DBM releases P1.6-B for CALAX project

Posted at 08/25/2014 11:24 AM

MANILA, Philippines - The Department of Budget and Management (DBM) released P1.6 billion to jump-start the implementation of the Cavite-Laguna Expressway (CALAX) project under the public private partnership (PPP) scheme.

Budget Secretary Florencio "Butch" Abad said the funds will be used to partially cover the acquisition of the right-of-way and contract services for the project.

"The construction of the Cavite-Laguna Expressway project would definitely improve access to transportation and open more opportunities for investment in economic and industrial zones. We're talking about greater accessibility to and from NAIA, as well to and from our seaports in Manila and Batangas, for example," Abad said.

The project entails the financing, design and construction of a new 47-kilometer four-lane expressway from the end of the Cavite expressway in Kawit to the South Luzon Expressway interchange in Binan, Laguna.

The project is expected to begin this year and be completed by 2018.

The total cost of the CALAX project is P35.4 billion, with P25.2 billion to be undertaken by the private sector. The rest, P10.2 billion, will be completed by the national government.

However, the awarding of the CALAX project has been delayed after one of the bidders, San Miguel Corp.’s Optimal Infrastructure, protested its disqualification from the bidding process. It filed an appeal on its disqualification with Malacanang.

The highest bidder for the project is Team Orion, a joint venture between Ayala Corp. and Aboitiz Land Inc.