QC-Bulacan expressway proponent eyeing P3B a yr from project

MANILA, Philippines- The proponent of the North Luzon East Expressway (Nlee) project, a 54.9-kilometer elevated expressway from Quezon City to Baliwag in Bulacan, expects to generate P3 billion in yearly revenues from the tollway. “The total project cost will amount to P13.6 billion," said Ausphil Tollways Corp. president Ricardo Penson during a press briefing on Tuesday. “The power component of the project will costs over P1 billion." Local firm Ausphil, the project's proponent, has partnered with French construction giant Egis Projects for the Nlee. The project has a power component that includes several low friction hydroelectric turbine stations capable of initially generating up to 35 megawatts (MW) of power, with a future additional capacity of 80MW. It will also include water catchments and filtration ponds that can collect and distribute 15.2 million m3 of swale filtered water for future use. Penson said Ausphil has secured a permit to produce power from the Department of Energy two years ago. The license will be awarded once Ausphil finishes construction of the power facility. The remaining cost in the company's estimate will go to the construction of the pipeline that will be used for the collection and distribution of the swale filtered water. Penson said all three components of the project will be carried out simultaneously. “The power and the water components of the project are all integrated in the tollway project. With a 35-MW hydroelectric power plant, that will generate for us about P1 billion in revenue while the toll road business will probably generate P2 billion. Of which, the MWSS (Metropolitan Waterworks and Sewerage System) gets 10 percent of that," he said. Ausphil and MWSS have signed a contract lease for use of 21-kilometers (km) rights of way for a fixed rate during construction plus revenue sharing the 30 years of commercial operation of the tollway. Penson said that the tollway project also seeks to address power and water shortages by providing the potential to immediately generate renewable energy. The build-operate-transfer (BOT) project was awarded to Ausphil in May last year. The company expects to receive its notice to proceed in June this year. The awarded facility will be constructed in two stages. La Mesa Parkways, or stage 1, will run 18.9 km from Commonwealth Avenue to Bigte, Norzagaray, north of San Jose del Monte. Stage 2 involves the rehabilitation of 36-km road from Norzagaray to Baliwag converting the current two lane road into a four-lane highway. Ausphil said the Nlee will reduce travel time between Metro Manila and northeast suburban areas. In 2000, traffic load in the area was estimated at 52,000 vehicles daily. By 2010, it is expected to peak around 89,000. Road fees are pegged at P80 for the whole stretch. Egis will play a major role as the operations and maintenance partner through La Mesa Parkways Corp. Its subsidiary, Egis Road Operation and Tollways Management Corp., is part of the consortium led by First Philippine Holdings Corp. that won the right to operate the Subic-Clark-Tarlac expressway. Ausphil’s Australian associates include Aspen International which supplies toll equipment and other road systems and the Macquarie bank group which acts as financial adviser. Baseline Consultants and Integrated PhilConsult completed much of the early engineering design. Final detail engineering will be provided by Schema Technics. - GMANews.TV