Metro Pacific Investments Corp. (MPIC) is in talks with San Miguel Corp. (SMC) to form a joint venture company that will further expand their synergy in the tollways business.
Last August, the two conglomerates ended their rivalry in the tollways business when they sealed an agreement to jointly construct and operate two major expressway projects that will connect Cavite and Batangas costing P72 billion.
“In the case of tollways, if we manage to combine our two tolls, it’s a good candidate form to list in the stock exchange and can become a major factor in energizing the stock exchange,” Manuel Pangilinan, MPIC chairman, said in an interview on the sidelines of PLDT’s financial briefing.
“We are giving up at least 40 percent of our joint equity in the tollway company,” Pangilinan added.
Aside from tollways, MPIC is looking at other areas of cooperation.
“Yes, we are looking at other areas where we can cooperate and create a critical mass, for example, in the case of tollways if we manage to combine two tollways,” Pangilinan said. “I guess the lesson there is that if we decide to set aside differences and work together in the business, I think the benefit will be significant for the people.”
Under the memorandum of agreement to design, build and operate the 87.96-kilometer Cavite-Batangas Expressway (CBEX) and Nasugbu-Bauan Expressway (NBEX), MPIC’s tollways unit Metro Pacific Tollways Corp. and SMC will jointly undertake the construction, operation and maintenance of the 88-kilometer-long toll road projects.
This will encompass two vital expressways: the 27.06-km CBEX that will establish a crucial link connecting Cavite-Laguna Expressway’s Silang (Aguinaldo) Interchange to Nasugbu, Batangas; and the 60.90-km NBEX that will provide seamless connectivity from Nasugbu to Bauan, Batangas.
The groundbreaking is scheduled for 2024. CBEX and NBEX are expected to be completed and open to the public in 2027.
The route will traverse the towns of Silang, Amadeo, Tagaytay, Indang, Mendez and Alfonso in Cavite, before crossing into Nasugbu and finally reaching Bauan in Batangas.
