Rehab of SLEX Alabang viaduct to start soon

The Supplemental Toll Operations Agreement (STOA) covering the South Luzon Expressway (SLEX) has finally been signed, thus, finally paving the way for the start of the long-delayed rehabilitation of the SLEX Alabang viaduct or toll road 1 (TR-1) and its extension from Calamba to Sto. Tomas Batangas.

The signatories to the STOA are the Toll Regulatory Board (TRB) as the grantor, the Philippine National Construction Corp. (PNCC) and the South Luzon Tollways Corp. (SLTC) as the investors and the Manila Toll Expressway Systems, Inc. (MTESI) as the operator.

The rehabilitation and extension of the SLEX has repeatedly been delayed due to financing problems.

Estimates for the cost of the SLEX rehab and extension is now placed at P11 billion.

The SLEX rehab and extension also encountered some problems with regard to the previous partner Hopewell Crown Infrastructure, Inc. (HCII).

HCII has since divested its interest in the SLEX project to MTD Capital Berhad of Malaysia.

MTD is now the joint venture partner of PNCC in SLTC and the MTESI.

The National Government (NG) had allocated funding for the SLEX rehabilitation and extension as the project is part of the government’s Medium-Term Philippine Investment Plan.

The government agency tapped to provide financing for the SLEX project is the National Development Company (NDC). 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.

Unfortunately, HCII failed to come up with the necessary funding for the project, thus putting the rehab into limbo for a couple of years.

During the term of Trade and Industry Secretary Cesar V. Purisima, it was decided to go ahead with the SLEX rehab even without the participation of HCII, with the NDC initially funding the project and eventually getting foreign investors to take over the highway project.

The initial phase of the rehabilitation would involve the repair of the Alabang viaduct.

The second phase would involve the widening of the current two-lane highway to four lanes from Muntinlupa to Calamba.

The third phase would be the extension from Calamba to Sto. Tomas, Batangas.

The repair of the 1.1-kilometer Alabang viaduct is now estimated to cost P11 billion including the 7.8-kilometer extension from Calamba to the Star Tollway in Sto. Tomas, Batangas.

The government would also have to fork out funds for the right-of-way acquisition from Calamba all the way to Sto. Tomas.

The DPWH would take care of securing the right-of-way from Calamba to Sto. Tomas, Batangas.

The NDC, the investment arm of the Department of Trade and Industry (DTI), has already contracted the Management and Engineering Spanish Consortium (MESCO) as technical consultants for the upgrading and rehabilitation of the SLEX Alabang Viaduct or TR1 through a grant assistant from the Spanish government.