Palace: P60.7B NLEX-SLEX projects on fast track, can start early next year

Two major infrastructure projects that will connect the North Luzon Expressway to the South Luzon Expressway—at a combined cost of P60.7 billion—can commence construction early 2013, the Aquino administration assured Wednesday, after final government approvals are  granted before this year ends.   President Benigno Aquino III said that based on the project timelines traffic will be passing through the new highway by 2015 and that travel time from the NLEX to the SLEX could become just one hour and 45 minutes.   The NLEX-SLEX connector project was presented the same day Aquino swore into office acting Socioeconomic Planning secretary, Dr. Arsenio Balisacan, who held out hope that the country could eke out 7 to 8 percent annual growth over the medium term if infrastructure bottlenecks are removed.   President Aquino said said the NLEX-SLEX connector project could enable the government to lift the truck ban in Mtero Manila and allow tourists to travel by land to the North or South of Metro Manila with much greater ease and at shorter travel times.   Secretary Mar Roxas of the Department of Transportation and Communications (DOTC) the government “does not expect any hurdles or any major delays in the approval granting process.”   He also said the project proposals from Metro Pacific Investment Corp. (MPIC) and the San Miguel Corp. (SMC) – Citra Group had “ripened enough” to the point that it was already fit for presentation to the President.   Metro Pacific Tollways Corp., the operator of the NLEX and a subsidiary of MPIC disclosed to the Philippine Stock Exchange (PSE) last February 1 that the NLEX link to C5 has a preliminary project cost of P7 billion and the detailed engineering design will be completed this year.   Back in January, SMC and Citra gained 80 percent stake in South Luzon Tollway Corp. which operates the SLEX. The MPTC project has an estimated project cost of P35.3 billion while the SMC-Citra project is pegged at P25.4 billion.   Sec. Roxas explained that the project proposal SMC-Citra stems from its existing SLEX franchise while the MPTC proposal, being an unsolicited one, has to be subjected to a “Swiss Challenge” or an opportunity for any other bidder to submit a counter-proposal.   The DOTC chief said the unveiling of the MPIC proposal Wednesday is partly meant to hasten the Swiss Challenge phase and let other interested bidders present their counter-offer.   Presidential Communications Development and Strategic Planning Secretary Ricky Carandang said that after NEDA Investment Coordinating Committee approval in the next few months, “formal awarding and final approval” will happen before the year is out.   ‘Big infra push’ needed   At another event in the Palace, Dr. Arsenio Balisacan, the new acting NEDA director general, said the country has to “make a big push” to realize the “aspirational growth” of 7 to 8 percent.   “If we compare ourselves with our neighbors talaga we're so far behind, at the rate we're building infra that is Thailand 10-15 years ago,” Balisacan stressed.   He affirmed Aquino’s expectation of a 5.2 percent expansion from January to March. “The private sector forecast is close to that.” The release of the gross domestic product figures for this year's first quarter is due on May 31.   “So far we have not seen any major calamities in the first quarter. Remittances (and) exports are quite positive… spending within the first quarter has been quite robust,” Balisacan noted.   He also cited the robust corporate earnings reports. “As you have seen from the press releases of the various companies puro high rates ang increases in profits in the past year, we hope that continued in the first quarter.”   Another factor the NEDA chief cited is the “tame” inflation rate, which has stayed under three percent from February to April. — ELR, GMA News