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Press Releases

10

September 2012

AYALA AND ABOITIZ FORGE EXCLUSIVE PARTNERSHIP FOR MACTAN AIRPORT DEVELOPMENT

Two of the country’s biggest conglomerates are forming an exclusive strategic partnership to bid for the Mactan-Cebu International Airport (MCIA) Passenger Terminal project. The project is under the government’s public-private partnership (PPP) program and is estimated to cost P10 billion.

Ayala Corporation and Aboitiz Equity Ventures, Inc. (AEV) have signed a Memorandum of Agreement to form a 50-50 joint venture company that will serve as their vehicle to bid for and develop the country’s second largest international gateway.

The Mactan Airport is currently operating at over capacity with passenger volumes exceeding 5 million annually and is projected to grow even faster with the expected increase in tourist arrivals. The redevelopment of the airport will require the construction of a new international passenger terminal.

Ayala Corporation President and Chief Operating Officer, Fernando Zobel de Ayala said, “We are excited about this partnership with the Aboitiz Group. Both groups strongly believe in the potential of the Mactan Airport to be a compelling gateway to the country for international passengers and to the Visayas for the growing domestic travelers. We share the vision of creating an airport that provides passengers an efficient and pleasant travel experience. We look forward to leveraging each other’s strengths in developing and running a modern airport facility that Cebu and our country can be proud of.” Mr. Zobel added, “We cannot think of a better partner for this project than the Aboitiz group who has not only built a long history and heritage in Cebu but also has a successful track record in undertaking significant size projects in multiple industries.”

For his part, AEV President and Chief Executive Officer Erramon Aboitiz said, “We are equally excited about this partnership with Ayala, especially as it is for a project that gives AEV the opportunity to enter into a strategic new segment that is crucial to developing both the country’s transportation infrastructure as well as its tourism potential. It also allows us to harness the Aboitiz Group’s competencies in construction, logistics, utilities, and real estate development & management. In our over a century of doing business, AEV has always been keen to play a key role in nation building and, consequently, we are therefore keen today to support the government’s thrust to develop the nation’s infrastructure gaps.”
“Combined with the Ayala group’s strengths and competencies that have also been honed over more than100 years of doing business, we are very optimistic about the success potential of this project. Moreover, the fact that the project is in Cebu, which is home to the Aboitiz Group, gives it more special meaning to us.”

Ayala, through its property arm, Ayala Land, Inc., has also built a significant presence in the country’s second largest city. It has a total land bank of close to 200 hectares that includes some of the city’s landmarks such as the Cebu Business Park, the Ayala Center Cebu, the Asiatown IT Park and high-end residential developments.

Ayala Corporation is one of the oldest and most respected conglomerates in the Philippines with a diversified business portfolio that includes real estate development, banking and financial services, telecommunications, water distribution infrastructure, automotive dealerships, electronics manufacturing services, business process outsourcing, and power, among others.

Today, together with its joint ventures and foreign alliances, the Aboitiz Group is involved in power generation and distribution, banking, food production, construction, shipbuilding and land development.

The government is expected to announce the bidding for the Mactan airport project before the end of the year. Both parties will enter into a definitive agreement once the bid rules or the terms of reference for the project have been finalized and published by the government and will likewise explore partnerships with experienced global airport operators to complete its consortium.

The above statement pertains to the disclosure made on September 7, 2012, to the Securities and Exchange Commission, Philippine Stock Exchange, and Philippine Dealing and Exchange Corporation, by Ayala corporate secretary Solomon M. Hermosura.