By Ashley Erika O. Jose, Reporter
ABOITIZ InfraCapital, Inc. (AIC) is eyeing more investments in transportation, water and digital infrastructure as it sees opportunities for growth despite geopolitical tensions clouding the outlook.
“I think there are still a lot of opportunities in improving our transport, water and digital connectivity. That is where we are continuously looking. We think we have the capability and we can create value,” Aboitiz InfraCapital President and Chief Executive Officer Cosette V. Canilao told BusinessWorld Editor-in-Chief Cathy Rose A. Garcia as part of BusinessWorld One-on-One’s online interview series.
AIC, the infrastructure arm of the Aboitiz group, has interests in transportation and mobility, digital infrastructure, and water.
Ms. Canilao said AIC is looking to sustain infrastructure investments, particularly in airports, as the private sector must continue investing amid economic uncertainties.
“The pipeline building or project should continue and should not stop. Procurement should not stop, especially for infrastructure, as it takes years to plan, secure approvals, and build the infrastructure,” she said, noting that the private capital remained ready for commercially viable projects.
Private investments in key projects must continue to keep them on track, as infrastructure planning supports economic growth.
However, Ms. Canilao said that frameworks that govern public and private partnership should adapt to the changing environment such as climate change, supply chain, and market conditions.
She said that a framework or mechanism must be in place to provide security to private companies to allow contracts to respond to changes.
“The frameworks, the infrastructure that we build now would be servicing a very different market condition 10 years, 20 years down the road. Mechanisms for adaptability of responding to the changes should be in the contract. So, for me, predictability is not rigidity in the contract, but allowing the contract to respond to the changes,” Ms. Canilao said.
Currently, climate change and geopolitical tensions are the main disruption in infrastructure projects and investments, she said.
“Climate change would likely demand for changes in how you design infrastructure, even at the planning stage it takes time for a project to be signed and developed,” Ms. Canilao said.
Geopolitical tensions like the ongoing conflict in the Middle East is another factor that is hurting the pace of infrastructure development, she said.
“There is a lot of unpredictability right now. Capital is more impatient right now, we are competing not only for projects but also for other private endeavors,” she said.
Earlier, Ms. Canilao said that airport operations continue to recover, driven by improving passenger traffic, strong operating performance, and increasing commercial activity, despite geopolitical tensions in the Middle East.
Aboitiz InfraCapital operates three of the country’s seven privatized airports: Mactan-Cebu International Airport, Laguindingan International Airport and Bohol-Panglao International Airport.
The company is optimistic in the growth of the aviation sector, Ms. Canilao said.
“We are looking at some more airports, and again, we are looking forward to working with the government in moving and pushing these projects,” she said.
The company will continue to focus on water, digital infrastructure, and transport and mobility, she said, adding that it is also studying the possibility of adding data center operations into its portfolio.
In 2022, Aboitiz InfraCapital signed a partnership with EdgeConneX for its plan to start building its five-megawatt data center.
“We are looking at data centers. It is very interesting for us. As you know, we forged a partnership with EdgeConneX, one of the hyperscaler operators in the world. The partnership is still there. We are just looking at the right time to come in,” Ms. Canilao said.
Watch the full BusinessWorld One-on-One interview with Aboitiz InfraCapital, Inc. President and Chief Executive Officer Cosette V. Canilao at 11 a.m., Oct. 13 on Facebook via BusinessWorld (@BWorldPH) and The Philippine Star (@PhilippineStar) and on YouTube (@BusinessWorldTV).