NLEX borrows P10 billion for capex, debt payments

MANILA, Philippines — North Luzon Expressway (NLEX) Corp. has signed a P10-billion loan facility from the Bank of the Philippine Islands (BPI) to finance expansion projects and debt payments.

NLEX Corp. has said that it entered into a 10-year term loan with BPI to fund new and future projects geared toward improving travel experience in the expressway.

Further, NLEX Corp. will use a portion of the borrowing to refinance some of its maturing debts.

Metro Pacific Tollways Corp. (MPTC) president and CEO Rogelio Singson said the loan would be used for the maintenance and repair of NLEX infrastructure. In particular, it will bankroll the completion of the third bridge in the Candaba Viaduct.

The bridge, estimated to cost close to P8 billion, is being constructed in the middle of the two existing viaducts connecting Bulacan and Pampanga in NLEX. The bridge is now 30 percent complete and is on track to be finished by the fourth quarter of 2024.

Once the viaduct is completed, NLEX Corp. expects traffic flow in the toll road to improve since it will be added with inner and outer shoulders in both directions.

“This loan agreement will help us meet our current obligations with key stakeholders and finance all repairs and maintenance of the expressway, as well as our ongoing projects like the Candaba’s third viaduct,” Singson said.

“Our company remains committed to providing faster and more convenient travel; thus, we also want to focus on improving our expressways and beyond just building roads,” he said.

NLEX Corp. president and general manager J. Luigi Bautista said it is important for the operator to deliver the third Candaba Viaduct on time. He noted that traffic demand to the north of Luzon is growing, and improvements such as this project would help facilitate trade and travel.

NLEX Corp. is raising capital expenditures to P15 billion next year from P10 billion this year. Apart from the construction of the viaduct, the company will spend at least P5.5 billion to add one lane on each direction of the San Fernando section.

The concessionaire running NLEX, NLEX Connector Road and Subic-Clark-Tarlac Expressway may also begin the civil works of NLEX Segment 8.2 in 2024 depending on how fast it receives the right of way for the project.

NLEX Segment 8.2 will expand the expressway from Segment 8.1 in Mindanao Avenue to C.P. Garcia in Quezon City at a cost of P11.5 billion based on the proposal submitted to the government.