Philippines’ third bridge project begins-
Ground-breaking of the third Cebu-Mactan bridge project in January 2015 was a much-awaited development in the country’s road sector. Conceived about four years ago, the approval process for the bridge had been moving at a snail’s pace. This bridge is the third in line for the towns of Cebu and Cordova and is complementary to the expansion of the Mactan-Cebu International Airport. The bridge is expected to reduce traffic over the existing two bridges by expanding the road network.
Southeast Asia Infrastructure takes a look at the project’s features and expected timelines…
Project genesis and scope
The 7.9 km Cebu Mactan Toll Bridge will be the third bridge to connect the main island of Cebu to Mactan Island, where the Mactan-Cebu International Airport is being upgraded under the government’s public-private partnership (PPP) programme. The bridge is expected to serve the increased traffic in Cebu by 2020. Currently, there are about 82,000 vehicles per day using the two bridges that connect Cebu City and the island of Mactan. It is estimated that about 17 per cent of this traffic is airport bound.
The bridge will originate from the portion of the Shell Island in Barangay Pilipog in Cordova and terminate at the start of the Guadalupe river near the Cebu South Coastal Road Tunnel. It will be longer than the existing Marcelo Fernan Bridge and the old Mandaue-Mactan Bridge and will have a span of about 7 km. The third bridge’s clearance would allow cruise ships, container ships, ferries and post-panamax vessels to pass under its span.
The cost of the third bridge project is pegged at about PhP 17 billion. Due to delays in approvals, the project’s cost has risen by about 13 per cent from the PhP 15 billion that had been estimated earlier.
Unlike other infrastructure projects, which are first approved by the Regional Development Council and the National Economic Development Authority (NEDA) and bid out by the Department of Public Works and Highways, the Cebu-Mactan Bridge project has been initiated by a joint venture (JV) of two local governments and the country’s largest toll road operator. This required the passing of a PPP ordinance by the Cordova administration and a JV ordinance by the Cebu administration.
The PPP-based project is a JV agreement between the Cordova and Cebu administrations and Metro Pacific Tollways Corporation (MPTC) – a subsidiary of Metro Pacific Investments Corporation (MPIC). MPIC is the largest toll road operator in the Philippines and has about 63 per cent of the country’s toll roads in its portfolio.
While the design, financing, construction, implementation, operation and maintenance of the bridge will be handled by MPTC, the Cordova administration will offer land to the concessionaire. The proposed revenue sharing between the project proponent and the two city administrations will be in the ratio of 95:5. The cost recovery components of the project are similar to those of other PPP projects. According to a willingness-to-pay survey conducted by the proponent, MPTC has pegged the toll fee for the third bridge at PhP 55. The project has a concession period of 35 years after which its operations will be handed over to the city authorities.
Expected timelines
On January 11, 2015, the Cebu administration declared MPTC as the original proponent of the project. The ground-breaking was initiated by the Cordova administration as it had approved the project in November 2014. In August 2014, MPTC had submitted a formal unsolicited proposal to the administrations of Cebu and Cordova. Notably, each local government will have a different contract with the proponent.
As of January 2015, the Cebu City Joint Venture Committee is in the process of finalising the JV documents for the project. The project will soon enter the negotiation stage and the concessionaire will incorporate the design alterations suggested by the city administrations. As proposed originally, MPTC wants the bridge’s approach to be located near the Cebu South Coastal Road Tunnel; however, the Cebu administration wants the bridge to originate from the Guadalupe river near Barangay Pasil. Construction work is likely to commence by mid-2015. The concessionaire is expected to commission the project in 2018.
Concerns raised and the way ahead
The architectural design of the bridge has led to opposition from stakeholders. Initially, both the city administrations had raised doubts over the implementation of the project as it involves acquisition of substantial land. At least 280 houses and 20 offices and factories in Cebu need to be relocated while about 30 houses and three establishments in Cordova will have to be moved for the project’s groundwork to commence. Some stakeholders have suggested to the proponent to redesign the bridge into a spiral structure like the Queens Borough Bridge in New York City.
Since the project will be financed by the private partner, successful implementation will depend on how well Cordova and Cebu City package the terms of the project.
Going forward, the bridge will open the small town of Cordova as a gateway for investors to tap the business potential. As per estimates, the governments of Cebu and Cordova would save PhP 1.3 billion in terms of time and vehicle operating costs and PhP 2.6 billion in economic benefits in terms of land value and business opportunities.
