IFC mulls $50-M loan for rehabilitation of SLEX

The International Finance Corp. (IFC), the investment arm of the World Bank, is looking at extending a $50-million loan to the group in charge of the rehabilitation and operation of the South Luzon Expressway (SLEX).

Vipul Bhagat, IFC country manager for the Philippines, said the board has yet to approve the grant of the loan.

Hopewell Crown Infrastructure, now majority owned by MTD Capital, is the private group tasked to rehabilitate the SLEX.

Listed on the Kuala Lumpur Stock Exchange, MTD Capital is the second biggest toll operator in Malaysia handling four tollways there. It also operates a tollway in Sri Lanka. The first phase of the rehabilitation and expansion of the SLEX costs about P10 billion.

This covers the rehabilitation of the Alabang viaduct, the widening of the Alabang to Calamba stretch and the link-up of SLEX in Calamba to the Star highway in Sto. Tomas, Batangas.

The first phase should be completed in three to four years but the group has to secure the right of way for the eight-kilometer link-up of SLEX and Star.

The second phase is the extension of SLEX from Calamba all the way to Lucena City.

Meanwhile, Bhagat said IFC is raising its investments in the Philippines to between $125 million and $150 million for the next fiscal year which begins on July this month.

Investments will go to infrastructure, including rural electrification, banking and property development.

Last year, IFC invested around $104 million in the country.

Bhagat said IFC remains optimistic about the Philippine economy despite the problems hounding the Arroyo administration.

The IFC earlier extended a P2.25 billion, eight-year loan to Filinvest Land Inc. — its largest local currency financing in the Philippines to date.

The loan will be used to increase the availability of mortgage financing to low and middle income buyers through the National Home Mortgage Finance Corp. (NHMFC).

It likewise granted Megaworld Corp. a $12.5-million loan to finance the construction of a new office building in Quezon City.

The loan is payable in 10 years, inclusive of a three-year grace period on principal payment.

The IFC also has an existing project with the Cagayan Electric Power and Light Co., Inc. for its infrastructure-related investment venture.