NLEx allots P19-B capex for 2018
NLEX Corp. is allotting P19 billion for capital expenditures (capex) this year, primarily to build the Harbor Link Segment 10 and the North Luzon Expressway ( NLEx)- South Luzon Expressway (SLEx) Connector Road project.
In a disclosure to the stock exchange, parent company Metro Pacific Investments Corp. ( MPIC) said NLEx is ramping up its spending “in response to the government’s call for the private sector to complement the government’s massive infrastructure push.”
However, NLEx said the P19- billion figure is an estimate, assuming the “satisfactory” resolution of the tariff adjustments, which are still being negotiated with the government. The figure will be reviewed depending on the results of the discussions, the company said.
To recall, in April 2016, MPIC, through NLEx, filed a notice of arbitration against the government to obtain compensation worth some P3 billion for unadjusted toll rate adjustments that were supposed to be implemented in January 2013 and January 2015.
In November 2017, the Toll Regulatory Board gave its provisional approval for NLEx to raise toll fees by P0.25 per kilometer.
NLEX Corp. President and CEO Rodrigo E. Franco said the bulk of this year’s capex will be used for the urban portions of the NLEx, particularly the Harbor Link Segment 10, including the Radial Road 10 Section in DagatDagatan, Navotas City, and the public private partnership project NLEx-SLEx Connector Road.
The Harbor Link Segment 10 is a 5.7- km. elevated expressway traversing NLEx from Smart Connect Interchange and crossover to McArthur Highway in Valenzuela City, with down ramps along C-3/5th Avenue Interchange in Caloocan City.
The R-10 link is a 2.6- kilometer road that serves as the continuation of Harbor Link Segment 10. Mr. Franco previously said the construction of R-10 link will begin early this year, although it is still awaiting final government clearance.
The NLEx- SLEx Connector Road will be built above the existing Philippine National Railways tracks from the C-3/5th Avenue Interchange in Caloocan City to Polytechnic University of the Philippines in Sta. Mesa, Manila. Expected to be completed by 2021, the connector road is expected to reduce travel time between NLEx and the San Miguel Corp.- operated SLEx from two hours to 20 minutes.
NLEx will also undertake capacity expansion of the 8- kilometer Subic Freeport Expressway, with construction of 16 new lane kilometers.
A subsidiary NLEX Ventures Corporation is also building a new expressway service facility and rest area in the southbound portion of NLEx.
Additionally, NLEx is expanding Sta. Ines Interchange and the new Mabiga Interchange this year.
“These investments are aimed at supporting the government’s initiatives to ease the daily traffic woes of our commuters, drive commerce, and are part of our continuing commitment to further ensure safe and convenient travel in our expressways and maintain our high- quality service,” Mr. Franco said in a statement.
MPIC is one of three key Philippine units of Hong Kong- based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. —