San Miguel greenlights Skyway Stage 4 despite cost spike to P56B

Conglomerate San Miguel Corp. is committed to pushing forward with a new major expressway that will boost access in the eastern portion of Metro Manila—despite a sharp increase in the proposed budget.

Clarifying a report by InsiderPH, the industry giant led by tycoon Ramon S. Ang said the South East Metro Manila Expressway (SEMME)-Skyway Stage 4 will cost nearly P56 billion to build.

This was about 23 percent more than the initial budget estimate of P45.27 billion, which SMC explained was based on 2013 prices.

Fast construction if right-of-way is delivered

The 32.7-kilometer project, consisting of up to six phases, will be built and operated by SMC affiliate SMC Skyway Stage 4 Corp. under a 30-year concession period.

The company said the first phase of the project can be completed within two years “from the resolution and settlement of right-of-way issues with the government, as reported in the aforementioned article.”

“Skyway Stage 4 will complement the other infrastructure projects of the San Miguel Group and may serve as an alternate route for the southern and eastern parts of Metro Manila, helping ease traffic congestion along Epifanio de los Santos Avenue (EDSA) and C5,” SMC said in a stock exchange filing.

Key agreements signed this week

SMC earlier signed a right-of-way usage agreement on Feb. 3 with the Department of Transportation, the Department of National Defense (DND), and the Veterans Association of the Philippines, which owns parts of the land that SEMME’s carriageway will traverse.

Once completed, the elevated and street-level toll road will cut travel time from Bicutan, Taguig, to the Batasan area in Quezon City from about two hours to just under 30 minutes.

About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

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