MPIC to build North Harbor-NLEX road

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC), which is part of a joint venture company that will undertake the P14.5-billion North Harbor port modernization project, is planning to construct a spur road that will connect the country’s busiest port to the Manila North Luzon Expressway (NLEX).

MPIC president and CEO Jose Ma. Lim said their entry into the North Harbor modernization project will complete their plan to develop a transportation system for Metro Manila to hasten the flow of goods.

He revealed that they are also planning to develop and construct a spur road that will connect North Harbor to the NLEX.

“This way, we can see an unimpeded flow of cargo trucks without passing through major thoroughfares in Metro Manila,” Lim added.

Officials of the Harbour Centre Port Terminal Inc. (HCPTI)-MPIC consortium said they are expecting a renewed and improved economic activity starting next year with the multi-billion peso redevelopment of North Harbor.

The Tollways Management Corp. (TMC), partly owned by Metro Pacific Tollways, currently operates the North Luzon Expressway (NLEX). The Manila North Tollways Corp. (MNTC) holds the concession for NLEX.

The Lopez Group earlier sold its tollways business held in First Philippine Infrastructure Inc. (FPII) to MPIC for P12.2 billion. MPIC has renamed FPII into the Metro Pacific Tollways Corp.

Of the total outstanding shares in FPII, approximately 0.16 percent is publicly held. FPII owns 100 percent of First Philippine Infrastructure Development Corp. (FPIDC), which in turn owns 67.1 percent of MNTC and 46 percent of TMC.

MPIC is also one of the companies that has signified its interest to manage, operate, and maintain the Subic-Clark-Tarlac Expressway (SCTEX) which is owned by the Bases Conversion Development Authority (BCDA). The winning bidder will be BCDA’s private sector partner for the privatization of SCTEX.

Officials of the newly formed consortium between HCPTI and MPIC, named Manila North Harbour Port Inc., signed the North Harbor modernization contract with officials of the Philippine Ports Authority (PPA) last Thursday.

The newly formed consortium will formally take over the facility on Jan. 1, 2010 after a thorough audit of all existing equipment as well as the approval of engineering and other technical designs needed to hasten delivery of goods passing through the country’s premier port.

Those who signed the contract were MPIC president Jose Maria Lim, Mikee Romero and his father Reghis Romero II together with Edwin Jeremillo for the Harbour Centre and PPA general manager Oscar Sevilla and PPA operations chief Leopoldo Bungubung.

All of the parties vowed to cooperate and fully support the project. “We will extend our support and will perform our obligation for the success of this project,” Sevilla said.

For his part, Harbour Centre president and CEO Mikee Romero said that commerce in Metro Manila would be revitalized and more economic activity will be created as a result of the modernization plan.

“Rest assured that the economic activity not only of Metro Manila but the entire country will come to its fruition since this (modernization project) will boost domestic trade,” Romero said before the signing ceremony.

 The PPA has formally awarded the contract to develop, manage, operate and maintain the Manila North Harbor to the joint venture consortium. The agency’s board headed by general manager Oscar Sevilla met last month and unanimously approved the recommendation of the PPA Special Bids and Awards Committee to award the contract to the HCPTI-MPIC joint venture.

Last Aug. 14, the consortium formally submitted its bid of P14.5 billion for the modernization of the dilapidated port which is in danger of collapsing. “The government will not spend a single centavo for the project, yet this will result to the emergence of a new and improved image of Manila and the Philippines ,” Romero said.

The project will raise more than P6.8 billion in revenues for the PPA over 25 years and decrease port rates at an average of 10 to 15 percent. More than 1,000 workers of the different operators of North Harbor will be absorbed, while an additional 5,000 to 10,000 jobs will be generated directly and indirectly by the construction and modern operations entailed in the modernization.