MPIC to spend P30 B for Cebu-Cordova link

CEBU, Philippines — Metro Pacific Investments Corp. (MPIC) plans to spend P30 billion for the Cebu-Cordova Link Expressway (CCLEX) which would link Cebu City to the municipality of Cordova in Mactan island.

“We expect to raise financing of up to P30 billion over the next several years for the project,” Metro Pacific Tollways Corp. (MPTC) president and chief executive officer Rodrigo Franco said during the awarding ceremony of the design and build contract for the CCLEX yesterday.

MPTC, the tollway arm of MPIC, will fund the project by borrowing from local banks and through equity from the company.

In particular, MPTC plans to borrow P20 billion from banks.

The firm expects to close the loan agreement with banks within the second to third quarter of next year.

CCLEX, an 8.5-kilometer toll bridge which would connect Cebu City from its prime South Road Properties to Barangay Pilipog of Cordova Municipality in Mactan, is the first tollway project of MPIC in the Visayas.

MPIC awarded the P22.6 billion design and build contract for the CCLEX to the Cebu Link Joint Venture, a consortium composed of Spain-based Acciona Construction S.A. and Philippine firms First Balfour Inc. and D.M. Consunji Inc.

Following the award of the design and build contract for the CCLEX, Franco said actual construction work is expected to begin in the second quarter of next year.

CCLEX Corp. president and general manager Allan Alfon said in the same event the project is targeted to be completed in 2021.

He said the toll bridge is expected to have initial traffic of 40,000 vehicles per day, once operational.

Class 1 vehicles would have to pay P89 for the use of the toll bridge.

When completed, the project would bring benefits by decongesting traffic in the two existing bridges, the Mactan-Mandaue and Marcelo Fernan linking Cebu City and Mactan Island and by providing additional access to the Mactan Cebu International Airport.

The project is also expected to help spur economic growth and boost investments in the entire Cebu province and Visayas region.

At present, MPTC is the largest toll road concessionaire and operator in the country.

The company has also expanded its business in Southeast Asia, particularly in Thailand, Vietnam and Indonesia.