SMC Unit Won NAIA Expressway Phase II Project

The financial bid of up-front lump sum payment of PhP11 billion to the government has won for the San Miguel Holdings Corporation-owned (PSE: SMC) owned Optimal Infrastructure Development Inc. the right to finance, design, construct, operate and maintain the PhP15.52 billion Public-Private Partnership Ninoy Aquino International Airport (NAIA) Expressway Phase II Project with a 30-year concession period.

In the opening of financial bids (Envelope 3) held Monday, 15 April 2013, the Optimal Infrastructure Development has submitted PhP11 billion as against the PhP305 million submitted by the other pre-qualified bidder, Manila North Tollways Corporation.

“We shall now prepare the required documents to formalize the award to Optimal Infrastructure Development Inc. for them to start the implementation of this PPP project. The project is expected for completion before 2016,” said DPWH Secretary Rogelio L. Singson.

The two pre-qualified companies submitted on 8 April 2013 their respective technical proposals at the DPWH Central Office during the submission and opening of bids in the presence of DPWH Special Bids and Awards Committee, representatives from the Public-Private Partnership (PPP) Center, Department of Finance, Office of the Solicitor General, Commission on Audit, Office of the Ombudsman, Japan International Cooperation Agency, and project advisors Development Bank of the Philippines and International Finance Corporation.

Two other pre-qualified companies, Ayala Corp. (PSE: AC) and India’s IL&FS Transportation Networks Ltd, withdrew through a formal letter from participating in the auction.

The NAIA Expressway Project Phase II is proposed to supplement the completed Phase I, which interfaced with the existing Manila South Luzon Expressway at Sales Interchange. The proposed Phase II expressway component will likewise involve provision of elevated travelway structures over the existing roads of Sales Avenue, Andrews Avenue, Domestic Airport Road and MIA Road.

The proposed elevated expressway will tie in with the Diosdado Macapagal Boulevard where it will terminate through an Interchange. The proposed NAIA Expressway Phase II alignment has a total length of 7.15 kilometers from its tie in point at the terminus of NAIA Expressway Phase I to its connection with Diosdado Macapagal Boulevard and PAGCOR City. The project was approved by the National Economic Development Authority (NEDA) Board on 30 May 30 2012.