Toll regulator’s ‘inaction’ on request to collect fees, prompted SMC to ‘close’ Skyway 3 —Ang

San Miguel Corp. (SMC) on Tuesday claimed that the Toll Regulatory Board’s (TRB) inaction on its long-delayed request to start collecting fees for motorists’ use of the Skyway Stage 3 had prompted it to announce the indefinite closure of the 18-kilometer elevated highway, which it later on withdrew.

In a statement, San Miguel president Ramon Ang said there was a “misunderstanding” between the company’s infrastructure unit and the TRB.

San Miguel is the concession holder of the Metro Manila Skyway system through San Miguel Infrastructure.

The TRB, meanwhile, is an inter-agency body composed of the Department of Transportation, Department of Public Works and Highways, Department of Finance, National Economic Development Authority, and a representative from the private sector.

The Skyway management earlier announced that Skyway Stage 3 will be closed indefinitely starting March 16, 5 p.m., as per "directive" by the TRB that all ramps should be completed.

The TRB, however, clarified it has not issued such a directive as it stood firm that the Skyway Stage 3 shall remain open for the benefit of motorists.

Ang, later on, said that the toll road will no longer be closed as he already discussed the issue with Transportation Secretary Arthur Tugade.

To explain his side, the San Miguel chief said that the TRB is insisting that Skyway Stage 3 cannot start full operations and collect toll until all ramps are 100% complete.

However, he said that “our supplemental toll operation agreement states that we can start collecting at 95% completion - we are now 97% complete.”

San Miguel’s petition to the TRB shows that the toll fees on Skyway Stage 3 range from P110 to P274 depending on the length of the trip from entry point to exit point.

The 18-kilometer seven-lane Skyway Stage was fully opened to motorists on January 15, after a soft opening in December 2020.

No toll fees have been collected since as San Miguel’s Ang said the company would keep the Skyway Stage 3 toll-free for as long as it can afford to do so.

But the company is already financially bleeding to continue operating the toll road free of charge.

“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,” Ang said.

“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% completion of the ramps would have been to close Skyway 3,” he added.

Ang said Tugade understands San Miguel’s predicament.

“Skyway 3 was built at no cost to the 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," he said.

"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,” he added.

Ang said that the cost of Skyway Stage 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, he said San Miguel paid for all right-of-way costs, including paying off 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 said.

Ang noted 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 to succeed,” he said.

TRB

In a text message, TRB spokesperson Julius Corpuz said the “TRB is giving due and proper attention to the petition filed by the operator of Skyway Stage 3.”

“The TRB cannot abdicate or be remiss in its duty to diligently and thoroughly review the rates to come up with just and reasonable toll fees that are fair to the motorists and to the investor and toll operator as well,” he added.

Corpuz said TRB’s officer-in-charge Executive Director and Transportation Assistant Giovanni Lopez is about to recommend to the board the proposed indicative rates for consideration and approval.

In a Viber message to reporters, Transportation Assistant Secretary Goddess Libiran said the TRB is now evaluating and validating the assessment submitted by an independent consultant last week that the Skyway Stage 3 project is already 97% complete.

Hitting a 95% completion rate is among the requirements before an authority to collect or a Toll Operating Permit can be issued.

“During a meeting with the TRB and Skyway technical representatives yesterday, 15 March, the proponent disclosed that they are already in the process of installing, testing, and commissioning the toll collection equipment and systems needed to collect the toll fees,” Libiran said.

“As a matter of protocol, these systems and equipment will undergo testing by the TRB to ensure that there are no system glitches or flaws to avoid a repeat of the RFID problems we had in the past,” she added.

The installation of toll road facilities is also among the requirements for the issuance of Toll Operating Permit.

Other requirements for the issuance of toll collection authority are “the proponent must confirm the approved final engineering design” and “the project is capable of being operated safely and commercially.”

“Upon compliance to the requirements, a TOP may be issued together with the Notice to Start Collection, the compliance to publication requirements of the toll fees, among others,” Libiran said.—AOL, GMA News