Metro Pacific unit shelves plan to build toll bridge in Cebu

MANILA, Philippines - The tollroad unit of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) has shelved its plan to build a P26-billion toll bridge in Cebu amid still low traffic volume in the so-called Queen City of the South.

In the meantime, Metro Pacific Tollways Corp. (MPTC) will focus on Luzon tollroads as it committed to be selective in its forays in Southeast Asia particularly in Vietnam and Indonesia.

The tollroad project in Cebu is “not yet ripe” to be pursued, MPTC president Ramoncito S. Fernandez told The STAR in an interview.

“[The plan] did not prosper but we will continue to be on the lookout,” he said.

MPTC earlier conducted a feasibility study for the Cebu project, which could potentially be the third bridge to connect the main island of Cebu to airport hub Mactan Island.

The first option is the five-kilometer (km) General Maxilom to Lapu-Lapu link worth P17 to 26 billion while the other configuration is the 7.5-km Cebu South Road to Lapu-Lapu link worth P17 to 19 billion.

“[The traffic volume] is not compelling,” Fernandez said.

MPTC is banking on population and traffic volume growth in Cebu which is seen to increase through numerous consumer-related ventures particularly tourism and real estate projects, as well as the development of the P17.5-billion Mactan-Cebu International Airport, Fernandez said.

“We will revive the feasibility study late this year or early next year,” he said.

So far, the country’s largest toll road operator is focusing on projects that connect its 84-km North Luzon Expressway (NLEx) and the 14-km Manila-Cavite Expressway (Cavitex).

NLEx and Cavitex stand to enjoy double-digit traffic growth with the completion of the 2.42-km Segment 9 of NLEx Harbour Link, the 5.65-km Segment 10 elevated road from MacArthur Highway to Radial Road R-10 and the 13.2-km NLEx-South Luzon Expressway connector road that is built  in partnership with San Miguel Corp.’s Citra Metro Manila Tollways Corp.

“Once those connecting roads are completed, we expect our own NLEx and Cavitex to be generating double digit growth because many roads feed it,” Fernandez said.

Meanwhile, MPTC’s expansion abroad has been hampered by slow project rollouts in Indonesia and Vietnam.

“We will be selective in our foray to the overseas market because there are a lot of geopolitical factors that we are not very much aware of,” Fernandez said.

The tollroad firm earlier identified as an investment opportunity Becakayu toll road project in Indonesia, which will connect Jakarta to the eastern part of Bbekasi City.

It will be divided into two sections: the 10.167-kilometer Casablanca to Jaka Sampura and the 10.875-kilometer Jaka Sampura to Marga segment.

MPTC is also looking at the six-lane, 98.7-kilometer Dau Giay Phan Thiet Expressway project, the first public-private partnership of Vietnam.

“Most of the investments [for ventures abroad] will come from First Pacific Co. Ltd.,” Fernandez said, adding that it is partnering with foreign firms for its expansion in Southeast Asia.

Hong Kong-based First Pacific, part owner of telecommunications giant PLDT, is the parent firm of MPIC, which is also into water utility, power distribution and healthcare.

MPTC, which also operates the 94-kilometer Subic-Clark-Tarlac Expressway, posted a 19-percent increase in its core income to P450 million in the first quarter due to greater traffic in the NLEx and Cavitex.

ee years to expand the NLEx and Cavitex, and to support the construction of the Citilink and the Connector Road.