MPIC to Borrow Billions to Finance Cebu-Cordova Bridge and CALAX
One of the country's largest company, the tollways unit of Metro Pacific Investments Corporation (MPIC) needs billions of peso to finance their upcoming major infrastructure projects such as the Cavite-Laguna Expressway (CALAZ) and Cebu-Cordova bridge.
According to MPIC they will borrow around P30 billion from local banks to finance the contruction of CALAX and the Cebu-Cordova bridge. MPIC President and CEO Rodrigo Franco revealed that their company targets to finalize its loan deals with "some local banks" in the "first quarter" of 2017.
Based on MPIC's plans 70% of the total cost of both the P35.42-billion CALAX and the P27.9-billion Cebu-Cordova bridge will financed via debt, while the remaining 30% will be through equity.
MPCALA Holdings Inc., a unit of Metro Pacific Tollways and Development Corp. (MPTDC) received the 5-year contract to build, operate, and maintain CALAX, which involves the construction of a 44.6-kilometer 4-lane toll road between the Cavite Expressway in Kawit, Cavite, and the South Luzon Expressway-Mamplasan Interchange in Biñan, Laguna.
MPIC CEO Rodrigo Franco noted that should the government deliver right-of-way on time, his company can begin the construction by late 2018. He was quoted as saying "We are hoping late 2018, we can already start construction. 3 years is the total construction period for the project," he said.
MPIC also added that for the P27.9-billion Cebu-Cordova project the company aims to break ground by the second half of 2017. The 8.25-kilometer toll bridge that will connect mainland Cebu and the southern coast of Mactan Island is expected to be completed in 2020.
According to MPIC they will borrow around P30 billion from local banks to finance the contruction of CALAX and the Cebu-Cordova bridge. MPIC President and CEO Rodrigo Franco revealed that their company targets to finalize its loan deals with "some local banks" in the "first quarter" of 2017.
Based on MPIC's plans 70% of the total cost of both the P35.42-billion CALAX and the P27.9-billion Cebu-Cordova bridge will financed via debt, while the remaining 30% will be through equity.
MPCALA Holdings Inc., a unit of Metro Pacific Tollways and Development Corp. (MPTDC) received the 5-year contract to build, operate, and maintain CALAX, which involves the construction of a 44.6-kilometer 4-lane toll road between the Cavite Expressway in Kawit, Cavite, and the South Luzon Expressway-Mamplasan Interchange in Biñan, Laguna.
MPIC CEO Rodrigo Franco noted that should the government deliver right-of-way on time, his company can begin the construction by late 2018. He was quoted as saying "We are hoping late 2018, we can already start construction. 3 years is the total construction period for the project," he said.
MPIC also added that for the P27.9-billion Cebu-Cordova project the company aims to break ground by the second half of 2017. The 8.25-kilometer toll bridge that will connect mainland Cebu and the southern coast of Mactan Island is expected to be completed in 2020.
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MPIC to Borrow Billions to Finance Cebu-Cordova Bridge and CALAX
Reviewed by Anne Reyes
on
September 26, 2016
Rating:
Reviewed by Anne Reyes
on
September 26, 2016
Rating:
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