Gov't to assume air rights over PNR tracks

MANILA, Philippines - The government is coming up with an executive order (EO) for the transfer of air rights over train tracks in Metro Manila from the Home Guaranty Corp. (HGC) to the national government which will be used for a planned toll road to connect the North Luzon and South Luzon expressways, a cabinet official said yesterday.

“That (air rights) is now with HGC. There is now going to be an EO that will revert (it) back to the national government,” Transport Secretary Manuel Roxas II said in a press conference yesterday.

The HGC, he said, would be compensated as the air rights over the Philippine National Railway (PNR) rail track from Caloocan to Sen. Gil Puyat Ave. in Makati City, are transferred to the national government.

The air rights, he said, would be in effect,  the national government’s contribution to the connector road project to link the NLEx to the SLEx.

The HGC became the owner of the air rights in exchange for assuming the guaranty obligation to investors in the 1996 Sariling Pabahay sa Riles housing project, which is a joint-venture project of the PNR, National Housing Authority and the Housing and Urban Development Coordinating Council.

Metro Pacific Investments Corp.’s (MPIC) proposal for a connector road involves a 13.4 kilometer, four-lane, elevated expressway over the PNR.

Roxas said the MPIC’s proposal would be accepted by the Department of Public Works and Highways as an unsolicited bid and would be subject to a Swiss challenge, which would involve other parties submitting their own proposals before the project is approved by the National Economic and Development Authority Board.

“Our target is sometime in October, there will be Swiss challenge (for MPIC’s proposal) so that by early next year, it can start,” he said.

He said in the same event, the construction of San Miguel Corp.’s (SMC) proposed connector road can proceed this year.

SMC President Ramon Ang told reporters on Wednesday that they plan to immediately start the connector road project after it is given the greenlight by the Toll Regulatory Board (TRB).

“We want to start as soon as possible once we are given (go-signal) by the TRB,” he said.

The SMC project is being undertaken as a continuation of the existing franchise of the Philippine National Construction Corp.

Ang said the P25 billion project will involve the construction of a six-lane, 14-kilometer road to link Buendia to Balintawak.

The toll rate, he said, would be at P99.

He said he expects the project to be completed after 30 months or by 2015.

Roxas said the projects are expected to bring benefits to the economy, providing 16,000 jobs.

He also said the projects would be good for businesses since delivery of goods will no longer be limited to being done at night given alternative roads.