MPIC tollways unit to raise P30 billion for PPP projects

A unit of Metro Pacific Investments Corp. (MPIC) plans to raise as much as P30 billion to finance the construction of two infrastructure projects under the public-private partnership (PPP) scheme.

“We are raising funds. In fact, we’re gonna be raising debt financing by – siguro – this fourth quarter,” Rodrigo Franco, president and CEO of Metro Pacific Tollways Corp., told reporters on the sidelines of the Euromoney Philippines Investment Forum in Taguig City on Tuesday.

The exact amount has yet to be set, but the money will be used partly to construct the P35.43-billion Cavite-Laguna Expressway (CALAX) and the P27.9-billion Cebu-Cordova Bridge Project.

Initial studies revealed that each project will need additional financing of P15 billion, Franco noted.

“Depending on the cost, mga tig-P15 billion for each of the two projects,” he said.

The CALAX project involves the financing, design and construction, and operation and maintenance of the four-lane, 44.63-kilometer closed-system expressway which connects the Manila-Cavite Expressway (CAVITEX) to the South Luzon Expressway (SLEX).

The bridge project involves the construction and maintenance of the 8.25-kilometer Cebu-Cordova Bridge – connecting Cebu City to the Mactan Island via Cordova.

Franco said the company is currently in talks with local banks for a possible debt financing.
“Bank loan, kasi may mga construction risk ‘yan. As of now, mga indications local tayo,” he said. — VDS, GMA News