Right-of-way issues delay groundbreaking for Philippine toll road

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Right-of-way issues delay groundbreaking for Philippine toll road

Metro Pacific Investments Corporation (MPIC) has moved to next year the groundbreaking for the Cavite-Laguna Expressway (CALAX) PPP project, as the Philippines' Department of Public Works and Highways is still acquiring properties along the expressway corridor.

The PPP project was scheduled to commence its construction on ground in July this year and it would take around 4 years. Now, the beginning of this work has been postponed, in principle, until first quarter of 2017.

The Philippines' Department of Public Works and Highways awarded to MPIC the P55.5-billion (US$1,226 million) expressway PPP project in June 2015. The Philippine-based investment holding corporation subsidiary of First Pacific Limited won the competition to San Miguel Corporation with an offer about 20% higher.

The project is a 4-lane, 47.02 km at-grade, which will connect the Manila-Cavite Expressway (CAVITEX) and South Luzon Expressway (SLEX) through the Cavite and Laguna provinces, divides into two (2) sections:

  • PPP SECTION - a 36.01 km, 4-lane toll expressway from Kawit, Cavite to Sta. Rosa, Laguna
  • ODA SECTION - an 11.01 km, 4-lane toll expressway from Sta. Rosa, Laguna to connect with SLEX at Mamplasan Exit in Laguna.

The private proponent is responsible for the financing, designing and constructing of the PPP section, and the subsequent operations and maintenance (O&M) of the entire CALAX through a 35 years lease contract, which ends in July 2050.

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