Aboitiz group to invest in Mactan airport
MANILA — The Aboitiz group is keen on bidding for airport terminal and water infrastructure projects under the government’s public-private partnership framework as part of its growth roadmap outside of big-ticket power generation projects.
In a press briefing yesterday, top officials of Aboitiz Equity Ventures and Aboitiz Power Corp. announced that the group would like to invest in new infrastructure projects apart from new or greenfield power generation projects that would boost its attributable installed capacity to 3,100 megawatts by 2015 from 2,350 MW at present. Together with its partners, the group expects to invest P170 billion in the next three to five years in new power generation capacity.
The Aboitiz group is likewise keen on expanding its interests in banking (Union Bank and CitiSavings) and food (Pilmico Foods) whether through organic growth or acquisitions.
“Union Bank is not for sale. Over the years, we have been increasing our ownership and we’re very happy with how Union Bank is performing,” AEV chairman Jon Ramon Aboitiz told a press briefing, when asked about recurring rumors about the bank being on the block.
Justo Ortiz, chairman of Union Bank, said the bank had clear strengths in trading and fixed income securities for the past two decades and this would likely continue to be part of its strategy.
“Our game plan over the next 10 years is to balance these trading securities by generating more customer revenues principally from areas where we didn’t have a strong hand, which are the consumer finance sector and middle market (enterprises,” he said.
But while power currently accounts for more than 70 percent of AEV’s total business, the Cebu-based conglomerate plans to participate in the government’s PPP auctions.
“We’re keeping our eyes open for PPP—airports or maybe water—as opportunities for us,” Aboitiz said, adding that the group would not likely get involved in other projects like toll roads or railways.
“We want to concentrate on areas where we have expertise and there’s large potential growth,” Aboitiz said.
For airports, the group is interested in the privatization of Mactan terminal but will also take a look at all airport projects in the PPP pipeline. The group might bid either by itself or with a strategic partner, Aboitiz said.
Asked why the group was interested in airports, Aboitiz said: “It’s part of the PPP. We feel that airports will be important gateways just like ports are.”
“We want to develop more tourism (business). As you see, more and more people are traveling by air because you’ve got the low-cost airlines … I think that the airports are going to be modernized and perhaps get to be more efficient, operating 24 hours a day … So I think there’s great opportunity for growth,” he said. /INQUIRER
