Manila North Tollways Project

completed

The project consists of the expansion, rehabilitation, maintenance and operation of the North Luzon Expressway ("NLE") an existing 82-km toll road tolled for 20 years through a closed tolling system. The NLE is located along an important corridor to the north of Manila. The strong growth of economic activities and population in this region has led to robust traffic increases on the NLE; the road is also in a poor condition due to lack of proper maintenance; the section near Manila is highly congested. Once the entire expressway becomes operational, it will begin to reduce transport costs, improve vehicular and passenger movements, promote tourism and enhance economic and industrial activities in Subic, Clark, and other growth corridors. Indirectly, the project can also alleviate poverty through increased employment opportunities in and around the developing urban centers. The project is to be implemented by a joint venture company, Manila North Tollways Corporation ("MNTC"). In April 1998, MNTC signed a Supplemental Toll Operation Agreement ("STOA" or the "Concession") with the Grantor, which replaces the original TOA. The STOA extends the original TOA''s 30-year concession period, set to expire in 2007, to December 31, 2030. It specifies the following works to be carried out in three phases: Phase I: expansion and rehabilitation of the existing NLE, and construction of the 8 km Tipo-Subic expressway in the Subic Bay area; Phase II: construction of a 29 km road connecting the southern end of NLE with the Metro Manila C-5 expressway; and Phase III: construction of a 64 km expressway connecting the northern end of NLE with the Subic Bay area. At this stage, only Phase I (hereby defined as "Project") is to be financed and implemented: the Tipo-Subic expressway was completed in 1996; certain advance design and construction works of the NLE have commenced. Full construction is expected to start as soon as financing for the Project is assured. Construction is expected to be completed by the end of 2002. Major works include construction of four new interchanges and one overpass, rehabilitation of nine existing interchanges and three existing toll plazas, rehabilitation and widening of 22 bridges and 31 overpasses and installation of a toll collection system, traffic management and telecommunications equipment.