San Miguel wins NAIA expressway projec

[Maylyn]

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San Miguel wins NAIA expressway project

ABS-CBNnews.com
Posted at 04/15/2013 3:01 PM | Updated as of 04/15/2013 4:34 PM

MANILA, Philippines (2ND UPDATE) - San Miguel group has bagged the contract for the NAIA Expressway project, the third to be bid out under the Aquino government's public private partnership program.

San Miguel's subsidiary Optimal Infrastructure Development Corp. outbid its lone rival for the contract, Manuel Pangilinan's Metro Pacific group with its offer of P11 billion. Pangilinan's Manila North Tollways Corp. just offered P350 million.

The two groups were the only ones who submitted the bids after the Ayala group and another company withdrew from last week's bidding.

The expressway project connects NAIA terminals 1, 2 and three to stretch all the way to Pagcor City, as the government aims to give foreign gamers easy access from the airport to the casino and resorts complex on Manila Bay.

"The winner in this case is the government and the locators in the PAGCOR Entertainment City. I hope they will be more helpful in the right of way acquisition,” Public Works Secretary Rogelio Singson said.

The government expects an upfront cash payment of P11 billion from San Miguel. "The government will not spend a single centavo for this project,"Singson said.

The NAIA project is the third PPP to be awarded by the Aquino government.The government previously awarded the P2 billion Daang Hari road project to the Ayala group and a P16 billion school building project to Megawide and the construction company of former MMDA chairman Bayani Fernando.

The government is trying to accelerate the construction of new infrastructure to create jobs by making the Philippines a more attractive investment and tourism destination. - With ANC and Reuters

Source: San Miguel wins NAIA expressway project | ABS-CBN News

[crossramz]

I can't figure out why there's a big gap of offer from MVP offer to SMC.. hehe.. hocus focus..

[Maylyn]

I can't figure out why there's a big gap of offer from MVP offer to SMC.. hehe.. hocus focus..

dako bitaw kaayo deprensya.. hehehe! duda sad ko ani hokus pukos sa SMC..

[spartan301]

Its not hocus pukos... In PPPs, the government gets a share of the income -everybody knows..
But the tricky part in these dealings, is that whatever projections the bidder presented will be considered as the basis of the governments income..
Say San Mig projected 1M income/ year starting 2014... So come 2014, if make less than 1M, they have to pay the govt based on the 1M projection.. If they make more, bigger share also for the govt...

So if manny bids 350M, its on the conservative side... Same as with the Ayalas (why they withdrew from the bidding)

[Renz8]

Aw ug dili maka gasto ang government ug kwarta ani ok ra duna man pud track record ang SMC lets just wait&see.........

[Code Talker]

libre ang malamig na SMB on all exits and entrance sa NAIA expressway once completed by San Miguel. lol

[endymioun]

Just posting what I have read from a different forum....

SMC will pay our government 11 billion pesos in LUMPSUM versus MPI's offer of 365 million pesos to be able to win the right to operate the NAIA expressway for the next 30 years.

What is the implication?

With very high offer price of 11 billion pesos outright payment, The toll fees will definitely be sky high. But press reports stated that toll fees will be in the range of 35 to 45 pesos only.


Using simple math and data:

We have about 4 million in a year foreign tourists arrivals in the Philippines. Assuming that half of the tourists (2 million) will proceed directly to the casino zones where the NAIA expressway will end up, we have about 5,500 vehicles per day daily traffic revenues for the new highway.

SMC will pay 11 billion pesos upfront (let's divide it by 30 years), it will result to 367 million pesos per year in payments to the government without including the interest savings of the 11 billion whichever way you look at it.

367 million pesos divide by 365 days in a year results to about a million pesos in actual expense by SMC wihout including the operation and maintenance cost of the highway. a million pesos divide by 5,500 vehicles will result to 181 pesos per vehicle in actual minimum toll fees in order to RECOVER what SMC will pay the government so soon.

if SMC committed to charge 35 to 45 pesos in toll, how will SMC subsidize the expense? It's BILLIONS by the way.

if vehicle traffic will be too low, how will SMC subsize the expense? Again, it's BILLIONS by the way.

Good luck SMC and the rest of your shareholders!

To our government, Who the made a "bright idea" that a contractor shall pay for the highway? Are you nuts? the common people and specially the foreign tourists will have to shoulder the expense (thru very expensive tolls) that the government should provide for FREE in order to attract more tourists !!!!!

The government made a sinking hole for SMC but ultimately, the users of the highway will be the final suckers........

NO wonder Ayala wisely stayed away from this BS idea!!!!

[insomiac]

dako bitaw kaayo ang 11billion sa 365 million... lukapa jud ni sila kung ma yabo bah..

[amingb]

Puros lang karsada ang Project ... ang atong kinahanglan bag-o nga Airport dili karsada .... para sa akoang lang ha sayang2x lang nis kuarta nga project

[johnjob]

Way lain?permi nalang manila ang priority....