Santos said yesterday that he is working on an amicable settlement between PNCC and HCII to enable the SLEX project to proceed as soon as possible since it is one of the key projects to get the economy back on track.
However, Santos said the government is still entertaining other interested foreign investors in the SLEX project, although he did not disclose who the interested parties are.
PNCC had announced last January that it was terminating its contract with HCII for failing to comply with the terms and conditions of the joint venture agreement pertaining to the rehabilitation of the SLEX.
PNCC chairman Pastor Ramos had said that the board of directors of PNCC had affirmed and confirmed the termination of its joint venture agreement with HCII after it failed to infuse the much needed funds to bankroll the SLEX project. PNCC holds the franchise for SLEX.
PNCC entered into a joint venture agreement with HCII in 1999 for the construction of the expressway from Alabang all the way to Lucena City initially valued at $480 million.
Ramos said the SLEX project was supposed to have started nine years ago but nothing has started since the signing of the joint venture agreement.
HCII, however, has been trying to convince the PNCC not to terminate the joint venture especially with the entry of a Malaysian firm and even a Spanish consortium into the project.
South Luzon Tollway Corp. is an 80-20 joint venture between HCII and PNCC.
HCII is 90 percent controlled by Filipino-owned Crown Equities Inc. and 10 percent by Hopewell Holdings Ltd of Hong Kong billionaire Gordon Wu.
As early as March last year, PNCC had initiated the termination of the joint venture contract with HCII after it failed to start the project that was supposed to have commenced as early as April of 2000.
HCII had run out of funds to bankroll the rehabilitation and repair of the damaged Alabang viaduct as well as improvements in some portion of the SLEX.
Ramos, who is also acting president and chief executive officer of PNCC, has failed to convince the government that it has sufficient funds to undertake the project.
With the termination of the joint venture agreement with HCII, PNCC would tap the state-run National Development Co. (NDC) to bankroll the P3 billion SLEX project that involves the repair of the damaged Alabang viaduct and the extension from Calamba, Laguna all the way to Sto. Tomas, Batangas.
This is the first major project of NDC to be undertaken through the Philippine Infrastructure Corp. (PIC) since 60 percent of the country’s total merchandise export pass through the SLEX.
PIC, wholly owned subsidiary, was created to manage a P100 billion super fund that would bankroll major infrastructure projects in the country.