By Denise A. Valdez
ABOITIZ InfraCapital, Inc. is seeking to expand its portfolio by tapping a new industry outside water, cement, airports and telco towers through an unsolicited proposal to the government.
Cosette V. Canilao, chief operating officer of the Aboitiz conglomerate’s infrastructure arm, told reporters last week that the company has completed the feasibility study for its desired project and is now assessing its viability and fixing the documentation before the submission of a proposal.
She refused to disclose the specific sector involved and other details of the project, but noted Aboitiz InfraCapital wants to “be a part of the solution in filling the gap in our infrastructure requirements.”
“We’re always on the lookout for opportunities to be a major player in the infra build,” Ms. Canilao said.
Aboitiz InfraCapital was born as a spinoff from Aboitiz Equity Ventures in 2016. It is the Aboitiz Group’s fifth core business which handles all infrastructure investments of the company.
“With the objective of diversifying our Group earnings contribution and establishing a name in the infrastructure space, we will seek growth in selective areas in bulk water, roads, railway, airports and building materials,” Chief Executive Officer Erramon I. Aboitiz said in a 2016 announcement of Aboitiz InfraCapital’s formation.
Over the past couple of years, the company has ventured into water infrastructure, cement, airport development and telecommunications infrastructure.
Under Aboitiz InfraCapital’s water and cement business are the operations of Apo Agua Infrastructure, Inc.; LiMA Water Corp.; and Republic Cement and Building Materials, Inc.
For airports and other infrastructure, the company had submitted three unsolicited proposals to the government: independently for the Bohol-Panglao and Laguindingan airports, and as part of a consortium of seven conglomerates for the Ninoy Aquino International Airport.
For telecommunications infrastructure, Aboitiz InfraCapital partnered with Frontier Tower Associates Philippines, Inc. to sign agreements with Globe Telecom, Inc. and Smart Communications, Inc. to provide them with shareable towers.
If the company were to follow its plans as Mr. Aboitiz said in his earlier announcement, Aboitiz InfraCapital may be expected to venture into roads or railways next. Ms. Canilao said the company is hoping to solidify its plans within the year.
The infrastructure business of the Aboitiz Group is setting aside P16 billion for capital expenditures in 2019.