MPIC unit evaluates $600M road project in Vietnam
MANILA, Philippines – Metro Pacific Tollways Corporation (MPTC), the tollroad unit of infrastructure conglomerate Metro Pacific Investments Corporation (MPIC), is evaluating offers to invest in a $600 million tollroad project in Vietnam through CII Bridges and Roads Investment Joint Stock Company (CII B&R).
In January, MPTC acquired 45% interest in CII B&R for $90 million, marking the company’s initial foray in Vietnam.
CII B&R has various road and brigade projects in and around Ho Chi Minh, with a portfolio of 17 kilometers of roads operating at 38,000 vehicles per day.
It also has road projects under pre- and ongoing construction covering a total of 55 kms with an expected combined traffic volume of 43,000 vehicles per day.
“CII is the right partner that is holding a good portfolio of existing roads, plus potential projects in their own concession. So we’re happy with the partnership and the portfolio it brings with it,” MPTC President Ramoncito Fernandez said in a press briefing Tuesday, May 12.
Meanwhile, MPIC reported that its net income for the first quarter of 2015 went up by 4% to P2.4 billion ($53.57 million). Core net income grew at a faster rate of 14% to P2.6 billion ($58.05 million) from P2.2 billion ($49.12 million) recorded in the same period a year ago.
MPIC said the rise in core net income was due mainly to strong traffic growth on all MPTC roads, and an increased shareholding in Manila North Tollways Corporation.
Likewise, the growth at Maynilad Water Services due to higher volumes sold and volume growth and increased effective shareholding in the Manila Electric Company also boosted the company's financial performance for the first 3 months of 2015.
“All our operating companies reported strong growth in profitability for the first quarter of the year. We anticipate continued strong volume growth for the rest of 2015 for all our subsidiaries in light of continuing economic expansion,” MPIC President and Chief Executive Officer Jose Ma K. Lim said.
MPIC though is still dismayed over the delay in the implementation of tariff rate adjustments on its water and tollroad businesses.
“It’s anticipated that earnings growth will be lower than it should be, given the capital continuing to be invested in our tollways, and despite the strong operational performance,” Lim added. – Rappler.com
$1 = P44.79
Ho Chi Minh image via Shutterstock