MNTC borrowing P11 B for connector road project

MANILA, Philippines – A unit of Metro Pacific Investments Corp. (MPIC) is planning to borrow P11 billion to fund the construction of the eight-kilometer (km) North Luzon Expressway-South Luzon Expressway (NLEX-SLEX) connector road.

Manila North Tollways Corp. (MNTC) president and CEO Rodrigo Franco told reporters the firm intends to borrow 70 percent of the P16 billion construction cost of the project from banks. “We’ll start with the fourth quarter, but the process will take some time,” he said.

The project which has an estimated construction cost of P16 billion and right-of-way cost of P7 billion, involves building and operating a four-lane, eight-km elevated toll expressway over the right of way of the Philippine National Railways starting at the junction of the NLEX Segment 10 at C-3 Road/5th Avenue in Caloocan City, and connecting to the SLEX through the Metro Manila Skyway Stage 3 Project in Manila.

Metro Pacific Tollways Development Corp. (MPTDC) bagged the project after no comparative offers were given to the Department of Public Works and Highways (DPWH) during a Swiss challenge held in July.

The DPWH conducted a Swiss challenge for the project as it is an unsolicited proposal submitted by MPTDC.

MPTDC has designated subsidiary MNTC as the project company for the connector road.

On Monday, MNTC submitted the post-award requirements for the project such as construction performance security amounting to P471 million and proof of payment of the project’s transaction advisory fees sourced from the Project Development and Monitoring Facility.

MNTC also submitted the letters of intent and term sheets from reputable financial institutions relating to credit facilities to cover the project cost.

Franco said the submission of post-award requirements would pave the way for the signing of the concession agreement for the project.

The concession agreement could be signed within the week or until next week.

“Once completed, the NLEX-SLEX connector road project will decongest Metro Manila traffic and provide better access to seaports and airports. It will reduce travel time from NLEX to SLEX by at least 60 percent. Instead of the usual 1.5 to two hours, traffic time would now be reduced to about 20 to 30 minutes,” DPWH Secretary Mark Villar said.

MPIC is currently the largest toll road developer and operator in the country as it handles 60 percent of the total 320 kilometers of toll roads.