The National Development Co. (NDC) is set to issue P3 billion bonds under the P50-infrastructure fund to jumpstart the construction of the 88.58-kilometer toll road extension from Tarlac to Pangasinan and La Union, which is estimated to cost P14 billion to P16 billion.

Trade and Industry Secretary Peter B. Favila told reporters Friday the move came after the local consortium Private Infrastructure Development Corp. led by diversifying firm San Miguel Corp. has approached the government that it be allowed to draw on the national government subsidy or equity to the project to a tune of P3 billion.

“I don’t see any problem with the NDC Board approval,” Favila said noting that the Department of Budget and Management can first release the fund while NDC has yet to issue the bonds so the project can take off soonest.

The consortium has P1.5 billion in equity or a total of P4.5 billion to jumpstart the toll road project, which is going to run from the end of the Subic-Clark-Tarlac Expressway in La Paz, Tarlac, and connect it to Pangasinan-to Rosario in La Union.

Favila said the construction would start on the cleared areas or those with the right of way up to Geronimo.

The consortium wants to start construction in March this year and has committed to complete the four-lane road TPLEx in 2014. It will connect the North Luzon Expressway, Southern Luzon Expressway, C-5, Subic-Clark-Tarlac Expressway, and the Southern Tagalog Arterial Road.

Favila said that the infrastructure bonds have committed subscribers, both the private banks and the government financial institutions.

Aside from the shareholders equity and the government subsidy, a syndicate of local banks have already expressed interest to grant loan facilities for the TPLEx project but said that the release of their funds will follow after the government has released the subsidy to the project.

BDO Capital is the lead loan arranger for the project. The Sy-controlled Banco de Oro Unibank, parent of BDO Capital, had expressed interest to provide up to P10 billion in loans for the toll road project.