Vol. XXI, No. 194 [ Business World Online ]
Monday, May 5, 2008 | MANILA, PHILIPPINES
DAVAO CITY — London-based MCC Capital Projects Ltd. is planning to build a bridge between this city and nearby Samal Island, which should foster more economic activity by making it easier for people and cargoes to reach the Davao mainland.
The company is now in talks with Islamic banks in the Middle East for a funding of at least $120 million, said M. Faisal Kasim, chief executive officer.
"[Funding] has to come from the Middle East [where Muslim banks] are awash with funds," he told a press briefing last week after visiting Samal together with top officials of the company.
The project will be under a build-operate-transfer scheme, Mr. Kasim said. He said that the company would also look at other options, such as floating bonds.
The bridge will pave the way for the company to implement other projects in the island city, Mr. Kasim said.
The bridge was first proposed last year when the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area listed projects that the four countries wanted to implement.
Former Samal Mayor Rogelio P. Antalan said the proposal is to build a 900-meter bridge, but it has to be high enough since there are ships passing through the sea channel between the two cities. "This will still be the subject of the design," said Mr. Antalan, who works as a consultant for his brother, Samal Mayor Aniano P. Antalan.
Ma. Elena F. de la Cruz, finance assistant secretary for special concerns, said the Samal local government would be in charge of the project.
The former mayor said the city wants to become an urban center "with a rural center" and wants to make sure that the environment is protected.
Earlier, there were proposals to convert the Davao Integrated Development Program — an entity formed by the local governments within the Davao Region — into a corporation so it could float bonds. — CQF
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