THE Board of Investments (BoI) said on Friday it has approved the P48.5 billion Cavite-Laguna Expressway (Calax) project of MPCALA Holdings Inc. (MHI) as a public-private partnership (PPP) project under the preferred activities of the current Investment Priorities Plan (IPP).
The BoI approval means the project will be qualified to the incentives offered under the IPP.
MHI, which is owned by the Metro Pacific Group of businessman Manuel Pangilinan, was selected as the winning bidder to put up the Calax project and the right to collect fees over a 35-year concession period.
Calax was approved for inclusion in the IPP on April 12, the BoI said, noting its impact in addressing the infrastructure requirement of both the business locators and the general commuting public in the Cavite and Laguna areas.
“Calax will greatly ease the movement of goods and services in the area, further boosting the economic activities in the Southern Tagalog region and create jobs,” Trade Undersecretary and BoI Managing Head Ceferino Rodolfo said on Friday.
He said the Calax project–a 44.69 kilometer, four-lane divided expressway that will link the Cavitex to South Luzon Expressway (SLEX)—complements the agency’s strategy to further disperse economic activities across the regions of the country.
The BoI, in its 2017 Investment Priorities Plan (IPP)—a list of priority investment activities that may be given incentives—encourages local and foreign investors to locate their investment projects in urban and least developed areas.
The 2017 IPP features significant additions and changes, including further emphasis on innovation-driven and job-generating businesses; inclusive business for agribusiness and tourism; broadened coverage of manufacturing; information technology (IT) and IT-enabled services for the domestic market and telecommunications services for new market players; environment and climate change-related projects; local government unit-initiated PPP projects; drug rehabilitation centers; engineering, procurement and construction (EPC) services; and the lifting of geographical restrictions for most agriculture and tourist accommodation facilities.
The Calax project is one of the priority projects under the PPP being implemented by the Department of Public Works and Highways (DPWH).
It will traverse the provinces of Cavite and Laguna, connecting to the SLEX via the Mamplasan Interchange, and is scheduled to be operational by July 2020.
The PPP Center endorsed the Calax project for BoI approval as it is one of the priority projects under the PPP program. The PPP Center certified that no government subsidy was extended to HMI.