The joint venture (JV) of San Miguel Corp.’s infrastructure arm San Miguel Holdings Corp. (SMHC) and state-run Philippine National Construction Corp. (PNCC) is in talks with the government to finalize the contract to build two expressway projects worth over P100 billion.
In a statement, the Toll Regulatory Board (TRB), an agency under the Department of Transportation (DOTr), said it has approved the proposal submitted by the PNCC-SMHC JV to build the South Luzon expressway (SLEx) Toll Road 5 and the Pasig River expressway (PAREx).
Both were declared as toll road projects in a TRB resolution dated June 29, 2020.
TRB’s technical working group (TWG) — composed of representatives from the DOTr, Department of Public Works and Highways, Department of Finance, National Economic and Development Authority as well as the private sector — is now discussing with the JV the technical, financial and legal details of the two projects that will lead to the finalization of the concession agreement.
“The PNCC-SMHC joint venture requested that government recognize the 2 projects as toll road projects. These have their respective basic design plan. The TRB has given an instruction to the TWG to discuss the details of the project with the JV that will be the basis of the concession agreements. We are also waiting for the JV to submit certain requirements,” TRB said.
Construction of the two projects is eyed to begin within the remaining two years of the Duterte administration.
Presidential Decree No. 1112 mandates the TRB to supervise, monitor and regulate the construction, operation and maintenance of toll facilities as well as the rates that may be charged.
The SLEx Toll Road 5 is a four-lane divided toll road that starts from the terminal point of the SLEx Toll Road 4 project at Barangay Mayao, Lucena City in Quezon, and ends at Matnog, Sorsogon near the Matnog ferry terminal.
The toll road is approximately 420 kilometers long with eight segments and 28 interchanges. Segment 1 from Lucena to Gumaca is estimated to cost P22.6 billion, with an implementation period of 24 months.
The proposed 19.365-km. PAREx starts from Radial Road 10 in Manila and will end at a connection to the South East Metro Manila expressway at Circumferential Road 6. It will connect Manila to Rizal through a six-lane elevated expressway that will traverse the entirety of the Pasig River.
The project, which was earlier approved in principle by members of the TRB board, is estimated to cost P95.413 billion, with an implementation period of 36 months.
Through its legislative franchise, PNCC has the authority to construct, maintain and operate the SLEx and Skyway Stages 1, 2, 3 as well as all extensions, linkages or stretches from any part of the existing toll roads.
San Miguel operates major expressway projects in the country including SLEx, Skyway Stage 1, STAR Tollways from Sto. Tomas to Lipa City Batangas, NAIA Expressway and Tarlac-La Union-Pangasinan expressway.
At present, the company is constructing infrastructure projects including Skyway Stage 3, an expressway linking North Luzon expressway and SLEx; Skyway Stage 4 from South of Metro Manila Skyway to Batasan Complex in Quezon City; and the Metro Rail Transit line 7. Also, construction of its Bulacan International Airport is set to begin this year.
