Wednesday, June 21, 2017

DMCI sets P42.5-B capex this year, seeks Northrail arbitration



Published May 17, 2017, 10:00 PM By James A. Loyola

DMCI Holdings Inc. and its subsidiaries, including affiliate Maynilad Water Services Inc., are allotting a total of P42.5 billion for capital expenditures (capex) this year.
 In a press briefing after the firm’s annual stockholders’ meeting, DMCI Chief Finance Officer Herbert Consunji said the capex amounts to P28.25 billion if excluding the P14.29 billion budget of Maynilad.
 The biggest capex is the P14.29 billion programmed by Semirara Mining and Power Corporation, followed by the P11.68 billion allotted for property developer DMCI Homes, P1 billion for DMCI Power, P902 million for construction unit DM Consunji Inc., and P8 million for its nickel mining businesses.
Meanwhile, DMCI is set to formally file its arbitration case against the Bases Conversion and Development Authority and North Luzon Railways Corporation over the failed railway project for Luzon.
“We expect to begin the arbitration proceedings within the year,” said DMCI Chairman Isidro Consunji. The case stemmed from a project that is two decades old and has yet to be completed.
The company is presently looking for a representative to the local arbitration court, after the case finally hurdled its last obstacle following a Supreme Court ruling affirming the company’s right to bring the government to arbiration over the project.
“That’s P300 million principal and interest,” said Consunji of the claim that DMCI may seek from the government. Market estimate over the present amount of the claim stands at around P900 million.
“At the end of the day, the facts are you have an arbitration case, we have a strong case. Will the accused party follow the verdict? Will we get paid? Maybe it will end up in court or Supreme Court I guess,” said Consunji.
The plan was started in 1995 by the government through the BCDA, the Philippine National Railways (PNR), and a consortium comprised of foreign investors and local partners.

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