The Market Monitor Minding the Nation's Business
By Daryl Rose Virtudazo
The National Economic and Development Authority (Neda) board has approved the unsolicited proposal of Metro Pacific Group for the NLEx-SLEx Connector Road project under Public-Private Partnership (PPP) scheme.
“However, the approval for a lower initial toll rate will be discussed by the DPWH with the proponent,” PPP Center Executive Director Cosette V. Canilao said.
The government wanted a lower project internal rate of return (IRR) of 10.87 percent instead of 12.09 percent by lowering the opening tariff from P100 to P87.
“Once the original proponent accepts the amended term, then DPWH can proceed with the Swiss challenge next year,” she added.
The project involves the construction, operation and maintenance of an eight-kilometer, four-lane elevated expressway over the Philippine National Railways (PNR) right of way (ROW), which will connect the North Luzon Expressway (NLEx) and South Luzon Expressway (SLEx).
The DPWH will implement the project with an estimated amount of P23.2 billion. It has a concession period of 35 years.
Once completed, the NLEx-SLEx Connector Road hopes to decongest traffic in Metro Manila by providing an alternative to the C-5 Road, Epifanio de los Santos Avenue (Edsa), and other major thoroughfares. It is expected to cut the travel time between NLEx and SLEx from more than 1 hour to about 20 minutes.
Meanwhile, the P50.18-billion Regional Prison Facilities project of the Department of Justice (DOJ) under the Public-Private Partnership (PPP) program has attracted three interested bidders. The three firms are Mega Structure Consortium of Megawide Construction Corporation, Citicore Megawide Consortium, Inc. and GMR Infrastructure Singapore Private Ltd.; DM Consunji, Inc.; and San Miguel Corporation. The pre-qualified bidders will be announced after a thorough evaluation of the PQ documents submitted by the said firms. The project will accommodate 26,880 inmates, including staff housing and administrative buildings, areas for rehabilitation (sports, work and religious activity), and will be installed with high security equipment. The winning bidder will design, finance, construct and maintain the modern prison facilities that will be constructed at Fort Magsaysay, Nueva Ecija.
To date, the Philippine government has successfully awarded 12 projects worth PhP217.4 billion to private partners under the Philippine PPP Program. These include: Daang Hari-SLEx Link Road (Muntinlupa-Cavite Expressway) Project; PPP for School Infrastructure Project (PSIP) – Phase I, NAIA Expressway Project (Phase II); PPP for School Infrastructure Project (PSIP) – Phase II; Modernization of Philippine Orthopedic Center; Automatic Fare Collection System; Mactan-Cebu International Airport New Passenger Terminal Building; LRT Line 1 Cavite Extension and Operation & Maintenance; Southwest Integrated Transport System (ITS) Project; Cavite-Laguna Expressway; South Integrated Transport System Project; and Bulacan Bulk Water Supply Project.