SMC says P11B for NAIA project now ready

MANILA, Philippines - Diversified conglomerate San Miguel Corp. (SMC) is ready to remit the P11 billion upfront cash payment for the 7.5-kilometer elevated Ninoy Aquino International Airport (NAIA) expressway project.

SMC chairman and chief operating officer Ramon S. Ang said in a text message to The STAR that the funds are available for upfront cash payment. “Yes, the cash is available,” Ang replied when asked if the funds for the upfront cash payment are already available.

Ang said the diversified conglomerate does not need to borrow to raise funds for the upfront cash payment to the government.

The financial statement of SMC showed that the company’s cash balance stood at P125.6 billion and its assets reached P1.038 trillion as of end-2012.

The Department of Public Works and Highways (DPWH) issued the Notice of Award (NOA) to SMC’s Optimal Infrastructure Development Inc. for the expressway project last May 6.

The DPWH said SMC would have to hand over to government the P11 billion upfront cash payment it offered in their bid within 30 days from the issuance of the notice of award.

However, several issues including the mode of payment of the upfront cash as well as the right-of-way deliverables would have to be finalized during the 30-day period.

The right-of-way issue would have to be resolved by the government as this is crucial for the expressway that would be constructed by SMC under the public private partnership (PPP) scheme.

“It’s about giving the government a fair value and looking at it from the perspective of a conglomerate that is expected to realize tremendous synergies from a seamless toll road network,” Ang said. 

 As the winning bidder, SMC would operate the airport toll road for a period of 30 years, including the 36 months given for the completion of the detail design and construction of the project. The signing of the project is slated for June 2013 while the target construction period is from December 2013 to August 2015.