THE CONSORTIUM LED BY SAN Miguel and Consunji groups will need P19.4 billion in equity and financing to complete the 88-kilometer Tarlac-Pangasinan-La Union Expressway. The toll road project is expected to cut by half the travel time from Manila to Baguio.
Of the total project cost, the consortium will still have to raise P16.5 billion—P10 billion of which will likely come from project financing and the balance will come in the form of additional equity, proponent DM Consunji Inc. said in a disclosure to the Philippine Stock Exchange yesterday.
“The initial equity is P4.5 billion which will be increased to P6.5 billion,” the company said.
San Miguel Corp. and DMCI recently completed a joint takeover of the controlling 67- percent stake in Private Infrastructure Development Corp., which holds the BOT contract for the project.
SMC, through infrastructure subsidiary Rapid Thoroughfares Inc. (RTI), acquired a 35- percent stake in PIDC for about P1.57 billion. DMCI, on the other hand, subscribed to 32.22 percent in additional interest in PIDC.
The 88-km expressway project will extend from La Paz, Tarlac—at the end of the Subic-Clark-Tarlac Expressway (SCTEx)—to Rosario, La Union. The three-phase project is expected to be completed by 2013.
The first two sections are expected to be finished by May 2010 and January 2011, respectively.