MTD Group of Malaysia to start work on Alabang viaduct

KUALA LUMPUR — The MTD Group is hoping to finally start repair work on the Alabang viaduct this October with the completion of the necessary paper work, financing, preliminary civil works and barring any further questions about the project.

In a press familiarization tour and briefing at the MTD offices in Malaysia, MTD Group managing director Dato Azmil Khalid stressed the Group’s desire to finally start work on the repair of the Alabang viaduct which is badly in need of repair.

"It’s a miracle it hasn’t collapsed," Dato Azmil said, noting with some disbelief that the patchwork repair over the years on the viaduct has managed to last as long as it has.

According to Dato Azmil, once work on the repair of the viaduct has started, MTD is confident of completing its rehabilitation work by August 2008.

The rehabilitation package involves Toll Road 1 and 2.

TR 1 involves the repair of the 1.2 kilometer Alabang viaduct.

TR 2 involves the rehabilitation of 27.3 kilometer SLEX stretch from the foot of the Alabang viaduct up to Calamba.

However, work on the 7.6 kilometer extension and connection from Calamba with the STAR highway up to Sto. Tomas, Batangas, Dato Azmil admitted, is "still a moving target" as work would only start upon turnover of the land to MTD.

Normally, though, Dato Azmil assured, MTD completes work in 24 months.

The MTD official further clarified that it is still within the six-month grace period after securing the STOA (Supplemental Toll Operation Agreement) in February this year from the Toll Regulatory Board (TRB).

Dato Azmil stressed that MTD wants to complete work on the SLEX projects because "the sooner we complete work we can collect toll."

Unfortunately, the MTD cannot divulge the resulting toll fee rates once the rehab and extension are completed as it is the prerogative of the TRB to make the announcement, Dato Azmil clarified.

Dato Azmil assured though that the eventual toll charges would be the lowest without including the charges for the STAR highway which is heavily subsidized by the Philippine government.

The cost of the rehabilitation and extension up to Sto. Tomas, Batangas has been computed at P11.5 billion which will be financed by a combination of equity and bank financing.

However, Dato Azmil pointed out that aside from the actual construction cost, there are other additional cost and that the MTD Group is actually raising a total of P15 billion for the SLEX project.

The MTD Group is putting in P3.5 billion, P2.5 billion or $50 million would be financed by the International Finance Corp. (IFC) and P9 billion would be a syndicated loan led by Banco de Oro (BdO).