MANILA, Philippines - Infrastructure giant Metro Pacific Investments Corp. (MPIC) is looking at two major toll road projects in Vietnam that could entail investments of up to $1 billion as part of efforts to diversify its presence in the region.

Ramoncito Fernandez, president of MPIC's Metro Pacific Tollways Corp. (MPTC), said the infrastructure conglomerate is closely monitoring developments in Vietnam. "It is still very raw but we are looking at two roads in Vietnam ," he said.

Fernandez said the company is in talks with Cuu Long Infrastructure Development and Management Corp. (Cuu Long CIMP) to submit a proposal to the Ministry of Transport of Vietnam for the expansion of a second toll road project in the northern portion of Ho Chi Minh.

"We are making a proposal together with them (Cuu Long) to the Ministry of Transport. It is too early to talk about it but we are still hoping there will be positive developments," Fernandez said.

Fernandez said MPIC and parent firm First Pacific Group of Hong Kong are awaiting the result of the bidding for the first public private partnership (PPP) project in Vietnam involving a $750-million Dau Giay-Phan Thiet motorway being undertaken by the Vietnamese government and the World Bank as well as private partner Bitexco Group.

"We submitted documents so we will know if we prequalified within the month," he said.

The 100-kilometer four-lane Dau Giay-Phan Thiet motorway connecting the key southern cities of Ho Chi Minh City and Phan Thiet is a critical link in the national north-south transport route.

The Bitexco Group would hold 60-percent equity in the project while the rest would be contributed by the government and other private investors. The shareholders would be given a 30-year concession.

According to Fernandez, the two toll roads would entail investments of up to $1 billion for the winning bidders.

Last November, First Pacific and MPIC through FPM Infrastructure Holdings Ltd. Invested P5.8 billion to acquire a 29.45-percent stake in Don Muang Tollway Public Co. Ltd. (DMT) of Thailand.

FPM Infrastructure, 75 percent owned by First Pacific and 25 percent owned by MPIC, acquired the stake from the vendor of the toll road stake is a 50-50 joint venture between Bank of Tokyo-Mitsubishi UFJ and South East Asian Strategic Assets Fund. Other major shareholders of DMT include the Phanichewa Group with 37.1 percent and Thailand 's Ministry of Finance with 25.1 percent.

DMT operates a 21.9-kilometer six-lane elevated toll road stretching from Din Daeng in central Bangkok past Don Muang Airport and on to the National Monument in the north of the capital under a 27-year concession ending in 2034.

Fernandez said MPIC is looking for investment opportunities in the region as part of efforts to diversify its investments as well as risks.

"The funds cannot wait for projects. We need to diversify in other countries," he added.

By Lawrence Agcaoili (The Philippine Star)

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