Project Description

Contracting Parties:

Project Grantor - Toll Regulatory Board (TRB)

Project Grantee - Philippine National Construction Corporation (PNCC) and Manila North Tollways Corporation (MNTC)

Project Operator - Tollways Management Corportaion (TMC) now NLEX Corp.

Concession Period:

April 1998 to December 31, 2030

Phase 1: Extended, Rehabilitated and Widened. A divided expressway from Balintawak, Quezon City to  Sta. Ines Mabalacat, Pampanga and the Operation and Maintenance of an 8km Subic-Tipo road segment, 91.12 kilometers

Segment 1: Balintawak - Tabang Section 4 (2X2) Lanes 27.62kms
Segment 2: Burol - San Fernando 6 (2X3) Lanes 32.80kms
Segment 3: San Fernando - Sta, Ines 4 (2X2) Lanes 22.20kms
Segment 7: Bo. Tipo - SBMA (2X1) Lanes 8.50kms

Phase 2: Construction of C-5

Segment 8.1: Mindanao Avenue - NLEX 4 (2X2) Lanes 2.70kms
Segment 8.2: Minadanao Avenue - Commonwealth Avenue 4 (2X2) Lanes 8.35kms
Segment 9: NLEX Mindanao Avenue Link to McArthur Highway, Valenzuela City 4 (2X2) Lanes 2.42kms
Segment 10: McArthur Highway, Valenzuela City - C-3 Road, Caloocan City 6 (2X3) Lanes 5.58kms

Phase 3: Subic Expressway. The Subic arm that will connect the Subic Special Economic Zone to the NLEX.

Segment 4: San Simon - Guagua 17.00kms
Segment 5: Guagua - Dinalupihan 31.00kms
Segment 6: Dinalupihan - Bo. Tipo 10.50kms

Historical Background

In the early 1990’s consistent with the Philippines 2000 program of then President Fidel V. Ramos, the government and Philippine National Construction Corporation (PNCC) started seeking joint venture partners with technical, operational and financial resources in order to rehabilitate and modernize the original NLEX as a “flagship project”, expand it to the Subic and Clark Special Economic Zones and construct the northern portion of Circumferential Road C-5 from the University of the Philippines to Malabon City near the port of Manila.

In 1998, MNTC was granted the concession for the NLEX embodied in a Supplementary Toll Operation Agreement (STOA) amongst the Republic of the Philippine (ROP), trough the TRB and PNCC. Under the STOA, the Government confirmed the assignment by PNCC of its usufructuary rights, interest and privileges over the existing NLEX including all extensions, linkages and diversions in favor of MNTC. These concession rights authorized MNTC to construct, finance, manage, operate and maintain all the Project Roads covered by Phases 1,2 and 3 of the Manila North Expressway (MNE) and charge tolls thereon.

After successfully obtaining the needed financing for the project, MNTC commenced construction of Phase 1 in February 2003. In February 2005, Phased 1 was successfully completed on time. Following the issuance of the Toll Operation Permit by the Toll Regulatory Board, commercial operations started on February 10, 2005.