The Philippine Star, 20 October 2014
By Lawrence Agcaoili
MANILA, Philippines – The Department of Transportation and Communications (DOTC) is giving interested bidders of the proposed P4 billion integrated transport terminal until Nov. 4 to submit their qualification documents for the public private partnership (PPP) project.
Jose Perpetuo Lotilla, DOTC Undersecretary and head of the prequalification bids and awards committee, said interested companies are being given ample time or 21 days from the issuance of responses to their queries to prepare their qualification documents for the Integrated Transport System (ITS) â€“ South Terminal at the Food Terminal Inc. (FTI) compound in Taguig City.
â€śIn confirmation of GBB 04-2014 issued last Oct. 1, the qualification documents submission date will be held on Nov. 4. The opening of bids shall be held immediately after the deadline fo the submission of bids,â€ť Lotilla said.
Companies that expressed interest to finance, design, construct, operate and maintain the ITS-South Terminal designed to serve passengers coming from Laguna and Batangas were earlier given until Oct. 6 to submit their qualification documents for the PPP project.
Companies that bought bid documents for the project include diversified conglomerate San Miguel Corp., property giant Ayala Land Inc., Filinvest Group of taipan Andrew Gotianun, Filipino-owned Megawide Construction Corp., and Datem Construction.
The terminal would connect passengers from the Laguna and Batangas side to other urban transport systems such as the proposed North-South Commuter Rail of the Philippine National Railways, city buses, taxis, and other public utility vehicles that serve inner Metro Manila.
The project would include a passenger terminal building, arrival and departure bays, public information systems, ticketing and baggage holding facilities as well as park-ride facilities.
Earlier, the DOTC postponed by 30 days the Sept. 29 deadline for the submission of qualification documents for the P2.5-billion ITS -Southwest Terminal project situated in a 2.9-hectare property located at the Coastal Road Terminal along the Manila-Cavite Expressway.
Several companies have expressed interest in the terminal that would connect passengers coming from Cavite to other urban transport systems such as the future Light Rail Transit line 1 (LRT) South Extension to Bacoor in Cavite, city bus, taxi, and other public utility vehicles plying Metro Manila.
InterAksyon, 20 October 2014
By Darwin G. Amojelar
MANILA – The government is laying the groundwork for the bidding of the second transport terminal in the south of Metro Manila.
In a general bid bulletin, the Department of Transportation and Communications (DOTC) set a November 4 deadline for submission of qualification documents for the P4-billion Integrated Transport System (ITS) South Terminal Project.
Five groups already bought bid documents for the project, including San Miguel Corp, Ayala Land Inc (ALI), Filinvest Land Inc (FLI), Megawide Construction Corp and Datem Construction.
The project will be located near the Food Terminal Inc, the development contract for which ALI earlier bagged.
The project will connect passengers coming from the provinces of Laguna and Batangas to other urban transport systems, such as the future North-South Commuter Rail, city buses, taxis and other public utility vehicles that serve the inner Metro Manila.
The terminal will include a passenger terminal building, arrival and departure bays, public information systems, ticketing and baggage holding facilities and park-ride facilities.
The winning bidder will build, operate and manage the said terminal for a concession period of 35 years.
The first transport terminal for Metro Manila is the P2.5 billion ITS Southwest Terminal Project, which built rise on a 2.9-hectare area. The terminal will connect passengers coming from Cavite to other urban transport systems, such as city buses, taxis and other public utility vehicles that serve the inner Metro Manila, as well as the future LRT1 South Extension.
The ITS-Southwest Terminal will include a passenger terminal building, arrival and departure bays, public information systems, ticketing and baggage handling facilities and park-ride facilities.
The Public Private Partnership Center earlier said 12 companies had expressed interest to join the auction, namely, Ayala Corp, ALI, D.M. Wenceslao and Associates Inc, Egis Projects Philippines, Expedition Construction Corp, FLI, Megawide, Metro Pacific Tollways Corp, Robinsons Land Corp, SMC, States Properties Corp, and Vicente T. Lao Construction.
The DOTC had set the submission of bid proposals for the ITS-Southwest PPP this month.
Reuters, 20 October 2014
By Neil Jerome Morales
MANILA, Oct 20 (Reuters) – Ayala Corp, the Philippines’ oldest industrial conglomerate, will invest an extra $350 million in new power and infrastructure projects in the next three to four years to diversify its income stream, a senior official told Reuters.
The new spending will come on top of $1 billion Ayala had already pledged to invest in July 2012 in projects to match the development of the Philippines’ economy, Managing Director John Eric Francia said in an interview on Saturday.
Francia said total investment could yet be raised above the $1.35 billion now pencilled in. Ayala, valued at $9.19 billion by market capitalisation, is also keen to bid for airport and railroad projects that Manila will roll out soon under a public-private partnership (PPP) scheme.
“The $1 billion before was an aspirational target. As time goes by, you get to actually act on specific opportunities,” Francia said. “Hopefully in the next months, we will be able to convert the pipeline into committed projects so we are in the $1.35 billion (area).”
Southeast Asia’s fifth largest economy needs 900 MW of new power supply before March. Otherwise, it’s set to face rolling brownouts in 2015 on the main Luzon Island – home to its manufacturing and booming call centre industries, as well as more than half of its 100 million people.
Francia said Ayala already committed $150 million as equity investment for the 35.4 billion pesos ($789 million) Cavite-Laguna Expressway (CALAX) project. Ayala and partner Aboitiz Equity Ventures Inc submitted what was viewed in the Philippines as the best bid for the project in June, but a contract has yet to be awarded as rival bidder San Miguel Corp questioned the outcome of the tender.
Ayala has won three of the eight PPP projects awarded by the government so far, but is still interested in taking part in more auctions.
Francia said Ayala is looking at new PPP projects like the $2.72 billion Laguna Lakeshore Expressway Dike, the $2.5 billion Integrated Luzon Railway Project and the $542 million Bulacan Bulk Water Supply project. Ayala remains interested in PPP projects despite reports in the Philippines that the government may be considering pulling the CALAX expressway out of its PPP programme.
Philippine President Benigno Aquino on Friday gave authorities the go-ahead to offer for tender 165.6 billion pesos ($3.7 billion) worth of new PPP projects.
Since launching the infrastructure program in 2010, the government has awarded eight PPP projects worth $2.83 billion in line with efforts to upgrade ageing roads, airports and ports.
(Reporting by Neil Jerome Morales; Editing by Kenneth Maxwell)
Business World, 17 October 2014
ByÂ Â Imee Charlee C. Delavin
Communications Secretary Herminio B. Coloma, Jr. said the PPP projects which secured green light from the NEDA Board, headed by President Benigno S.C. Aquino III, were the first phase of the P30.40-billion Operation and Maintenance (O&M) of Iloilo Airport; Phase 1 of the P40.57-billion O&M of Davao Airport; Phase 1 of the P20.26-billion O&M of Bacolod Airport; P5.23-billion O&M of Puerto Princesa Airport; P18.99-billion Davao Sasa Port Modernization Project; and P50.18-billion Regional Prison Facilities through PPP.
Mr. Coloma also said the NEDA Board, in the same meeting, approved the change in contract terms for the P122.81-billion Laguna Lakeshore Expressway Dike Project, also under the PPP program. â€śAuthority was given by NEDA Board for DPWH (Department of Public Works and Highways) to adopt a hybrid contractual arrangement, as stipulated in the IRR (Implementing Rules and Regulations) of the BoT Law. Also, the DPWH was directed to coordinate with LLDA (Laguna Lake Development Authority) and PRA (Philippine Retirement Authority) on implementation,â€ť he said in a text message.
Mr. Coloma would not elaborate, but a January 2013 policy brief prepared for the PPP Center described a hybrid project as one that provides assets in lieu of cash or other conventional forms of subsidy, or allows official development assistance or other concessional international financing not usually obtained for a PPP project.
Also approved was the 18-month extension of loan validity (to Jan. 10, 2016 from July 10, 2014), downscaling of scope and reallocation of project cost that cut the total cost of the ongoing Laguindingan Airport Development Project to P7.70 billion from P7.85 billion.
O&M of the various airports, Mr. Coloma noted, is meant to â€śenhance safety, security, access, passenger and cargo movement efficiency, and operational efficiency at the airportâ€ť, while the regional prison facilities is expected â€śto accommodate 26,000 inmates with facilities for both men and women.â€ť
The other projects approved in the more than eight hours of meeting were: P8.55-billion flood risk management project for Cagayan de Oro River; the P1.27-billion Sen. Gil Puyat Avenue-Makati Avenue-Paseo de Roxas vehicles underpass project; the P4.01-billion Metro Manila Interchange Construction Project Phase 6; P810-million restoration of damaged bridges along Bohol Circumferential Road; P1.86-billion Fisheries, Coastal Resources and Livelihood project; as well as the P2.28-billion Convergence on Value Chain Enhancement for Rural Growth and Employment to be implemented by the Agrarian Reform department.
Mr. Coloma said funding for the approved projects will come from various sources: some will be government-funded, some will require loans, others will have private equity funding or a combination of these modes.
With the approval by the NEDA board, Mr. Coloma said these projects could now move forward, adding that the President also â€śdirected the Cabinet and NEDA members to focus on completing similar ongoing projects.â€ť
Two other PPP projects that were discussed but not approved — the P19.30-billion Motor Vehicle Inspection System and P21.2-billion North Luzon Expressway (NLEx)-South Luzon Expressway (SLEx) Connector Road — will be taken up in the next NEDA board meeting that has yet to be scheduled, Mr. Coloma said.
He added that Mr. Aquino ordered further review of other non-PPP projects that were taken up, namely: Balog-Balog multi-purpose project under the National Irrigation Authority, as well as extension of a road improvement project and an institutional development project of the Department of Public Works and Highways.
Eight PPP projects have been awarded so far by the Aquino government since the late-2010 launch of this flagship infrastructure program, namely: the P64.9-billion Light Rail Transit Line 1 (LRT-1) Cavite Extension; the P1.72-billion Automatic Fare Collection System; the P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building; the P2.01-billion Daang Hari-South Luzon Expressway Link Road; the P15.52-billion Ninoy Aquino International Airport Expressway; the P16.28-billion first phase of the PPP for School Infrastructure Project (PSIP); the PSIPâ€™s P3.86-billion second phase; and the P5.69-billion Philippine Orthopedic Center modernization.
Besides the Laguna Lakeshore Expressway Dike Project, six other PPP projects have been rolled out, namely: the P35.4-billion Cavite-Laguna Expressway; P2.50-billion Integrated Transport System (ITS) Project-Southwest Terminal; P4.50-billion ITS Project-South Terminal; P24.40-billion Bulacan Bulk Water Supply Project; P18.72-billion New Centennial Water Supply Source-Kaliwa Dam Project; and O&M of LRT-2.
Reuters, 17 October 2014
Oct 17 (Reuters) – Philippine President Benigno Aquino on Friday gave authorities the go-ahead to offer for tender 165.6 billion pesos ($3.7 billion) worth of new infrastructure projects under his flagship Public-Private Partnership program in line with efforts to upgrade ageing roads, airports and ports.
The country needs private funds to upgrade and modernise its dilapidated infrastructure as it aims to lift its growth rate upwards to 8 percent so it can catch up with its richer Southeast Asian neighbours.
To be included in the pipeline of projects that could be offered to investors soon under a PPP scheme are the following: operation and maintenance of the Puerto Princesa Airport (5.23 billion pesos; operation and maintenance of Iloilo Airport (30.4 billion pesos); operation and maintenance of Davao Airport (40.57 billion pesos); operation and maintenance of Bacolod Airport (20.26 billion pesos); Regional Prison Facilities (50.18 billion pesos; and Davao Sasa Port (18.99 billion pesos).
“These approved projects will significantly contribute to the infrastructure investment needed to sustain growth and make it inclusive,” Socioeconomic Planning Chief Arsenio Balisacan said in a statement.
Since launching the PPP programme in 2010, the government has awarded eight infrastructure projects worth around 133 billion pesos. They consist of toll roads, schools, an automated fare collection system, a railroad and a hospital.
The government has faced criticism from investors over the slow pace of its infrastructure roll out, but argues it had to rework the deals to prevent the corruption that has plagued similar projects in the past.
Top conglomerates like Ayala Corp, San Miguel Corp , Aboitiz Equity Ventures Inc, JG Summit Holdings Inc, Metro Pacific Investments Corp and SM Investments Corp have been active in the PPP biddings.
(1 US dollar = 44.8300 Philippine peso) (Reporting By Karen Lema and Erik dela Cruz; Editing by Robert Birsel)
Global Post, 17 October 2014
MANILA, Oct. 17 (Xinhua) — The Philippine government approved Friday over 300-billion-pesos (about 6.7-billion) worth of huge infrastructure projects.
Presidential Communications Operations Office Secretary Herminio Coloma Jr. said 11 projects, with a total project cost of 303.08 billion pesos, were given the go signal by the National Economic and Development Authority Board headed by President Benigno S. Aquino III during a meeting on Friday.
Five flood control, road, and bridges projects valued at 115.45 billion pesos will be implemented by the Department of Public Works and Highways.
The Department of Transportation and Communications will implement maintenance and modernization projects of four airports and one seaport in the country, entailing 137.45-billion-pesos worth of funds.
The Department of Justice will spearhead regional prison facilities worth 50.18 billion pesos and to be implemented under the public-private partnership scheme.
Philippine Daily Inquirer, 17 October 2014
MANILA, Philippinesâ€“Key Bhutan government officials visited the Philippines recently to obtain first-hand information about the countryâ€™s experience in implementing projects under the public-private partnership framework.
The Royal Government of Bhutan group was composed of Economic Affairs Secretary Sonam Tshering, Information Secretary Kinley Dorji, Works and Human Settlements Secretary Sonam Tenzin, Finance Secretary Lam Dorji, Economic Affairs Joint Secretary Phuntsho Wangdi, National Land Commission Secretary Pema Chewang, Gross National Happiness Commission Deputy Chief Research Officer Phuntsho Wangyel, Economic Affairs chief planning officer Sonam Tashi and Economic Affairs Planning Officer Sonam Lhendup.
â€śThe purpose of our visit is to hear and learn from the experience of the Philippines with regard to undertaking infrastructure projects under the PPP model. For most of us, we are hearing about PPP schools for the first time,â€ť said Tshering, the delegation head.
The Bhutan officials visited one of Megawide Construction Corp.â€™s infrastructure projects during their three-day stay in the country.
Megawide, together with faculty and students of the Cabilang Baybay Elementary School in Carmona, Cavite, welcomed the 9-member delegation, with representatives also from the PPP Center and the Department of Education (DepEd) taking part in the presentation of the PPP School Infrastructure Project (PSIP) to the Bhutan officials.
â€śWe know that PPP projects involve roads and other such structures. So weâ€™d be glad to hear about how Megawide and the DOE entered into this partnership [using a] successful model,â€ť Tshering added.
After DepEdâ€™s representativeâ€”Annabelle Pangan, OIC of the Physical Facilities and Schools Engineering Division (PFSED)â€”gave an extensive presentation of the agencyâ€™s role in the PSIP team-up including facts and figures on the different phases of the venture, Megawide marketing manager Genna Mijares and director for Region 4-A John Harold Manuel provided the delegates a closer look at the project, which involved the construction of about 10,000 classrooms in 2,800 job sites.
Pinoy Investor, 17 October 2014
The Department of Transportation and Communications (DOTC) is hopeful that the National Economic and Development Authority (NEDA) would approve today 6 major Public Private Partnership (PPP) projects worth PHP 133.2 billion. Transportation Secretary Joseph Emilio Abaya said the agencyâ€™s 6 PPP projects are part of the 18 projects scheduled to be tackled by the NEDA board today.
Abaya said the 6 projects of the agency include the bidding for the operation and maintenance (O&M) of four major airports worth PHP 96.5 billion. Scheduled to be discussed today is the PHP 17.5 billion Davao Sasa port project.
Likewise, Abaya said NEDA would also discuss the PHP 19.3 billion Motor Vehicle Inspection System (MVIS) project as part of the implementation of the Clean Air Act.
The roll out of PPP projects in the Philippines is in full swing after the award of 8 PPP projects worth close to PHP 133 billion.
These include the Daang Hari â€“ South Luzon expressway link road (PHP 2 billion), PPP for School Infrastructure Project phase 1 (PHP 8.86 billion), the PSIP-2 (PHP 16.28 billion), the modernization project for the Philippine Orthopedic Center (PHP 5.98 billion), the Ninoy Aquino International Airport expressway (PHP 15.52 billion), the automated fare collection system project (PHP 1.72 billion), the Mactan â€“ Cebu international airport expansion project (PHP 17.5 billion), and the Light Rail Transit line 1 Cavite extension project (PHP 65 billion).
The award of the PHP 35.4 billion Cavite â€“ Laguna expressway project is now pending after the disqualified bidder filed an appeal before the Office of the President.
The PPP Center earlier said the Aquino administration is set to roll out 18 PPP projects worth PHP 407 billion before June next year as part of the inventory of over 50 projects already in the pipeline.
The Philippine Star, 17 October 2014
By Lawrence Agcaoili
MANILA, Philippines – The Department of Transportation and Communications (DOTC) is hopeful that the National Economic and Development Authority (NEDA) would approve today six major Public Private Partnership (PPP) projects worth P133.2 billion.
Transportation Secretary Joseph Emilio Abaya said the agencyâ€™s six PPP projects are part of the 18 projects scheduled to be tackled by the NEDA board today.
Abaya said the six projects of the agency include the bidding for the operation and maintenance (O&M) of four major airports worth P96.5 billion.
These include the P40.6 billion Francisco Bangoy or Davao airport; the P30.4-billion new Iloilo airport; the P20.26 billion Bacolod airport also known as the Bacolod-Silay airport; and the P5.23 billion Puerto Princesa airport.
Scheduled to be discussed today is the P17.5 billion Davao Sasa port project that involves the transformation of the existing port into a modern, international-standard container terminal providing a dedicated containerized port in the region.
The private partner in the Davao Sasa port project would finance the construction and modernization of the existing port including the new apron, linear quay, expansion of the back-up area, container yards, warehouses, and the installation of new equipment like ship-to-shore cranes and rubber-tyred gantry over the pre-agreed concession period.
Likewise, Abaya said NEDA would also discuss the P19.3 billion Motor Vehicle Inspection System (MVIS) project as part of the implementation of the Clean Air Act.
The project involves the setting up Motor Vehicle Inspections Centers (MVIC) to test various categories of heavy duty, light duty and two wheeler vehicles, across the Philippines.
He said the private partner would develop, operate, and maintain a network of MVICs to perform inspections for all vehicles in the country.
The roll out of PPP projects in the Philippines is in full swing after the award of eight PPP projects worth close to P133 billion.
These include the Daang Hari â€“ South Luzon expressway link road (P2 billion), PPP for School Infrastructure Project phase 1 (P8.86 billion), the PSIP-2 (P16.28 billion), the modernization project for the Philippine Orthopedic Center (P5.98 billion), the Ninoy Aquino International Airport expressway (P15.52 billion), the automated fare collection system project (P1.72 billion), the Mactan â€“ Cebu international airport expansion project (P17.5 billion), and the Light Rail Transit line 1 Cavite extension project (P65 billion).
The award of the P35.4 billion Cavite â€“ Laguna expressway project is now pending after the disqualified bidder filed an appeal before the Office of the President.
The PPP Center earlier said the Aquino administration is set to roll out 18 PPP projects worth P407 billion before June next year as part of the inventory of over 50 projects already in the pipeline.
Earlier, Moodyâ€™s Investor Service cited the expanding market and the accelerating deal flow for PPP projects in the Philippines in a 21-page special comment entitled â€śGlobal P3 Landscape providing a region-by-region round-up of major themes in infrastructure investment.
Malaya Business Insight, 16 October 2014
Ayala Corp. is reallocating the proceeds of its preferred share sale to full debt servicing, dropping initial plans to channel it to capital spending.
The company said instead of using the proceeds to fund P4 billion worth of projects under AC Infrastructure Holdings Corp., it would use the entire proceeds to settle debts.
Ayala said it will be selling 30 million class B preferred shares at P500 apiece, structured as perpetual equity securities, and will be priced based on the prevailing market rate of either the five-year or the seven-year Philippine Dealing System Treasury rate plus a premium.
The company added a P5 billion BDO Unibank, Inc. loan carrying a floating rate to the list of obligations to be paid out of the proceeds from the share sale, while revising the composition of the original debt that are to be paid.
Ayala said it intends to pay a P1.46 billion Metropolitan Bank and Trust Co. loan carrying an interest rate of 6.7 percent, P1.49 billion various corporate notes maturing with an interest rate of 6.8 percent, and P5 billion BDO loan carrying a floating interest rate, on top of the additional P5 billion bond BDO loan cited above.
The earlier filing by Ayala, however, placed the varying corporate notes at P2.82 billion with the average rate at 7.45 percent. The original BDO loan was reported to carry an interest rate of 2.5 percent.
Ayala said the preferred shares will be offered at an initial tranche of 20 million and the remaining 10 million covering the oversubscription option. Each share will be cumulative and non-voting.
The preferred shares will also have the dividend rate reset on the fifth and 10th anniversary of the issue date.
Ayala earlier said it plans to spend as much as P18 billion in capital spending between this year and the next for its list of power and infrastructure projects.
The company closed the first half of the year with profits of P9.8 billion over revenues of P91.16 billion, a 34 percent increase in profit over last year while revenues were up 22.2 percent.
It is in the midst of diversifying its business to the power and infrastructure sector, allocating P24 billion as capital expenditures.
It was recently awarded the Light Rail Transit line 1 project, together with the Metro Pacific group, and was the highest complying bidder, together with the Aboitiz group, for the Cavite-Laguna expressway project.
Since 2012, the company has been eyeing to invest as much as $1 billion in energy and infrastructure projects through 2016. It has so far committed equity of close to $500 million in various power and transport infrastructure projects.