MPIC open to govt JV for connector road

MANILA, Philippines — Pangilinan-led Metro Pacific Investments Corp. (MPIC) has written the Aquino administration about the possibility of collecting higher fees should it enter into a joint venture with government for the construction of its proposed NLEX-SLEX Connector Road.

The company cited the advantages and disadvantages of the possible joint venture, including the collection of higher toll fees, in a letter addressed to Executive Secretary Pacquito Ochoa. It did not, however, specify how high the fees would be.

MPIC President Joey Lim said his group is willing through its unit Metro Pacific Tollways Corp. (MPTC) to tie up with the government’s Philippine National Construction Corp. (PNCC) for the P23-bilion tollroad project that will connect the north and south of Manila.

“We are open to the PNCC approach if that’s what government deems to be more advantageous and faster to implement. But we are just clarifying the structure because this could lead to more expensive implementation for the consumers as the construction cost will have to be carried by the new JV,” Lim added.

No more Swiss challenge

MPTC proposed to build a 4-lane elevated expressway linking the North Luzon and South Luzon Expressways via the Connector Road project. The project, however, was an unsolicited proposal that needs to undergo a Swiss challenge.

A Swiss challenge requires the implementing agency, the Department of Public Works and Highways in this project, to invite other interested individuals or corporations to come up with “better cost and toll rates” for the project.

The government, however, announced that the MPTC connector road project will no longer be put up for a challenge. A joint venture will be formed instead between MPTC and the state-run PNCC — the franchise holder of NLEX and SLEX.

MPTC President Ramoncito Fernandez, however, explained it would be better if MPTC’s Supplemental Toll Operation Agreement (STOA) for its Segments 9 and 10 road projects is extended to cover the NLEX-SLEX Connector Road.

Segment 10 is a 5.65-kilometer road that starts where Segment 9 ends on MacArthur Highway and stretches all the way to C3 Road.

Segment 9 is a 2.4-km portion linking NLEX to MacArthur Highway.

“We have analyzed two possibilities. One is to follow that JV option and the other is to incorporate the Connector Road Project in the STOA because it is less legally challenged, better for PNCC economically and better for the motorists because in this option the roll rate for the Connector Road will be lower because of our capability to spread the cost,” said Fernandez.

MPIC officials led by Manuel V. Pangilinan said they remain open to the option of a joint venture if the government insists.

“If that’s the government’s desire, we will follow. We’re prepared to enter into some joint venture framework with PNCC so we could begin construction and complete the connector. We have no problem with that,” Pangilinan stressed.

Transportation Secretary Joseph Emilio Abaya said they would need to ask the Toll Regulatory Board (TRB) to craft a STOA after signing the joint venture.

President Benigno Aquino III’s approval is needed for the project to move, he added.

MPTC’s P23-billion Connector Road proposal includes a 13.4-km, 4-lane elevated expressway via the Philippine National Railway tracks, with exits to Quirino, España and 5th Avenue.

This is different from San Miguel Corp.-backed Citra’s proposed project which consists of a 14-km six-lane tollway with exits to Quirino, Plaza Dilao, Aurora Boulevard, E. Rodriguez Avenue, Quezon Boulevard, Sgt. Rivera and Balintawak.

The two projects eventually will intersect at a point along Buendia Avenue to the Polytechnic University of the Philippines campus in Sta Mesa, Manila. – Rappler.com