The top official of Manila North Tollways Corp. (MNTC) said that the company would formally present its proposal to the Philippine National Construction Corp. (PNCC) to form a joint venture (JV) for the P22.95-billion connector road project that would link the northern and southern expressways.
“We are in talks with them [PNCC] but, we still need to make a formal presentation. We’ve touched base, we are hoping this November we could conduct formal talks with PNCC,” said Rodrigo Franco, president and chief executive officer of MNTC.
The connector road is a 13.4-kilometer, four-lane elevated expressway that would link the northern and southern expressways in Luzon.
The formal discussion scheduled this month will include the equity sharing agreement of PNCC and MNTC.
The official cited two options: to create a new joint venture; or to pursue the project using the existing franchise and amend the current Supplemental Toll Operations Agreement (STOA).
Metro Pacific Investment Corp. is the parent company of MPTC.
“The directive of the government is to do a JV with PNCC, so we are now in the final stage of that,” Franco added.
PNCC holds the franchise for North Luzon Expressway and the South Luzon Expressway, while MNTC holds the STOA for Segment 9 and 10 of NLEX.
Segment 9 is a 2.4-kilometer linking the NLEX to McArthur Highway, and Segment 10 is a 5.65-kilometer road from Mindanao Avenue in Quezon City going to the North Harbor.
The company said that it is hoping to receive regulatory approval from the Toll Regulator Board, and the go-signal from the government to proceed with the project before the year ends.