MIGA is providing guarantees totaling $87 million to EGIS Projects S.A. of France for its equity investment and to a syndicate of banks led by West LB for a loan to the Manila North Tollway Corporation. Coverage is against the risks of transfer restriction, expropriation, and war and civil disturbance.
Recent economic prosperity has accelerated motorization and demand for mobility in Manila, causing severe traffic congestion and environmental problems. One of the area's key arteries is the North Luzon Expressway, which is in urgent need of repair. The project involves widening and rehabilitating 82 kilometers of the expressway, Southeast Asia's oldest toll road. Also participating in the undertaking are IFC, Asian Development Bank, EFIC (Australia's export finance agency), and COFACE (France's export credit agency).
The refurbished highway is expected to move industrial traffic away from heavily congested areas and improve traffic flows. This will allow for more rapid movement of goods and people between Metro Manila, the economic zones of Subic and Clark, the international airports of Manila and Clark, the international port of Manila, and several other important industrial zones in the area. A number of multipurpose complexes are already being built along the highway corridor to take advantage of the high traffic volume out of Metro Manila. Additionally, the project will contribute to the reduction of vehicle operating costs and provide increased road safety. During the two-year construction period, the investment is expected to create 1,000 temporary jobs.
