Power and Transport infrastructure – the next big opportunity for Ayala

Four of the Philippines’ top corporations discussed the current climate for doing business, raising capital and developing strategies to compete regionally and globally at the recent Philippines Capital Markets Forum held in Hong Kong last June 23.

AC Energy and Infrastructure President and CEO, Eric Francia, participated as one of the panelists in the Forum. In providing context to Ayala’s entry into these sector, Francia explained, “Ayala is determined to anticipate changes in the market landscape and move decisively with major initiatives that redefine the space. We prefer initiatives that are scalable and move the needle.” “New prospects and requirements were clearly identified in 2010 and management had recognized that investment in power and transport infrastructure was the next big opportunity. The Philippines lacks sufficient energy and transport capacity and the new administration of President Benigno Aquino had pledged to improve governance across public agencies and institutions to ensure a level-playing field for the award of contracts. Ayala knew that it would benefit from a more transparent environment and a declining cost of capital meant that it could also make financial commitments to large, long-term projects. The plan is closely aligned to the country’s development priorities,” said Francia.

The Philippines’s rapid economic growth has been driven by rising revenues from BPO, tourism, and remittances, as well as buoyant consumer demand while underpinned by fiscal discipline and a well-regulated banking sector. Investors and credit rating agencies have acknowledged the country’s impressive achievements.

“It has been an extraordinarily busy four years planning, negotiating and arranging partners and finance. Now our emphasis in on execution,” says Francia. “Fortunately, the government has the same priority.”

Led by the Department of Finance with Secretary Cesar V. Purisima, the forum was attended by public sector regulators, local and international corporations and investors.