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SMC, MPIC clash on road projects

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Conglomerates Metro Pacific Investments Corp.  (MPIC) and San Miguel Corp. are on a collision course again over differing proposals on how to fund and build the shared portion of two north-to-south connector roads.

San Miguel-led Citra Metro Manila Tollways Corp. said it planned to build the shared Metro Manila Skyway extension from Buendia to the Polytechnic University of the Philippines (PUP) on its own and just get a reimbursement from MPIC after construction has been completed.

“I think our proposal is fair and makes the most sense. Everybody wins,” Citra president and CEO Shadik Wahono said at a press conference. “If we pay 50 percent of the cost, but receive less than 50 percent of the traffic, then it will be a negative investment on our part,” he said.

He said both firms would end up splitting the cost of construction of the shared road, with their respective contributions being determined by how much traffic they would separately bring in.

Worth an estimated P7 billion, the 5-kilometer extension will be shared by both Citra and MPIC, which both have approved proposals to construct roads on separate alignments that aim to connect the Skyway with the North Luzon Expressway (NLEx).

Both proposed roads, named the “connector road” for MPIC and Skyway Phase 3 for Citra, will start at the end of the shared portion before veering off in different directions to their respective alignments.

MPIC holds the concession to NLEx while Citra controls the Skyway.

“If more of the cars go to their connector, then they will have to pay a bigger portion of the bill. Conversely, if they have fewer cars, then their share will be smaller,” Wahono said. “The same goes with us.”

As with the cost of construction, Wahono said Citra’s proposal to the government also indicated that revenues from toll to be collected from motorists should be split between the two companies based on the share of traffic.

MPIC, chaired by Manuel V. Pangilinan, disagreed with Citra’s proposal, adding that the shared portion of both connectors should be built under a 50-50 joint venture.

“What we want is to be treated as a co-equal in this project. They want to go solo and just ask for a reimbursement from us [after construction]. We won’t allow that,” said Ramoncito Fernandez, president of MPIC unit Metro Pacific Tollways Corp., the unit handling the group’s road assets.

Fernandez went as far as to accuse Citra of “bad faith” for submitting a proposal to the government while negotiations with the MPIC group were still ongoing.

In a statement, Citra said its officials met with counterparts from MPIC several times to discuss the revenue-sharing scheme. The meetings happened on September 20, October 24 and November 14.

Citra claimed that last November 20, MPIC president and CEO Jose Ma. K. Lim agreed that the new Citra offer was superior to what MPIC had originally proposed.

In the earlier meetings, Citra said MPIC acknowledged the San Miguel group’s prior rights and concession over the so-called common alignment and it accepted that Citra would construct the common segment provided MPIC would be given proper connection at PUP.

MPIC also agreed that both parties would have toll plazas after the common segment and the common segment would charge based on an “open system” or fixed tolls to avoid interoperability issues.

Citra said MPIC agreed to sign an assignable memorandum of understanding (MOU) because whoever would win the Swiss challenge for the connector road would be the proper legal entity that would enjoy the cost and revenue-sharing arrangement with Citra.

Under the original proposal, MPIC wanted to share 50-50 of the cost but get revenues based on traffic that would pass its alignment.


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  • sorbetero

    To break any deadlock, just refer the matter to DMCI , Consunji’s group hired as consultant, could give the correct , objective and economical solution. That’s proven and tested , backed by years of competence.

  • sorbetero

    Competition is always good for the business but even better for the consumers. Healthy competition is a corner stone of capitalism and its end product is progress and wealth for the people.

  • superpilipinas

    They are talking about their profits yet nobody is talking about how good and cheap it will be for the people. Wa that ever mentioned in any news?

    So we the people have no say in this? If they raise the toll price to recover their cost, we are not given any choice?

    Seems to me like crocodiles fighting over who gets to eat more people.

    The government should inform us who would give us, the road users, more benefit!!! Huwag kayong inutile!

  • http://profile.yahoo.com/UZMYIL5FXLVIHRZXBQGONZS6U4 Jhune

    Huwag na kayong mag away, gumawa nalang kayo ng tag iisa para gumanda ang competition, kahit kunti pabor sa mga gagamit, gaganda pa ang traffic. Pag nagkataun at nag kaintindihan ang dalawa na ito during operation wala na tayong pag pipilian. Kung dalawang kalsada, siyempre sa mas mura ako dadaan. 

  • http://pulse.yahoo.com/_S255VAIM5MHUTMYUGHNF5PTE6Y teddy

    mpic is throwing a monkey wrench to the project to the detriment of the riding public. 

  • http://profile.yahoo.com/36O4ZGE5JY24XE4XQOXBM6O4WE Klepto

    Ang mga buwayang negosyante. Pera lahat ang bottom line ng kahit anong negosyo. Babayaran ko ng tig isang libo sina MVP at Wahono kung tsutsupain nila etong uten ko.

  • http://pulse.yahoo.com/_47AS3MXEHKUW6IEMD5W3CCDWKQ gary

    The govt can fund this section and get it over with. 82 B in reserves. get it going

    • http://profile.yahoo.com/AIYSIJJOL4JNRLHXVTGUH3NYHM The Overlord

      The foreign reserves of PH cannot be used for anything other than being “reserved” in the international market or be loaned to other countries or organizations (like the IMF). Even in PNoy wants to get the whole 82B, he cannot. The reserves act as a buffer against forex fluctuations. Get your head straight before commenting obviously devoid-of-research posts.

      • http://pulse.yahoo.com/_47AS3MXEHKUW6IEMD5W3CCDWKQ gary

        So who owns these reserves? the Govt can ask for a loan to the BSP. Sure we can loan money to the IMF but not to our own coffers? The BSP has in fact articulated to the Govt how to do this as they have issues about what to do with such reserves. . The reserves act as buffer to forex fluctuations? this is what the 82B USD for really? get it to your head that we can do waht we want with our own reserves. The US Govt have done this with the US FED with the Bailout money int heir time of crisis.

      • http://pulse.yahoo.com/_47AS3MXEHKUW6IEMD5W3CCDWKQ gary

        The BSP is a bank. It loans money. It has loaned 1B USD to the IMF. Our own Phil banks go to the BSP when they are in need of money. Surely the most credit worthy of them all , the Govt with its unlimited power to print money can go to the BSP  and find ways to get a loan  . 

  • rickysgreyes

    Oh just get it done please. Extend the road to PUP NOW.



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