MOA expansion to be completed by end-2017

The SM GROUP targets to finish the expansion of the SM Mall of Asia (MOA) before the year ends, which would make it the largest shopping mall in the country.

SM Prime Holdings, Inc. started the expansion of MOA for its 10th year anniversary on May 21, 2016, in a bid to add around 250,000 square meters (sq.m.) more of floor space to the current 407,000 sq.m.

“They’re trying to hit late this year, if not early next year. That’s a major expansion, and also they’re upgrading a lot of facilities,” SM Investments Corp. (SMIC) Senior Vice-President for Investor Relations Corazon P. Guidote told reporters at the sidelines of the Economic Journalists Association of the Philippines forum in Manila last Friday.

When it opened, SM MOA was the largest shopping mall in the country at the time. However, it was soon overtaken by SM City North EDSA and SM Megamall, which also underwent expansion.

The SM MOA expansion forms part of SM Prime’s plan to add five more malls under its network in 2017. To date, the listed firm owned by the country’s richest man Henry Sy, Sr. has already opened three of the planned malls, namely SM Cagayan de Oro Downtown Premier, S Maison at Conrad Manila in Pasay City, and SM Cherry in Antipolo City

SM Prime is set to open another mall in Puerto Princesa, Palawan by the second week of September, which will have a total gross leasable area of 65,073 sq.m.

Asked how many more the company plans to add, Ms. Guidote noted the annual expansion target is usually five to six malls.

“But I think next year mas marami (there will be more) because they’re opening smaller malls. I think we’ll be closing around 10 malls next year. But in addition, they’re also expanding existing malls,” she added.

The company’s store network now stands at 63 shopping malls in the Philippines and seven in China, totaling 1.3 million sq.m.

By 2018, SM Prime targets to have 75 malls as part of a five-year road map that looks to double both earnings and revenues by 2018. The company earmarked P50 billion in capital expenditures this year to support the expansion plan.

SM Prime’s net income attributable to the parent rose 14% to P14.39 billion in the first six months of 2017. Consolidated revenues picked up 10% to P43.25 billion, 60% of which came from mall operations which amounted P21.75 billion. — Arra B. Francia

http://bworldonline.com/moa-expansion-completed-end-2017/

Early completion of metro subway to cost up to $7 B

The government is considering the possibility of completing the Japan-funded Mega Manila Subway Project earlier but at a higher cost, Socioeconomic Planning Secretary Ernesto Pernia said.

“The Department of Transportation wants to accelerate the completion from 2024 to 2022. And so it means there will be more borers for the paneling needed, therefore the cost will go up,” he told reporters in a recent interview.

The cost for the project was originally placed at $4.4 billion but if it will be completed by 2022, the cost can go up to $7 billion, said Pernia.


“We don’t know the exact number yet,” he said.

The subway, which will link major business districts and government offices in Metro Manila, is expected to be approved by the National Economic and Development Authority (NEDA) board this month.

Funding will come from official development assistance (ODA) loan issued through the Japan International Cooperation Agency (JICA) at an interest rate of less than one percent at a 20-year term. A grace period of 15 years will also be provided before payment of the loan.

The first phase of the project alignment comprises 13 stations from Quezon City to Taguig and is expected to serve 350,000 passengers daily.

The DOTr is considering the extension of the subway project to the Ninoy Aquino International Airport due to the expected growth in passenger volume.

Construction has been tentatively slated between 2019 and 2020.

The NEDA board is targeting to approve the project in time for the scheduled signing of the loan agreement in November when Japanese Prime Minister Shinzo Abe comes to the Philippines for the ASEAN Summit.

http://www.philstar.com/business/2017/08/29/1733576/early-completion-metro-subway-cost-7-b

NLEX extending road to Bataan

NLEX Corp. is investing up to P20 billion to extend the North Luzon Expressway to Bataan province, a top executive said.

NLEX president and chief executive Rodrigo Franco said the company was currently doing the engineering study for NLEX Phase 3, with the project cost estimated at P16 billion to P20 billion.

NLEX Phase 3 is envisioned as a 37.76-kilometer, two by two-lane expressway from Sto. Tomas, Pampanga to Dinalupihan, Bataan.

“We are set to submit the investment proposal to TRB,” Franco said.

Franco said the company was expecting to complete the right of way acquisition in two years and start the construction by 2020.

Phase 1 of NLEX consists of four segments with a total length of 92 kilometers, including the rehabilitated and expanded 84-km stretch from Balintawak, Quezon City to Mabalacat, Pampanga and the 8.5-km Segment 7 from Hermosa,  Bataan to Subic Freeport.

Phase 2 of NLEX consists four segments with a length of 21 kilometers, involving the construction of the greenfield northern C5 to connect the existing C5 from C.P. Garcia Ave. in the University of the Philippines complex in Diliman, Quezon City to NLEX, and extend westward to MacArthur Highway in Valenzuela City, turning south down to C3 in Caloocan City.

NLEX earlier said it was investing  P29.43 billion in expressway projects between 2018 and 2020.

These projects include NLEX Segment 10 which is projected to be operational by the first half 2018; Segment 10 from C3 to R10 section to be completed by first quarter of 2019; and the Subic Freeport Expressway to be finished by the first quarter of 2019.

The NLEX-SLEX Connector Road is expected to be completed by the first quarter of 2021.

NLEX  earlier reported a net profit of P2.3 billion in January to June, up from P2 billion a year ago.

Toll revenues increased 8 percent in the six-month period to P5.7 billion from P5.2 billion a year earlier, because of the increase in traffic at NLEX and Subic-Clark-Tarlac Expressway.

The average daily traffic for NLEX reached 233,652 daily entries in the first half, or 7 percent higher than the same period last year, while average daily traffic alone SCTEX rose 24 percent to 54,991 daily entries.

Non-toll revenues amounted to P83 million in the first half, also up from P73 million a year ago, on higher royalty fees, utility facility fees and other non-toll initiatives.

NLEX earlier submitted unsolicited proposals worth P122.43 billion to build two major expressway projects.

http://www.thestandard.com.ph/business/banking-report/245620/nlex-extending-road-to-bataan.html