MPIC eyes up to P30-B loans to fund Calax
Metro Pacific Investments Corp. (MPIC) plans to borrow up to P30 billion from banks starting next year as it prepares for the construction of the Cavite-Laguna Expressway (Calax) project.
MPIC chief financial officer David J. Nicol said they are looking to borrow from a mix of local and foreign banks as much as P30 billion, with a loan term of 10 years or longer.
He said the potential loans may be finalized next year.
MPIC president Jose Ma. K. Lim said there are now a number of banks that have approached the company for future funding requirements.
“We will be discussing the funding plans for that with the banks. We prepared the funds for the initial payment, that’s already been inputted for our budget this year. The next big payments will start when we start construction of the road, but that needs to wait for the right-of-way so that’s about two more years. After that, three years to build, we start paying the concession fee when we operate in five years,” Lim said.
“It now depends on the offers we get from these banks and our internal resources because we have other sources of cash as well. You’re talking about cash requirements in two to three years’ time for the construction. We’ll be negotiating that, preparing for that. But we have options now,” he added.
MPIC topped the recent rebidding of the Calax project, beating the only other bidder, diversified conglomerate San Miguel Corp. (SMC).
During the opening of financial bids, MPIC’s MPCALA Holdings Inc. submitted a bid of P27.3 billion, edging the P22.2-billion offer of SMC’s San Miguel Holdings Corp.
MPIC chairman Manuel V. Pangilinan said the group is “okay” on taking in a partner for the 45.5-kilometer toll road project.
Pangilinan, however, said no one has approached his group yet for a possible partnership, adding other firms likely are also waiting for the notice of award to be given to MPIC first.
“We haven’t gotten the notice of award yet so until its official, it’s difficult to be talking something we don’t have. Nothing has been decided yet until we get the notice of award,” Pangilinan said.