MANILA, Philippines - London-based Project Finance magazine, which has been in global circulation for over 25 years, has cited the Tarlac-Pangasinan-La Union Toll Expressway (TPLEX) Project in the Philippines as the Asia-Pacific Transport Deal of the Year 2011.
Euromoney Publications’ Project Finance Awards started 13 years ago for innovations, deal repeatability, best practice, problem solving, risk mitigation, value for money and speed of delivery in the financing of infrastructure projects, large or small.
Deals of the Year are vetted by the magazine’s team of journalists and shortlisted via a weighting system based on categories.
The 88 kilometers two (2) lane TPLEX connecting central and northern Luzon is a first of its kind to be implemented through Public-Private Partnership or PPP in pursuing the objective of developing an all Filipino infrastructure project.
The administration of President Benigno S. Aquino recognizes PPP as an approach to invest resources for adequate road infrastructure inasmuch as the national government has less financial resources to invest on expressways.
The project was awarded through bidding by the Department of Public Works and Highways to the concession of Private Infrastructure Development Corporation (PIDC) led by San Miguel Corp. and D.M. Consunji, Inc.
Compared to earlier transportation projects, bidding award for the TPLEX project was based on lowest toll offered rather than lowest construction cost. The bidders were also compelled to provide letters of interest from lenders rather than underwritten commitments.
Secretary Rogelio L. Singson said that the citation from an international magazine with global subscribers for an all-Filipino road project is a confirmation that the Philippines is taking the right approach for infrastructure development.
DPWH, under the leadership of Secretary Singson, has undertaken reforms needed to create a more transparent and conducive environment for private business and help generate many more bankable projects.
Financing for the project by three Philippine domestic banks namely BDO Unibank, Development Bank of the Philippines and Land Bank of the Philippines manifests the increasing confidence of the banking sector in undertaking large infrastructure.
The project also employed a contractor-led process that essentially involved the project company serving as its own engineering, procurement and construction contractor.
Presently, the concerted effort of six contractors namely R.D. Policarpio & Co., C.M. Pancho Construction Inc., New Kanlaon Construction, Inc., D.M. Wenceslao & Associates, J.E. Manalo & Company, and D.M. Consunji, Inc. has posted 67 percent cumulative work accomplishment for section 1 of the project covering Tarlac City to Carmen, Pangasinan.
Also under PPP framework, the concession agreement for the four-kilometer Daang Hari-South Luzon Expressway Link Road Project won by the Ayala group during the December 2011 open, transparent and competitive bidding at the DPWH Central Office was signed by Secretary Singson and Ayala Corp. chairman and CEO Jaime Augusto Zobel de Ayala last April 3, 2012.