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Daang Hari road concession deal to be signed this month

Posted on January 03, 2012 09:26:30 PM [ BusinessWorld Online ]

THE DEPARTMENT of Public Works and Highways (DPWH) expects to sign an agreement with Ayala Corp. for the P1.96-billion Daang Hari-South Luzon Expressway Link road in the last week of January, an official said yesterday.

The agreement will be signed in the last week of January,” Rebecca T. Garsuta, DPWH director, said in a text message.

The Daang Hari road is a four-kilometer, four-lane thoroughfare that will link Bacoor, Cavite to the South Luzon Expressway (SLEX).

The auction was done in early December, wherein Ayala has outbid a San Miguel Corp. consortium for the project.

Ayala’s bid was subjected to a post-evaluation and qualification before the notice of award was readied by the department.

“[Ayala was issued a] notice of award last Dec. 22, as scheduled,” Ms. Garsuta said.

The next step after the notice of award is the signing of concession agreement, she said.

Ayala, during a briefing in December, said the detailed design stage for the project is expected to be completed four months after the agreement has been signed.

The government, meanwhile, is expected to complete its acquisition of all right-of-way requirements for the Daang Hari-SLEX Link road six months after the agreement has been signed, Ayala added.

The project, which will involve a 30-year operations and maintenance concession, will have an initial toll rate of P17 for Class 1 vehicles (jeepneys, pick-ups, vans and cars), P34 for Class 2 vehicles (light trucks and buses), and P51 for Class 3 vehicles (trailers and large trucks), Ayala has said.

This venture marks Ayala’s first toll road project, as the firm said previously that this will complement existing property projects in Cavite and in Muntinlupa.

Ayala previously said it will be pursuing the project through a partnership with Spanish firm Getinsa, which has experience in toll road projects in Spain, other parts of Europe, Latin America and in Asia.

South Expressway Link Consortium was made up of San Miguel’s Optimal Infrastructure Development, Inc., Star Infrastructure Development Corp., Citra Group CLGP Philippine Holdings, Inc., and Ayala had been the only bidders for the project.

Ayala submitted the winning bid of P902 milion, while South Expressway Link Consortium’s bid was P608 million. The bid floor price was set at P371 million, which represents the government’s initial investment in the project.

Shares of Ayala closed 3.02% or P9.40 higher at P320 per share yesterday, while shares of San Miguel closed at 0.17% or P0.20 higher at P117 apiece.

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