Gov’t releases P1.6B to jumpstart CALA

MANILA, Philippines - The government has released P1.6 billion to jumpstart the controversial P35.4-billion Cavite-Laguna Expressway (CALA).

According to the Department of Budget and Management, the money would partially cover the acquisition of right-of-way (ROW) and contract services for the proposed 47.02 kilometer, four-lane expressway from the end of the Cavite Expressway (CAVITEX) in Kawit, Cavite to the South Luzon Expressway (SLEX) Mamplasan Interchange in Biñan, Laguna.

“The construction of the CALA expressway would definitely improve access to transportation and open more opportunities for investment in economic and industrial zones. We’re talking about greater accessibility to and from NAIA, as well to and from our seaports in Manila and Batangas, for example,” Budget Secretary Florencio “Butch” Abad said.

Abad said the multi-billion peso expressway is also expected to decongest traffic between Cavite and Laguna.

The fund release was made despite the two-month lull in the awarding of the project as a result of the appeal filed by San Miguel Corp.

The Department of Public Works and Highways disqualified San Miguel from bidding for the CALA toll road project due to a technicality. San Miguel’s bid security, a financial bond that safeguards the interest of the government, fell short of the 180-day requirement by four days.

San Miguel elevated its case to President Aquino, who has yet to decide on the diversified conglomerate’s appeal. 

Under the PPP scheme, P25.2 billion or 71 percent of the CALA project will be shouldered by the private sector while the remaining P10.2 billion will be funded by the national government.

The project, under a multi-year obligational authority (MYOA), is slated for completion by 2018.  It includes the construction of 51 bridges, eight interchanges, and toll operation buldings and plazas.

Abad said the fund release reflects the government’s strong commitment to ramp up infrastructure spending to allow the Philippines to compete with its Asian neighbors. The Aquino administration’s goal is to increase infrastructure spending to five percent of gross domestic product by 2016, up from 1.8 percent when he took power in June 2010.