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Metro Pacific Tollways Corporation (MPTC) has submitted to the Philippines' Department of Public Works and Highways (DPWH) a PHP25 billion (US$494 million) unsolicited bid to extend the Cavite Laguna Expressway (CALAX).
Metro Pacific Investments Corporation (MPIC) holds the majority of its toll road assets through MPTC. MPTC holds a 100% effective interest in Cavitex Infrastructure Corporation (CIC), which holds the concession rights for the operation and maintenance of the Manila-Cavite Toll Expressway.
On 10 July 2015, MPCALA Holdings, Inc. (MPCALA) signed the Concession Agreement for the project with the DPWH. Under the Concession Agreement MPCALA is granted the concession to design, finance, construct, operate and maintain the CALAX, including the right to collect toll fees, over a 35-year concession period.
The project involves the construction of a 44.6-kilometer four-lane toll road between the Cavite Expressway in Kawit, Cavite and the South Luzon Expressway (SLEx)-Mamplasan Interchange in Biñan, Laguna. It is expected to ease traffic congestion south of the capital.
The estimated cost of the project is P55.5-billion (US$1,226 million).
The expansion would involve the construction of 29 km that would connect the expressway to Tagatay.
The project breaks its ground on June 19. As we reported in May 2016, MPIC moved to 2017 the groundbreaking for the project as the DPWH was still acquiring properties along the expressway corridor. The project is expected to be fully operational by 2021.
Mr. J. Luigi L. Bautista, President of Metro Pacific Tollways, said:
“We and the government are showing the true spirit of public-private partnership in creating jobs and revitalizing the economy by making the flow of goods and services seamless. An estimated 5,000 jobs will be created with the construction of CALAx for years and throughout its concession period. Employment will be enhanced not only by those who will design, build and operate the facility, but also by the consequent creation of more manufacturing jobs and greater economic opportunities for those who invest, work, live or commute around the Cavite-Laguna corridor of the project.”
MPTC also consolidates a 75.60% effective interest in Manila North Tollways Corporation (MNTC), which holds the concession rights to construct, operate and maintain the North Luzon Expressway (NLEX) and Subic Clark Tarlac Expressway (SCTEX).