MPIC allots P27 B for toll roads

MANILA, Philippines - The tollway units of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) of businessman Manuel V. Pangilinan is spending a little over P27 billion for two major road projects and to integrate the North Luzon Expressway (NLEX) with the Subic-Clark-Tarlac Expressway (SCTEX).

In a report submitted to the Philippine Stock Exchange, MPIC said its unit Metro Pacific Tollways Corp. (MPTC) would invest approximately P27 billion to complete the Harbor Link and connector road projects.

MPIC and MPTC intend to fund the amount through a combination of internal resources as well as external debt.

Manila North Tollways Corp. (MNTC) is looking at completing the P10-billion Harbor Link project in time for the country’s hosting of the 23rd Asia Pacific Economic Cooperation (APEC) summit in 2015.

The P1.7-billion Segment 9 involving a 2.4-kilometer stretch from Valenzuela City to

MacArthur highway is expected to be completed in 12 months while the P8-billion segment 10 covering 5.65 km from MacArthur Highway all the way to Circumferential road 3 (C3) in Port Area would be completed within 24 months.

MNTC has completed Segment 8.1 or the Smart Connect interchange covering 2.7 km from Valenzuela City to Mindanao Ave. in Quezon City worth P2.1 billion in 2011.

MPTC plans to spend about P20 billion to construct a 13-km road that would connect NLEX with South Luzon Expressway (SLEX). The road comprising of a four-lane elevated expressway would connect the Harbour Link to SLEX.

NLEX and SLEX would have a common portion spanning five kilometers from Buendia to Sta. Mesa, Manila.

MPTC through Metro Pacific Tollway Development Corp. (MPTDC) would reimburse 37.5 percent of the construction costs of the common alignment while the remaining portion of the connector road alignment proposed by MPTC would be subject to a Swiss challenge this year.

The connector road would increase traffic on existing Northern and Southern toll road systems by enabling commercial vehicles to traverse Metro Manila without violating the aforementioned truck ban, and slashing travel time between systems to no more than 20 minutes from over an hour.

Furthermore, MNTC is pouring in P400 million to integrate SCTEX with NLEX to facilitate seamless travel.

MPIC reported the other day that MPTC’s net income rose six percent to P1.57 billion last year on the back of traffic growth as average daily entries increased three percent amid the imposition of a 12 percent value-added tax on toll rates. It also cited lower interest and operating costs.

Last December, the company announced the financing investment in the 14-km Manila-Cavite Toll Expressway (Cavitex) running from Cavite to Laguna catering to 90,000 vehicle entries a day.

Cavitex offers significant expansion prospects as a result of the Ninoy Aquin International Airport express link and CALA expressways as well as from the soon to open Ternate-Nasugbu tunnel, substantially reducing travel time between Batangas and Manila.