MPTC to acquire stake in Java freeway by July
Metro Pacific Tollways Corp. (MPTC), along with its partner Singaporean investor GIC, is targeting to complete the acquisition of a 35-percent ownership in the 676-kilometer Trans-Java toll road in Indonesia as early as July, further expanding its footprint outside the country.
Christopher C. Lizo, chief finance officer at the Pangilinan-led company, told reporters they were hoping to conclude soon the negotiations with state-backed Indonesian toll firm PT Jasamarga Transjawa Tol (JTT).
MPTC is expecting the contract to be awarded by May, with the completion of the transaction by July or August. The JTT road network, comprising 13 toll interchanges, traverses West Java, Central Java and East Java.
“If you start translating that, that’s probably from Ilocos Norte to Batangas and back,” MPTC president and CEO Rogelio Singson said.
MPTC currently has concession agreements to operate four tollway projects, spanning nearly 39 km in total, in Indonesia. These are Jakarta Lingkar Baratsatu (Jakarta International Airport Toll Road), Bintaro Serpong Damai (Commuter Road), Jalan Toll Seksi Empat (Makassar International Airport Toll Road) and Makassar Metro Network (Harbour Road). MPTC also operates in Vietnam a 120-km expressway network, covering DT741, PRTC 1 and 2, Rach Mieu 2 and Co Chien.
Locally, the Pangilinan-led toll operator’s network spans 284 km. These include North Luzon Expressway (NLEx), NLEx Connector, Cavite-Laguna Expressway, Subic-Clark Tarlac Expressway and Cebu-Cordova Link Expressway.
MPTC is currently working on a potential mega tollway company with Ramon Ang-owned San Miguel Corp. after the parties announced a collaboration last year for an 88-km toll road in Southern Tagalog. The P72-billion project, set to break ground this year, will traverse Silang, Amadeo, Tagaytay, Indang, Mendez and Alfonso in Cavite and will link motorists to Nasugbu and Bauan, Batangas.
Singson previously said the country’s biggest toll road operators were still discussing if MPTC’s $1-billion Indonesian business would be considered in the merger as both companies tally their assets. He explained the individual company valuation would determine the lead in their venture.
Both parties also earlier expressed interest in joining forces to bid for the operations and maintenance contract of Metro Rail Transit Line 3. The railway servicing the Edsa corridor is being operated by Sobrepeña-led Metro Rail Transit Corp., which is set to transfer the asset to the government by 2025 with the conclusion of its build-lease-transfer deal.
