Transaction Advisory Services for the Cavite-Laguna Expressway Project (CALAX)

Name of Client:
Department of Public Works and Highways (DPWH)


Length of Consultancy Assignment:
Start Date:  8 July 2013
Completion Date:  28 May 2014

Detailed Narrative Description of Project:

The Cavite-Laguna Expressway (CALAX) is a four-lane highway aiming to link the provinces of Cavite and Laguna by connecting two existing major toll roads, the Manila-Cavite Expressway (CAVITEX) and the South Luzon Expressway (SLEX).  CALAX was among the government’s priority Public-Private Partnership (PPP) projects in line with the PPP program, which was launched in 2010 to spur infrastructure development aimed towards sustained economic growth.  The project also aimed to solve the current traffic congestion on existing national road networks, particularly Governor’s Drive, Aguinaldo Highway, and Sta. Rosa – Tagaytay road.

The Project involved: (i) financing, design, and construction of the Cavite Section, which is 28.90 km from Manila-Cavite Expressway (CAVITEX) in Kawit, Cavite to Aguinaldo Highway in Silang, Cavite; and (ii) operation and maintenance of the CALA Expressway Project as a closed-system tolled expressway, which is a total of 47.018 km, composed of Cavite Section and Laguna Section, starting from CAVITEX and ending at South Luzon Expressway (SLEX) Mamplasan Interchange in Binan, Laguna.

PRIMEX provided the services of four specialists. The Financial Modeller was tasked to: (i) obtain the latest economic and financial models; (ii) carry-out financial analysis and revision of financial model and financing plan; (iii) test key assumptions against financial model outputs; (iv) review and finalize the appropriate parametric tariff adjustment formula; (v) carry out value for money (VFM) analysis; (vi) finalize the appropriate financial model; (vii) conduct a Pre-qualification (PQ) Conference; (viii) draft the Request for Proposal (RFP) documents and other contractual agreements or documents; and (ix) assist in the bidding process. The Structural/Highway Engineer: (i) reviewed and assessed the design and technical requirements of the two feasibility studies; (ii) determined the adequacy of available data and, if inadequate, provided/gathered the required data; (iii) reviewed and finalized the project implementation schedule; (iv) prepared the MPSS; (v) conducted the PQ Conference; (vi) drafted the RFP documents and other contractual agreements or documents; and (vii) assisted in the bidding process.

The Environment/Social Management Specialist: (i) obtained and reviewed the environmental impact statement (EIS) of the Cavite Section; (ii) prepared the Solid Waste Management Plan during the construction and operational phase of the project; (iii) drafted the Report on Physical Flora and Fauna, including assessment of the impact of the project on the environment and identification of mitigation measures; (iv) updated the required map and other documents; (v) conducted the PQ Conference; (vi) drafted the RFP documents and other contractual agreements or documents; (vii) assisted in completing the environmental requirements of the project; (viii) assisted DPWH in securing an environmental clearance certificate (ECC); (ix) prepared the required information, education, and communication (IEC) material; and (x) assisted in the bidding process.

The Land Acquisition and Resettlement Specialist: (i) obtained any information regarding the current Land Acquisition and Resettlement Action Plan (LARAP); (ii) reviewed parcellary maps and other related maps, photo documentation, and tagging; (iii) updated the property appraisal and valuation; (iv) drafted the RFP documents and other contractual agreements or documents; and (v) assisted in the bidding process.