Source: Philippine Star, 23 March 2012
MANILA, Philippines – The family of banking tycoon George S.K. Ty is eyeing in the privatization and operation of the Bohol airport under the government’s Public-Private Partnership (PPP) framework in line with its strategy to seize long-term profitable business opportunities in key sectors of the economy.
The Ty family, through GT Capital Holdings, is looking to venture into the infrastructure business, which it sees as the next big thing given the long list of PPP projects to be auctioned off by the government to help pump-prime the economy.
On the sidelines of GT Capital’s domestic briefing for its initial public offering (IPO), company president Carmelo Maria L. Bautista said the company is actively considering and evaluating new business initiatives in sectors that complement its existing portfolio that include banking, real estate, power generation, automotive and insurance.
“We’re interested in whatever creates synergy in the group. We’re in the Visayas region. Offhand, without the benefit of any due diligence, the Bohol airport seems to be a very interesting play. It’s in our own backyard. If we supply power to Bohol, imagine what kind of development multiplier you will have there, not just for tourism but also for commerce,” Bautista said.
The government wants to speed up the construction of a new airport in Bohol to accommodate an increased influx of tourists.
GT Capital’s unit Global Business Power Corp. is a leading independent power producer in the Visayas region with a combined gross dependable capacity of 627 megawatts, comprising 619.5 MW of power supplied to the Visayas grid and 7.5 MW supplied to Mindoro Island. Its two largest power generation subsidiaries Panay Energy Development Corp. and Cebu Energy Development Corp. – own power plants with a combined installed capacity of 410 MW.
Bautista said since infrastructure is an area which the group has no expertise, it would need to tap a strategic global partner to help carry out the business.
“Infrastructure is a new area so we we need to look for a strategic global partner to help us understand this business. So we won’t go into something like that on our own, whether international or domestic, it has to be a strategic partner who’s strong with that sector,” Bautista said.
The holding firm is also currently exploring both greenfield and brownfield power generation projects, including those in the renewable energy sector such as hydroelectric.
The group intends to expand on its successful partnership model with recognized global industry leaders such as Toyota Motors, AXA,ANZ, Formosa, Mitsui, Orix and Sumitomo.
