A ‘SWEETHEART DEAL’

IT’S official. San Miguel Holdings Corp. (SMHC) will build the P34-billion Pangasinan Link Expressway (PLEX) that will connect Binalonan to Lingayen town at no cost to the provincial government.

Gov. Ramon Guico III, who spoke before the Sangguniang Panlalawigan (SP) regular session on Monday, July 10, announced that the invitation and the period to apply for eligibility and submit the proposal in the PELEX last July 7, 2023 at 5:01 pm, has lapsed and no private sector participant submitted a proposal at the closing of the Swiss Challenge phase of the project.

Since no proposal was received, the Joint Venture Selection Committee submitted its recommendation to approve the original proponent (SMHC) as the winning bidder on July 8, 2023 and a notice of award was issued to SMHC on July 10 with an estimated total project cost of approximately P34-billion for the first phase of the project, he added.

The governor said he also requested the SP members to pass a resolution authorizing him to enter into and sign a joint venture agreement and tollway concession agreement with the SMHC for the implementation of the Pangasinan Link Expressway project (PLEX).

The resolution was moved by Fifth District Board Member Nicholi Jan Louie Sison and unanimously approved by the SP.

In an interview, Gov. Guico said before he decided to run for governor, it was just a dream yet it was something he hoped and prayed for because it is what is needed to spur the growth of the province — accessible by land, by sea or by air.

It was a campaign promise, so when he won, it was the first thing he worked on, he said.

“When we assumed office, we started the work. We looked for potential investors, we looked for partners, we looked for corporations in the Philippines, international corporations, to help us realize this vision,” Guico said.

He credited his Agila friends and those outside of Agila who have the experience and connections so they explored all these things to realize the project.

“It’s a sweetheart deal,” he proudly said, adding that it will be implemented at zero cost to the province. Also, the provincial government will have a share in the revenues to be generated by the expressway.

The governor said the province shall 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.

He added that the province is entitled to 30 percent of the earnings before taxes after the proponent has exceeded a Project Internal Rate of Return of 10 percent.

Should it exceed a PIRR of 12 percent, the province will have a share of 70 percent of earnings before tax, Guico added.

The project’s timetable is four years for phase 1. The next phase will be from Lingayen to Alaminos City.

The PLEX phase 1 is 42.76 km. long with the following segments: Binalonan to Manaoag (6.9 kms); Manaoag to Calasiao (11.3 km); Calasiao spur (2.39 km) and Calasiao to Lingayen 22.7 km.

Guico said after 35 years, the whole project will be turned over to the province of Pangasinan. “It’s going to be wholly owned by Pangasinan so maayos yung next administration. We have planted the seeds for them,” he said. (Eva Visperas)

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