Will 2 NLEx-SLEx road links mean higher toll rates?
PROPOSED SOLUTION. The connector roads are expected to reduce travel time between NLEx and SLEx to just 20 minutes. It currently takes an hour or more to travel between the two since the congested metropolis is in between.
MANILA, Philippines - Anyone who has sat in traffic on Metro Manila roads should look forward to the construction of the connector roads between the North Luzon and South Luzon Expressways (NLEx and SLEx).
The two proposed and separate connector roads are expected to decongest Manila's major thoroughfares and offer drivers and commuters a more efficient route across, and between the two major tollroads north and south of, Metro Manila.
But at what cost?
Constructing not one, but two connector roads may drive up toll prices, explained Metro Pacific Investments Corp chief finance officer David Nicol.
He warned that, since each companies will get a smaller share of the traffic going over their respective roads, they may try to make back their investments by charging higher tolls.
"Someone has to make a return because the banks who will lend the project have to be paid after all. So it’s likely to push tariffs up for users," said Nicol at a COL Financial Group Inc briefing on October 22.
Years ago, MPIC offered an unsolicited bid to link the two expressways. This was, however, followed by the assertion of the Citra Metro Manila Tollways Corp's assertion that its concession agreement on the Skyway elevated road project running through the SLEx highway gives it the right to extend all the way to NLEx, effectively linking the two major thoroughfares.
Instead of choosing just one, President Aquino and his Cabinet said both should be built.
"I think the challenge with the 'build both' to me is that it doesn’t double the level of traffic," said Nicol.
Still, big ticket infrastructure items like the NLEx-SLEx connector are lucrative enough that neither company is backing out. "Yes we are committed to doing this project," said Nicol.
Although there are already two different connector roads, John Eric Francia of Ayala Corp. joked that his company may also be interested in bidding when MPIC's unsolicited proposal is up for a Swiss challenge.
Going over Ayala's upcoming list of projects Francia said, "What is not here is the NLEx-SLEx connector because Mr. David Nicol is here, but I want to surprise him by outbidding him when the time comes. We can talk after this, David."
MPIC, which is partnering with Ayala for the government's rail projects, was likely hoping his leg is just being pulled on this one. - Rappler.com
