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.

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