DOTC sets compromise to end connector road impasse

MANILA, Philippines - The Department of Transportation and Communications (DOTC) came up with a compromise to solve the impasse between the proponents of the ambitious North Luzon expressway and South Luzon expressway connector roads.

Transportation Secretary Joseph Emilio Aguinaldo Abaya said in a text message that the government has reached a decision on the scheme that would cover the common area of the proposed connector roads to be constructed by the unit of diversified conglomerate San Miguel Corp. (SMC) and First Pacific’s Metro Pacific Investments Corp. (MPIC).

“Yes we have reached a decision,” Abaya stressed.

Both SMC’s Citra Metro Manila Tollways Corp. and MPIC were given until Dec. 15 to come up with a unified proposal on the common area.

“They just couldn’t agree so the government will come in and decide for the group. They will follow what the government will decide,” Abaya stressed.

Under the proposal of Citra, the company would initially fund the cost of the construction of the common area using a consensual contractor. Once the road connects, the other proponent would have to pay half of the total cost.

Under the proposal, the proponents of both connector roads would initially split 50-50 of the total revenues but on the third year once the traffic have stabilized the share of the revenues would depend on the traffic.

The other proposal of MPIC calls for a 50-50 share in the total cost of construction of the common area as well as a 50-50 split in revenues regardless of traffic volume.

Abaya did not elaborate on the scheme to be used but pointed out that the agreement would be included in the supplemental toll operation agreement (STOA) being finalized by the Toll Regulatory Board (TRB).

“TRB will incorporate it (agreement) in the STOA which requires Presidential approval before notice to proceed is given,” he explained.

According to him, the provisions in the STOA would likewise be the basis for the Department of Public Works and Highways (DPWH) to undertake the Swiss challenge for the project.

The DOTC wants to construction of the connector roads to start early next year so that this infrastructure would be completed in time for the Leaders Meeting of the Asia Pacific Economic Cooperation (APEC) which the Philippines would be hosting in 2015.

Both MPTC and Citra should have a common area spanning five kilometers from Quirino in Manila up to Nagtahan in Sta. Mesa in Manila crossing the Pasig River.

President Aquino decided to let both MPTC and SMC to build their own connector roads to be completed by 2015.

The road projects would connect Makati City where the SLEX ends to Caloocan and Balintawak where NLEX starts. The project cost is placed at P45 billion.