CONGLOMERATE Metro Pacific Investments Corp. (MPIC) is spending roughly P30 billion over three years to build an expressway bridge between Cebu City and the municipality of Cordova, company officials said on Thursday.
Metro Pacific Tollways Corp. President Rodrigo E. Franco said his group has committed to raise the amount to fund the P30-billion Cebu-Cordova Link Expressway (CCLEx) through 2021.
“We expect to raise financing of up to P30 billion over the next several years for this project,” he said during the ceremonial awarding of the design and build deal to a Filipino-Spanish group on Thursday.
Metro Pacific Tollways Development Corp. Vice President Francis D. Rojas said project financing will be split between debt and equity.
“For this project, roughly P20 billion will be from loans, and P10 billion will be equity—so that’s about 70-percent debt and 30-percent equity,” he said in an interview.
The group is now in talks with 10 local lenders for the said loan.
“Hopefully, by the second quarter or third quarter, we can reach financial close,” he said.
The toll road, an 8.5-kilometer stretch, is envisioned to have two lanes in each direction, and will feature the main navigation span bridge, along with viaduct approach bridges, a causeway, roadway and toll facilities.
The span of the bridge allows for shipping traffic and the link is expected to serve at least 40,000 vehicles daily. It will give Cordova direct access to Cebu City and is envisioned to decongest traffic in the two existing bridges between Mactan and Cebu.
Aside from providing travel efficiency, the facility is seen to help spur economic growth and boost investments not just in Cebu City and Cordova Municipality, but also in the entire Cebu Province and Visayas Region.
“It will take three years for us to finish this project. We will start construction by the second half of 2018,” CCLEx Corp. President Allan G. Alfon said.
When finished, the facility will be the first expressway bridge with a cable-stayed design.
Cebu Link Joint Venture—a partnership among Spanish company Acciona Construccion SA, and Filipino corporations First Balfour Inc. and DM Consunji Inc.—won the P22.6-billion design and build contract for the project.
The Cebu-Cordova Bridge is Metro Pacific’s first bridge project, and the first toll-related deal outside Metro Manila.
The toll-road company operates the North Luzon, Subic-Clark-Tarlac, Manila-Cavite Toll Expressways. It is also building the Cavite-Laguna Expressway.
The infrastructure group also has significant interests in thoroughfares outside the Philippines, namely, in Thailand, Indonesia and Vietnam.