AG&P Industrial and VNIHC sign MOU for US$15 bil mega infrastructure project in Visayas region, Philippines

AG&P Industrial (Atlantic, Gulf and Pacific Company Manila, Incorporated) has signed a memorandum of understanding (MOU) with Visayas Neceboley Interlink Holdings Corporation (VNIHC), a real estate, property development and reclamation company, for National Economic and Development Authority’s (NEDA) US$15 billion mega infrastructure Project Neceboley, which is expected to commence in the second quarter of 2024.

Project Neceboley – Negros, Cebu, Bohol and Leyte – aims to connect these four major islands in the Visayas region. VNIHC was given certificates of acceptance, thereby granting it original proponent status by the provincial governments of Negros Oriental, Cebu, Bohol and Southern Leyte to develop the project through a collaborative joint venture initiative under the public-private partnership (PPP) framework.

This large-scale development will be supported by a private consortium of global partners that will finance, design, construct, operate and maintain the bridges, road and mass transit network composed of four-lane bridges with expanded expressways. The consortium will also undertake the building of pipes, ducts and landing stations. Other sources of project income will be derived from reclamation development, water supply, power wheeling charges, communications, mass transit and real estate development.

AG&P Industrial, a subsidiary of AG&P Group, is a full-asset lifecycle EPFCIC (engineering, procurement, fabrication, construction, installation and commissioning), infrastructure development and O&M (operations and maintenance) company. In this mega project, AG&P Industrial will serve as a technical partner and EPC contractor and contribute its expertise and resources in infrastructure development and project management.

As the project proponent, VNIHC will procure the requirements, plan and reporting in accordance with the rules, regulations and policies of the local government units (LGUs) and engage AG&P Industrial in pre-proposal conferences, post-award meetings with LGUs and other government institutions to ensure alignment of obligations upon award of the project. AG&P Industrial will also be provided access to contract specifications for reviewing accuracy and technical assistance during pre-solicitation, pre-bid and post award conferences.

Project Neceboley will be carried out in two phases. Phase 1 will be focused on the construction and operation of a 238.05-km bridge and toll road expressway network, connecting the four major islands of the Visayas region. It is further divided into six packages, of which Package A will involve the construction of a bridge spanning from Sibulan (Negros Oriental) to Santander (Cebu), with a length of 11.30 km. Package A is scheduled to begin in the second quarter of 2024.

Phase 2 will be focused on raw land reclamation and horizontal development of 568-ha foreshore and offshore areas in the Visayas region, as well as the development of the reclaimed land into ready-to-use complexes for residential, commercial, industrial and other tourism-related purposes.