MTD eyes more infra projects in RP

Written by Miguel R. Camus / Reporter

Sunday, 20 December 2009 19:02

MTD Capital Bhd., Malaysia’s second-largest toll road operator, is keen on putting up more infrastructure  projects  in the country after finishing the rehabilitation of South Luzon Expressway (Slex) in April next year. In an interview last week, MTD Capital head of finance and treasury Vincent Lee said this is in line with the conglomerate’s goal to become a major player in the domestic infrastructure scene. “We are open to anything interesting and [to] any viable infrastructure project. We believe this is the market to be in,” said Lee, who is also an executive vice president of MTD Capital. In terms of investments, he said the Philippines ranks as No. 3 —just behind Malaysia and Sri Lanka—among the 13 countries where MTD Capital operates. The company, which is publicly listed in Malaysia, also invests in the waste management and power generation sectors but toll roads remain on top of its list in the Philippines. Already in the pipeline is an extension to the ongoing rehabilitation of Slex, which starts from the Alabang viaduct to Santo Tomas in Batangas upon completion by April 2010. MTD Capital has already invested about P12-billion rehabilitating Slex through South Luzon Tollway Corp. (SLTC), a joint venture between the MTD Capital (which owns 80 percent) and the Philippine National Construction Corp. (PNCC). SLTC  president Isaac David said the 55-kilometer project will extend Slex from Santo Tomas to Lucena in Quezon province. He added the new project will cost about P10 billion. Lee said delays in the completion of the Slex rehabilitation have caused MTD Capital to defer other investments in the country, including the Lucena extension.   On December 11, the Toll Regulatory Board ordered SLTC and its operations and maintenance company Manila Toll Expressway Systems Inc. (Mates) to “immediately” assume management control of Slex from PNCC.   PNCC, however, obtained a temporary restraining order to prevent any immediate handover moves, saying that there should be a “proper” handover process. PNCC had said between 700 to 1,000 employees may have to retrenched as a result of its exit as the operator of Slex. “With this problem, we are unable to take on something new. We are not able to expand until we complete the [Slex rehabilitation],” added Lee. PNCC, however, will still maintain a presence in Slex as it still owns 40 percent in Mates. Local company Alloy Manila Expressway Inc. and MTD Capital subsidiary Manila Expressways Inc. hold 30 percent each. The Malaysian group and PNCC have since come to an agreement to iron out their differences before the next court hearing scheduled today, which will decide on whether Mates can begin the handover proccess for operations of Slex. David said upon completion of Slex, SLTC can begin working on the Santo Tomas-Lucena expansion. David, who also sits as president of Mates, said the company is hopeful that it can complete the handover process in January next year. He added that as part of the agreement, Mates will only start toll collection upon completion of the rehabilitation of Slex. Toll rates will only be raised once this completion level is attained next year. MTD Capital’s first project in the country, the Slex rehabilitation program, involves widening to eight lanes the expressway highway from six lanes to eight lanes. The connecting road from Santa Rosa to barangay. Turbina has also been widened and will be extended further to Santo Tomas, linking Slex to the Southern Tagalog Arterial Road or the Star Tollway. The highway is considered among the busiest in the country, overseeing about 170,000 vehicles daily and generating revenues of almost P100 million per month. Once completed, the previously 28-kilometer Slex will total 36 kilometers.