Author Archive

Big guns eye P123-B lakeshore project

The Philippine Star, 01 September 2014

By Lawrence Agcaoili

 

MANILA, Philippines – JG Summit Holdings Inc., Aboitiz Group, and three more companies have expressed interest in the Aquino administration’s largest public-private partnership (PPP) project.

PPP Center executive director Cosette Canilao said the five companies that bought bid documents for the P123 billion Laguna Lakeshore expressway dike project were JG Summit, Aboitiz, Megawide Construction Corp., PT Star Line, and State Properties Corp.

Canilao said the number of interested bidders in the PPP project went up to 19 as of end-August.

Interested bidders include diversified conglomerate San Miguel Corp. (SMC), the Lucio Tan Group, property giant Ayala Land Inc., infrastructure giant Metro Pacific Investments Corp. (MPIC), Megaworld Corp. of businessman Andrew Tan, GT Capital Holdings Inc. of taipan George Ty, Filinvest Land Inc. of taipan Andrew Gotianun, the Laguna Lakeshore Consortium led by the Wenceslao Group, JV Power and Wealth Corp., Macquarie Capital Securities, listed mining firm Minerales Industrias Corp.

Likewise, Philippine units of foreign firms including Egis SA of France, Leighton Contractors of Australia, and Muhibbah Engineering (M) Berhad of Malaysia are looking at the project.

The Department of Public Works and Highways (DPWH) has rolled out the Aquino administration’s biggest PPP project and has given interested companies have until Oct. 16 to submit their prequalification documents.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

The National Economic and Development Authority (NEDA) approved the project last June 19. It aims to mitigate flooding in the Laguna Lake coastal towns, particularly in Southern Metro Manila and Laguna, improve the environmental condition of the lake, and promote economic activities through the efficient transport of goods and people.

The project will likewise provide opportunities for developing a new business and residential district in the reclaimed areas.

It involves the construction of a 47-kilometer flood control dike on top of which will be a high speed six-lane expressway running on a mainly off-shore alignment at least 500 meters away from the western shoreline of Laguna Lake, including pumping stations and floodgates.

The PPP project also includes the reclamation of about 700 hectares of foreshore and offshore areas, west of the dike, in Taguig and Muntinlupa.

 

Editorial: A high-speed train to Clark

Manila Bulletin, 31 August 2014

 

In a meeting of the Cabinet Cluster  on Transportation last Tuesday, President Aquino directed the Department of Transportation and Communication (DOTC)  to conduct  a feasibility study on a  high-speed train to connect Clark International Airport  to Metro Manila, using the old rails or right-of-way of the Philippine National Railway.

This  revives what is possibly the biggest forward step in the ongoing search for a solution to the worsening  gridlock  at  the Ninoy Aquino International Airport in Paranaque City. The NAIA has gained an unsavory reputation as one of the worst airports in the world, partly because of the poorly maintained services in its three terminals, but the biggest problem is the air traffic congestion due to a runway that can accommodate only up to 42 flights an hour. This has resulted in flight delays and with the burgeoning  growth in both international and domestic flights, the situation is inevitably becoming worse.

Many solutions have been proposed to solve this problem. A private group proposed to build a new airport  on reclaimed land  in Manila Bay. The Japan International Cooperation Agency (JICA) recommended the development of Sangley Airport in Cavite. There were other proposed sites for additional runways, including land in Bulacan and Laguna. Proposed as a quick fix to the congestion problem was an additional runway at NAIA, but that would bump against  the host of residential subdivisions that now surround the airport.

Many officials, particularly the governors of Central Luzon, have long seen Clark as the best answer to the problem. Clark was the home base of the US 13th Air Force, with two giant  runways that could accommodate the US Space Shuttle in an emegency, plus another runway for small planes. It  is capable of up to 100 flights at peak hours. Clark airport also has  2,400 hectares  to accommodate further growth, compared to NAIA’s 700 hectares.

What is holding back the  development of Clark as the country’s major port of entry is its distance from Manila. This  could be solved by a high-speed train  connecting  it to Metro Manila. Many cities around the world already have this arrangement – Tokyo with Narita airport,  London with Gatwick, and more recently Hong Kong. In the early years of the previous administration, there was talk of a Spanish company building  such a high-speed train connection,  but for one reason or another, the plan never materialized

President Aquino has now called for a feasibility study for such a train, according to Clark International Airport  Corp. President and CEO Victor Jose Luciano. It may take sometime but if it is done before the end of the President’s term in 2016, it will not only solve the NAIA congestion problem, but will also  boost  the growth of Central Luzon – and therefore the national growth – by leaps and bounds,  and be a major pillar in the legacy of the Aquino administration.

 

Higher terminal fee eyed for Cebu International Airport

The Philippine Star, 01 September 2014

By Lawrence Agcaoili

 

MANILA, Philippines – The Mactan-Cebu International Airport Authority (MCIAA) is looking at raising the passenger service charge to P300 per departing passenger from P200 and the international passenger service charge to P750 from P550.

The airport authority is set to conduct a public hearing on the proposed higher terminal fee on Sept. 11 to get the views on the planned increase.

The planned increase in terminal fee is being considered as the tandem of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Airports is undertaking the P17.5-billion expansion project for the Mactan-Cebu international airport.

Last April, the Department of Transportation and Communications (DOTC) and MCIAA awarded the 25-year concession to the joint venture that plans to transform the country’s second busiest international airport into the world’s first resort-airport.

The PPP project intends to modernize the country’s second-largest aviation hub with the construction of a new world-class international passenger terminal building with an annual capacity of eight million passengers and at the same time expand the existing terminal building.

In 2013, the number of international and domestic passengers that used the Mactan Cebu international airport reached 6.99 million or 3.4 percent higher compared to 6.76 million in 2012. The airport has exceeded its design capacity of 4.5 million as early as 2012.

 

NAIA expressway project: Meralco seeks to recover P112M from dislocation of facilities

The Philippine Star, 01 September 2014

By Iris C. Gonzales

 

MANILA, Philippines – Manila Electric Co. (Meralco), the country’s biggest power distributor, is seeking the nod of the Energy Regulatory Commission (ERC) for the relocation of electrical facilities near the airport affected by the Ninoy Aquino International Airport Expressway project.

Meralco wants the ERC ‘s permission to recover the value of any facility that may be retired as a result of the NAIA Expressway project.

The value would be equivalent to their respective remaining economic life through accelerate depreciation or any other mechanism that can account for the remaining value of the facilities that may be retired in the next regulatory reset of Meralco, the power distributor said.

The NAIA Expressway project is a four lane elevated expressway with a total length of 7.15 kilometers including entry and exit ramps. It will be implemented into two major phases, Phase 2 A and 2B, according to the application filed by Meralco.

Phase 2A of the project will run through the NAIA Road with ramps to Roxas Boulevard, Macapagal Boulevard and to the Entertainment City of the Philippine Amusement and Gaming Corp. (Pagcor), it said.

On the other hand, Phase 2B of the NAIA Expressway project will start from the existing Skyway in the South Luzon Expressway and then through Sales Avenue.

In its application, Meralco said that several of its facilities in the areas would need to be relocated.

“The contingency phase 2A NAIA Project will affect nine distribution circuits and four sub-transmission circuits with a total length of 10,730 m and 450 m, respectively. The project will also involve approximately 185 poles based on the preliminary design. The total number of applicant’s facilities that will be affected by the implementation of the phase 2A of the NAIA Expressway Project could still vary pending completion of the Expressway’s final alignment,” Meralco said.

The project would involve the relocation of 115 kilovolt transmission facilities along Roxas Boulevard and relocation of distribution facilities along NAIA Road from Tambo River to Domestic Road for a total cost of P112 million.

 

Meralco seeks approval to relocate facilities for NAIA Expressway

Business World, 31 August 2014

By Claire-Ann Marie C. Feliciano

 

MANILA Electric Co. (Meralco) has sought regulatory approval to implement a P112-million relocation activity that will pave the way for the smooth development of the Ninoy Aquino International Airport (NAIA) Expressway project.

In an Aug. 22 petition, Meralco told the Energy Regulatory Commission that Department of Public Works and Highways (DPWH) asked for its support for the expressway, which will traverse the cities of Pasay and Parañaque.

The project involves a four-lane elevated expressway with a total length of 7.15 kilometers. It is being implemented in two phases, with each major phase needing relocation of some Meralco’s facilities.

The first phase will run through the NAIA Road with ramps to Roxas Boulevard, Macapagal Boulevard and PAGCOR City.

The second phase, meanwhile, will start from the Skyway in South Luzon Expressway and through Sales Avenue, Andrews Avenue and the Tambo River.

The route will provide access to the three terminals of NAIA — linking them to the Skyway and Manila-Cavite Expressway.

Meralco said the project is targeted for completion by August 2015.

“To ensure the successful implementation of the NAIA Expressway Project, several electrical facilities
 in the affected areas would need to be relocated,” Meralco said.

It added that the DPWH requested the relocation to provide for a sufficient and safe working clearance for the construction of the elevated expressway.

Meralco’s petition to the regulator covers electric facilities that will be affected only by the project’s first phase.

The utility intends to implement a temporary relocation through spun cables and alley arm construction. The final relocation — to be implemented to accommodate the finished structure — covers the development of overhead conductors and spun cables on concrete poles.

Meralco said the relocation will entail a P112.29-million investment — covering distribution and transmission facilities, as well as reconstruction of underground distribution conduits. The project cost is already inclusive of permits and taxes.

“The costs associated with the
 project shall be shouldered by the DPWH, with corresponding payments in phases,” Meralco said.

It noted that the project would not have any adverse impact on customers in the area in terms of reliability and quality of electrical services.

“The relocation and attachment of
 facilities to the finished structure of the expressway under the permanent setup contemplated would have no effect to
 operation efficiency since it will not result in any additional load,” Meralco said.

 

SMC, Ayala, 3 others eye FTI bus terminal

The Philippine Star, 30 August 2014

By Lawrence Agcaoili

 

MANILA, Philippines – Five companies led by diversified conglomerate San Miguel Corp. and property giant Ayala Land Inc. are set to join the bidding for the proposed P4 billion integrated transport system (ITS) at the Food Terminal Inc. (FTI) compound in Taguig City next month.

Michael Arthur Sagcal, spokesman of the Department of Transportation and Communications (DOTC), said SMC, Ayala Land, Filinvest Group of taipan Andrew Gotianun, Filipino-owned Megawide Construction Corp., and Datem Construction bought bid documents for the public private partnership (PPP) project.

The DOTC has given interested bidders until Oct. 6 to submit bids to finance, design, construct, operate and maintain the ITS-South Terminal designed to serve passengers coming from Laguna and Batangas.

The terminal would connect passengers from the Laguna and Batangas side to other urban transport systems such as the proposed North-South Commuter Rail of the Philippine National Railways, city buses, taxis, and other public utility vehicles that serve inner Metro Manila.

The project would include a passenger terminal building, arrival and departure bays, public information systems, ticketing and baggage holding facilities as well as park-ride facilities.

On the other hand, the DOTC also moved the deadline for the submission of bids for the proposed P2.5-billion ITS-Southwest Terminal to be situated in a 2.9-hectare property located at the Coastal Road Terminal along the Manila-Cavite Expressway to late September instead of Aug. 30.

Several companies have expressed interest in the terminal that would connect passengers coming from Cavite to other urban transport systems such as the future Light Rail Transit line 1 (LRT) South Extension to Bacoor in Cavite, city bus, taxi, and other public utility vehicles plying Metro Manila.

These include diversified conglomerate SMC., conglomerate Ayala Corp. and Ayala Land, Metro Pacific Tollways Corp. of infrastructure giant Metro Pacific Investments

Corp., Robinsons Land Inc. of taipan John Gokongwei, D.M. Wenceslao and Associates Inc., Vicente T. Lao Construction,

French-owned Egis Projects Philippines, Filinvest Land Inc. of taipan Andrew Gotianun; Megawide Construction Corp.; State Properties Corp.; and Expedition Properties Corp.

The DOTC is still identifying the final site for the ITS-North Terminal. It is now looking at the Seedling Bank at the corner of Quezon Ave. and EDSA as well as the property of the National Housing Authority (NHA) near the Trinoma Mall.

 

JG Summit, Aboitiz, 3 more eye largest PPP project

Rappler, 31 August 2014

 

At least 19 interested bidders are eyeing the Aquino administration’s biggest public-private partnership project

MANILA, Philippines – JG Summit Holdings Inc, Aboitiz Group and 3 more companies are interested to bid for the Aquino administration’s biggest public private partnership (PPP) project, bringing the total number of bidders to 19 as of end of August.

The 5 companies that bought bid documents for the P123-billion (US$2.8 billion) Laguna Lakeshore expressway dike are the following, according to PPP Center executive director Cosette Canilao:

  • JG Summit Holdings Inc
  • Aboitiz Group
  • Megawide Construction Corp
  • PT Star Line
  • State Properties Corp

Other interested bidders include:

  • San Miguel Corp (SMC)
  • Lucio Tan Group
  • Ayala Land Inc
  • Metro Pacific Investments Corp (MPIC)
  • Megaworld Corp
  • GT Capital Holdings Inc
  • Filinvest Land Inc
  • Laguna Lakeshore Consortium led by the Wenceslao Group
  • JV Power and Wealth Corp
  • Macquarie Capital Securities
  • Minerales Industrias Corp

Philippine units of foreign firms Egis SA of France, Leighton Contractors of Australia, and Muhibbah Engineering (M) Berhad of Malaysia are also eyeing the project.

The interested companies are required to submit their pre-qualification documents by October 16, said the Department of Public Works and Highways (DPWH).

Less flooding, faster transport

The Laguna Lakeshore expressway dike was approved by the National Economic Development Authority (NEDA) last June 19.

President Benigno Aquino III promised in his 4th State of the Nation Address (SONA) that it would lessen flooding in towns on the coast of Laguna Lake, specifically those in Southern Metro Manila and Laguna.

It is also meant to improve the environmental condition of the Lake and make travel and transport of goods more efficient.

The reclamation of 700 hectares of foreshore and offshore areas in Taguig and Muntinlupa is also seen to open up opportunities for a new business and residential district.

The project is a 47-kilometer flood control dike topped by a high-speed 6-lane expressway 500 meters from the western shoreline of Laguna Lake. It will feature pumping stations and floodgates.

It will start in Taguig, passing through Muntinlupa and Calamba, and ending in Los Baños where it borders Bay, Laguna.

But some environmental and fisherfolk groups claim the expressway dike will displace fisherfolk who live on the coast of Laguna Lake and pose environmental threats, especially because of the large-scale reclamation the project requires.

The government will roll out 18 major infrastructure PPP projects worth P602.2 billion ($13.8 billion) before June 2015, said Canilao.

The administration has alrady awarded 7 PPP projects worth almost P68 billion. These include the following:

  • Daang Hari-South Luzon expressway link road (P2 billion or $45.9 mllion)
  • PPP for School Infrastructure Project phase 1 (P8.86 billion or $203 million)
  • PSIP-2 (P16.28 billion or $373 million)
  • Modernization project for the Philippine Orthopedic Center (P5.98 billion or $137 million)
  • Ninoy Aquino International Airport expressway (P15.52 billion $356 million)
  • Automated fare collection system project (P1.72 billion or $39 million)
  • Mactan-Cebu international airport expansion project (P17.5 billion or $401 million)

Concession contracts for the LRT 1 Cavite extension worth P65 billion ($1.5 billion) and the Cavite-Laguna expressway project worth P35.4 billion ($812 million) will also be awarded soon by DPWH. – Rappler.com

 

5 firms vie for P4-B PPP deal

Philippine Daily Inquirer, 30 August 2014

By Miguel R. Camus

 

Powerhouse developers keen on Integrated Transport System

Five groups, including San Miguel Corp. and Ayala Land Inc., will vie for the P4-billion public private partnership project near the Food Terminal Inc. compound in southern Metro Manila, a government official said Friday.

Michael Sagcal, Transportation department spokesperson, said the companies that bought bid documents apart from San Miguel and Ayala were Filinvest Land, Megawide Construction Corp., and Datem Construction, a contractor whose projects include The Serendra project in Bonifacio Global City and Discovery Shores Boracay.

The Transportation department said interested groups have until Oct. 6 to submit prequalification documents for the project, formally known as the Integrated Transport System Project-South Terminal.

The prequalification would determine which groups would proceed in the bidding process. The state-run Food Terminal Inc. still owns a 24-hectare special economic zone in Taguig after it sold a 74-hectare portion to Ayala Land two years ago. This deal is the second of its kind to be auctioned off under the Aquino administration’s Public Private Partnership program.

The Transportation department earlier published an invitation to bid for the ITS project-Southwest Terminal, for which the offers may be expected next month. Ayala, San Miguel Corp. and Metro Pacific Investments of Manuel V. Pangilinan were earlier said to be keen on bidding for the Southwest terminal deal.

The ITS system is an intermodal hub where provincial buses may unload passengers who can then transfer to other in-city modes of transport such as rail lines, city buses and UV Express vans, the department said.

In the case of ITS South Terminal, the project will connect passengers from the Laguna/Batangas areas to transport systems, including a planned North-South Commuter Rail, city buses and taxis, it said.

The winner will finance, design, build and operate the terminal for a period of 35 years, the Transportation department said. It will employ a two-stage envelope system for the bidding process, according to the bid invitation.

The terminal will also include a main passenger building, arrival and departure bays, public information systems, ticketing and baggage holding facilities and so-called park-ride facilities. The government is also planning an ITS terminal in the northern part of Metro Manila.

It is currently studying various locations, including the Seedling Bank on Edsa in Quezon City, Transportation Secretary Joseph Abaya said previously.