IF the basic terms for the planned construction of Pangasinan Link Expressway (PLEX) by the San Miguel Holdings Corporation as revealed by Gov. Ramon Guico III is true, no one can argue that it is, indeed, “a sweetheart deal” for Pangasinan.

For starters, the governor assured us that his P34-billion dream expressway for Pangasinan will not cost the provincial government a centavo!

Then the province, he said, will be entitled to a five percent share in the toll revenues and commercial developmental revenues of the project from the start of the concession period. Then add that to the 30 percent of the earnings before taxes after the proponent has exceeded a Project Internal Rate of Return (PIRR) of 10 percent.

Topping it is an agreement for a 70% percent share for the province if the project exceeds 12 percent, of its PIRR before tax.

These terms were obviously freely offered by SMHC to earn the status as “original proponent” from the Guico administration initially that will later guarantee to bag the contract.

What Governor Guico did not mention, however, are the conditions that will be set by SMHC in the usual smaller, fine print of the proposed contract.  Is it possible that SMHC is prepared to share mostly beneficial terms to Pangasinan without terms to protect its investment?

Surely, SMHC has offered a similar deal to other sectors, public or private. Hence, the question – Was Governor Guico given the chance to review these outstanding contracts backed by current status of such projects?

Nonetheless, given the big picture, the PLEX project in the hands of SMHC appears to be a grand sweetheart deal for Pangasinan!

Well done, Guv!

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