Right-of-way issues hamper DMCI tollroad project

MANILA, Philippines - The first phase of the P19-billion toll road project of D.M. Consunji Inc. (DMCI) has been delayed for seven months due to right of way issues.

In a chance interview, DMCI first vice president for Business Development Overseas Ronaldo R. Elepano Jr. said that the Tarlac Pangasinan La Union Expressway (TPLEX) has been delayed because the government has been unable to clear the area.

Elepano said that it is difficult to start the road project until the government clears the right of way issues. Elepano said nobody can say when the matter between the government and the current land owners will be resolved.

The project was scheduled to begin last April.

In a separate interview, Private Infrastructure Development Corp. (PIDC) President Sammy Lazo said that the cost of the TPLEX may go up because of the changes in scope. Lazo said that there have been variations from the government but refused to elaborate on the matter.

On the issue of right of way, Lazo said that there were no cadastral maps. Likewise, he said that the lots have been subdivided and the owners are John Does. Lazo said there were also problems in documentation and the inconsistent plotting of land.

However, DMCI president and chief Executive Jorge A. Consunji said that they have already cleared the right of way issues for phase one which involves the construction of road from Carmen to Rosario. This phase will take 2.5 years to construct.

Consunji said that they have already cleared 60 percent of the 50 kilometer Carmen to Rosario phase. For the 30 kilometer stretch that is deemed ready for construction, Consunji said that they will need P4 billion.

The initial P4 billion will come from the P1.5-billion seed fund contributed by DMCI and diversifying conglomerate San Miguel Corp. (SMC) its partners in the consortium Private Infrastructure Development Corp. (PIDC). SMC, through Rapid Thoroughfares Inc., owns 35 percent of PIDC, making it the biggest shareholder in the company. DMCI, on the other hand, has a 32-percent stake. The two own majority or 67 percent of PIDC.