January 13, 2015

MPI toll road unit to start negotiations for Cebu bridge project

Metro Pacific Investments Corp (MPI), in a disclosure yesterday, said that its toll road subsidiary Metro Pacific Tollways Development Corp (MPTDC) has obtained the original proponent status for the construction of an 8.3 km bridge project that will connect the island of Mactan to mainland Cebu through the Cordova town. MPI said MPTDC can now start negotiations for the project after which a Swiss challenge will have to be conducted.

MPTDC is proposing to form a JV vehicle with the local government for the design, construction, implementation, operation, and maintenance of the toll bridge. The proposed JV will operate under a 35-year concession period, inclusive of the preparatory work, design, and construction of the project. Total construction cost is estimated at P17b, to be funded with both debt (70%) and equity (30%). If all awards and approvals are secured by 1H15, the project is estimated to be completed by 2020. - WealthSec