Citra in talks with investors for funding of Skyway project

The completion of the Metro Manila Skyway project will resume soon as the Indonesian firm P.T. Citra Lamtoro Gung Persada has renewed talks with its investors and creditors for funding Stage 2 and 3 of the elevated highway system.

Government sources revealed over the weekend that PT Citra Lamtoro Gung Persada has begun looking into new strategies that would allow its joint venture company to resume and eventually complete the project.

According to sources, the Indonesian company wanted to resume the construction of Stage 2 and 3 of the Skyway but this would require fresh infusion of capital funds.

Sources said the firm, together with the Philippine National Construction Co. (PNCC) were trying to raise funds to be able to complete the facility and improve the financial returns of the entire Skyway system.

PNCC had formed a joint-venture company with PT Citra Lamtoro, known as the Citra Metro Manila Tollways Corporation (CMMTC), which was in charge of the project’s financing, design and construction.

The Skyway facility itself, however, is maintained and operated by PNCC Skyway Corp. (PSC), a subsidiary of PNCC which formed the company in compliance with a stipulation in the Supplemental Toll Operations Agreement (STOA) signed between the PNCC and P.T. Citra Lamtoro.

Thus far, the joint venture has only completed the first 4.7-kilometer Stage 1 of the project from Buendia Ave. in Makati to the Bicutan exit of the South Super Highway.

Stage 1 which was opened to the motoring public on Dec. 17, 1998, cost a total of $419 million. However, sources said Stage 2 and 3 would have to be re-evaluated in order to update the project cost estimate based on current assumptions.

Sources said the Indonesian company was eager to resume the project because Stage 1 could not be maximized if the Skyway was not extended from Bicutan to Alabang (Stage 2) and from Buendia to Balintawak (Stage 3).

"But the more crucial portion that the Indonesian investors are eager to complete is Stage 2 since this is critical to the immediate profitability of the existing Skyway facility," the source said.

When completed, the Skyway system will cover 37 kilometers and connect to the Alabang Viaduct which also has to undergo a major rehabilitation before it is allowed for use by the general public.

The Alabang Viaduct rehabilitation, however, is not part of the Skyway project but another PNCC undertaking that would also include the extension of the South Luzon Expressway (SLEX) from Calamba in Laguna to Sto. Tomas, Batangas where it would link to the Batangas Port.

The project was made critical by the component that required the immediate rehabilitation of the Alabang Viaduct which has been closed to large vehicles for years.

The project is to be funded by the PNCC out of a loan for the National Development Co. (NDC), the state investment arm, under a build-lease-own scheme where PNCC will build and then lease the facility.