Metro Pacific, Ayala Corp. join forces for light rail, real estate projects 

Listed conglomerates Ayala Corp. and Metro Pacific Investments Corp. (MPIC), have sealed “an exclusive strategic partnership” to bid for and operate light rail projects in Metro Manila.   “Under the agreement, each of the parties will own 50 percent interest in the light rail projects  and related real estate development  undertakings,” Ayala Corp. and MPIC said in a joint statement.   Among the 17 priority public-private partnership (PPP) projects the Aquino administration has lined up are the LRT Line 1 South Extension and Line 2 East Extension projects.   Ayala Corp. chairman and CEO Jaime Augusto Zobel de Ayala said his diversified conglomerate—capitalized at P240.5 billion—partnered with MPIC so that their “unique strengths and capabilities…when combined, create a unique value proposition in rail development. We hope to contribute meaningfully in helping raise the standards of our public utilities.”   “This strategic alliance will create integrated solutions that will  improve public transportation through  our vision to transform the country’s light rail transit system into a network very much like those in Hong Kong, Singapore, Kuala Lumpur and Osaka,” MPIC chairman Manuel V. Pangilinan said.   Their joint statement said the partnership “is also open to work together on other rail-related opportunities.”   Ayala Corp. and MPIC had teamed up before. They were partners in an unsuccessful bid for the Angat water project back in March 2010.   Ayala Corp. holds the distinction of being awarded the first PPP project of the Aquino administration—the P1.956 billion, four-kilometer Daang Hari toll road that will connect Las Piñas and Bacoor, Cavite to the South Luzon Expressway through the Susana Heights Interchange in Muntinlupa and by traversing the New Bilibid Prison (NBP) reservation.   MPIC—capitalized at P105.025 billion—already operates two tollways: the North Luzon Expressway and the Subic-Clark-Tarlac Expressway. Both have diversified interests in various industry sectors. MPIC is in power distribution and health care while Ayala Corp. is in banking and real estate. They are competitors in telecommunications. Through their subsidiaries, Ayala Corp. and MPIC are the water services concessionaires of Metro Manila. MPIC has the west zone concession through Maynilad while Ayala Corp. has the east zone franchise through Manila Water. — ELR, GMA News