Philippine public officials have announced new terms for the Cavite-Laguna (CALA) Expressway project that will allow for faster implementation. The removal of the project's official development assistance (ODA) component, which involves the government's building part of the expressway, was suggested by investors.

The ODA component could delay the project because the process of applying and securing ODA loans takes a long time. Therefore there will be just use one method for everything.

The P35.58-bilion CALA Expressway project involves the construction of a four-lane, 47.02-kilometer highway that will connect the Manila-Cavite and South Luzon (SLEx) expressways.

The private sector was originally supposed to finance, design and construct the P19.7-billion, 28.9-kilometer Cavite section from Kawit to the Aguinaldo Highway in Silang. The government, meanwhile, was to finance, design and construct the P15.8-billion, 18.1-km Laguna section from the Aguinaldo Highway to the SLEx Mamplasan exit in Laguna.

The project was put on hold by the Public Works department two weeks ago. Prospective bidders were supposed to have submitted their qualification documents last June 10 but this was called off, with no new dates set.

According to public officials, the bidders are confident they can finance the project with private resources, especially given the low interest rates lin the market.

Source: PPP Center