May 28, 2014

Meralco signs 25-year deal with PEZA

In a disclosure to the Exchange yesterday, Meralco said it has signed a 25-year concession agreement with the Philippine Export Processing Zone Authority (PEZA). The deal grants Meralco the right to control operations and maintenance of the power distribution facilities in the Cavite Ecozone (CEZ) until May 2039.

CEZ is the largest PEZA-owned ecozone and is home to around 400 multi-national industrial and commercial locators. Meralco will also invest additional P300m for the improvement if the CEZ power distribution system and facilities in the area.

Our take: This is a positive newsflow on Meralco and in line with its thrust to grow its industrial and commercial customer base. Cavite is already part of Meralco's franchise area. The province is among those that should benefit in terms of increased economic activities as a result of the creation of new mixed-use townships and infrastructure buildup.– WealthSec