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AGI diversifying into infrastructure, offers to build Manila monorail

Alliance Global Group Inc. (AGI) is moving to carve out a niche in the Duterte administration’s “golden age of infrastructure” by proposing a monorail project in the Philippine capital that is seen to benefit around 60,000 to 100,000 passengers daily.

The group owned by tycoon Andrew Tan has submitted an unsolicited proposal to build a two-kilometre monorail from Fort Bonifacio to the MRT Guadalupe Station, seeking to boost connectivity for commuters amid worsening traffic conditions in the metropolis.

The project, which will utilise automated cable-propelled monorail technology, will reduce travel time from Fort Bonifacio to MRT Guadalupe to only five minutes.

In a disclosure, AGI said it had “created Infracorp Development, Incorporated, a new company that will handle infrastructure projects, particularly to participate in the government’s private-public partnership (PPP) projects.”

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Infracorp’s proposal includes construction of stations in Guadalupe and Uptown Bonifacio at no cost to the government.

The latter station is within the township development of AGI’s real-estate arm Megaworld Corp.

In addition to real estate, AGI also has interests in gaming through Resorts World Manila, liquor sales through the Emperador Brand, and fast food in McDonald's Philippines.

“Funding of the project will be internally-generated as part of AGI’s existing CAPEX program," said Kevin Tan, Executive Director of AGI and the appointed President of Infracorp.

“Given the country’s strong and stable economy, we see a huge opportunity to invest in infrastructure,” he said.

Tan said the Skytrain could cost P3.8bn (US$73.7mn) based on initial estimates. With early government approval, Tan said Infracorp hoped to start construction by the second half of 2018 and finish in two years.

The company said Skytrain can also be interconnected to the planned subway project passing through Fort Bonifacio.

The next step for the company is to await certification from the government for an original proponent status, after which the project will still be subjected to a Swiss challenge, which means other bidders will be invited to submit alternative offers but the original proponent has the right to match the best rival package.

Beyond the Skytrain project, the new firm also said it is looking into other potential infrastructure projects, particularly on transport solutions, in several business districts in Metro Manila and in key growth areas around the country.

“We are excited to participate and optimistic about the government’s aggressive push for infrastructure developments,” Tan added.

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