THE METRO Pacific group has won the right to build, operate and maintain an 8.25-kilometer toll bridge that will link the island of Mactan to mainland Cebu, a P27.9-billion key infrastructure project seen to help decongest traffic in the area.
The construction of the project is targeted to start in 2017 and is estimated to be completed by 2020, infrastructure holding firm Metro Pacific Investments Corp. (MPIC) told the Philippine Stock Exchange Tuesday.
MPIC subsidiary Metro Pacific Tollways Development Corp. (MPTDC) has received the notices of award from both the City of Cebu and the Municipality of Cordova for the financing, design, construction, implementation, operation and maintenance of the Cebu-Cordova Bridge toll road subject to compliance with conditions.
MPTDC earlier submitted this project as an unsolicited proposal. It later negotiated with both Cebu City and the Municipality of Cordova to map out the terms of the proposal, which were then subjected to a “Swiss” challenge. Other parties were invited to submit proposals but MPTDC would have had the right to match the terms of the best challenger.
The two local government units awarded the project to the Metro Pacific group—led by businessman Manuel V. Pangilinan—in the absence of counter proposals from other parties. The deadline for submission was Dec. 7, 2015.
The project will be implemented through an unincorporated joint venture among Metro Pacific’s toll road unit, the City of Cebu and the Municipality of Cordova. It was earlier disclosed that the proposed joint venture would operate under a 35-year concession period, inclusive of the preparatory work, design and construction of the project.
The bridge is envisioned to decongest traffic bottlenecks in the two existing bridges—Marcelo Fernan Bridge and Mandaue Bridge between Mactan and Cebu.
The project includes the construction ofthe connections to Cebu City and Cordova, the main bridge structure, viaduct, causeway, roadway and toll facilities.
It will be built some 7.5 kilometers south of the Mandaue Bridge. The project will take off on the Cebu South Coastal Road crossing the Mactan channel to Mactan Island.
The estimated project cost of P27.9 billion includes the construction cost with inflation over a four-year period, toll facilities and operating system, the right-of-way cost, and financing costs.
Funding will come from a combination of loans from local banks and equity contribution, according to the disclosure.