Macquarie has P26-B equity fund for PHL infra projects

Tuesday, 25 September 2012 21:07 Lenie Lectura / Reporter

THE Macquarie Group of Companies, one of the interested bidders for the P60-billion Light Rail Transit (LRT) Line 1 Cavite Extension Project, said it has as much as $600 million, roughly P26 billion, in equity fund that could be spent for Philippine infrastructure projects.

“We are interested in road, rail, airports. In general, we are interested in power…. We’ll have a look at social infrastructure like schools and hospitals.  We try to be as flexible as possible,” said Michael de Guzman, managing director of Macquarie Capital, at the sidelines of the 2012 Philippine Energy and Infrastructure Business. 

ENJOY GOOD LIFE + INVESTMENT, CLICK HERE 

 

“I can’t comment on that until we are asked to disclose,” she said, when asked which local company Macquarie was partnering with for the LRT Line 1 extension project.

Asked to elaborate on the $600 million, he said it is an equity fund. “Typically, in a project there is a primary
sponsor like a Philippine conglomerate and they may need 30 percent to 40 percent equity partner or tap loans from banks. That’s where we come in,” de Guzman added. He said Macquarie has no preferred conglomerate.

The fund, according to de Guzman, may be spent in two years in five to 10 varying infrastructure projects. If additional funding is needed, Macquarie can “continue to supply funding.”

Aside from the Cavite Extension Project of the Light Rail Transit Authority, Macquarie also procured documents for the Ninoy Aquino International Airport Expressway project, which is included in the Public-Private Partnership (PPP) Program of the Aquino administration.

Aside from Macquarie, other firms that had purchased pre-qualification documents for the LRT Line 1 Extension Project were San Miguel Infra, Mitsubishi Corp., D.M. Consultant Inc., Hanjin Heavy Industries & Construction Co. Ltd., Sumitomo Corp., Leighton Contractors, SyCip Salazar Hernandez & Gatmaitan, FSG Capital Inc., EFC Enterprises, FF Cruz & Co. Inc., Marubeni Corp., BPI Capital Corp., ING Bank, Jorgman Planning & Development Corp., RATP Development, Benchtel Overseas Corp., Comm Builders & Technical Philippines Corp., Lenvoisa Construction Inc., APT Global Inc., Makati Development Corp., Tranzen Group, Serco Group, Cathay Energy Service Corp. and Systra Group.

The deadline for submission of requirements of interested bidders is on Friday, September 28.

Meanwhile, an official of the Department of Transportation and Communications said during the same meeting that they are undertaking a study to extend the LRT Line 1 project from Bacoor to Dasmariñas, Cavite.

“We hope that by the middle of next year, we will be able to get that structured and get that out to bid by the third quarter of 2013,”  Transportation Undersecretary Rene Limcauco said.

The LRT Line 1 Cavite Extension Project costs P60 billion. This extends the existing 20.7-kilometer LRT Line 1 system, which runs from Roosevelt Avenue in Quezon City to Baclaran in Parañaque City, by an additional 11.7 km southward to Bacoor, Cavite.

Eight passenger stations with a provision for two additional stations, one satellite depot and three intermodal facilities, are part of the project. Two provisional stations in Manuyo Uno in Las Piñas City and Talaba in Cavite are also being proposed.

Once completed, the new line will increase ridership of LRT Line 1 from 500,000 to 700,000 passengers per day and thus, provide faster and more convenient alternative to residents of Cavite, Las Piñas and Parañaque.

The project cost will be equally split between the private sector and the government, which will spend for the purchase of up to 39 new car train sets and construction of the satellite depot, among others.

Another train project that will be bid out is the LRT Line 2 East Extension Project, a 4-km line to Masinag Junction in Antipolo City.

“We got the LRT Line 2 extension approved by the Neda [National Economic and Development Authority] about three weeks ago. This costs P10 billion and will be funded through GAA [General Appropriations Act], ODA [Official Development Assistance] and PPP. We will bid out the operation and maintenance of this line,” Limcauco said.