First public-private partnership road project goes to Ayala Corp

Ayala Corporation is due to be formally awarded on Thursday, December 22, the first public-private partnership (PPP) project of the Aquino administration—the 4-kilometer road that will link Daang Hari road in Cavite to the South Luzon Expressway (SLEX).   The National Economic and Development Authority (NEDA) and Ayala Corp. made separate announcements of the results of the bidding for the Daang Hari road on Dec. 15.   Ayala Corporation said it out forward “the highest complying bid” of P902 million for the construction, operation and maintenance of the 4-kilometer road for the 30-year concession period.   “We are delighted to have submitted a competitive proposal for the first project under the government’s public-private partnership program. This is a good initial foray in the transport infrastructure space and we believe this successful experience working within a public-private partnership framework would be helpful in pursuing future projects under the PPP program,” said Ayala Corporation President and Chief Operating Officer, Mr. Fernando Zobel de Ayala.   NEDA said the Department of Public Works and Highways (DPWH) will issue the notice of award to the qualified bidder and the contract signing will be in January 2012. Decongestion of Alabang-Zapote Road   Ayala Corp. beat the San Miguel Corp.-led consortium with toll road operators Citra Lamtoro Gung Persada and Star Tollway Corp which submitted a bid of P608 million.   “Daang Hari is a major arterial road connecting rapidly growing towns of Imus, Dasmariñas and Bacoor, Cavite to Metro Manila via SLEX. The Daang Hari Project will be a new road that exits SLEX near the Susana Heights Interchange and passes through government properties in Muntinlupa, ending at Daang Hari near Verdana Homes in Imus, Cavite,” Ayala Corp. also said.   The government properties mentioned includes the New Bilibid Prisons reservation. The road will be a four-lane paved toll road.   “This road provides strategic access to Cavite, much needed relief to traffic in the congested Alabang-Zapote Road and Commerce Avenue,” Ayala Corp. added.   Ayala Corp. and Getinsa, “a Spanish engineering company with deep expertise in infrastructure project globally” will work on the detailed design of the Daang Hari connector and that is expected to be completed in four months.   For its part, the DPWH expects to complete all right-of-way requirements within six months of signing of the Concession Agreement.   NEDA clarified that “based on government’s bidding procedures, the highest bidder is subject to post-qualification where the bidder with the highest complying bid will undergo verification and validation of all submitted requirements and conditions as specified in the Bidding Documents.” — ELR, GMA News