MANILA, Philippines - D.M. Consunji, Inc. (DMCI) announced yesterday it will start construction of Phase I of the P19-billion Tarlac-Pangasinan-La Union Expressway project (TPLEX) in April after the Holy Week.
At the same time, DMCI disclosed they will complete the Skyway II project four months ahead of schedule and will open the Sucat interchange before the end of June.
In a press conference, DMCI president and chief executive Jorge A. Consunji said that they have already cleared the right-of-way issues for Phase I of TPLEX which involves the construction of a road from Carmen to Rosario. This phase will take two-and-a-half years to complete.
According to Consunji, they have already finished with the groundbreaking last March 1 with President Arroyo. The first phase is 50 kilometers of the entire 88.5-kilometer road project.
Consunji said that they have already cleared 60 percent of the 50-kilometer Carmen to Rosario phase. For the 30-kilometer stretch that is deemed ready for construction, Consunji said that they will need P4 billion.
The initial P4 billion will come from the P1.5-billion seed fund contributed by DMCI and diversifying conglomerate San Miguel Corp. (SMC), its partners in the consortium Private Infrastructure Development Corp. (PIDC). SMC, through Rapid Thoroughfares Inc., owns 35 percent of PIDC, making it the biggest shareholder in the company. DMCI, on the other hand, has a 32 percent stake. The two own a majority or 67 percent of PIDC.
On the other hand, the consortium will be borrowing P3 billion from the government. Consunji said that they have yet to determine the terms of the loan. The government will get the money from the infrastructure bond that will be released as soon as Malacanang approves it.
Consunji explained that they will be receiving government subsidies for the construction of the road project and for paying right-of-way dues to affected land owners. The subsidy for the right-of-way is P800 million while the construction subsidy is P2.9 billion. However, the construction subsidy will only be released when the Urdaneta to Rosario phase starts construction.
The remaining funds needed will be provided by banks which are expected to lend money as soon all the right of way issues are addressed. The consortium has a bank line of P10 billion.
Meanwhile, the Skyway II project is expected to be completedway ahead of schedule. Consunji reported that before the term of Mrs. Arroyo ends, they will open the Sucat interchange. The deadline for this is December.
The Alabang interchange which was scheduled for April 2011 will be operational before the end of the year. Consunji said.
The elevated expressway connecting Bicutan, Parañaque to Alabang, Muntinlupa City is worth P8 billion. DMCI signed a design and construction contract for the second stage of the South Metro Manila Skyway project with Citra Metro Manila Tollways Corp.