MPIC open to partnership with SMC-Citra

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) said it is open to the possibility of teaming up with the San Miguel Corp.-backed Citra Metro Manila Tollways Corp. (CMMTC) in the construction of a toll road that will connect North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX).

In an interview, MPIC chairman Manuel V. Pangilinan said that while the government is inclined towards approving the respective toll road projects proposed by MPIC and SMC-CMMTC, “we are open to partnership.”

But he emphasized that the possibility of a partnership has never been discussed with SMC nor brought up in any of the meetings with the government. “But if brought up, we are open to it,” he said.

In an interview with The STAR, Metro Pacific Tollways Corp. (MPTC) president Ramoncito Fernandez said their proposed connector road project is currently on hold and is awaiting a “formal go or no objection” from the Department of Transportation and Communications (DOTC). MPTC is the toll road subsidiary of MPIC.

The Department of Public Works and Highways (DPWH) has accepted the unsolicited proposal submitted two years ago by Metro Pacific Tollways Development Corp. (MPTDC), a wholly-owned subsidiary of MPTC, to construct, manage, and operate the P17-billion connector road project.

The connector road project involves the construction of a 13.2-kilometer elevated road linking NLEX to SLEX.

MPTC said the road will run along the Philippine National Railway (PNR) tracks within Manila’s central business district, from the end of NLEX at C3 to the beginning of Skyway 1 at Buendia.

The DOTC earlier announced plans for a new high-speed rail project in place of the suspended NorthRail linking the Ninoy Aquino International Airport (NAIA) and the Diosdado Macapagal International Airport (DMIA)in clark The project would cost about $2 billion, DOTC Secretary Mar Roxas said.

Roxas said the exact amount is uncertain in the absence of a detailed engineering design but the Chinese government said it is open to funding this.

He revealed that talks between the Philippine and Chinese governments have been continuing since Chinese officials informed the government last year that it could provide bigger funding for a high-speed rail.

For his part, Fernandez said the express train can co-exist with MPTC’s expressway and that they can be put on the same alignment.

The plan is to finish negotiations with the DPWH on the specifications of the road project after which a “Swiss challenge” will be conducted. It is only after MPTC successfully hurdles the Swiss challenge that the company can proceed with the project.

Fernandez also stressed that if they start now, they can finish the connector road project in two-and-half years’ time.

Earlier, CMMTC said it supports a plan for government to allow the construction of two major tollways connecting NLEX and SLEX.

“Having two major tollways linking the North and South will indeed be very beneficial to the public. Not only will we decongest EDSA, we will also hasten the flow of traffic and commerce between North and South,” CMMTC president Shadik Wahono said

“San Miguel Holdings - Citra Skyway 3 project and the ‘connector’ road of Pangilinan’s Metro Pacific Tollways Corp. (MPTC) will cater to different markets and therefore, serve different purposes, he added.

Citra’s proposed North-South link, a 14-kilometer, six-lane tollway with exits in Quirino in Manila and Plaza Dilao, Aurora Blvd., E. Rodriguez Ave., Quezon Blvd., Sgt. Rivera, and Balintawak in Quezon City, is seen to greatly decongest EDSA. MPTC’s connector road, on the other hand, will have four lanes and three exits in Quirino, Espana, and 5th Ave.

“We don’t mind if the government will allow both Citra and MPTC to undertake their projects. The more that the roads complement each other, the better the traffic throughput would be,” he said.

This was also the position that the San Miguel Holdings - Citra consortium adopted when it announced late last year that it was prepared to spend $1.5 billion for infrastructure acquisitions and development in the country for 2012.

In May 2011, Citra submitted its updated investment proposal for the Citra Skyway (Stage 3) to the Toll Regulatory Board (TRB) and the DPWH. It is currently waiting for the government agencies to complete their evaluation. The Citra Skyway (Stage 3) is a component of the Metro Manila Skyway Project approved by the government in 1995.