Billionaire Ramon Ang-led conglomerate San Miguel Corp. and the Cavite government sealed a joint venture deal to build a P27-billion expressway linking Silang, Cavite and Nasugbu, Batangas that could be completed by 2026.
The conglomerate said in a stock exchange filing on Tuesday the parties signed the tollway concession agreement for the 27-kilometer Cavite Batangas Expressway (CBEx) last Feb. 7.
The road will pass through the municipalities of Silang, Amadeo, Tagaytay, Indang, Mendez and Alfonso in Cavite and end near Nasugbu, Batangas.
“It will also improve connectivity between the National Capital Region and Cavite, Laguna, Batangas, Rizal and Quezon, enhance the mobility of people and goods in the area, and mitigate road congestion in Calabarzon,” SMC said in the filing.
Cavite Governor Juanito Victor “Jonvic” Remulla said in a text message that right-of-way clearing activities would begin by June this year as they aimed to finish the tollroad in two and a half years.
He said an estimated 40,000 motorists per day were expected to use the CBEx during its first three years of operations.
The project is distinct from the 50.4-km Cavite Tagaytay Batangas Expressway earlier proposed by the toll road arm of Manuel V. Pangilinan-led infrastructure giant Metro Pacific Investments Corp.
The unsolicited proposal, submitted to the Department of Public Works and Highways during the Duterte administration, has yet to receive the green light from the national government.
Remulla, however, noted the project would be rendered “superfluous” by the CBEx.
“The economics wouldn’t add up. There’s only room for one road for that route,” he said.
SMC is one of the country’s biggest companies with assets spanning food, drinks, energy and infrastructure.
Its toll road portfolio includes the South Luzon Expressway, Skyway States 1, 2 and 3, Southern Tagalog Arterial Road, Tarlac Pangasinan La Union Expressway, Naia Expressway and Alabang South Skyway Extension.
SMC earlier said consolidated net income fell 62 percent to P12.9 billion during the first nine months of 2022 while revenues jumped over 70 percent to P1.1 trillion.
The conglomerate’s income from operations rose 24 percent to P108.5 billion during the same period. This was driven by Petron Corp., food, beverages, packaging and infrastructure.
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