BusinessWorld: Skyway operations given to consortium

REPORT FROM BUSINESSWORLD THE SKYWAY system, the elevated road which stretches from Nichols, Pasay to Alabang, Muntinlupa, was formally turned over to the private sector when Skyway Operations and Maintenance Corp. (Skyway O&M) started operations Tuesday. Wilfredo P. Cu, chief executive of PNCC Skyway Corp., which is a subsidiary of Philippine National Construction Corp. (PNCC), said the move was consistent to the current thrust of the government to privatize its assets. Skyway Corp. operated the system, which it constructed together with Indonesian firm Citra. "There was nothing irregular about it (turnover of operations to a new company). It was a business decision on the part of the PNCC and the government to privatize the operations of the Skyway," Mr. Cu told BusinessWorld in a phone interview. Skyway O&M is owned by Tollroad O&M Venture Corp., Asset Value Holdings Corp., Metro Strategic Infrastructure Holdings, and Citra. Transfer agreement Last July, PNCC, Citra Metro Manila Tollways Corp. and the Toll Regulatory Board (TRB) signed the Amended Supplemental Toll Operators Agreement (ASTOA) giving the management of the 35-kilometer toll road to the newly formed firm. Skyway O&M Officer-in-Charge Ramon M. Borromeo said the transfer of the operations agreement to the private company was done to meet lenders’ demands. "The lenders of the project would be more comfortable if it (Sykway) is operated by the private sector," he said. He noted that the ASTOA would also extend the Skyway to Bicutan. The seven-kilometer extension would cost P8.1 billion. Last Monday, Skyway Corp.’s union groups Employees Union and the Traffic Management and Security Department Workers’ Organization led a strike protesting the turnover that they claim would lay off around 800 people. Properly compensated But Mr. Cu said that these employees were given separation packages. "We have given all of them including those absorbed by Skyway O&M generous offers (separation pays of 250% of salary per year of service)," Mr. Cu said. "A number of consultations were also done before and after ASTOA," he added. For his part, Mr. Borromeo said his company could not absorb all the employees of Skyway Corp., but added that approximately 300 regular and 300 contractual former Skyway Corp. employees were taken in. Mr. Borromeo added that because all of the firm’s employees are currently in probation, there was a possibility of hiring Skyway Corp. employees who are qualified, but were not absorbed initially. — Marian Grace S. Ramos/BusinessWorld