North Luzon ExpresswayNorth Luzon ExpresswayCEE 491CEE 491

Louis SantosLouis SantosTroy Troy SamuraSamuraNikoNiko SalvadorSalvador

Natasha Natasha SorianoSoriano

OutlineOutline

•• Magnitude and CostMagnitude and Cost•• Social and Economic Social and Economic

BenefitsBenefits•• Technical Technical

Issues/InnovationsIssues/Innovations•• Sample Social Problems Sample Social Problems

and Policy Changesand Policy Changes

Magnitude and CostMagnitude and Cost

•• Location Location Manila, PhilippinesManila, Philippines

–– Connects Metro Manila to the Central Luzon Region Connects Metro Manila to the Central Luzon Region

•• 84 km (~52 mi) long84 km (~52 mi) long•• Construction started in 2003 Construction started in 2003 •• Completed and Opened in 2005Completed and Opened in 2005•• Cost Cost $371 million$371 million•• PPP ProjectPPP Project•• 8 lane hwy= 4 lanes in each direction.8 lane hwy= 4 lanes in each direction.

–– 6 lane hwy (3 in each direction) in narrow sections.6 lane hwy (3 in each direction) in narrow sections.

•• Average speed limit 80Average speed limit 80--100 km/h (50100 km/h (50--60 mph)60 mph)

Magnitude and CostMagnitude and Cost•• Project type Project type

–– Motorway (rehabilitateMotorway (rehabilitate--operateoperate-- transfer project), transfer project),

–– bridgesbridges–– overpasses overpasses –– toll plazastoll plazas

•• Estimated investment Estimated investment •• $371m= 253m public + 118m private$371m= 253m public + 118m private

–– Public=6 international financial Public=6 international financial institutions and 6 commercial institutions and 6 commercial banksbanks

–– Private= 4 CompaniesPrivate= 4 Companies•• Philippine Lopez GroupPhilippine Lopez Group•• Philippine National Construction Philippine National Construction

CorporationCorporation•• Leighton ConstructionLeighton Construction•• EgisEgis Projects Projects

•• Concession periodConcession period–– 30 years including construction time30 years including construction time

Social and Economic BenefitsSocial and Economic Benefits

•• Prior to Expressway Prior to Expressway –– Original RoadOriginal Road

•• To narrowTo narrow•• Pot holesPot holes•• Flooded Sections in low lying Flooded Sections in low lying

plainsplains•• Traffic congestionTraffic congestion

•• BenefitsBenefits–– Reduced traffic congestionReduced traffic congestion–– Reduced travel timeReduced travel time

Social and Economic BenefitsSocial and Economic Benefits

•• Employment increasedEmployment increased–– 5,000 new jobs5,000 new jobs

•• Increased Traffic VolumesIncreased Traffic Volumes–– 220,000 drivers/day220,000 drivers/day

•• Regional Economic ProgressRegional Economic Progress–– Increased tourism to country sideIncreased tourism to country side

•• North Philippines VisitorNorth Philippines Visitor’’s Bureaus Bureau

•• Increased SafetyIncreased Safety–– Speed limit strongly enforcedSpeed limit strongly enforced–– Wider lanesWider lanes

Technical IssuesTechnical Issues

•• Flood planes and low lying areasFlood planes and low lying areas–– Viaducts used to traverse areasViaducts used to traverse areas

InnovationInnovation

•• Traffic Management SystemTraffic Management System–– 27 message display boards27 message display boards–– Control over toll gatesControl over toll gates–– Alerts public of scheduled Alerts public of scheduled

maintenance and potential maintenance and potential slow downsslow downs•• NewspaperNewspaper•• TVTV•• RadioRadio•• Updated website Updated website www.mntc.comwww.mntc.com

InnovationInnovation

•• Electronic Toll plazasElectronic Toll plazas–– Cashless Toll collecting Cashless Toll collecting

systemsystem•• TranspondersTransponders

–– Prepaid Magnetic Swipe Prepaid Magnetic Swipe CardsCards

•• Traditional Cash toll Traditional Cash toll boothbooth

InnovationsInnovations

•• Strict speed enforcementStrict speed enforcement–– Speed gunSpeed gun–– Closed Circuit TelevisionClosed Circuit Television

•• Catches speeders over 100 km/hrCatches speeders over 100 km/hr•• Citations given speeders at toll boothsCitations given speeders at toll booths•• Weigh stations for heavy vehiclesWeigh stations for heavy vehicles

–– Reduce overloaded vehicles on expresswayReduce overloaded vehicles on expressway

Policy ChangesPolicy Changes

•• Prior to constructionPrior to construction–– Legal framework for tollways in placeLegal framework for tollways in place

•• Philippine BOT Law Philippine BOT Law –– 19941994–– Legal frame work for the PPPLegal frame work for the PPP–– Minimal government regulationMinimal government regulation–– Private sector main engine for growthPrivate sector main engine for growth

•• Creation of Manila North Tollways Corp. Creation of Manila North Tollways Corp. 19971997

Stake HoldersStake Holders

• First Philippine Infrastructure Development Corporation (FPIDC)

• Philippine National Construction Corporation (PNCC)

• Egis S.A. of France

• Leighton Asia Ltd. of Australia

Policy ChangesPolicy Changes•• Change of operatorsChange of operators

–– Philippine National Construction Corporation (PNCC) Philippine National Construction Corporation (PNCC) –– EgisEgis S.A. of France S.A. of France

•• World largest toll road operator (over 6,000 km in managed World largest toll road operator (over 6,000 km in managed toll roads) toll roads)

•• Toll increase 700%Toll increase 700%–– 2.50 peso/km (5 cents)2.50 peso/km (5 cents)–– 190 peso 190 peso –– Class 1Class 1–– 500500--600 pesos 600 pesos -- Class 2 and 3Class 2 and 3

Social ProblemsSocial Problems

•• Corporate Social Responsibility (CSR)Corporate Social Responsibility (CSR)–– Environment Environment –– HousingHousing–– HealthHealth–– EducationEducation

CSRCSR--EnvironmentEnvironment

•• Ambient Air Quality Ambient Air Quality Study Study --20072007–– PbPb, CO, , CO, NOxNOx, Sox, Sox

•• Greening the Greening the NLExNLEx–– Goal to plant Goal to plant

20,000 trees20,000 trees

CSRCSR--HousingHousing

•• P7.5 million for lowP7.5 million for low--income housing (income housing (GawadGawad KalingaKalinga) )

•• 1st MNTC1st MNTC--GK Village in GK Village in MarilaoMarilao, , BulacanBulacan 20052005–– 10 k away from 10 k away from MarilaoMarilao ExitExit–– 50 Dilapidated houses 50 Dilapidated houses –– homes with gardens and picket fenceshomes with gardens and picket fences

•• 2nd MNTC2nd MNTC--GK Village in Valenzuela City. GK Village in Valenzuela City.

•• 3rd MNTC GK Village in 3rd MNTC GK Village in PandiPandi, , BulacanBulacan. . –– Built houses for families evict from land to build North RailwayBuilt houses for families evict from land to build North Railway

SummarySummary

•• Magnitude and CostMagnitude and Cost•• Social and Economic BenefitsSocial and Economic Benefits•• Technical Issues/InnovationsTechnical Issues/Innovations•• Sample Social Problems and Policy Sample Social Problems and Policy

ChangesChanges

Thank YouThank You

•• "Case Study: North Luzon Expressway Project." "Case Study: North Luzon Expressway Project." Asian Development Bank Institute Asian Development Bank Institute -- Sharing Sharing development knowledge about Asia and the Pacificdevelopment knowledge about Asia and the Pacific. 1 Mar. 2009 . 1 Mar. 2009 <http://www.adbi.org/files/2008.11.cpp.session.11.2.pascual.case<http://www.adbi.org/files/2008.11.cpp.session.11.2.pascual.case.study.north.luzon.expressway..study.north.luzon.expressway. pdf>. pdf>.

•• "Case Study: North Luzon Expressway Project." "Case Study: North Luzon Expressway Project." Asian Development Bank Institute Asian Development Bank Institute -- Sharing Sharing development knowledge about Asia and the Pacificdevelopment knowledge about Asia and the Pacific. 1 Mar. 2009 . 1 Mar. 2009 <http://www.adbi.org/files/2008.11.cpp.session.11.2.pascual.case<http://www.adbi.org/files/2008.11.cpp.session.11.2.pascual.case.study.north.luzon.expressway..study.north.luzon.expressway. pdf>. pdf>.

•• "Environmental Monitoring Report"Environmental Monitoring Report--PhpPhp: North Luzon Expressway Project." : North Luzon Expressway Project." Asian Development Asian Development Bank (ADB) Bank (ADB) -- Fighting Poverty in Asia and the Pacific Fighting Poverty in Asia and the Pacific -- ADB.orgADB.org. 28 Feb. 2009 . 28 Feb. 2009 <http://www.adb.org/Documents/SEMRs/PHI/33924<http://www.adb.org/Documents/SEMRs/PHI/33924--0101--PHIPHI--SEMR.pdf>. SEMR.pdf>.

•• "North Luzon Expressway, Manila "North Luzon Expressway, Manila --." ." Road Traffic TechnologyRoad Traffic Technology. 27 Feb. 2009 . 27 Feb. 2009 <<http://www.roadtraffichttp://www.roadtraffic--technology.com/projects/northtechnology.com/projects/north--luzonluzon/>. />.

•• "North Luzon Expressway." "North Luzon Expressway." WikipediaWikipedia. 27 Feb. 2007. . 27 Feb. 2007. •• "Take over of the operation of the North Luzon Expressway (84 km"Take over of the operation of the North Luzon Expressway (84 km), Philippines." ), Philippines." EgisEgis ProjectsProjects. .

03 Mar. 2009 <http://www.egis03 Mar. 2009 <http://www.egis--projects.com/pdf/press_uk/2005projects.com/pdf/press_uk/2005--0404--1818--CPCP-- PhilippinesNorthLuzonExpressway_UK.pdf>. PhilippinesNorthLuzonExpressway_UK.pdf>.

•• Welcome to Manila North Tollways Corporation!Welcome to Manila North Tollways Corporation! 27 Feb. 2009 <http://27 Feb. 2009 <http://www.mntc.comwww.mntc.com/>. />.