Malacañang to clear way for SMC toll road project

President Aquino is set to throw out an Arroyo administration rule that now stands in the way of the construction of two toll roads, connecting the Metro Manila Skyway and the North Luzon Expressway (NLEx).

Transportation Secretary Joseph Abaya on Monday said Malacañang would repeal Executive Order No. 686, which transferred the power to sign road concessions from the Toll Regulator Board (TRB) to the Department Public Works and Highways.

“The EO prohibits TRB from entering into contracts,” Abaya told reporters. “We were made aware of this by the legal staff of the office of the Executive Secretary.”

“If we sign any deal while this EO is in effect, there will be a cloud of doubt. We met with the President recently, and the decision was to repeal the EO. We’re just waiting for the repealing [executive order],” he said.

EO 686, described as an order “Transferring back the Toll Regulatory Board from the Department Of Public Works and Highways (DPWH) to the Department Of Transportation and Communications and clarifying its mandate, was signed in 2007.

Abaya said the power to sign road concession deals was transferred to the DPWH, even though provisions of the toll agreements were enforced directly by the TRB.

Once the EO has been repealed, Abaya said, the TRB could approve the Supplementary Toll Operations Agreement (STOA) for the construction of the Skyway phase 3 by concessionaire Citra Metro Manila Tollways Inc.

Citra is controlled by diversified conglomerate San Miguel Corp.

Skyway 3 is one of two diverging roads that seek to connect the existing Skyway with the North Luzon Expressway (NLEx).

The other project, the so-called connector road, is being undertaken by NLEx concessionaire Metro Pacific Tollways Corp. (MPTC).

Skyway 3 is part of Citra’s original deal with the government and will not need to go through a bidding process.

In contrast, MPTC’s connector road was offered as an “unsolicited proposal,” which has to be subjected to a Swiss challenge, allowing other interested parties to submit better offers.

MPTC has the right to match the best offer to win the project.

Before the Swiss challenge can proceed, however, Citra’s STOA would have to be finalized because this would include terms for the shared portion of the two roads for both concessionaires.

“Once the EO is repealed, (Citra’s) STOA will be sent to the President for approval. Then we can issue the notice to proceed,” Abaya said.

Both roads would provide an alternative to major thoroughfares like Edsa and C5 for motorists.

MPTC’s connector road aims to serve trucks that wish to get to Manila’s port area, where most of the country’s cargo traffic passes through, without going through congested public roads.

Citra’s Skyway 3, meanwhile, has more exits, and passes through busier parts of Metro Manila, making it ideal for inner city traffic once it’s completed.

Both roads would eventually lead to the NLEx, which is operated by MPTC through a subsidiary. MPTC is the tollroad arm of conglomerate Metro Pacific Investment Corp., which also has interests in hospitals, power distribution, and water utilities.