The Toll Regulatory Board (TRB) is awaiting the formal termination by San Miguel Corp. (SMC) the P95-billion Pasig River Expressway (PAREX) project to avoid paying a penalty.
The project’s status is considered pending at the final engineering design stage sans any formal communication from SMC it is cancelling the project.
“Technically, it is still on the table because they (SMC) have not confirmed that they are terminating the contract or the project,” Alvin Carullo, TRB executive director, told reporters last Thursday.
Last March, the TRB deferred the submission of the final engineering design for six months, or from March until September this year, following the announcement of Ramon Ang, SMC president and chief executive officer, t the company will no longer push through with the project considering the public opinion on the initiative.
“At this time, it is pending. As to the PAREX Project, it is in the final engineering design stage. Because of the recent developments, the Board deferred the deadline of submission for six months. If the TRB receives the official communications, then we will give the proper report to the Board,” Carullo said.
Under, the Supplemental Toll Operation Agreement (STOA) for the project, there will be a monetary penalty if the government terminates the project.
Carullo said if SMC unilaterally withdraws, the government has no financial obligation.
“If the government itself will be the one to terminate, there will be legal consequences and it includes monetary consequences,” Carullo said, citing the material adverse government action clause of the project.
The STOA for the PAREX project was signed three years ago by the Department of Transportation, Department of Public Works and Highways, TRB and Philippine National Construction Corp., and Pasig River Expressway Corp. and Skyway O&M.
In 2021, SMC secured the green light from the government to build the country’s first green, hybrid highway, PAREX.
PAREX is a 19.37-kilometer, six-lane elevated road that will run along the banks of the Pasig River, from Radial Road 10 (R-10) in the City of Manila to Circumfrenetial Road 6 (C-6), also known as the future South East Metro Manila Expressway in Taguig.
The project is planned to have three major segments: Segment 1 is from R-10 to Plaza Azul, Manila; Segment 2 is from Pandacan to C-5; and Segment 3 is from C-5 to C-6. PAREX will also connect to and utilize a 2.7-km portion of the new Skyway Stage 3 from Nagtahan to Plaza Azul.
SMC, through its infrastructure arm, also operates major expressways in the country – Tarlac-Pangasinan-La Union Expressway, Skyway System, NAIA Expressway, South Luzon Expressway, Southern Tagalog Arterial Road and Skyway Stage 3.
