MANILA Jan 22 A consortium composed of
Philippine conglomerate San Miguel Corp and Indonesia's
Citra Group may finance as much as 80 percent of a $590 million
Manila road project through borrowing, a San Miguel official
said on Wednesday.
The Skyway Stage 3 project, a 14.8-km elevated tollway
connecting the North Luzon Expressway (NLex) to South Luzon
Expressway (SLex), will be fully funded by Citra Central
Expressway Corp consortium. Both expressways link Manila to
provinces north and south of the capital.
The consortium, which also includes state-run Philippine
National Construction Corp (PNCC), will spend 26.6 billion pesos
($590 million) to complete the project by 2016, San Miguel
President Ramon Ang said.
"This connector road project can be funded with up to 20 to
30 percent equity," Ang told reporters. He could not provide
full financing details.
President Benigno Aquino, who pushed the button that
signalled the official launch of the project's construction on
Wednesday, said the tollway would help ease traffic on Manila's
main Edsa highway.
A recent study from the Japan International Cooperation
Agency estimates economic losses from traffic congestion in the
capital at 2.4 billion pesos ($53 million) daily.
The government is offering a number of Public-Private
Partnership (PPP) projects involving roads, airports and other
infrastructure to improve the country's image and boost growth
of one of Asia's vibrant economies.
San Miguel won some of those PPP deals, including a $380
million airport expressway project in Manila.
San Miguel has aggressively expanded away from its
traditional food and drinks businesses in the last five years,
adding infrastructure, telecommunications, power and oil
refinery, and mining to its portfolio.
Its newest tollway project will compete with that of rival
conglomerate Metro Pacific Investments Corp, which on
Tuesday signed a joint venture deal with PNCC for a $400 million
road project that will also link NLex and SLex using a different
($1 = 45.2800 Philippine pesos)
(Reporting by Erik dela Cruz; Editing by Jeremy Laurence)