The tollway unit of Metro Pacific Investments Corp. said Monday it secured the green light from the Public Works Department to build a P23-billion expressway linking North Luzon Expressway and South Luzon Expressway.
MPIC said Metro Pacific Tollways Development Corp. and subsidiary Manila North Tollways Corp., the original proponent for NLEx-SLEx Connector Road Project, received the notice of award from the Public Works Department on Sep. 19.
MPIC Group won the Swiss Challenge for the project in July, after no company submitted comparative proposals to challenge the latter’s offer. MPTDC reduced its internal rate of return for the project to 10.87 percent from 12.09 percent, by lowering the opening tariff from P100 to P87.
The Public Private Partnership Center earlier identified seven companies that purchased bid documents for the Swiss Challenge of NLEx-SLEx Connector Road, including San Miguel Holdings Corp., Obrascon Huarte Lain SA, Hunan Road and Bridge Corp. and four law firms.
The project is an unsolicited proposal approved by the National Economic and Development Authority under the build-operate-transfer scheme for the design, financing, construction, operation and maintenance of an 8-kilometer elevated toll expressway over the right of way of Philippine National Railways.
The project starts at the junction of NLEx Segment 10 at C-3 Road/5th Ave. in Caloocan City and seamlessly connects to South Luzon Expressway though Metro Manila Skyway Stage 3 Project in Manila.
The project will not require fresh equity infusion from MPIC.
Metro Pacific Tollways Corp. president and chief executive Rodrigo Franco said the first section of the project would start in 2018.
“ROW [right of way] acquisition first before we start construction. The government has 30 months from signing of toll concession agreement to deliver right of way. We are hoping though that the government can deliver the ROW in sections to enable us to start sectional construction before the 30-month deadline,” Franco said.
The concession agreement on the project is expected to be signed in November this year.
He said the company would invest P15.74 billion on the NLEx-SLEx project, while the government would spend P7.46 billion for right of way acquisition.
The implementation of the project is scheduled from November 2016 to February 2022.
The Public Works Department will implement the project, which has a total estimated cost of P23.2 billion and a concession period of 35 years.
Citra Metro Manila Tollways Corp., which is separately constructing the P26.7-billion Skyway Stage 3 Project, will build the five-kilometer common alignment from Polytechnic University of the Philippines in Sta. Mesa, Manila to Buendia in Makati City that will connect to NLEx-SLEx project.
