Gov’t: MPIC has last say on NLEX-SLEX connector road

MANILA, Philippines - The government said yesterday Metro Pacific Investments Corp. (MPIC) would have the last say on how to undertake the P18-billion toll road connecting the North Luzon expressway and South Luzon expressway.

Public Works Secretary Rogelio Singson said on the sidelines of the Philippine Investment Conference organized by the CFA Society Philippines that MPIC would have the final say on whether to undertake the project under the unsolicited mode or under a joint venture scheme.

 “Both are legally possible. They are the proponent and at the end of the day we have to respect what the proponent is saying,” Singson said.

During the last meeting of the National Economic and Development Authority (NEDA) Board, Singson said that President Aquino has instructed the Department of Public Works and Highways (DPWH) to thresh out the legal hindrances to the connector road.

 “In the last discussion among the Cabinet Cluster, we have been asked to finally sort out the legal aspect. Whether it is best on a joint venture or if it follows the original proposal under the Build Operate Transfer Law,” Singson said.

As early as August 2012, the government was supposed to undertake the Swiss Challenge process as stated under the BOT Law. However, the Department of Transportation and Communications (DOTC) recommended that MPIC’s Metro Pacific Tollways Development Corp. (MPTDC) enter into a joint venture agreement with state-run Philippine National Construction Corp. (PNCC) to expedite the connector road project.

The NEDA Board approved the amendment or extension of existing joint venture between MPTDC and PNCC as well as the supplemental toll operations agreement (STOA) to cover the extension of the franchise of NLEX under Presidential Decree 1894.

The NLEX SLEX connector project was originally submitted to the DPWH in May 2010 under the BOT Law.

However, the Department of Justice (DOJ) issued a legal opinion last July stating that the project should be reverted back to the unsolicited proposal and should be subjected to a Swiss Challenge.

Under the unsolicited proposal mode, the project would have to be resubmitted to the NEDA Board for approval and interested proponents would have to be given 90 days to submit counter proposals.

Singson said the DOJ opinion allows both options wherein MPIC could undertake the project through the joint venture agreement or via its unsolicited proposal.

 “It is up to MPIC and we are in discussions with DOTC and DOJ,” he added.

Singson explained that the DOTC is looking at using the right-of-way of the Philippine National Railways (PNR) wherein the connector road would be above the proposed P167 billion North South railway project from Manila all the way to Legazpi City in Albay.

The DPWH chief clarified that the affected portion of the proposed connector road is only the eight-km segment from the PNR to the common alignment at the Polytechnic University of the Philippines (PUP) in Sta. Mesa being undertaken by diversified conglomerate San Miguel Corp. (SMC) as part of the P26.5 billion Metro Manila Skyway Stage 3 project.

 “This week we should be able to resolve that as the President feels that this project is a solution to the port congestion. We all agreed that is a solution to the port congestion,” he added.