MNTC to raise P16B for road extension projects
MANILA, Philippines - The Manila North Tollways Corp. (MNTC) is planning to raise $400 million (around P16 billion) in the next four years to fund two road extension projects in the North Luzon Expressway.
"The amount will be used mainly to finance road extension segments of the NLEX project," MNTC president Rodrigo Franco said.
Around P8 billion will be allocated for a new road from Valenzuela to C-3 in Caloocan City. Construction may begin next year.
"This is mainly an elevated road like the Skyway. The design has been approved already and we are just finalizing the right of way. If the government will be able to deliver the right of way then probably we can start by next year," he said.
Another P10 billion is also needed for the C-5 loop, an extension of the Mindanao Avenue cloverleaf to Katipunan in Quezon City. However, the government will still need to acquire the land to provide right of way for the project.
The two road extension projects are expected to cost a total of P18 billion.
Franco said MNTC, the concessionaire for the NLEX, is looking at tapping internal funds of about P2 billion, since its fund raising activity will raise around P16 billion.
"We will be flexible. We could tap corporate notes, among others. We will limit the borrowing within the local market," he said.