PANGILINAN-LED Metro Pacific Tollways Corp. (MPTC) expects to generate P30 billion in yearly revenue from its toll road contract in Indonesia, which is expected to be signed this week, according to its chairman.
“It is likely to be signed next week in Jakarta,” MPTC Chairman Manuel V. Pangilinan told reporters on the sidelines of the company’s inauguration of the Cavitex C5 Link Sucat interchange last week. “They are in final documentation.”
Jasamarga Transjawa Tol, a state-owned enterprise and the largest toll road operator in Indonesia, is bidding for the Trans-Java toll road in Indonesia.
The Trans-Java toll road is an expressway network that runs from the Port of Merak in Cilegon — the main link between Sumatra and Java — to Banyuwangi, the eastern end of Java and the main link between it and Bali.
Last year, MPTC said it expected to invest about $600 million (P35.3 billion) to secure its bid for a portion of the Trans-Java toll road. The company, along with Singapore’s GIC Pte. Ltd., jointly bid for a 35% stake in the toll project.
Jasamarga manages the 676-kilometer section of the Trans-Java toll, serving between 700,000 and 800,000 vehicles daily.
Mr. Pangilinan said the company is expected to reach financial closing for the project three months after it signs the contract.
MPTC earlier said its Indonesian assets would be included in the planned joint venture with San Miguel Corp.
He said the closing of the Trans-Java toll road is considered the last remaining piece for its planned merger with San Miguel to move forward.
MPTC President and Chief Executive Officer Rogelio L. Singson said the traffic revenues from San Miguel’s toll road assets in Manila are higher than MPTC. “But once we put in our Indonesia [revenue], it will be balanced,” he said.
San Miguel and MPIC wants to set up a joint venture company for their tollway units. The planned venture is said to have a starting EBITDA or earnings before interest, taxes, depreciation, and amortization of about P50 billion and is described as a potential candidate for listing on the Philippine Stock Exchange.
MPTC is the tollway unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., 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. — Ashley Erika O. Jose
