Manila Times
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Wednesday, May 28, 2025
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Potential Extension of San Miguel's Skyway Concession Amid Toll Holiday
As the EDSA Rebuild project begins, the Department of Transportation considers measures to alleviate revenue losses for SMC.
The Department of Transportation (DOTr) in the Philippines is preparing to implement measures that could extend the concession agreement of San Miguel Corporation (SMC) as the company faces potential revenue losses from a forthcoming toll holiday on segments of the Skyway Stage 3. This toll exemption will take effect during the rehabilitation of EDSA, a major thoroughfare in Metro Manila.
In a press briefing held on May 26, Transportation Secretary Vince Dizon announced that certain parts of the elevated Skyway Stage 3 will become toll-free to assist in alleviating traffic congestion as the EDSA Rebuild project commences.
The specific segments affected by this toll holiday have yet to be disclosed, but they will be integral to providing alternative routes for motorists during construction, which is scheduled to commence around July or August.
Preparatory work for the EDSA rehabilitation project is slated to begin on June 13, and the entire construction phase is expected to span approximately 18 to 24 months.
The DOTr is actively collaborating with the Toll Regulatory Board (TRB) to devise strategies that could mitigate the financial impact of the toll holiday on SMC.
The agency indicated that one consideration is the potential extension of SMC's concession agreement for the 17.93-kilometer Skyway Stage 3. Currently, SMC, through its subsidiary SMC Skyway Stage 3 Corp., holds a 30-year concession agreement that allows it to design, finance, and construct the expressway.
The Skyway Stage 3 development began in 2014, with an original completion timeline of three years.
However, construction faced numerous delays, particularly due to disruptions caused by the COVID-19 pandemic.
The expressway was ultimately inaugurated and opened to the public in January 2021, with the TRB officially allowing SMC to start toll collection on July 1, 2021. The current concession agreement is set to conclude in 2051, barring any extensions or adjustments.
Skyway Stage 3 connects the existing Skyway Stages 1 and 2, linking northern and southern Metro Manila cities.
Designed to alleviate traffic congestion, it provides access through various interchanges, including Buendia, Pres.
Quirino Avenue, Plaza Dilao, and Nagtahan, as well as connecting with key roads such as Aurora Blvd., E. Rodriguez Avenue, Quezon Avenue, Sgt. River, and Balintawak.
In 2024, SMC Tollways reported a 10 percent increase in net income, rising to ₱9.23 billion from ₱8.40 billion in the previous year, alongside a four percent growth in revenues from ₱20.26 billion to ₱21.17 billion, attributed to increased traffic volume.
The DOTr remains in discussions regarding the terms of the concession agreement with SMC, characterizing the situation as a collaborative opportunity to lessen the burden on motorists while enhancing EDSA for improved safety and convenience.
In a press briefing held on May 26, Transportation Secretary Vince Dizon announced that certain parts of the elevated Skyway Stage 3 will become toll-free to assist in alleviating traffic congestion as the EDSA Rebuild project commences.
The specific segments affected by this toll holiday have yet to be disclosed, but they will be integral to providing alternative routes for motorists during construction, which is scheduled to commence around July or August.
Preparatory work for the EDSA rehabilitation project is slated to begin on June 13, and the entire construction phase is expected to span approximately 18 to 24 months.
The DOTr is actively collaborating with the Toll Regulatory Board (TRB) to devise strategies that could mitigate the financial impact of the toll holiday on SMC.
The agency indicated that one consideration is the potential extension of SMC's concession agreement for the 17.93-kilometer Skyway Stage 3. Currently, SMC, through its subsidiary SMC Skyway Stage 3 Corp., holds a 30-year concession agreement that allows it to design, finance, and construct the expressway.
The Skyway Stage 3 development began in 2014, with an original completion timeline of three years.
However, construction faced numerous delays, particularly due to disruptions caused by the COVID-19 pandemic.
The expressway was ultimately inaugurated and opened to the public in January 2021, with the TRB officially allowing SMC to start toll collection on July 1, 2021. The current concession agreement is set to conclude in 2051, barring any extensions or adjustments.
Skyway Stage 3 connects the existing Skyway Stages 1 and 2, linking northern and southern Metro Manila cities.
Designed to alleviate traffic congestion, it provides access through various interchanges, including Buendia, Pres.
Quirino Avenue, Plaza Dilao, and Nagtahan, as well as connecting with key roads such as Aurora Blvd., E. Rodriguez Avenue, Quezon Avenue, Sgt. River, and Balintawak.
In 2024, SMC Tollways reported a 10 percent increase in net income, rising to ₱9.23 billion from ₱8.40 billion in the previous year, alongside a four percent growth in revenues from ₱20.26 billion to ₱21.17 billion, attributed to increased traffic volume.
The DOTr remains in discussions regarding the terms of the concession agreement with SMC, characterizing the situation as a collaborative opportunity to lessen the burden on motorists while enhancing EDSA for improved safety and convenience.
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