already know he’s officially taken over Manila Water as chairman, president and CEO, as The STAR reported on June 3, the day of the special board meeting that sealed his entry in the company.
Razon’s trademark fast-paced style and unparalleled punctuality were immediately felt in Manila Water’s boardroom as the meeting was over in 15 minutes, just like his annual stockholders’ meetings – 10 to 12 minutes, tops.
The bigger story, though, is the 25-year congressional franchise Razon is close to obtaining for Manila Water. Once legislated, it would extend Manila Water’s authority to operate waterworks and sewerage in Metro Manila and nearby provinces beyond the 2037 expiration of the revised concession agreement (RCA). The RCA recognized Manila Water and Maynilad as public utilities, thus enabling them to secure a congressional franchise.
Watered-down regulatory powers
I’m not sure what powers Metropolitan Waterworks and Sewerage System (MWSS) would have over these water utilities once the concession agreement expires in 2037 while their franchises remain until 2046.
I speculate MWSS’ powers would be watered down but, by then, a new regulator similar to the Energy Regulatory Commission – but hopefully more efficient and powerful – should already be in place.
Duterte got what he wanted
For now, President Duterte got what he wanted in the RCA, contrary to the perception that Razon’s entry into Manila Water resulted in a sweetheart deal with the government.
As one analyst said, the Razon-led team won’t have it easy. The RCA, after all, removed the recovery of corporate income taxes and foreign exchange adjustments, lowered the inflation factor and imposed caps on rate increases, including a tariff freeze until end-December 2022.
With regulation in the Philippines chaotic and uncertain, it’s no surprise Razon plans to expand Manila Water’s operations outside the country, similar to his ports giant ICTSI, which is now in more than 30 territories.
It’s still a win-win situation, even for the Zobels, because Ayala retains a 38.6 percent economic interest minus the headaches of dealing with regulators.
Puerto Azul
Razon also surprised the business grapevine after the Panlilio Group disclosed it was partnering with the tycoon to develop a Hawaii-like beach resort in Cavite, which includes part of Puerto Azul, that once upon a time go-to beach club of Gen X kids, myself included.
But I’m not sure if the 70-hectare Puerto Azul will regain its old glory. It seems every effort to redevelop it has faced some invisible resistance similar to the rumored Magnetic Highway leading to it, which supposedly pulls back cars.
The Panlilios have had many offers for Puerto Azul, including one from Robbie Antonio, which were cancelled. Another agreement was with Buddy Zamora, who reworked the golf course into an enticing 18-hole, 7,495-yard golf course, but COVID-19 delayed its grand opening.
Razon has yet to confirm the partnership. A photo taken last year simply shows Razon meeting with businessman Jocel Panlilio in Solaire’s famed Finestra resto.
Manila North Harbour
Then there’s the acquisition of Manila North Harbour.
Although cleared by the Philippine Competition Commission in 2019, it was only recently that Razon consolidated his stake in Manila Harbour Center into ICTSI “to boost efficiency,” at a price of P2.4 billion.
This means Razon now has a huge chunk of port operations in Manila – domestic and foreign cargoes.
Vaccine czar
Wasn’t EKR also all over the news recently for his plan to build a mega vaccine site on the controversial Nayong Pilipino property? Tirades went flying over social media and the airwaves.
But that’s already water under the bridge – or should I say under the reclaimed lot – as construction of the facility has already started. Farewell to the dragonflies and weeds.
I hope it’s finished by the time the Moderna vaccines arrive to enable private-sector workers to fully return to work and support the economy’s recovery.
Write-off
Last year, early into the pandemic, Razon said he was writing off 2020. He didn’t have much choice. True enough, Solaire’s losses were jaw-dropping. But his survival skills, impeccable timing, and agility didn’t stop him from further growing his empire.
Perhaps opportunities just land on his lap or he simply wants everything in order before the 2022 elections, and a new and possibly uncertain political and business landscape unfolds.
Whichever it is, Razon is certainly one busy tycoon these days, the busiest of them all.
Iris Gonzales’ email address is eyesgonzales@gmail.com. Follow her on Twitter @eyesgonzales. Column archives at eyesgonzales.com