PROJECTS

North Luzon – South Luzon Expressway Connector, Philippines

The problem

The Philippines government received an unsolicited proposal for a new highway and was required by law to undertake a “Swiss challenge”: inviting competition from third parties to better the unsolicited offer. The new 8km highway would link North Luzon and South Luzon expressways, enabling traffic to by-pass Metro Manila local roads, reducing congestion and travel times in Manila, and improving access to its ports and airports.

How we helped

Castalia provided transaction advice on the implementation of the “Swiss Challenge”, including preparation of the Information Memorandum and bid documents, helping prepare the data room and managing the bid process.

Impact

The transaction was completed as required by law, enabling the government to approve the construction of the US$450 million-dollar highway in August 2016. Work began in February 2019, and the highway could be completed by December 2020, well ahead of its scheduled May 2021 finish. It will reduce congestion for 35,000 motorists and reduce travel time to connect between North and South expressways from 2 hours to 20 minutes.