NLEx-SLEx: San Miguel, MPIC road projects to start soon

Philippine Star - The construction of major road projects in the North Luzon expressway (NLEX) and South Luzon expressway (SLEX) are expected to take off soon as the Aquino administration is set to repeal an order issued by former President and now Pampanga Rep. Gloria Macapagal Arroyo.

In an interview with reporters, Transportation Secretary Joseph Emilio Abaya said President Aquino is set issue an executive order repealing Executive Order 686 signed by President Arroyo in 2007.

EO 686 that transferred back the Toll Regulatory Board (TRB) to the Department of Transportation and Communications (DOTC) from the Department of Public Works and Highways (DPWH) stripped the TRB from entering into road concession agreements.

“The EO prohibits TRB from entering into contracts. We were made aware of this by the legal staff of the office of the Executive Secretary. We met with the President recently, and the decision was to repeal the EO... we’re just waiting for the repealing EO,” Abaya stressed.

Once the repealing EO is issued, he said TRB could approve several agreements including the Supplementary Toll Operations Agreement (STOA) for the construction of the Skyway phase 3 by concessionaire Citra Metro Manila Tollways Inc.

Citra, the tollway arm of diversified conglomerate San Miguel Corp. (SMC), is pursuing Skyway 3 to connect it with NLEX.

On the other hand, infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) through tollway arm Metro Pacific Tollways Corp. (MPTC) is pursuing the connector road that would connect NLEX and SLEX.

Both Citra and MPTC are putting up roads that would link NLEX operated by MPTC’s Manila North Tollways Corp. (MNTC) and the SLEX that is operated by Citra.

Citra is spending P25.4 billion to put up a 14-kilometer, six-lane toll way exiting in Quirino and Plaza Dilao in Manila; and in Aurora Boulevard, E. Rodriguez Avenue, Quezon Boulevard, Sgt. Rivera, and Balintawak in Quezon City.

Meanwhile, MPTC has earmarked P25.6 billion for the 13-kilometer connector road that would link up NLEX and SLEX.

Both road would have a common alignment stretching five kilometers from Buendia Ave. in Makati City to the Polytechnic University of the Philippines campus in Sta. Mesa, Manila.

Both SMC and MPIC reached an agreement on the proposed P7 billion common alignment. SMC would shoulder 62.5 percent of the cost while MPIC would reimburse 37.5 percent of the total cost.
In return, Citra would no longer contest under the Swiss challenge rule MPTC’s unsolicited proposal to build the connector road.

“Once the EO is repealed, (Citra’s) STOA will be sent to the President for approval. Then we can issue the notice to proceed,” the DOTC chief said.


For latest information on the Philippine Real Estate Industry and the Real Estate Service Act (RA9646), please visit www.ra9646.com.ph. 

MNTC mulls over P10-b loan in 2014

MANILA STANDARD TODAY -Manila North Tollways Corp. plans to raise up to P10 billion next year from the local financial market to extend the North Luzon Expressway to the North Harbor in Port Area, Manila.

“For this year, we will have no borrowing plans. But when we start constructing Segment 10 next year, we may borrow at least P10 billion. We’re considering issuing corporate notes and bank loans,” MNTC chief finance officer Christopher Lizo said.

The MNTC started the construction of the P10-billion North Luzon Expressway Harbor Link project, a road network southwest of Metro Manila in February.

The eight-kilometer road project forms part of the NLEX Phase 2 expansion program being implemented by the MNTC, a subsidiary of Metro Pacific Tollways Corp. MPTC is the tollways operating arm of the Metro Pacific Group.

The toll operator said earlier the construction of the NLEX-North Harbor link hinged on the acquisition of right of way, which was more than 70 percent completed.

The link, which will start at the Smart Connect Interchange, is a two-segment project (Segments 9 and 10) that will connect the MacArthur Highway and C-3 Road to NLEX in Valenzuela City and NLEX Mindanao Avenue link.

Segment 9, the 2.4-kilometer portion linking NLEX to MacArthur Highway, has an estimated construction cost of about P1.7 billion and is expected to be completed in 12 months.

Segment 10, which is longer at 5.65 kilometers, will start where Segment 9 ends on MacArthur Highway and stretches all the way to C-3 Road in Port Area. Construction of Segment 10 is expected to take 24 months with P8-billion estimated cost.

Segment 10 was divided into a four-lane elevated expressway that will traverse over both grade-level South Rail and second-level elevated North rail lines.

The MNTC, builder and concessionaire of the NLEX, completed the 2.7-kilometer, P2.1-billion Mindanao Avenue link (Segment 8.1) to provide an alternative entry-exit point to the NLEX main.

MNTC said it planned to finance up to 70 percent of the costs of the two new segments and the rest from internally generated funds.

The two projects are expected to create 10,000 jobs and cut travel time by almost half, as they will enable vehicles to run 80 kilometers an hour on average.

Daily traffic for Segment 9 is projected to average 27,000 vehicles, while that for Segment 10 is 30,000.
MNTC also operates the Subic-Clark-Tarlac Expressway in Central Luzon.

For latest information on the Philippine Real Estate Industry and the Real Estate Service Act (RA9646), please visit www.ra9646.com.ph.   

HOSPITAL: MPIC eyeing $135.5-million greenfield orthopedic project

INQUIRER's THE BUZZ -  Hospital PPP
 
Infrastructure holding firm Metro Pacific Investments Corp. has purchased bidding documents for the 700-bed specialty orthopedic hospital to be located within the National Kidney and Transplant Institute compound along East Avenue, Quezon City, but it looks like the group of businessman Manuel V. Pangilinan will take a raincheck.

Industry sources said the group realized that it was better to stick to its strategy of investing in existing hospitals and unlocking efficiencies from them than building new ones. “The building of greenfield hospitals is not part of our expertise yet,” said a source from the MVP group.

The government intends to bid out the $135.5-million greenfield orthopedic project on April 26 under the public-private partnership (PPP) framework. The winning bidder will design, build, finance, operate and maintain the facility for a 25-year concession period and then transfer the hospital to the Department of Health.

But another listed company plans to try its luck, especially after winning an earlier PPP project involving the construction of school-buildings. Industry sources said Megawide Construction—led by entrepreneurs Michael Cosiquien and Edgar Saavedra—would team up with a local healthcare expert to vie for this project.

Another strong contender is the Campos group via the Unilab-Mount Grace Hospital Ventures consortium.

The Department of Health earlier announced that other groups that had earlier purchased bidding documents were GE Health Care General Electric Philippines Inc., Sta. Clara International Corp., Philips Electronic and Lighting Inc. and Data Trail Corp.

DOTC: P500-B worth infra projects complete by 2016

RAPPLER - In spite of delays in the roll out of public-private partnership (PPP) projects, the Department of Transportation and Communications (DOTC) remains confident that most infrastructure projects valued close to P500 billion would be finished by the time President Aquino's term ends in 2016.

In a speech read by DOTC undersecretary Catherine Gonzales in a thrift bank forum on Wednesday, March 20, Transportation secretary Joseph Emilio Abaya said that the DOTC is hastening the bidding process for infrastructure projects such as mass transport, airports, and seaports.

1. Light rail transit line 1 (LRT1) Cavite extension
This is the Aquino administration's biggest infrastructure project that connects capital Manila to Niog in Bacoor, Cavite in the south. The P60 billion project is scheduled for completion in 2016.

Abaya said that the agency is scheduled to bid out the project in June 2013, with construction expected to start in 2014. DMCI Holdings Inc., Light Rail Manila Consortium, SMC Infra Resources Inc. and MTD-Samsung Consortium have pre-qualified for the project.

The Cavite extension would lengthen LRT-1 to 32.4 kilometers from 20.7 kilometers. The new southern endpoint of the line would be in Niog, Bacoor, Cavite instead of Baclaran. The extension project involves the construction of 10 stations, 10.5 kilometers of viaduct, support beams, and 3 intermodal facilities.

The extension is meant to serve 4 million residents of Cavite, Parañaque and Las Piñas. The Cavite extension would be elevated for 10.5 kilometers and at grade level for 1.2 kilometers.

2. LRT2 extension project in Masinag, Pasig City
Abaya said DOTC is set to bid out a P350 million consultancy contract for the civil works of the P9.7-billion LRT-2 extension project. The LRT-2 project would extend the train line 4.14 kilometers eastward. It would terminate at the intersection of Marcos Highway and Sumulong highway instead of the existing Santolan Station.

Two stations will be added to the train line; one at Emerald Station in front of Robinson's Place Metro East and the other at Masinag Junction in Antipolo City.

The development is scheduled for completion in 2015.

3. Automated fare collection system (AFCS) for the LRT and the MRT
The DOTC will also bid out the P1.7 billion AFCS project. Abaya said that 31 companies have submitted bidding documents.

The scheme is meant to provide a single ticketing system for both the LRT and MRT.

4. Various airports
The Aquino government's major airport projects are the P17.5 billion Mactan Cebu international airport expansion project and the rehabilitation of the Ninoy Aquino International Airport (NAIA), the country's main international gateway.

Projects that can be completed in the 3rd quarter of 2016 include the P4.3 billion Puerto Princesa Airport, P7.2 billion New Bohol (Panglao) International Airport, and the P1.1 billion Bicol International Airport.

The DOTC already is bidding out the preparatory work for the Panglao Airport project. Submission and opening of bid documents are scheduled on April 16.

There are also plans to build airports in Tacloban, Laguindingan and Puerto Princesa to contribute to the country's target of 10 million tourists by 2016.

5. Cebu Bus Rapid System project
The P10 billion project will be subject to the approval of the National Economic and Development Authority (NEDA) board within the 1st half of 2013.

6. Davao Sasa wharf improvement project in Mindanao
The DOTC will bid out the P4 billion by the 3rd quarter of 2013.

7. Intermodal stations in Metro Manila
The agency is pushing for a P7.4 billion project for the installation of intermodal stations in 3 locations around the National Capital Region.

The intermodal stations are meant to house provincial bus stations to decongest Metro Manila.
Abaya said that the DOTC is also looking to revive of the Manila Bay – Pasig river – Laguna Lake ferry system.

So far, the government has successfully bid out only one or two of the 10 PPP projects identified by the Aquino administration in 2010.

For latest information on the Philippine Real Estate Industry and the Real Estate Service Act (RA9646), please visit www.ra9646.com.ph.  

AIRPORT (Cebu): Qualification for Cebu airport bidding moved anew

RAPPLER - The Department of Transportation and Communications (DOTC) moved the deadline for submission of pre-qualification documents for the Mactan-Cebu International Airport expansion project to April 5 from March 22.

“Please be notified that the submission and opening of qualification documents is moved to April 5 or two weeks from the date of the last posting of clarifications, whichever is later,” said DOTC undersecretary Rene Limcaoco in a notice dated March 18.

This was the third time that the DOTC moved the deadline for the submission of pre-qualification documents. The agency first moved the deadline from February 18 to 27 to allow bidders to perform ocular inspection. It then extended the deadline a second time, to March 22, to accommodate some requests from bidders.

The airport project involves the construction of a terminal capable of holding 8 million passengers a year, according to a PPP Center briefing paper. The plan also provides for the maintenance of old and new facilities.

The Mactan-Cebu International Airport has a single 3,300-meter runway. It sits on a 797-hectare property.
Joint bids are expected from Manny Pangilinan's Metro Pacific Investments Corp. and John Gokongwei's JG Summit Holdings Inc., as well as Megawide Construction Corp. and Indian firm GMR Infrastructure. Other companies that have expressed interest to participate include San Miguel Corp., First Philippine Holdings Corp. (FPHC), Henry Sy's SM Investments Corp., Aboitiz Land, Inc., Filinvest Development Corp., Lucio Tan's MacroAsia Corp., and Prime Power Holdings Corp.

For latest information on the Philippine Real Estate Industry and the Real Estate Service Act (RA9646), please visit www.ra9646.com.ph.   

Marubeni deal boosts MPIC's P25-B war chest

BILLION BUDGET. MPIC allots P25-B for its expansion projects, says MPIC CEO Jose Lim. Photo by Aya Lowe

RAPPLER - – The recent deal with Japanese trading firm Marubeni Corp. boosted the war chest of Metro Pacific Investments Corp (MPIC) for its various infrastructure, utility and hospital services ventures.

Infrastructure conglomerate MPIC is setting aside a P25-billion budget for its bid for various big-ticket projects the government is auctioning off, as well as other expansion plans, said MPIC President and CEO Jose Ma. K. Lim on Friday, March 8.

Bulk of the amount would come from the proceeds of its deal with Marubeni. In February, the two firms announced that the Japanese firm acquired a 20% stake in water concessionaire Maynilad Water Services Inc. where MPIC has a 53% direct and indirect stakes.

The companies did not disclose the acquisition price, but earlier reports said the transaction could be valued at $400 million (over P16 billion).

"It’s quite a substantial amount. We would have to invest it first before we [raise] any other equity,” Lim told reporters after MPIC's special shareholders meeting in Makati City.

P25-billion budget
At the Friday meeting, shareholders approved the listing of new shares that are part of a P6.2 billion equity placement last January. In a disclosure to the Phiippine Stock Exchange (PSE), MPIC said the 1.33 billion common shares were sold at P4.60 apiece via private placement.

Lim said the P25 billion budget represents the available funding for new and expansion projects. "It does not count the amount of debt that will be raised in operating companies. It's only the share of MPIC in that."

"For example, for tollway projects, we assume 60% to 70% not 100%,” Lim added, referring to MPIC's stake in its tollway unit.

Infrastructure, hospital, water
In the pipeline are tollway projects MPIC are eyeing: the NLEx-Harbor Link road, the NLEx-SLEx Connector Road, and the Cavite-Laguna (CALA) expressway. The connector road has been approved but is still subject to a Swiss challenge. The CALA bidding has yet to start.

Around P4 billion will go toward rail projects they are eyeing, while P5 billion will go toward their bid for the Mactan-Cebu International Airport expasion project. MPIC is among interested parties eyeing the construction and management of the Light Rail Transit (LRT) Cavite Extension project and the Metro Rail Transit Line 3 (MRT-3).

“It looks like the Mactan and NAIA (Ninoy Aquino International Airport rehab plan) are going to move quickly and I don’t forsee any significant delays in this,” said Lim.

MPIC will also allocate about P3.5 billion for new hospitals they plan to acquire and increase their stake in those already part of their portfolio.

They are also looking into expanding their water services portfolio. "We have a few water projects, within the franchise area and outside in Subic. We intend to increase our stake there to 50% or even 70% if the government is inclined to sell its remaining shares. We also have the investment in Phil hydro (bulk water provider) which requires additional investment for the expansion of the network,” Lim said.

“These are some of the projects that are coming along. The actual locations will determine which available projects will come first,” he added.

For latest information on the Philippine Real Estate Industry and the Real Estate Service Act (RA9646), please visit www.ra9646.com.ph.