ADB. On 26 October 2000, the Board of Directors of the Asian Development Bank (ADB) approved a direct loan of $45 million without a government guarantee and a complementary loan of $25 million to the Manila North Tollways Corporation (MNTC). Both loans were from ADB‘s ordinary capital resources and were used to finance the rehabilitation, expansion, and operation of 83.7 kilometers of the North Luzon Expressway (NLEX) between Manila and the Clark Special Economic Zone. The project involved rehabilitating 14 interchanges, 24 bridges, 31 overpasses, and the 8.8 kilometer expressway in the Subic Special Economic Zone.
The total project cost was $384.5 million, slightly above the budget estimate of $377.5 million. Design-change orders, additional land acquisition, and cost adjustments due to delayed right-of-way acquisition contributed to the increase. The project was financed with loans totaling $267.3 million plus equity of $117.2 million from MNTC‘s shareholders. Rehabilitation was completed in February 2005 and commercial operations started on 10 February 2005. The project was structured as a public–private partnership (PPP), and undertaken on a rehabilitate–operate–transfer basis by MNTC. At the end of the concession period in 2037, the expressway will be transferred to the government without cost.
The overall assessment of the project is successful, based upon a qualitative combination of the ratings of criteria set forth in ADB‘s Guidelines for Preparing Performance Evaluation Reports on Nonsovereign Operations. Four main criteria were used: development impact and outcomes, ADB investment profitability, ADB work quality, and ADB additionality. Development impact and outcomes were rated satisfactory according to four subcriteria: private sector development (rated satisfactory); business success (rated satisfactory); economic sustainability (rated satisfactory); and environmental, social, health, and safety performance (rated satisfactory).
The rehabilitated NLEX has contributed to the development of central and northern Luzon. There is evidence of new shopping malls, tourist sites, and entertainment complexes developing near toll junctions, especially in and near the Clark Special Economic Zone and the cities of San Fernando and Angeles. New residential subdivisions have sprung up in Bulacan and Pampanga, and tourism has benefited from faster access to Subic Bay, Baguio, and venues further north. Reduced journey times, too, have facilitated provision of fresher fruit, vegetables, and meat to Metro Manila, thereby reducing waste.
Performance Evaluation Report. Independent Evaluation Department.Reference Number: PPE: PHI 2011-35.Project Number: 33924.Investment/Loan Number: 7162/1769.November 2011
For more information about Projects in Philippines see SOUTHEASTERN ASIA Projects