Government sources disclosed that HCII has indicated that it is willing to execute a waiver that it will not file charges against the National Development Co. (NDC) which is taking over the SLEX projects through the Philippine Infrastructure Corp. (PIC).
However, in exchange, HCII wants to be an active partner and participant in all of the three pending SLEX projects.
These are the repair of the Alabang viaduct, the eight kilometer connection from Calamba to the Southern Tagalog Arterial Road and the extension of The STAR from Lipa to Batangas City.
If an agreement is reached with HCII for its continued involvement in the SLEX project, government would be able to reduce its expected outlay for the project.
Sources said that the NDC is allotting about P3 billion for the SLEX project.
The P3 billion would be raised by NDC through a bond offering.
The government wants to start work as soon as possible on the rehabilitation of the SLEX-Alabang viaduct portion even before the PIC is incorporated.
However, in the event that the government and HCII fail to reach agreement over the SLEX project, the alternative would be to turn over the project to the Department of Public Works and Highways (DPWH).
However, the government wants to avoid the involvement of the DPWH in the SLEX project as it would involve government funds and could impact on the budget.
The soon-to-be incorporated PIC, sources said, wants to undertake projects that would be self-liquidating.
The objective of the PIC is to initially undertake big infrastructure projects but eventually find investors to takeover the project.
The source added that government is open to privatizing the SLEX-Alabang viaduct rehabilitation project and would use the proceeds for the remaining portions of the SLEX since NDC does not have enough funds to bankroll all three portions of the project.
A bond float to raise new funds would take time since this would require approvals from the Department of Finance and the Monetary Board.
"But definitely, the NDC will not transfer at a loss," the source said.
Sources also admitted that the Metro Pacific Corp. Group, which had publicly indicated interest invest in the SLEX project has yet to make an offer.
PNCC, which holds the franchise for the SLEX, has a joint venture agreement with HCII for the construction of the SLEX from Alabang all the way to Lucena City, Quezon.
HCII signed a joint venture agreement with PNCC in 1999 for the ambitious $480-million 88.35-kilometer extension of SLEX from Alabang to Lucena.
HCII is owned by Hong Kong-based Hopewell Holdings Ltd. founded by tycoon Gordon Wu.
Hopewell Holdings’ various projects have been adversely affected following the Asian financial crisis.
It was decided that the NDC takeover the remaining construction/extension of the SLEX following the inability of the PNCC-HCII consortium to complete the project.
The construction project may involve either replacing or rehabilitating/reinforcing the 1.125 kilometer shaky Alabang viaduct which started showing cracks last year, forcing trucks weighing 20 tons and above to use the ground level access road which passes through the busy Alabang, Muntinlupa, intersection.
Since the SLEX currently ends in Calamba, the portion connecting it to The STAR expressway in Sto. Tomas also has to be completed.