MANILA, Philippines – The tollways unit of Metro Pacific Investments Corporation (MPIC) will borrow around P30 billion from local banks to finance the construction of the Cavite-Laguna Expressway (CALAX) and Cebu-Cordova bridge.
Metro Pacific Tollways Development Corporation (MPTDC) president and CEO Rodrigo Franco said on the sidelines of the Euromoney Philippines Investment Forum in Taguig City that the firm targets to finalize its loan deals with “some local banks” in the “first quarter” of 2017.
Franco said 70% of the total cost of both the P35.42-billion CALAX and the P27.9-billion Cebu-Cordova bridge will be financed via debt, while the remaining will be through equity.
“Depending on the final cost, it will be around P15 billion for each project,” Franco told reporters.
In June last year, MPTDC unit MPCALA Holdings Incorporated received the 5-year contract to build, operate, and maintain CALAX, which involves the construction of a 44.6-kilometer 4-lane toll road between the Cavite Expressway in Kawit, Cavite, and the South Luzon Expressway-Mamplasan Interchange in Biñan, Laguna.
Should the government deliver right-of-way on time, Franco said his company can begin the construction by late 2018.
“We are hoping late 2018, we can already start construction. 3 years is the total construction period for the project,” he added.
For the P27.9-billion Cebu-Cordova project, Franco said his company aims to break ground by the second half of 2017.
An 8.25-kilometer toll bridge that will connect mainland Cebu and the southern coast of Mactan Island is expected to be completed in 2020.
This project is seen to address worsening traffic between Mactan and Cebu, particularly in the Marcelo Fernan and Mandaue bridges. – Rappler.com
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