CCLEC secures funding for Cebu-Cordova bridge
Funding for the construction of the Cebu-Cordova Link Expressway (CCLEx) has already been secured through a combination of equity and debt, a top official said.
Allan Alfon, president and general manager of Cebu-Cordova Link Expressway Corp (CCLEC), told The FREEMAN the fund sources include the company’s equity and bank lending.
"Funding for CCLEx is ready both from our own equity and lending from banks," Alfon said.
The official also noted the company has already initially paid to the project's contractor-consortium.
In a disclosure to the Philippine Stock Exchange yesterday, Metro Pacific Investments Corp (MPIC), CCLEC's parent firm, noted CCLEx's project cost is P26.3 billion.
Alfon said 60 percent of the funding comes from bank debt while 40 percent is sourced from the firm’s equity.
Metro Pacific's equity contribution to the fusing would be sourced internally.
MPIC said its tollways arm Metro Pacific Tollways Corp (MPTC) will spend approximately P122.8 billion in the next five years on building highways and tollroads around the Philippines, including the 8.3-kilometer Cebu-Cordova toll bridge.
Alfon earlier announced CCLEx's construction will officially start by June or July.
The Cebu Link Joint Venture (CLJV) is currently finishing the detailed engineering design for the project which is expected to be completed by May or June. It has been issued the Notice of Award for the “Design and Build” contract of the 8.5-kilometer Cebu-Cordova Link Expressway (CCLEX), the muchanticipated bridge project that will connect Cebu City to the municipality of Cordova on Mactan Island, Metro Pacific Investments Corp (MPIC) said yesterday.
CLJV is a joint venture of Spain-based Acciona Construccion S.A. and Philippinebased infrastructure companies First Balfour Inc and publicly listed D.M. Consunji Inc. First Balfour is the construction subsidiary of listed First Philippine Holdings Corp.
CCLEC issued the Notice of Award to CLJV last November 23, 2017 at an agreed contract amount of P22.6 billion, MPIC had said in a disclosure to the stock exchange.
The CCLEx is the first of MPTC’s envisioned toll road expansion projects in Visayas and Mindanao.
CCLEC will build, operate and maintain the toll bridge through a joint venture agreement with the local governments of Cebu City and Cordova Municipality.
CCLEx will have two lanes in each direction and will feature the main navigation span bridge, along with viaduct approach bridges, a causeway, roadway and toll facilities.
The span of the bridge allows for shipping traffic and the link is expected to serve at least 40,000 vehicles daily.
It will give Cordova direct access to Cebu City and is envisioned to decongest the traffic in the two existing bridges between Mactan and Cebu.
The 8.25-kilometer toll bridge will connect Cebu City to Mactan Island via Cordova, envisioned to decongest the traffic in the two existing bridges (Marcelo Fernan Bridge and Mandaue Bridge) between Mactan and Cebu, due to the worsening traffic situation in the area.
It is located around 7.5 kilometers south of Mandaue Bridge and will take off from the Cebu South Coastal Road crossing the Mactan channel to Mactan Island.