"No deal, still, between the Tollways Regulatory Board and San Miguel Corporation."
The state-run Tollways Regulatory Board (TRB) and San Miguel Corporation are at loggerheads.
SMC wants to charge toll, about P274 per entry, for its 18-km Buendia to Balintawak Skyway 3 expressway, the longest elevated toll road in the country. The expressway has been hailed as a game changer because it will ease immensely the traffic on congested 22-km EDSA. Skyway 3 connects San Miguel’s South Expressway to the 104-km North Expressway of the Metro Pacific Group of Manuel V. Pangilinan of PLDT.
But the TRB is opposing the toll imposition, meaning Skyway 3 must be offered free to motorists until TRB can make up its mind. Since 71,000 use the Skyway 3 daily, SMC is losing about P19 million each day of delay in approving the toll rate. San Miguel has offered to halve the rate for the first few years of the Skyway 3’s operation, to ease the burden on motorists because of the pandemic. Still no deal.
It’s all a question of what completion means. Under its contract with the government, SMC can begin charging for Skyway 3 upon 95-percent completion. The company says the Skyway 3 is 97 percent complete. The government’s own auditors say Skyway 3 is indeed 97-percent complete.
President Duterte, with his economic team, inaugurated Skyway 3, on Jan. 14, this year, the 67th birth anniversary of Ramon S. Ang, the SMC president and builder of the Skyway 3 at a cost of P80 billion. Duterte even led the singing of Happy Birthday song for the irrepressible builder of the P1-trillion company.
Duterte was joined by Executive secretary Salvador Medialdea, Finance Secretary Carlos Dominguez, Public Works and Highways Secretary Mark Villar, Transportation Secretary Arthur Tugade, Budget and Secretary Wendel Avisado, Presidential Spokesperson Harry Roque and National Task Force against COVID-19 Deputy Chief Implementer Vince Dizon.
Having connected the south and north of Metro Manila, Ang wants to connect the west of Manila to the east of the metropolis. The Pasig River Expressway project is a 19.4-kilometer, six-lane elevated expressway along the banks of the Pasig River that will complete the north-south, east-west link, connecting R-10 in Manila, Edsa, and C5 and decongesting Rizal, Cainta, and Marikina. It will provide faster, alternative access to the business districts Makati, Ortigas, and BGC. Ang says the project can be completed by 2023.
“Basically, Toll Regulatory Board (TRB) is insisting that Skyway 3 cannot start full operations and collect toll until all ramps are 100 percent complete,” complains Ramon Ang.
He explains:
“Our supplemental toll operation agreement states that we can start collecting at 95 percent completion – we are now 97 percent complete. We need sufficient funds for the toll road’s daily maintenance, proper long-term upkeep and to keep it safe and efficient for the motoring public.
“As Skyway 3’s losses have been mounting because TRB keeps delaying the start of toll collection, the quickest way for our infrastructure unit to speed up 100 percent completion of the ramps would have been to close Skyway 3,” Ang explained.
“Secretary (Arthur) Tugade understands our predicament. Skyway 3 was built at no cost to government. SMC fully-funded the over P80 billion cost to build it. After years of hard work, we opened it last December 29 so we can start serving the public for free, for a reasonable amount of time,” Ang clarifies.
“We have also made a lot of concessions—including lowering toll fees—in the interest of the public. Also, Skyway 3 is new, but heavy everyday use causes it to deteriorate if not maintained properly. We spend a lot for its upkeep, and at the same time lose a lot in foregone revenues. We cannot operate this and serve people if the project is not generating revenues,” says RSA.
Ang notes that the cost of Skyway 3 increased significantly because of problems in the acquisition of right-of-way leading to major redesigns, realignments, reconstructing which raised costs and extended the construction to two administrations.
To fast-track completion, Ang says SMC paid for all right-of-way costs, including paying of properties at prevailing market value. It also shouldered the cost to relocate utilities, as well as the reconstruction of three bridges.
To ensure that motorists will not bear the heavy burden of high toll fees, SMC had also revised the original proposed fare matrix to significantly lower toll rates, to make it more equitable for motorists, especially during this pandemic.
“In good faith, during our earlier discussions with TRB, we lowered the proposed toll rates significantly. Basically, we took out and deferred collection of most of the cost of right-of-way acquisition. After that, we lowered the rates even further, so that people travelling short distances would pay much less,” Ang says.
Ang estimates that at a cost of P10 billion per year to operate the toll road, it is expected to only generate a significantly lower revenue of P4 billion per year based on its proposed toll rate and the existing 60,000 vehicles per day volume.
“Basically, we have done everything to make sure we can viably operate Skyway 3 right away, so we can serve motorists and fulfill our goal, which is to lessen traffic in Metro Manila and hopefully, through better connectivity, create more jobs and economic opportunities for more Filipinos. This is really a team effort, and we need to work together for our country succeed,” Ang says.
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