FIRST PHILIPPINE HOLDINGS IS A CORPORATION THAT IS CONSTANTLY IN ACTION. WE’RE ALWAYS TRYING TO FIND WAYS TO DELIVER FOR OUR STAKEHOLDERS AND THE FILIPINO PEOPLE.
First PH Holdings allots P6.4B capex for power, industrial park businesses
by James Loyola (Manila Bulletin)
First Philippine Holdings Corporation, the industrial and infrastructure unit of the Lopez group, is allotting P6.4 billion for its capital expenditure budget this year to fund its power and industrial park businesses.
In an interview after the firm’s annual stockholders’ meeting, FPHC chairman Federico Lopez said “we have a lot on our plates on the power side, so a lot of the capex is very very strong there. And then as you see there’s a lot of effort to build up synergy of other subsidiaries.”
FPHC president Elpidio Ibañez said the major part of the capex will be the P5 billion worth of fresh capital in First Gen Corporation.
FPHC also set aside P1.4 billion for landbanking for its industrial park.
“Beyond that we’re spending on incremental landbanking. The industrial park we’re expanding that. We’re buying land adjacent to that to expand because of the influx of new investments from potential locators,” he explained.
Ibañez noted that “we bought the former Philitown property, that’s about 50 hectares, near our industrial park also. So that’s the general area of our expansion” adding that the expansion is for a total of 100 hectares to expand the industrial park to 450 hectares from 350 hectares.
He explained that there is still more room for expansion pointing out that, “in Thailand, industrial parks are 2,000 hectares. We pale by comparison so we have to do it gradually and try to get up to that level. But it all depends on how investors view us.”
Ibañez said their industrial park locators are still predominantly Japanese. He said earlier that many Japanese firms have begun relocating to the Philippines as tensions increase with China. Labor costs in China has also been on the rise.
Meanwhile, FPHC chief finance officer Francis Giles Puno said FPHC subsidiary FGen continues to focus on increasing capacity and will be investing $300 million this year for its 414MW San Gabriel gas-powered plant.
From 2016 to 2019, Puno said they may invest $1 billion if they get to build the regasification terminal for liquefied natural gas which will take four years to develop.
(Source: The Manila Bulletin)