The Private Infra Development Corp. (PIDC) has formally asked the National Development Co. (NDC) to tap the P50-billion infrastructure bond for the construction of the P15-billion Tarlac-La Union Toll Expressway (TLUTE).

Trade and Industry Secretary Peter B. Favila said that company chairman Rogelio M. Murga has written NDC late last year of its intention to avail of the Infrastructure Bond but did not specify the exact amount that it plans to borrow.

Favila, who is also chair of NDC, said they have not issued the Infrastructure Bonds as there was no taker for the proceeds. With the interest of PIDC, NDC may now finally issue the bonds.

“PIDC has to go through the process and once they have complied with the documentation we will be issuing the bonds,” he said.

The details on the offering would be worked on once PIDC has been qualified to tap the financing, he said.

Earlier, Murga said that 30 percent of the P15-billion TLUTE will be financed through private equity, while the remaining 70 percent will be sourced from other sources.

The consortium has to tap the Infrastructure Bond because the private consortium was unable to borrow funds from the commercial banks since the right-of-way (ROW) has not yet been transferred to them.

The PIDC consortium, which includes DMCI Holdings Inc., needs P500 million as initial capital for the 35-year contract to build and operate the TLUTE project.

As a support of the government’s super region infrastructure program, the new highway, to be completed in 2013, is expected to cut travel time to Manila of farmers and traders carrying agricultural products from northern and central Luzon by an hour.

The TLUTE will also connect to the now existing Subic-Clark-Tarlac Expressway (SCTEX).