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Manila Bulletin devider Business devider The Economy devider San Miguel's Skyway concession may be extended due to toll holiday—DOTr

San Miguel's Skyway concession may be extended due to toll holiday—DOTr

Published May 26, 2025 03:35 pm

The Department of Transportation (DOTr) is looking to cushion the blow for Ramon Ang-led San Miguel Corp. (SMC), which is set to face revenue loss due to the upcoming toll holiday in select segments of Skyway Stage 3 during the rehabilitation of EDSA.

In a press briefing on Monday, May 26, Transportation Secretary Vince Dizon said parts of Skyway Stage 3 will be toll-free for motorists once the government’s so-called EDSA Rebuild project is underway.

Such segments on the elevated expressway, which have yet to be identified, will serve as alternate routes to help ease traffic congestion during the entire construction period.

Dizon said the start of the free toll will begin once the full construction begins around July or August. 

The Department of Public Works and Highways (DPWH) is set to begin preparatory works on Metro Manila’s main thoroughfare on June 13.

The entire construction is expected to take about one and a half to two years.

In a statement, the DOTr said it is working with the Toll Regulatory Board (TRB) on viable measures that will mitigate the impact on SMC’s end.

“We understand that this temporary arrangement might result in loss of income to SMC, the operator of Skyway. In response, the DOTr and TRB are exploring options to grant SMC some reprieve,” the agency said.

The DOTr said one of these options is to possibly extend the SMC’s concession agreement with the government on the 17.93-kilometer Skyway Stage 3.

SMC, through its subsidiary SMC Skyway Stage 3 Corp., holds the 30-year concession rights to design, finance, and construct the Skyway Stage 3.

The elevated expressway broke ground in 2014, with a planned completion in three years.

After facing several delays and work stoppages during the Covid-19 pandemic, the Skyway Stage 3 was finally inaugurated and opened to motorists in January 2021.

The period of concession officially commenced on July 1, 2021, after the TRB issued a notice for SMC to start collecting tolls.

As such, the agreement is set to expire in 2051, unless extended or modified.

Connected to the existing Skyway Stages 1 and 2, Stage 3 links the northern and southern cities of Metro Manila.

The expressway was designed to ease traffic with access through interchanges such as Buendia, Pres. Quirino Avenue, Plaza Dilao, and Nagtahan, Aurora Blvd., E. Rodriguez Avenue, Quezon Avenue, Sgt. River, and Balintawak.

SMC Tollways, which holds the concession rights for the entire Skyway System, saw its net income increase by 10 percent in 2024 to ₱9.23 billion from ₱8.40 billion in 2023.

Revenues, meanwhile, grew four percent from ₱20.26 billion to ₱21.17 billion due to higher traffic volume.

While the agreement with SMC is still being finalized, the DOTr said it is looking forward to this “bayanihan opportunity” with the conglomerate.

The agency said it aims “to somehow ease the burden of motorists and passengers while we are continuously making EDSA better, safer and more convenient for everyone.”

Related Tags

Department of Transportation (DOTr) Vince Dizon Ramon S. Ang San Miguel Corporation skyway stage 3
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