Economics of the Expressway Under the Guico Admin

By Mortz C. Ortigoza 

UMINGAN, Pangasinan – “And the Province is the co-owner of it,” quipped to this writer by Pangasinan Governor Ramon “Monmon” Guico, III when he asked him during the fiesta here if the Pangasinan East-West Expressway (PEWEx) that snakes from Bayambang to Binmaley, Rosales to Lingayen, and Lingayen to Bolinao would be a private public partnership (PPP) (successor of the Build Operate and Transfer (BOT)).

“Pangasinan will be earning too from the revenues of the toll gates there?" posed to him by this writer.

“Yes,” he retorted about the interconnection juggernaut's partnership between the provincial government and the private investor.

Pangasinan Governor Ramon "Monmon" Guico, III (Photo is internet grabbed)

Expeditious Travel Time

Pangasinan 2^nd District Congressman Mark Cojuangco said that because of the freeway, travel time of motor vehicles would be significantly reduced by 15 to 20 minutes from the boundary of Tarlac Province to capital town’s Lingayen.

“Pati iyong East-West Expressway mula San Manuel, Tarlac hanggang Lingayen 52 kilometers ilang minute na lang mula TPLEX (Tarlac- Pangasinan- La Union Expressway), right? Siguro 15 to 20 minutes. So mabubuksan talaga ang ekonomiya dito po sa ating bayan (Lingayen)”, disclosed by Cojuangco in one of his pronouncements in April 19 at a public consultation he attended with the capital town’s Mayor Leopoldo Bataoil and Pangasinan 2nd District Engineering Office District Engineer Edita Manuel of the Department of Public Works & Highway.

With the 52 kilometers distance from the boundary of Tarlac to first class town’s Lingayen in Pangasinan and the 54 kilometers (Google) from the capital town to Bolinao that would be 106 kilometers' expressway.

It means 40 minutes of travel of private vehicle and commuters between that stretch.

It means the usual six hours’ inconvenient movement of the travellers from Manila to the pristine beaches of Bolinao and Dasol, Pangasinan would be mitigated to less than four hours.

Comparative Advantage of Pangasinan

That will be good for the tourism industry of the Northern Luzon’s province as it competes with the beaches and recreational places in Boracay in Aklan, El Nido in Palawan and Siargao in Surigao.

When this writer went to Boracay in July last year, airport personnel told him there that there were 24 commercial jets that arrive in the airport everyday like the 170 seaters Airbus of Air Asia he rode with his family.

The flying time between the Island Paradise and Imperial Manila is 25 minutes only (not to mention the one to two hours travel time from their houses to the airport) – an advantage compared to the vexing trip to Bolinao, Dasol, and Alaminos City.

But with a reduced travel movement from the densely populated Metro Manila and its neighboring regions to Pangasinan, many tourists would be attracted to visit Pangasinan. Besides, those beaches in the Visaya and Mindanao cater to the moneyed Pinoys in Luzon and deep pocketed foreigners.

A Pangasinense or a Manileño in his three days stay – like his billet in Hennan Hotel and the expensive foods and drinks there could see him cough up an average of P20,000.

A Metro Manila resident could spend one –fourth only of the P20, 000 he would chalk-up if he travels through Northern Luzon Expressway (NLEX), Subic-Clark-Tarlac Expressway (SCTEX), TPLEX and the PEWEx to the beaches of Bolinao and Dasol.

Cojuangco earlier said that the PEWEx first leg will start from Bayambang, San Carlos City and Binmaley with a spur to Dagupan City. He disclosed the second phase will be from TPLEx to the province's eastern Pangasinan towns like Umingan, and the third phase will be from Lingayen to Bolinao (What phase is the 52 kilometers Rosales to Lingayen? – Author)

Multiplier Effects of the P3.4 -B Investment 

If this writer computes the 171.5 kilometers from the P20 million per kilometer construction of the two lanes road that includes clearing, grubbing, base preparation, acquisition of road right of way and others as disclosed to him by a District Engineer of the DPWH that will be a staggering P3.4 billion investment shelled out by the private investor that partners with the local government unit (LGU) of the gargantuan province of Pangasinan.

“We don’t even need to spend at P1 billion equity to make the Pangasinan Link Expressway happened. We don’t need it because that highway will be constructed at no cost to the Province of Pangasinan,” excerpt of Guico’s State of the Province Address (SOPA) that drew thunderous applause from the thousands of spectators inside the swanky embellished Sison Auditorium.

He said Pangasinenses will see operation and profit to the public coffer in three to five years by this expressway's venture. 

Economic Importance of the Expressway

According to Economist Thomas P. Keane in his article's The Economic Importance of the National Highway System  that the multiplier effects of a multi-billions of dollars’ highway from the start of the spade works alone are enormous.

If based on the hypothetical assessment and computation of this writer of the P3.4 billion or U.S 60.7 million (171.5 kilometers from the three phases and the kilometers from Rosales to Lingayen at P20 million per kilometer), there would be 494 full-time equivalent jobs per P3.4 billion invested in highway construction. In addition, research shows that this same sum of investment supports approximately 1,231 full-time equivalent jobs in the supplying sectors and 875 positions in the general economy. Therefore, total employment supported per P3.4 billion highway investment is equal to more than 2,600 jobs. These estimates refer to "gross" job creation, meaning that the employment impacts of alternative investments have not been considered in this broad level of analysis.

After the  PEWEx comes into operation, businessmen will benefit for a rapid less expense travel on fuels , wear and tear of their vehicles and foods.
The eastern Pangasinan towns are vegetable producers while most towns in the western part of the province produce milkfish.

“We would like to insure that the future generation of Pangasinan will be taken care of by this government,” the first term Governor Guico continued in his SOPA.

The expressway will be complemented by three state of the arts' North Alignment Terminals (worth P1 billion), Land Ports and Bus Stops (worth P100 million). The fund for the construction of these edifices and infras come from the part of the already approved P6 billion Omnibus Term Loan Facility (credit line) by the LGU in the Land Bank of the Philippines.

 READ MY OTHER BLOG:

The Lethal, Costly Weapons of a Cobra

MORTZ C. ORTIGOZA

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I am a twenty years seasoned Op-Ed Political Writer in various newspapers and Blogger exposing government corruptions, public officials's idiocy and hypocrisies, and analyzing local and international issues. I have a master’s degree in Public Administration and professional government eligibility. I taught for a decade Political Science and Economics in universities in Metro Manila and cities of Urdaneta, Pangasinan and Dagupan. Follow me on Twitter @totoMortz or email me at totomortz@yahoo.com.