Metro Pacific signs CALAX PPP project

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Metro Pacific signs CALAX PPP project This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Philippines' Department of Public Works and Highways (DPWH) and Metro Pacific Investments Corporation (MPIC) have signed the Cavite-Laguna Expressway (CALAX) PPP project.

The CALAX project involves the financing, design and construction, operation and maintenance of the 47 kilometers close-system toll expressway starting from the existing Cavite Expressway (CAVITEX) and ending at South Luzon Expressway (SLEX) Mamplasan Interchange in Binan, Laguna.  This covers the 28.9 km Cavite Section from Kawit to Silang and the 18.1 km Laguna Section from Silang to SLEX.

The total project investment is estimated at P55.5 billion (US$1,228 million)

According to MPIC's Metro Pacific Tollways Corp. CFO Christopher Daniel Lizo, the firm aims to finance 80% of the total project investment from debt while 20% would come from equity.

In addition MPIC has paid the government P5.46 billion (US$120.8 million), representing a premium bid of 20 percent.

Last month we reported that DPWH had warded the contract to MPIC.

In June 2014 we reported that team Orion, formed by AC Infrastructure Holdings Inc., Aboitiz Land Inc., Macquarie Infrastructure Holdings PhilippinesBouygues TravauxEgis Road Operations and Korea Expressway Corp, offered the highest bid for the project. Later, DPWH indefinitely suspended the awarding of the project and in late November 2014 Philippines' President, Benigno Aquino III, ordered a rebidding of the project.

We have lately reported on several road PPP projects globally:

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