Screengrab from https://www.mpic.com.ph/site/
The tollroad unit of Metro Pacific Investments Corp. (MPIC) has bagged the right to negotiate with the local city governments to build an 8.3-kilometer toll bridge that will link the island of Mactan to mainland Cebu, a key infrastructure project estimated to cost P17 billion.
MPIC – the infrastructure holding firm led by businessman Manuel V. Pangilinan- disclosed to the Philippine Stock Exchange on Monday that Metro Pacific Tollways Development Corp. (MPTDC) had procured the “original proponent status” for the proposed Cebu-Cordova bridge project.
The project aims to decongest the traffic in the two existing bridges to Metropolitan Cebu: the Marcelo Fernan Bridge and the Mactan-Mandaue (or Osmeña) Bridge and provide seamless access between the two islands. It is envisioned to be a “landmark” infrastructure which will link the island of Mactan to mainland Cebu through the municipality of Cordova.
MPTDC, a unit of MPIC’s tollroad arm Metro Pacific Tollways Corp., has submitted an unsolicited proposal to form a joint venture vehicle with the City of Cebu and the Municipality of Cordova for the design, construction, implementation, operation, and maintenance of the toll bridge. This will include the construction of the main bridge structure, viaduct, causeway, and roadway.
As the original proponent of this project, MPTDC can now start negotiations with both Cebu City and the Municipality of Cordova. After mapping out the terms of the project, it will be subjected to a “Swiss” challenge. This means that other parties will be invited to submit better proposals but MPTDC will have the right to match the terms of the best challenger.
The proposed joint venture will operate under a 35-year concession period, inclusive of the preparatory work, design and construction of the project, the disclosure said.
The estimated construction cost of P17 billion was based on 2014 prices.
It is envisioned to be funded with both debt (70 percent) and equity (30 percent), the disclosure added.
Assuming that all awards and approvals are secured by the first half of 2015, the toll bridge project is estimated to be completed by 2020, MPIC said.