MANILA, Philippines - Metro Pacific Tollways Corp. (MPTC) has submitted an unsolicited proposal to undertake Stage 3 of the Metro Manila Skyway project.
Sources told The STAR that with Citra Metro Manila Tollways Corp. (CMMTC), which holds the concession for Skyway’s Stage 1 and 2, having waived its concession over Stage 3 after encountering delays in the second phase, Stage 3 is now anybody’s ballgame.
CMMTC lists Indonesia’s PT Citra Marga Group, the Philippine National Construction Corp. (PNCC) and Metro Pacific Tollways Corp. (MPTC) as its shareholders. The Indonesian group holds the largest stake in CMMTC, followed by PNCC whose stake has been diluted from 20 percent to 11 percent, and MPTC with less than five percent.
Sources explained that the dilution of PNCC and MPTC came about after the Indonesian firm brought in new money into the Skyway project. “The financial restructuring was necessary to undertake Stage 2,” they said.
However, despite CMMTC having waived its concession over Stage 3, it now appears that the Indonesian-led group now wants another chance at having it built.
According to Eduardo Nepomuceno, head for special projects and operations of CMMTC-unit Skyway Operations and Maintenance Corp. (Somco), CMMTC may still pursue Stage 3 of the Skyway project whose cost may increase from the original $570 million due to materials price escalation in two years’ time. “CMMTC being the project proponent will have to determine the project’s viability,” he added.
Nepomuceno pointed out that their focus right now is on completing Stage 2 of the Skyway project, which is expected to be finished by May next year.
Skyway’s Stage 2 will extend the existing 9.5-kilometer Buendia-Bicutan elevated toll road by about seven kilometers, from Bicutan to Alabang. The third stage, which will extend from Buendia to Balintawak (connecting North Luzon Expressway ((NLEX) to the South Luzon Expressway (SLEX), covers about 13 kilometers.
The sources said the third phase of Skyway is considered a different project all together and no longer Stage 3, since it is no longer under CMMTC.
Stage 3 is still in the planning stages due to right-of-way problems. It has been reported that the proponent is looking at the possibility of using the Philippine National Railway (PNR) tracks.
MPTC president Ramoncito Fernandez earlier said they are in talks with other shareholders of CMMTC to acquire their shares and enable MPTC to increase its stake to 33 percent by June this year.
MPTC, a unit of Metro Pacific Investments Corp. which, in turn, is a subsidiary of Hong Kong-based First Pacific Co. Ltd. was previously negotiating with Indonesia’s Citra Group for its Skyway stake.
Fernandez added that the company is eyeing the 20 percent interest held by PNCC, although PNCC sources said they have yet to receive an offer from MPTC.
The Metro Pacific group sees the Skyway project as an important component in its plan to connect the NLEX and SLEX.
Earlier, MPTC submitted an unsolicited proposal to build a P17-billion road linking NLEX from C-3 in Caloocan City to Buendia Ave. in Makati City. The road will be a 13 km four-lane elevated road and will cut travel time from NLEX to SLEX to as little as 15 minutes.
Stage 1 of the Skyway project is a 9.3-km. elevated expressway starting from Buendia, Makati to Bicutan in Parañaque. At present, Skyway is being extended by seven km to Alabang in Muntinlupa City at a cost of P10 billion, representing Stage 2.
To finance these projects, MPTC plans to raise as much as $200 million via a share sale, a bond offer or private placement to fund the company’s capital expenditure program this year, Fernandez said.
Manila North Tollways Corp. (MNTC) holds the concession to operate and maintain NLEX and is owned 67.1 percent by MPTC. The Tollways Management Corp. (TMC), owned 46 percent by MPTC, operates the NLEX for MNTC and has an interim agreement to operate and maintain Subic-Clark-Tarlac Expressway (SCTEX).
The Metro Pacific group, led by businessman Manuel Pangilinan, has previously expressed its interest to buy into the South Luzon Tollways Corp. (SLTC), operator of SLEX, by acquiring PNCC’s stake.
Earlier, Pangilinan said CMMTC’s project complements the SLEX and what they have in the north.
Despite MPIC’s plan to beef up its stake in CMMTC, Pangilinan said PT Citra and PNCC, which holds the 30-year Skyway concession, will remain as important stockholders of the company.
Apart from investing in CMMTC, MPIC is also interested to take part in the Coastal Toll Road project.
Earlier, MPIC, through MPTC, launched P38.1 billion worth of road projects in North Luzon.
MPTC has started the construction of the 2.7-kilometer Segment 8.1 road that will link Mindanao Ave. in Quezon City to the NLEX. In the pipeline are Segment 9 and 10, which will connect NLEX to MacArthur Highway in Valenzuela and Port Area in Manila; NLEX-SLEX connector road expressway from C3 road in Caloocan to Buendia Ave. in Makati; and the Skyway Stage 2 from Bicutan to Alabang.