MPCALA Holdings, Inc. (MPCALA), an indirect subsidiary of Metro Pacific Investments Corporation (MPIC), has signed a loan agreement for P24.2 billion to be provided by a number of banks to fund the construction of its Cavite-Laguna Expressway (CALAx) project.
In a regulatory disclosure, MPIC said MPCALA has signed an omnibus loan and security agreement for a 15-year-term loan facility amounting to P24.2 billion that will come from various banks. These banks are Banco De Oro Unibank Inc., Bank of the Philippine Islands, Land Bank of the Philippines, Rizal Commercial Banking Corp., Security Bank Corp., and Union Bank of the Philippines.
The loan is secured by a pledge over MPCALA shares and a security interest over certain assets of MPCALA.
MPIC said proceeds of the loan will be used by MPCALA to fund project costs for CALAx, a closed-system tolled expressway connecting the Manila-Cavite Expressway (Cavitex) and the South Luzon Expressway (SLEX).
In 2015, MPCALA bagged the public-private partnership contract for the P35.43-billion CALAx, which has a concession period of 35 years that includes five years for design and construction.
The project involves a four-lane, 45-kilometer expressway that will start from Cavitex in Kawit, Cavite and end at the SLEX-Mamplasan interchange in Biñan, Laguna.
There will be eight interchanges located in Kawit, Open Canal, Governor’s Drive, Aguinaldo Highway, Silang East, Sta. Rosa-Tagaytay Road, Laguna Blvd., and Technopark. There is also a bridge component of 12,207 meters, including 4,618 meters of viaduct.
Earlier, the Department of Public Works and Highways said construction and acquisition of road right-of-way for CALAx is being fast-tracked to complete the project in 2020.
Once completed, CALAx is expected to reduce travel time from Cavitex to SLEX by 45 minutes.