For those with deep pockets, betting on infrastructure can be a great way to secure steady returns in a meaningful manner.
In the case of Aboitiz Equity Ventures Inc., it recently established a company to let everyone know it is bent on doing just that.
Called Aboitiz InfraCapital, the unit would serve as the group’s so-called “fifth leg” after power (really most of the pie), banking, food and property.
Roman Azanza III, first vice president of the unit, said the subsidiary was established in January this year. Its first project would be a bulk water concession in Davao.
Ideally, all public private partnership projects and other infrastructure investments would be undertaken by this unit, similar to structures employed by other conglomerates such as Ayala Corp. and San Miguel Corp.
Right now, the company is shopping for a new airport partner after its previous consortium with France’s Vinci Airports was no more after the transportation department decided to unbundle the regional airports’ PPP— much to the surprise of would-be bidders.
Beyond airports, Aboitiz InfraCapital is really keen on doing a lot more investing, as are many of the country’s biggest players.
The real question is: where are those projects?
15 March 2017
By Miguel R. Camus
