San Miguel sets P554-billion toll road expansion
SAN MIGUEL Corp. (SMC) is embarking on a P554-billion expansion of toll roads under its joint venture with state-run Philippine National Construction Corp. (PNCC), with the development of these infrastructure projects set to start as early as next year.
San Miguel Holdings Corp. ( SMHC), the infrastructure arm of the diversified conglomerate, and PNCC inked the deal on Wednesday, which SMC President and Chief Operating Officer Ramon S. Ang said was a reiteration of their existing agreements.
SMHC and PNCC are joint venture partners in Citra Central Expressway Corp. ( CCEC) and Citra Intercity Tollways, Inc. ( CITI), the companies that own the concession rights of Skyway Stages 3 and 4, respectively.
Through its legislative franchise, PNCC has the authority to construct, maintain and operate the South Luzon Expressway (SLEx) and Skyway Stages 1, 2, 3 as well as all extensions, linkages or stretches from any part of the existing toll roads.
“Within the next year or so, we hope that work can begin on the extension of ( South Luzon Expressway), Skyway Stage 3 and C6. We have within our agreement all the extensions that will help us create an entire seamless network of roads and expressways connecting Metro Manila to neighboring provinces. We will operate, between us, the most extensive network of Philippine tollways,” Mr. Ang was quoted in the statement as saying.
Other expansion projects in the pipeline include the San Pedro- C6 Laguna Lake Road that will link SLEx from San Pedro, Laguna to C6 in Taguig; Skyway Stage 8 or Tanauan-Tagaytay Expressway; SLEx Toll Road 5 that will extend the expressway from Pagbilao, Quezon to Matnog, Sorsogon; Skyway Stage 7 that will connect Taguig to Commonwealth Avenue in Quezon City; Buendia Interchange and Ramp Extension to Macapagal Boulevard and Skyway Stage 9 or Pasig River Alignment.
Mr. Ang reiterated San Miguel’s commitment with PNCC “to do everything we can” to deliver the infrastructure projects that fall within their concession agreement. Both parties are looking to fast- track the process of prioritizing and constructing identified projects.
“A dynamic, job-creating economy needs good infrastructure and a good transport system. We need to fast-track infrastructure spending to significantly improve investment into the Philippines. Good roads, good airports, good ports-all of this was needed yesterday, “Mr. Ang said.
For his part, PNCC President and CEO Mario K. Espinosa said: “PNCC is looking forward to exploring with SMHC the possible stretches, linkages and extensions that can be built from the toll roads of our existing joint venture companies.”
Shares in SMC dropped 50 centavos or 0.46% to end at P109 apiece on Wednesday.