METRO Pacific Investments Corp. (MPIC) announced on Wednesday that its subsidiary, Metro Pacific Tollways Corp. (MPTC), is constructing a $53-million (around P2.7 billion) toll road in Indonesia.

PT Bintaro Serpong Damai, one of the indirect subsidiaries of MPTC in Indonesia, held the groundbreaking for the project on Feb. 7, MPIC said in a disclosure to the stock exchange.

MPTC owns a majority interest in PT Bintaro Serpong Damai, a toll road business entity.

The toll road project is approximately 3.2 kilometers long and provides direct access to the Makassar Port in South Sulawesi, a province in the southern peninsula of Sulawesi, Indonesia.

MPIC said the toll road project is expected to “encourage economic growth, aid in the distribution, logistics and the facilitation of export and import routes, as well as ease the congestion of traffic for the delivery of goods and logistics transportation with its direct access to the Makassar Port.”

The project, which is a national strategic project of the government of Indonesia and is being implemented by the Ministry of Public Works and Public Housing of Indonesia through the PT Bintaro Serpong Damai, will be implemented in three stages, according to the company.

It is targeted to be completed in early 2023.

In the Philippines, MPTC expects to open the Cebu-Cordova Link Expressway (CCLEX) project to motorists within the first quarter of the year.

Aside from CCLEX, MPTC holds the concession rights for Cavite–Laguna Expressway (CALAX), Manila–Cavite Expressway (CAVITEX), Circumferential Road 5 (C-5) Link Expressway, North Luzon Expressway (NLEX), NLEX Connector Road, Subic-Clark-Tarlac Expressway (SCTEX), and Cebu-Cordova Link Expressway.

It also expects to complete this year the NLEX Connector Phase 1, CALAX Cavite Segment, NLEX Segment 8.2 Section 1A, NLEX Connector Phase 2, and CAVITEX C5 Link projects.

SHARE BUYBACK
Meanwhile, MPIC also announced on Wednesday that its board of directors had approved the implementation of a share buyback program of up to P5 billion commencing on Feb. 17.

“The purpose for the share buyback program is to enhance and improve shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of its common shares,” MPIC said in a separate disclosure.

The company also noted that its buyback transactions will be triggered in cases where its “stock is deemed to be substantially undervalued, when there is high volatility in share prices, or in any other instance where a buyback would serve to enhance or improve shareholder value.”

MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

MPIC shares closed 2.50% higher at P3.96 apiece on Wednesday. — Arjay L. Balinbin

RELATED ARTICLESMORE FROM AUTHOR