LLEX estimated project cost slashed for lower toll fees

LLEX estimated project cost 
slashed for lower toll fees
SunStar Lapu-LapuIllustration by Yans Baroy
Published on

THE estimated project cost for the Lapu-Lapu Expressway (LLEX) has been reduced from P25 billion to around P8 billion-P9 billion to ensure lower toll fees for motorists.

This adjustment was made to make the project more financially viable for drivers, balancing the need for economic returns with the affordability for users, according to Allan Alfon, president and general manager of Cebu Cordova Link Corp. (CCLEC).

The new project cost, however, is not yet final.

According to estimates, the LLEX’s economic returns are expected to reach P66.5 billion in over 50 years.

Alfon said in a press conference on Friday, Sept. 27, 2024, that the detailed budget will be finalized once the project’s alignment is set.

Mayor Junard Chan said the project is a public-private partnership, and the City Government will not shoulder any of the construction costs.

CCLEC, a subsidiary of MVP Group of Companies, is the new partner of the Lapu-Lapu City Government and the Premium Megastructures Inc. in the construction of the LLEX. Once completed, the LLEX will be the first skyway outside the National Capital Region.

Construction is expected to begin before the midterm elections next year and will take two to three years to complete.

The LLEX will span 12 kilometers and feature four lanes, connecting Pilipog Bridge to the Mactan-Cebu International Airport.

Passing through Mactan Economic Zone, Barangays Pajac, Buaya, Bankal, Ibo, and Pusok, the skyway will reduce travel time from Cebu City to the airport from 35 minutes to just 12 minutes.

This improvement is expected to serve approximately 50,000 vehicles daily, significantly easing traffic in Lapu-Lapu City and surrounding areas.

First phase

The first phase of the project, estimated at P7 billion, includes the road right of way acquisition.

While a small number of homes in Barangay Basak will be affected, Chan assured that fewer than ten houses will require relocation, and the city is working on providing a suitable relocation site.

No commercial establishments are expected to be displaced by the construction.

The skyway will operate under a 35-year concession agreement, with the City Government receiving a share of the toll fees.

For the first 15 years, the City will earn one percent of the gross toll revenues, increasing to 1.5 percent for the next decade, and finally two percent for the remaining 10 years.

The City will also receive 40 percent of the gross revenue from skyway billboards and tarpaulins.

MOA signing

A meeting is scheduled for Sept. 30 will finalize key project details, and a formal signing of the memorandum of agreement is expected in the first week of October.

After the signing, the alignment process will commence, marking the official start of construction.

The LLEX will connect with the Cebu-Cordova Link Expressway, which ends in Barangay Gabi, Cordova, further improving connectivity between Cebu City and MCIA.

The LLEX was initially a joint venture between the City Government and a consortium of Premium Megastructure Inc., Ulticon Builders Inc., and MTD Philippines Inc.

However, Chan announced that the MVP Group of Companies has replaced the original partners. The MVP Group, through its Metro Pacific Tollways Corp., has extensive experience in developing toll roads in the Philippines, including the North Luzon Expressway, Subic-Clark-Tarlac Expressway, and the Cavite-Laguna Expressway. / CAV

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph