Leighton Asia Secures A$257m North Luzon Expressway Project in the Philippines

Company Announcements Office
The Australian Stock Exchange Limited
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20 Bridge Street
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Re: Leighton Asia Secures A$257m North Luzon Expressway Project in the Philippines

Dear Sir,

Please find attached a copy of a media release to be issued today by Leighton Asia Limited, a wholly owned subsidiary of Leighton Holdings Limited.

Yours faithfully,

A.J. MOIR
Company Secretary

Leighton Asia Secures Major Road Project in the Philippines

Issue Date: 11 July 2001
Issued by: Leighton Asia Limited

Leighton Contractors (Asia) Limited has been awarded a contract by Manila North Tollways Corporation (MNTC) for the rehabilitation and expansion of the North Luzon Expressway (NLE) in the Philippines.  The contract is worth A$257 million (Php 6.9 billion).

Under the contract, Leighton will be responsible for the design and construction of Phase 1 of the NLE project.  Leighton has already completed advance works under a separate contract and construction is expected to commence in September. The project will take two years to complete.

The project involves the upgrading and expansion of 84 kilometres of expressway in North Luzon between Balintawak and Santa Ines, the construction of 110 additional lane kilometres, new interchanges, toll plazas, and operations and maintenance facilities.

MNTC, a subsidiary of the Lopez Group, yesterday finalised the financing for the project.  It is being funded by A$235 million equity and A$306 million debt.

Managing Director of Leighton Asia, Mr John Faulkner, said the new project was secured after lengthy negotiation with MNTC.

“We’ve been working with MNTC for some time now to ensure this project comes to fruition.  Now that the financing has been finalised, we’re looking forward to making a start on the construction,” he said.

Mr Faulkner said the project pushed Leighton Asia’s work in hand to a record high and was a major boost to the company’s Philippines operation.

“Our work in hand now exceeds A$1.5 billion, a record for the company. This is the largest project we have undertaken in the Philippines and one of our largest in Asia,” he said.

“It will further strengthen our presence in the Philippines and we’re hopeful that our success on this project will eventually lead to further work on Phases II and III of the NLE, “ he said.

MNTC’s shareholders include the Lopez Group (60%), Group Egis of France (10%), and the Philippine National Construction Corporation (10%). MNTC has also attracted international infrastructure funds to invest in 20% of the equity of the project. Group Egis is the world’s largest developer and operator of toll roads.

The debt is being provided by the Export Finance and Insurance Corporation (EFIC) from Australia, the International Finance Corporation (IFC), SEK of Sweden, and a consortium of leading international banks including ABB Structured Finance, Credit Agricole Indosuez, the Dai-ichi Kangyo Bank, DG Bank Deutsche Genossenschaftsbank AG, the Industrial Bank of Japan Ltd., the Sumitomo Bank Ltd. and Westdeutsche Landesbank Girozentrale.

Mr Faulkner acknowledged the contribution made by EFIC.

“EFIC’s input has been invaluable and has ensured that the project will go ahead,” he said.

The North Luzon Tollway Project (NLTP) is a flagship infrastructure project of the Philippine Government. It is the first toll road that will be funded under a limited recourse project financing structure without government guarantee.

When completed, the project will boost significantly the industrial development in Bulacan and Pampanga and the Clark Special Economic Zone by providing a world-class toll road linking Metro Manila to Santa Ines, Mabalacat, Pampanga.

ENDS.

For further information, please contact:
In Hong Kong        
Chris Gordon    
Corporate Communications Manager
Leighton Asia Limited        
Phone: (852) 2823 1493    
Mobile: (852) 9092 0827

In Australia
Justin Grogan
Manager, Investor & Media Relations
Leighton Holdings Limited
Phone: +61 2 9925 6628
Mobile: +61 0401 146 620