Monday, December 24, 2007 Iranian firm wants to develop new highway
AN IRANIAN firm has expressed interest in the Trans-axial Highway Project of the Cebu Provincial Government, Vice Gov. Gregorio Sanchez Jr. said.
However, they wanted assurance of a sovereign guarantee because they worry that, given the Philippines’ identification with the United States, any further souring of Iran-US ties might compromise their investments here.
Apprehension
Sanchez said representatives of the firm have talked to him twice and they expressed their apprehension during their first visit.
The Iranian group owns about 400 corporations worldwide, he added.
A Texas-based firm called Quantum International also expressed interest in the project, following the United Engineers of Malaysia and Dubai World.
The Provincial Government plans to conduct the bidding next month.
Sanchez said the documents for the bidding are ready and only need the approval of Gov. Gwendolyn Garcia.
Ecozone
The Trans-axial Project consists of a 250-kilometer highway crossing the mountains of Cebu Province from Daanbantayan in the north to Santander in the south.
Some 500 meters from both sides of the entire highway will be made an eco-zone to attract more investors.
Its development cost is pegged at P40 billion to P45 billion.
It will be built on a build-transfer-operate scheme.
The project is expected to bring in some P5 billion in immediate revenues for the Province, Sanchez said.
Interviewed in late November for a report on Cebu’s infrastructure needs in the next 25 years, urban planning consultant Pedro Adonis Compendio agreed that the proposed Trans-Axial Highway needs to be pursued aggressively, to cut travel time between the northern and southern ends of Cebu.
If realized, such a highway is also expected to hasten the delivery of power and water throughout the island. (MBG)
