First Pacific to allot P53 billion to build up RP business

By Zinnia B. Dela Peña (The Philippine Star) Updated May 06, 2010 12:00 AM

MANILA, Philippines - Hong Kong-based conglomerate First Pacific Co. Ltd. is investing around P53 billion in the Philippines as it continues to build a solid platform for growth, with more than half of the amount going to its telecommunications unit Philippine Long Distance Telephone Co. (PLDT).

Of the total, P28 billion will be used to fund the expansion of PLDT, P22 billion for Metro Pacific Investment Corp.’s water and power units., and the remaining P3 billion to fund the exploration activities of Philex Mining Corp. 

Half of MPIC’s allotment or P11 billion will go to power utility giant Manila Electric Co. (Meralco) and P6 billion for the continued improvement of water supply for the western portion of Metro Manila.

At the same time, MPIC chairman Manuel V. Pangilinan said the holding firm remains on the lookout for possible growth opportunities. He said MPIC is aiming to increase its stake in Manila North Harbour Inc. (MNHI), a joint venture with the Romero family’s Harbour Center Port Terminal Inc., to 100 percent from the existing 35 percent.

“We intend to have discussions with them (Romeros) shortly. Any increase would require the consent of the Philippine Ports Authority. We’re hoping to take a majority interest,” Lim said. 

Shipliners reportedly want MPIC to acquire a controlling interest in MNHI, the corporate vehicle formed by the Romero-MPIC group to develop, manage and operate for 25 years the Manila North Harbor, which handles more than 85 percent of the domestic containerized and breakbulk cargo.

Pangilinan said the group is also interested in investing a new airport in the Clark Freeport Zone in Pampanga, which he said would require high-speed trains.

“It’s a project we’re interested in. Its something that the country needs. We heard that three companies that have indicated interest in the project. Our approach would be to tap a local partner and a strategic technological partner,” he said.

San Miguel Corp. has  also signified its interest to join the Philco Aero Group, a consortium controlled by local company Penson and Co. Inc., including foreign partners South Korea-based Posco Engineering and Construction Co., Samil PricewaterhouseCoopers and Korea Development Bank, to develop a multi-billion peso terminal at Diosdado Macapagal International Airport.

For Maynilad, the group expects to activate this month the Putatan water treatment plant which is expected to generate up to 100 million liters per day of water from Laguna de Bay. It is expected to service an initial 105,000 homes in the Muntinlupa areas of Alabang, Bayanan, Poblacion, Putatan, Tunasan and Ayala Alabang.