Monday, April 21, 2008 [ philstar.com ]
The construction of the P15.18 billion Tarlac-La Union expressway will commence in September this year, which is expected to reduce travel time from Manila to Baguio from six to thee hours.
The 88.5 kilometer expressway which will extend from La Paz, Talac to Rosario, La Union will be undertaken by Private Infra Dev Corp., a 10-member consortium composed of the country’s leading construction companies. The project, which is under a build-operate-transfer scheme, will be developed over a period of five years.
Lopez-led First Balfour Inc. and the Consunji family’s D.M. Consunji Inc. are the two biggest shareholders of Private Infra with a 34-percent stake each. The balance of 32 percent will be divided among other members comprising EEI Corp., C.M. Pancho Construction, RD Policarpio & Co., JV Angeles Construction Corp., J.E. Manalo & Co., New Kanlaon Construction, and Rockford Development Corp.
The consortium expects to sign a toll concession agreement with the Department of Public Works and Highways (DPWH) next month following the procurement of all documentary requirements. The agreement shall be effective for a period of 35 years, extendable for another 15 years.
DPWH head Manuel Bonoan said P8.59 billion of the total project cost will be funded by loans while P3.68 billion will be in the form of equity from consortium members. The remaining P2.91 billion will be shouldered by the DPWH to cover the acquisition of the right of way for each of the eight sections of the project. D.M. Consunji and First Balfour will shell out an estimated P1.31 billion each for the project.
Start of partial operations of the expressway which will traverse from Tarlac to Carmen will be in January 2010, January 2011 for the Carmen-Urdaneta section, and March 2013 for the Urdaneta-Rosario section.
The project involves the construction of eight interchanges, 26 overpasses, 20 bridges, three farm crossings, two viaducts and tollway facilities.
Bonoan said the project is expected to provide faster and effective access for agricultural products from the north to the major population centers in Luzon.
The Manila North Road, which currently serves part of the north south backbone of north-western Luzon’s road network is already experiencing congestion especially at the urban/sub-urban centers.
Banco De Oro and other local banks and investment houses are expected to participate in the financing of the expressway.
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