Philippines to re-tender Laguna Lakeshore Expressway-Dike project

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Philippines to re-tender Laguna Lakeshore Expressway-Dike project

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The Department of Public Works and Highways (DPWH) of the Philippines has decided to re-tender the Laguna Lakeshore Expressway-Dike Project, after a failed bidding in March 2016.

The project will provide a high standard highway with a dike that will ease traffic flow and mitigate flooding in the western coastal communities along the Laguna Lake. The highway will run from Taguig in Metro Manila through the towns of Calamba to the Los Banos-Bay boundary in Laguna.

The highway is expected to reduce travel time from Metro Manila to Laguna to 35 minutes from the current 90 minutes.

The private partner will finance, design, construct, operate, and maintain the 47-kilometer flood control dike with a six lane expressway toll road on top. It will also include the construction of interchanges, bridges, floodgates, and pumps, from Taguig to Los Banos. The private proponent will also undertake the reclamation of 700 hectares located west of and abutting the expressway-dike and separated from the shoreline by a 100-150-meter channel, in Taguig and Muntinlupa.

The total project investment is estimated at PHP122.8 billion (US$2.73 billion) and the concession period will run for 37 years.

As we reported in March 2016, the DPWH terminated the bidding for project after no offers were made for the deal. The three groups that had been pre-qualified did not submit a final bid due to the economic viability, the complexity of the project, legal uncertainties and the lack of political stability.

The groups which were prequalified to carry out the project were the following:

  • San Miguel Corp.,
  • Team Trident, composed of Ayala, Aboitiz, SM Prime Holdings Inc and Megaworld,
  • Alloy-PAVI-Hanshin LLEDP consortium made up of Malaysia's Alloy MTD Capital Berhad, Prime Asset Ventures Inc, and Hanshin Engineering Construction.

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