Posts Tagged ‘Metro Pacific Tollways Development Corp.’

DOJ opinion seen to delay MPIC connector road project

The Philippine Star, 23 July 2014

By Lawrence Agcaoili

 

MANILA, Philippines – Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) sees further delay in the P18-billion toll road connecting the North Luzon expressway and the South Luzon expressway after the Department of Justice (DOJ) issued an opinion on the legality of the joint venture with state-run Philippine National Construction Corp. (PNCC).

Justice Secretary Leila de Lima has issued an opinion dated July 7 that the National Economic and Development Authority (NEDA) erred when it approved the joint venture between MPIC’s Metro Pacific Tollways Development Corp. (MPTDC) and PNCC on the connector road project.

Based on the recommendation of Transportation Secretary Joseph Emilio Abaya, the NEDA Board approved the amendment or extension of existing joint venture between MPTDC and PNCC as well as the supplemental toll operations agreement (STOA) to cover the extension of the franchise of NLEX under Presidential Decree 1894.

De Lima said in the 68-page letter sent to Transportation Undersecretary Jose Perpetuo Lotilla that “the NEDA Board approval appears to have been issued beyond its powers, and without factual basis or justification.”

Even if the proposal is to proceed, instead, in accordance with the scheme described in the NEDA Board’s amended approval, De Lima said all government agencies, bodies and officials are constitutionally and statutorily required to ensure that such proposals do not merely offer advantageous terms from a business perspective.

She added that it would be highly unwise and even contrary to the tenets of good governance to suddenly convert an unsolicited proposal, which is about to be subjected to Swiss Challenge, into another mode of implementation by entering a joint between the Unsolicited Proponent and the PNCC.

“Thus, any perception that piggybacking on the franchise of PNCC would, in any way, allow the unsolicited proposal of MPTDC to evade or circumvent the Swiss Challenge requirement or would allow it to obtain the contract without competitive challenge, is erroneous,” she said.

MPTDC president Ramoncito Fernandez said in an interview with reporters the company is amenable to subjecting its unsolicited connector road project proposal to a “Swiss Challenge.”

“If you ask me, I believe it should be shorter than six months. It’s just a revival of what was stopped last year. We are now studying our options whether to go back to unsolicited or not, because we have retained that right until we are awarded a contract,” Fernandez explained.

The NLEX SLEX connector project was originally submitted to the Department of Public Works and Highways (DPWH) in May 2010 under the Build-Operate-Transfer (BOT) Law.

The joint venture arrangement between Manila North Tollways Corp. (MNTC) and PNCC was duly approved by the NEDA Board in January last year.

Malacañang has earlier directed the Department of Transportation and Communications (DOTC) to immediately resolve the legal hurdles to the NLEX-SLEX connector road.

 

NLEX-SLEX Connector Road project faces roadblock after DOJ requires Swiss challenge

InterAksyon, 22 July 2014

By Darwin G. Amojelar

 

MANILA – The Department of Justice (DOJ) has ruled that an P18-billion road project proposed by the Metro Pacific Group be subjected to a Swiss challenge.

In a 41-page legal opinion dated July 7, 2014, Justice Secretary Leila M. de Lima said the National Economic and Development Authority (NEDA) Board’s decision to implement the NLEX-SLEX Connector Road project as a joint venture, and not as an unsolicited venture, is “without factual basis or jurisdiction.”

President Benigno Aquino III chairs the NEDA board.

To recall, Metro Pacific Tollways Development Corp (MPTDC) earlier sealed a joint venture with Philippine National Construction Corp (PNCC) in a bid to facilitate construction of the NLEX-SLEX Connector Road.

MPTDC controls Manila North Tollways Corp (MNTC), which operates the North Luzon Expressway. State-run PNCC is the holder of the NLEX franchise, which MNTC manages on behalf of the government.

Under their deal, the Supplemental Toll Operations Agreement (STOA) between MNTC and PNCC was amended to incorporate the Connector Road project.

According to the amended STOA, the NLEX-SLEX Connector Road, which will be called Segment 10.2, would be integrated to Segment 10.1, a 5.65-kilometer road that starts where Segment 9 ends on MacArthur Highway and stretches all the way to C3 Road.

Segment 9 is a 2.4-kilometer portion linking the NLEX to MacArthur Highway. The 3 projects would now be called NLEX Metro Expressway Link Project.

The joint-venture route was meant to do away with the Swiss challenge, which had been required of the project when it was still being pursued as an unsolicited venture. The Department of Transportation and Communications (DOTC) had endorsed the joint-venture route to expedite the project.

“It would be highly unwise and even contrary to the tenets of good governance to suddenly convert an unsolicited proposal, which is about to be subjected to Swiss challenge, into another mode of implementation, i.e., entering a JV between the unsolicited proponent and the PNCC at the behest,” de Lima said.

“Any perception that piggy banking on the franchise of PNCC would, in any way, allow the unsolicited proposal of MPTDC to evade or circumvent the Swiss challenge requirement or would allow it to obtain the contract without competitive challenge, is erroneous,” she added.

Sought for comment, MPTDC president Ramoncito Fernandez said the company received the DOJ opinion.

“We are now studying our options whether to go back to unsolicited or not because we have retained that right until we are awarded a contract. We have retained our original proponent status,” Fernandez said.

He said MPTDC is ready to undergo a Swiss challenge, which would take about 3 months.

With the DOJ ruling, the company expects further delay in the implementation of the project, which “we are projecting to start by early next year,” Fernandez said.

He expects the project to be completed in 2.5 years. The company was banking on completing the NLEX-SLEX Connector Road by end-2016.

MPTDC is a unit of listed Metro Pacific Investments Corp (MPIC). InterAksyon.com is the online news portal of TV5, which like MPIC is chaired by Manuel V. Pangilinan.

 

Connector road gets OK to proceed

11 September 2012, Malaya Business Insight

 

Metro Pacific Tollways Development Corp.  yesterday reported it expects the NLEX-SLEX road connector project to be fully operational by 2016.

The project estimated to cost P23.6 billion connects the Luzon’s north and south expressways through a route parallel to the Philippine National Railways track east of Manila or what it calls as Harbor Link.

The company reported that it  completed negotiations with the Department of Public Works and Highways (DPWH) and received a “no objection” response from the Department of Transportation and Communications (DoTC) in relation to the use of the PNR alignment.

“We are elated by the positive feedback from the DPWH and the DoTC regarding our proposal to build the NLEX-SLEX road connector project. We are optimistic the approval of the DPWH and DoTC will soon pave the way for us to proceed in constructing this vital road connector project that is envisioned to ease the burden of millions of motorists in Metro Manila,” MPTDC president Ramon Fernandez said.

Fernandez said the different segments by  other proponents will be discussed.  “This is open for discussions with SMC-Citra.  We will abide by what President Aquino has mandated on the matter”

Fernandez also added that the TRB, in a recent board meeting, attended by DPWH Secretary Rogelio Singson,  is just waiting for an agreement between MPTDC and Citra on the common segment before allowing the Skyway to proceed.

MPTDC anticipates that its proposal will be submitted to the National Economic Development Authority (NEDA) this month for review and approval.  Afterwards it expects a Swiss Challenge to follow.

If all goes according to the plans of MPTDC, construction will start in 2013 and the project will be finished by the first quarter of 2016.

Once completed, the proposed connector road will connect the North Luzon Expressway through the Harbor Link, and Skyway in Buendia.

 

NLEX-SLEX Connector Road Given Go-Signal

10 September 2012, Manila Bulletin 

By Bernie Cahiles-Magkilat

 

The P23.6 billion North Luzon Expressway and South Luzon Expressway (NLEX-SLEX) connector road was granted the go-signal by the government.

In a statement, project proponent Metro Pacific Tollways Development Corporation (MPTDC) said it expected the NLEX-SLEX road connector project to be fully operational by 2016 after it completed negotiations with the Department of Public Works and Highways (DPWH) and received a “no objection” response from the Department of Transportation and Communications (DOTC) in relation to the use of the PNR alignment.

“We are elated by the positive feedback from the DPWH and the DoTC regarding our proposal to build the NLEX-SLEX road connector project. We are optimistic the approval of the DPWH and DoTC will soon pave the way for us to proceed in constructing this vital road connector project that is envisioned to ease the burden of millions of motorists in Metro Manila,” MPTDC president Ramon Fernandez said in a statement.  MPTC, a subsidiary of Metro Pacific Tollways Corp., made a presentation to the Toll Regulatory Board recently.

The cost of the road connector has been estimated at P19 billion while the right of way at P4.6 billion for a total of P23.6 billion. The timetable for segment 9 is expected end of 2013 while 10 by end of 2014, and connector, end of 2015 or first quarter of 2016.

Asked about the negotiations for the common segment of the project, Fernandez said “This is open for discussions with SMC-Citra, which is the other project proponent. We will abide by what President Aquino has mandated on the matter”

Fernandez also added that the TRB, in a recent board meeting, attended by DPWH Secretary Rogelio Singson,  is just waiting for an agreement between MPTDC and Citra on the common segment before allowing the Skyway to proceed.

MPTDC anticipates that its proposal will be submitted to the National Economic Development Authority (NEDA) this month for review and approval.  Afterwards it expects a Swiss Challenge to follow.

If all goes according to the plans of MPTDC, construction will start in 2013 and the project will be finished by the first quarter of 2016.

Once completed, the proposed connector road will connect the North Luzon Expressway through the Harbor Link, and Skyway in Buendia .

MPTDC is a subsidiary of Metro Pacific Tollways Corporation (MPTC) which is committed to its vision of providing high quality public service through improved expressway systems, which are catalysts for economic development. MPTC seeks to permanently transform the country’s transport landscape by building an increasingly comprehensive and integrated expressway network. The Metro Pacific Tollways Corporation and Tollways Management Corporation are the management arms of Metro Pacific Investments Corporation for the broader tollways network that it hopes to expand and build.

MPTC, in partnership with the Philippine government and through its subsidiary, Manila North Tollways Corporation, has undertaken what has been called the largest infrastructural project in the country in the last ten years — the massive rehabilitation and expansion of the North Luzon Expressway (NLEX), and its systematic interconnection with other major arterial roads in Luzon. Collectively, the NLEX and its related infrastructural projects facilitate faster, safer and better quality traveling a critical national area.

 

P24-B Metro Pacific road project gets govt ‘go’ signal

09 September 2012, Business Mirror

by Lenie Lectura

 

THE Metro Pacific group has secured the go-ahead to proceed with its P23.6-billion North Luzon Expressway (NLEx)-South Luzon Expressway (SLEx) connector road project.

Metro Pacific Tollways Development Corp. (MPTDC), a wholly owned subsidiary of Metro Pacific Tollways Corp. (MPTC)—the tollways arm of Metro Pacific Investments Corp. (MPIC)—expects the said project to be fully operational by 2016.

The company recently completed negotiations with the Department of Public Works and Highways (DPWH) and received a “no-objection” response from the Department of Transportation and Communications (DOTC) in relation to the use of the Philippine National Railway (PNR) alignment.

MPTDC’s proposal involves the construction of a 13.2-kilometer (km) overhead road that will traverse through PNR tracks, passing the busy streets of Manila.

The project cost of the road connector is P19 billion, plus a right-of-way cost of P4.6 billion.

MPTDC’s connector road will have four lanes and three exits in Quirino, España and 5th Avenue.  From there, the road would connect to the “Harbor Link” road project, which is actually an extension of the NLEx. The Metro Pacific group holds the concession to the NLEx.

“We are elated by the positive feedback from the DPWH and the DOTC regarding our proposal to build the NLEx-SLEx road connector project. We are optimistic the approval of the DPWH and DOTC will soon pave the way for us to proceed in constructing this vital road connector project that is envisioned to ease the burden of millions of motorists in Metro Manila,” MPTDC president Ramon Fernandez said.

The DPWH has accepted the proposal although this will still be subjected to a Swiss challenge.

When asked about the negotiations for the common segment of the project, Fernandez said, “This is open for discussions with San Miguel Corp. (SMC)-Citra, which is the other project proponent. We will abide by what President Aquino has mandated on the matter.”

The proposal of SMC-backed Citra Metro Manila Tollways Corp. (CMMTC) involves the construction of the 14.2-km, six-lane elevated tollway.

In May 2011, CMMTC submitted its updated investment proposal for the Skyway stage 3 project to the Toll Regulatory Board (TRB) and the DPWH.  Skyway stage 3 is a component of the Metro Manila Skyway Project approved by the government in 1995.

CMMTC asserted its right to construct extension roads for the Metro Manila Skyway through a concession agreement it signed with the government. The first stage of the Skyway runs from Buendia to Bicutan and the second stage extends the elevated road all the way to Alabang, Muntinlupa.

CMMTC, which used to be a joint venture between the Philippine National Construction Corp.  and Indonesia’s PT Citra Lamtoro Gung Persada, said the concession agreement included a third section of the Skyway, which is the connector road.

The said connector road will have exits in Quirino in Manila; and Plaza Dilao, Aurora Boulevard, E. Rodriguez Ave., Quezon Boulevard, Sgt. Rivera and Balintawak in Quezon City.

Fernandez added that the TRB, in a recent board meeting, is just waiting for an agreement between MPTDC and CMMTC on the common segment before allowing the Skyway to proceed.

The common segment is a three-km road that will start from Buendia in Makati City all the way to Plaza Dilao in Manila.

MPTDC anticipates that its proposal will be submitted to the National Economic Development Authority this month for review and approval.  Afterwards it expects a Swiss challenge to follow.