Manila Bulletin
By JAMES A. LOYOLA
October 28, 2012, 2:54pm
Ayala Corporation and its subsidiaries are eyeing at least $1.85 billion worth of private-public-partnership projects that will be bid out by the government as it focuses on raising recurring income to 20 percent of its revenues over the next five to 10 years.
In his presentation for a special briefing organized by COL Financial, Ayala managing director and head of corporate strategy John Eric Francia said these projects include the $50 million Daang Hari tollroad, which the group already bagged.
Other projects they intend to bid for include the $380 million NAIA Expressway, the $470 million Cavite-Laguna (CALA) expressway, the $700 million LRT 1, and LRT 2 which does not have an estimated value yet.
Ayala is also bidding for the $250 million Mactan International Airport project through a partnership with the Aboitiz group.
“There is a lot of need and demand for infrastructure and only a few groups have the means, capital and expertise to make a huge impact,” noted Francia.
The Ayala group estimates its total capital expenditures to reach an all time high of R124.2 billion this year from just R65.9 billion as it places its bets on power and other infrastructure investments.
Francia said “the Ayala group is well-positioned to capture growth opportunities in the current economic environment” and has the financial strength and strategic partnerships to enable growth.
He said the firm’s international businesses (including business process outsourcing) are turning around to drive more value while the group intends to expand core businesses to fuel growth and scale up new growth platforms in power and infrastructure.
Francia said they will focus on increasing the gross asset value of its unlisted businesses from the current 9 percent of R340 billion as of the end of September 2012 so as to make the conglomerate more attractive to investors.
He explained that investors will then have to buy into Ayala to be able to participate in these new businesses since they cannot buy into these subsidiaries directly through the stock market.
The Ayala group also intends to increase the dividend income contribution of businesses with a steady recurring and cash flows from the 6 percent of the R6.2 billion earned by Ayala from its business units as of the end of 2011.
Francia earlier disclosed that the group is planning to invest $2.5 billion (R105 billion) to build a portfolio of power projects with a capacity of as much as 1,000 megawatts over the next five years.
Of this amount, renewable energy sources will likely comprise 20 percent or 200 MW of its targeted 1,000 MW capacity. source
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