Government starts right-of-way process for P17-billion NLEX-SLEX road link

MANILA, Philippines - Government has started the process of acquiring the right-of-way for a multi-billion road project that would connect the North Luzon and South Luzon expressways.

Metro Pacific Investments Corp. (MPIC) chairman Manuel Pangilinan said the P17-billion project, which would cost the government around P2.4 billion in terms of right-of-way, is proceeding as scheduled.

The project would be undertaken by Metro Pacific Tollway Corp. (MPTC), a subsidiary of MPIC.

Pangilinan earlier explained that the connector road will have some elevated roads and a bridge over [the] Pasig River. “We estimate that the right-of-way would cost the government P2.41 billion,” he said.

He earlier revealed that part of the right-of-way will be provided by the Philippine National Railway (PNR)

The connector road is expected to decongest Metro Manila by providing an alternative to the main C-5 and EDSA highways, plus other major thoroughfares, with travel time savings of approximately 15 to 20 minutes.

MPTC’s proposal involves a start at the C-3 interchange and ending at the Buendia ramps going into the SLEX.

MPTC would also be constructing the segments connecting the Manila North Harbor to the expressways.

Pangilinan earlier revealed that they are also doing Segments 9 and 10, an elevated expressway that will connect the North Harbor via C-3 and will cost between P6.8 billion to P7 billion.

It is not known however if MPTC will push through with the North Harbor connection after MPIC sold its stake in Manila North Harbor Port Inc. (MNHPI), the group that bagged the contract to rehabilitate and operate North Harbor.

According to Pangilinan, the full project would cost some P23 billion and could be funded through equity or assistance from the Japan International Cooperation Agency.

Earlier, MPIC unit Manila North Tollways Corp. has secured the contract to lease, manage, operate, and maintain the Subic-Clark-Tarlac Expressway (SCTEX), following negotiations with tollroad owner and operator Bases Conversion and Development Authority (BCDA).

The 25-year contract also transferred to MNTC the BCDA’s right to operate the 94-kilometer tollroad, as provided under the toll operations agreement (TOA) signed on June 13, 2007. The contract is renewable for another eight years.

The BCDA’s signing of the TOA three years ago gave it the right to collect toll revenue from the SCTEX.

As the BCDA’s partner in running the SCTEX, MNTC will have to pay the government firm, from 2010 to 2016, a semi-annual lease/concession fee of the peso equivalent of BCDA’s yen-denominated loan from the Japan Bank for International Cooperation/Japan International Cooperation Agency.

“Metro Pacific Tollways is happy to have been awarded the SCTEX contract. We can now implement the integrated expressway network, providing seamless experience to motorists,” MPTC earlier president Ramoncito Fernandez earlier said. MPTC owns 67 percent of MNTC.

As the new SCTEX concessionaire, MNTC will be in charge of the overall management and supervision of the toll road, as well as of the toll operations center, toll plazas, and all other facilities and equipment related to toll operations. MNTC will also provide the appropriate resources to run the toll operations.