January 21, 2014

PNCC, MPI unit set to start expressway connector road

Metro Pacific Tollways Development Corp (MPTDC) and the state-owned Philippine national construction Corp have reported signed a jv deal that will pave the way for the construction of the North and South Luzon expressway connection road by 2H14. The deal will be submitted for regulatory approval. If approved, the P18b project can be completed by 2016.

Our take: This project is one of the catalysts that the market has been anticipating for Metro Pacific Investments Corp (MPI) which owns MPTDC. Meanwhile, MPI has also asked the Bases Conversion Development Authority to expedite the implementation of a deal that would pave the way for its takeover of the 94km Subic Clark Tarlac Expressway. Clearing regulatory approvals for these projects can spur renewed interest in MPI and should provide support to its share price. – WealthSec