Ayala looks to partner with MPIC for MRT-3 rehab

By Krista A.M. Montealegre,
National Correspondent

AYALA CORP. plans to team up with Metro Pacific Investments Corp. (MPIC) to rehabilitate and upgrade the Metro Railway Transit (MRT) Line 3, as the country’s oldest conglomerate gears up to start exporting locally produced KTM motorcycles to China.

Ayala may register a “mid-teens” increase in earnings growth for the year, putting the conglomerate on track to hit its goal of achieving a net income of P50 billion by 2020, Ayala Chief Finance Officer Jose Teodoro K. Limcaoco told reporters last week.

In the first half, Ayala’s net income rose 9% to P15.1 billion year on year driven by the solid contributions of its real estate and power generation businesses.

“We are very optimistic about the future and prospects for the second half of the year,” Mr. Limcaoco said.

AC Infrastructure Holdings, Inc. President and CEO Jose Rene D. Almendras said the conglomerate’s participation in the rehabilitation of the elevated railway is “under discussion,” with MPIC “taking the lead” in the project.

“The intention is to improve it. Our experience kasi, we’re happy with what’s happening in (Light Rail Transit Line) LRT-1. We believe we can make a difference in MRT-3,” Mr. Almendras said.

MPIC reportedly committed to double the initial investment in MRT-3 to P12 billion to boost its capacity.

MPIC and Ayala are part of Light Rail Manila Corp. (LRMC), the consortium that won the contract to operate, maintain and expand the LRT-1.

LRMC has broken ground on the LRT-1 Cavite extension project, with construction set to start this week, Mr. Almendras said.

MOTORCYCLE EXPORTS
Meanwhile, the shipment of KTM motorcycles to China will start “sometime this year” once “some procedural things” are settled, AC Industrial Technology Holdings, Inc. CFO Felipe P. Estrella III said.

“Aspirationally, we were looking to export 10,000 (units) but that’s going to be a few years out,” Mr. Estrella said.

AC Industrials commenced the local manufacturing of KTM motorcycles in June. Through wholly owned unit Adventure Cycle Philippines, Inc. (ACPI), it is the official distributor of KTM motorcycles in the Philippines.

After taking over German automotive parts supplier MT Misslbeck Technologies, AC Industrials continues to be on the lookout for acquisition opportunities to expand its automotive and manufacturing businesses, Mr. Estrella said.

Ayala is likewise evaluating a possible purchase of the 51% of US-based energy company AES Corp. in the 630-megawatt Masinloc power plant in Zambales.

“We always look at all opportunities. Right now, I’m not aware of a serious effort,” Mr. Limcaoco said.