NAIA Expressway Project Pre-Qualifications Conference

10 August 2012 *revised 13 August 2012

Republic of the Philippines

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

The Project

The NAIA Expressway:

• Phase I Adjustment Works

• Phase II Works

Additional Works – Access Roads:

• At-Grade Entertainment City Works

Development Impact

1. Provide improved quality of service at both the elevated toll road and the at-grade free roads around the airport

2. Supports tourism by providing fast and reliable access to the NAIA Terminals and PAGCOR Entertainment City

3. Supports the government’s PPP Program

4. Potential PPP Model for additional private participation / support for infrastructure

PAGCOR Entertainment City Access

• The revised alignment will allow users of NAIAX to have direct access to PAGCOR City and other developments in the area from NAIA and Skyway/SLEX.

The NAIA Expressway

• 4-lane elevated toll road:

– Connects Skyway/SLEX with Roxas Blvd./Macapagal Blvd./PAGCOR Entertainment City with access to NAIA Terminals 1, 2, & 3.

– Total equivalent length of 7.75km for Phase 1&2

– 12 on/off ramps at strategic locations

• Included in the High-Standard Highway Master Plan

Phase I Adjustment Works

• Adjustments to the 0.6 km Phase I viaduct, starting from Skyway Stage 1 at km 0+810 to km 1+398.27 including ramps, to achieve operations and maintenance standards comparable with standards to be set for Phase II that would enable seamless operations.

Phase II Works

• Design and construction of approximately 4.83 km 4-lane viaduct extension;

• Design and construction of a minimum of 6 on and 6 off ramps to NAIA Terminals 1, 2 and 3 and other strategic locations;

• Design and construction of two connection ramps to link Roxas Blvd., Macapagal Blvd. and Entertainment City on-off ramps to and from NAIA Terminals 1 and 2 on-off ramps;

• Design, construction and provision of toll plazas, toll operating equipment and safety facilities;

• Reconstruction and widening of affected at-grade public roads.

At-Grade: PAGCOR City

Revised NAIAX Alignment

← To Roxas Blvd./PAGCOR City

To Terminal 3 and Skyway/SLEX

Connection Ramps: Roxas Blvd. to T1/T2

To Manila via Macapagal Blvd. →

← To Cavite via Roxas Blvd./CAVITEX

To NAIA Terminals and Skyway/SLEX

PAGCOR Entertainment City (Future) Development

At-Grade Entertainment City Works

• Construction of:

approximately 1.72 km 6 to 8-lane at-grade roads

300 meter 2-lane service road w/in the Entertainment City

500 meter 4-lane access road connecting New Seaside Drive to Macapagal Boulevard

• Construction to be based on the design specs to be provided;

• the maintenance and operations of this section shall be turned over to the Government upon completion.

At-Grade Entertainment City Works

NAIAX: Design and Alignment

• The indicative minimum design standards and alignment shall be predetermined prior to bidding.

• Any substantial changes to the design or the alignment, including the location of the ramps, shall require the review and approval of Government.

At peak-hours

Traffic Situation

• Roads are highly

congested

• Travel time from Makati or

Manila CBD takes at least

one hour

• About 36,391 vehicles

currently pass through

these roads every day

Traffic volume along this corridor is expected

further increase as Entertainment City becomes

operational in 2013 onwards and as more tourists

visit the country as a result of a more aggressive

tourism campaign by Government.

PPP STRUCTURE AND QUALIFICATION REQUIREMENT

PPP Concession Structure

• Legal Framework: Philippine BOT Law and its IRR

– Build-Transfer-Operate (“BTO”) variant under the BOT Law

• Concession Period: 30 years (inclusive of design and construction period)

PPP Structure

• The Concessionaire’s obligations/rights: – Finances, designs and constructs the NAIAX Phase II Works

– Finances and constructs the At-Grade Entertainment City Works

– Finances and conducts the NAIAX Phase I Adjustment Works

– Undertakes O&M of the entire NAIA Expressway (Phase I&II)

– Undertakes future periodic maintenance, repairs and renewals

– Assumes traffic risk

– Receives toll fees

PPP Structure

• The Government’s obligations: – Turns over possession of existing Phase I (upon issuance of TOC)

– Acquires and delivers all required ROW

– Ensures application of periodic toll adjustments

Bidding Framework for the Transaction International Competitive Tender

• Two-Stage Bid Process: Pre-qualification of Bidders based on legal, technical

and financial criteria

Invitation to Submit Bids from Pre-Qualified Bidders

Two-envelope system for Bids

• Posting of required bid bond

• Technical Proposal - evaluated on a Pass/Fail basis

• Financial Proposal – lowest required amount from the Infrastructure Support Facility as bid parameter

PROJECT TERMS

Estimated Revised Project Cost

Project Cost Items (Current Prices)

Est. Revised Proj. Cost in Php Millions

Contribution

ROW 1,000 Government

Construction Cost 11,000 Private Sector

Other costs* 3,500 Private Sector

Total Est. Project Cost: 15,500

*Other costs include contingencies, consultancy costs, insurance, and financing

costs, among others.

Other Major Indicative Project Terms • Concession Period 30 years

• Right-of-Way Government

• Infrastructure Support Facility Up to Php6.5B

• Construction period Approximately 2 years

• Preparation of the Detailed

Engineering Design

Approximately 10 months; partial delivery

and approval allowed

• Operation start year

• At-Grade Entertainment City Works turn-over

by Dec.2013;

• Partial operations by April 2015 (T1/2 to/from

Roxas Blvd. / Macapagal Blvd. / Ent. City);

• Full operations by 2016

Timetable Milestone Target Date

PQ Conference 10 August 2012

PQ Submission 18 September 2012

Identification of Pre-Qualified Bidders / Issuance of Bid Documents to Pre-Qual. Bidders

End September 2012

Bid Conference October 2012

Bid Submission December 2012 /

January 2013

Issuance of Notice of Award 1Q 2013

At-Grade Entertainment City Works Completion December 2013

Partial Construction Completion (T1/T2 to Roxas/Macapagal/Entertainment City)

1Q 2015

Construction Completion 1Q 2016

THANK YOU

NAIA Expressway Project Pre-Qualifications Conference

10 August 2012

Republic of the Philippines

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS