SMC pushes bid for more PPP projects

MANILA, Philippines - Diversified conglomerate San Miguel Corp. (SMC) is serious in its bid to win more major infrastructure projects under the public-private partnership (PPP) program of the Aquino administration.

SMC president and chief operating officer Ramon S. Ang said the company through its infrastructure arm Optimal Infrastructure Development Corp. is participating in other PPP projects.

“Lahat ng bidding lalabanan natin yon,” Ang stressed. Ang is confident that SMC’s revenues would hit $50 billion over the next five years or about 150 percent compared to the current level of $20 billion on the back of the expansion of existing businesses as well as aggressive acquisition program.

Ang is singing a different tune after getting frustrated earlier after the Department of Transportation and Communications (DOTC) prevented owners of airlines from participating in the P17.5 billion Mactan-Cebu International Airport expansion project. The provision was later revised to allow a limited 33 percent ownership for airline companies.

Last April 15, SMC’s Optimal Infrastructure submitted the highest bid for the 10-kilometer Ninoy Aquino International Airport (NAIA) expressway project being undertaken by the Department of Public Works and Highways (DPWH).

SMC’s wholly-owned subsidiary submitted the highest bid of P11 billion up-front cash payment for the expressway project, winning over the P305 million submitted by Manila North Tollways Luzon Corp. (MNTC) of publicly-held infrastructure conglomerate Metro Pacific Investments Corp. (MPIC).

The proposed four-lane, 7.75-kilometer elevated expressway and 2.22 km at-grade feeder road would alleviate existing and future traffic problems going to and from the NAIA as well as Manila International Airport. It would provide access to NAIA Terminals 1, 2, and 3 linking the Skyway in the South Luzon

Expressway (SLEX) and the Manila-Cavite Toll Expressway (Cavitex).

The first phase of the road project was completed by SMC’s Citra Metro Manila Tollways Corp. through the construction of an off-ramp that leads to the front of the NAIA Terminal 3.

SMC has been prequalified to join the bidding for the proposed P30 billion light rail transit line 1 (LRT1) extension all the way to Bacoor in Cavite from Baclaran in Pasay City and has also submitted qualification documents for the controversial P17.5 billion Mactan-Cebu international airport expansion project as well as the P1.72 billion automated fare collection system for the LRT and Metro Rail Transit 3 (MRT3).

SMC through San Miguel Infra Resources Inc. lead the group composed of GS Engineering and construction Corp. and POSCO Engineering and Construction Co Ltd. as well as partner Korea Railroad Corp. has been prequalified for the proposed LRT1 extension with a total cost of P60 billion including the acquisition of trains to be shouldered by the government.

It would compete with the the Light Rail Manila Consortium composed of infrastructure giant MPIC and conglomerate Ayala Corp. – the MTD-Samsung Group, and DMCI Holdings Inc.