Philippines awards CALAX highway PPP project

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Philippines awards CALAX highway PPP project

The Philippines' Department of Public Works and Highways (DPWH) has awarded Metro Pacific Investments Corporation (MPIC) the P55.5-billion (US$1,226 million) Cavite-Laguna Expressway (CALAX) PPP project.

Last month we reported that MPIC had submitted a premium bid of P27.3 billion (US$603.3 million), which was higher than the P22.2 billion (US$490.6 million) premium bid submitted by the San Miguel Corporation. The preferred bidder will have to shell out 20% of the premium bid upon the signing of the concession contract, which is scheduled on July 14th.

DPWH Secretary Rogelio Singson stated:

"San Miguel Holdings and MP CALA Holdings both submitted very aggressive bids, so we would like to thank both of them for participating in this bidding. Unfortunately, we can only declare one winner and based on the resolution MP CALA is the best complying bid for the project."

For the CALAX project, the private partner shall finance, design, construct, operate and maintain 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.

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.

On June 16th 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.

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