By Ma. Elisa P. Osorio Updated March 25, 2009 12:00 AM [ philstar.com]
MANILA, Philippines - Metro Pacific Investment Corp. is planning to build the extension of C-5 to the North Luzon Expressway, a proponent of the infrastructure fund said.
In a telephone interview, Ambassador Donald G. Dee said that the group of Manny V. Pangilinan expressed interest in building the extension project.
Dee said they do not have the project costing because the feasibility study is yet to be completed. “We do not know how much the project will cost or how long it will take to build it yet. The study will be completed before the end of this month.”
In a related matter, Dee cleared that there will no longer be an infrastructure fund. Instead the funding will be on a per project basis.
Earlier, Trade Secretary Peter B. Favila said they have agreed to scrap the P50 billion private sector fund. Instead, the private sector will be given a list of priority projects they can fund.
“Any proponent can come to a GFI (government financial institution) to finance infrastructure projects under the MTDP (Medium Term Development Plan),” Favila told reporters yesterday.
According to Favila, private businesses may see this as a viable investment given the high risk in the market today. In financing the project, the government will guarantee 85 percent through the Philexim while 15 percent is through equity.
Favila said this would be easier for everybody involved in the project to monitor the development.
Meanwhile, the government and the private sector will start with the first project under the P100-billion infrastructure fund as they finalize the plan for the P10 billion extension of the North Luzon Expressway (NLEX) to Carmen Pangasinan.
Dee said the project is ready for implementation next month. He said of the P10 billion, 70 percent or P7 billion will be funded by private banks while the remaining will come from the government. The government has allocated P50 billion for the infrastructure fund.
For this particular project, Dee said the private investors will not ask for government guarantees. “What they (private investors) want is the support of the government in terms of development,” Dee noted.
He explained that the traffic is good only up to Carmen Pangasinan. Beyond that, he said it is might not be very profitable for the private sector. In order to improve viability and traffic, Dee said there must be development in the area.
“The government must fast track the development. This is the support that we need,” he said.
“This project proves that we are serious with our goal to pump prime the economy through various infrastructure projects,” Dee said.
Dee noted that they will use local contractors for the project.
The NLEX extension project will be divided into three phases. The first phase, which is up to Rosales Pangasinan, will take two to three years to complete.
Dee hinted that the next project will be ready and will be started before the first half of the year ends.
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