San Miguel eyes higher stake in 2 North Luzon tollway projects

MANILA, Philippines – As part of its bid to be one of the biggest players in the tollway business, diversifying conglomerate San Miguel Corp. (SMC) is pursuing plans to increase its stake in two expressway projects in Northern Luzon.

SMC president Ramon Ang told The STAR that they have an agreement with Private Infrastructure Development Corp., which is constructing the 88-kilometer, four-lane Tarlac-Pangasinan-La Union Toll Expressway (TPLUEP) project, to increase SMC’s stake in the company from the current 35 percent to 51 percent.

PIDC is a consortium of companies, led by constructing giant DMCI Inc., that will undertake the $312.5-million tollway project. SMC, through Rapid Thoroughfares Inc., owns 35 percent of PIDC while DMCI has a 32-percent stake.

Also part of the consortium are First Balfour Inc., DM Wenceslao and Associates Inc., CM Pancho Construction Inc., RD Policarpio and Co. Inc., JV Angeles Construction Corp., JE Manalo and Co. Inc., New Kanlaon Construction Inc., EEI Corp. and Rockford Development Corp.

Originally named the Subic-Clark Tarlac Expressway Extension Project (SCTEX2), TPLUEP involves the construction of a four-lane elevated expressway from Tarlac to Rosario, La Union, passing through Tarlac City/La Paz-Victoria-Gerona-Paniqui-Moncada in Tarlac province; San Manuel-Carmen-Urdaneta-Binalonan-Pozorrubio-Sison in Pangasinan province; and Rosario in La Union province. It also includes two bridges crossing Agno and Bued Rivers totaling 3.66 kilometers and 12 interchanges.

The project is expected to be completed by 2013. Ang said during the interview that the project is on schedule but it can still be accelerated.

Earlier, he noted that the North to Central Luzon stretch is a potentially dynamic industrial corridor and the proposed expressway will make it easier and more cost effective to move goods and people from one point of Luzon to another.

Meanwhile, Ang also revealed that SMC is in talks to acquire up to 67 percent stake in Ausphil Tollways Corp., a Filipino-Australian consortium that is the main project proponent for the North Luzon East Expressway (NLEE) project. At present, SMC has a minority stake in Ausphil.

Ang said the NLEE will begin as soon as the documentation is finished. The NLEE will extend from Commonwealth Avenue in Quezon City to as far north as Tuguegarao in Cagayan province. It is an unsolicited build-operate-transfer project for the development, financing, operation and maintenance of the toll concession corridor. NLEE has been designated as an official toll road project by the Toll Regulatory Board (TRB).