LLEX profit split still under negotiation

THE private proponents of the Lapu-Lapu Expressway (LLEX) are still finalizing their profit-sharing arrangement before they can start the construction of the infrastructure.

Mayor Junard “Ahong” Chan told SunStar Cebu in a phone interview on Monday, Aug. 26, 2024, that the City is awaiting the final decision on profit allocation between Premium Megastructure Inc. (PMI) and its new partner, MVP Group of Companies.

The partnership between PMI and the MVP Group was formalized through a memorandum of understanding signed on July 23, 2024.

“They are finalizing the sharing. Initially, they proposed a 50-50 split, but the new group has requested 60 percent, citing its experience in managing similar projects,” Chan said in Cebuano.

The mayor expects the final arrangement to be determined within this week.

The P25-billion infrastructure project is projected to generate P66.5 billion in economic benefits over 50 years, with the city set to receive 40 percent of gross commercial revenues.

Chan said the final alignment of the expressway will be announced once the profit-sharing agreement is settled.

Chan further said that the City Government has requested its private partners to minimize the number of structures that will be affected by the alignment.

The 12-kilometer, four-lane skyway is designed to connect the Pilipog Bridge to the Mactan-Cebu International Airport (MCIA, passing through several barangays including Babag 2, Pajac, and Pusok.

The project’s groundbreaking, previously delayed due to documentation issues and scheduling conflicts with President Ferdinand Marcos Jr., could potentially take place in September if the profit-sharing agreement is finalized.

Upon completion, the LLEX is expected to reduce travel time from Cebu City to MCIA from 35 minutes to 12 minutes, significantly alleviating traffic congestion in the area. / DPC