The TPLEx dilemma

THERE’S NO DENYING that building roads translate to more favorable votes come election time. Over the past holidays, no less than the President himself inaugurated the Paniqui junction of the TPLEx, adding another 10 kms. to the initial 13 kms. of dual carriageway opened just last Halloween. It was good news copy as all the frenzy of mass crucifixions of corrupt public officials and political enemies can make everyone headline weary. Judging by the northbound SCTEx to TPLEx traffic the past holiday seasons should put to rest doubts as to the commercial viability of North Luzon tollways. The break-even point of 25,000 vehicles per day should soon be weekend and perhaps daily reality.

But with this success comes the major traffic jams at the Tarlac SCTEx temporary toll plaza at San Miguel. Palliative measures like prepayment of the Tarlac exit toll at the Mabalacat entry have been a great help, but this heavy traffic situation could have been avoided if the Palace acted three years ago.

As early as 2009, the BCDA, owners of the SCTEx and MNTC, NLEx long term operations and maintenance contractors and interim O&M contractors of the SCTEx, already anticipated the buildup in traffic once the TPLEx opens, even in initial single carriageway form. Plans were laid for a big toll plaza in Tarlac. And if long term integration with NLEx operations was to be approved, the Dau and the so-called Clark Logistics or Mabalacat toll plazas were to be eliminated, reducing toll queues twice over. The upgrading of several interchanges in Tarlac and north Pampanga were in the cards to adjust to new exits and entries.
Even the reconfiguration of the Pasig-Potrero viaduct into several more bridge spans to replace the earth fill approaches was planned. If this was done three years ago, the damage to this scenic viaduct wrought by typhoon Maring would not have happened. Today, this span is traversed by temporary bailey bridge.

When TPLEx construction started, PIDC, the project proponent, was hamstrung by the absence of financial backing by JICA, which earlier gave generous terms to build the SCTEx. PIDC broke ground during the last year of the Arroyo administration but the pace of work for the TPLEx only accelerated when San Miguel Infra came in as a financially muscular partner. SMC’s later partnerships with Citra for the Skyway and SLEx, plus its investment in the STAR tollway, gave it the nous and gravitas in tollway operations and maintenance. This helped SMC win the PPP bid for the NAIA expressway extension.

With SMC on board, the total 89.0 kms of TPLEx all the way to Rosario, La Union may finish in 2015, three years ahead of schedule. Moreover, the TPLEx will, from the very start, operate as a limited access dual carriageway instead of the initial piecemeal plan of operating as a single carriageway until revenues can pay for further construction. As a dual carriageway, north bound motorists will face reduced risk of headline-grabbing head-on collisions, which bedevil the two-lane Lipa to Batangas segment of STAR.

No less than President Aquino was impressed with the speed at which the TPLEx progressed ever since SMC’s entry. So much so that at his inauguration speech of the Paniqui interchange last December, he called SMC’s Ramon S. Ang “idol”. But the President could do better than return the favor by alleviating traffic at the Tarlac toll plaza connecting the SCTEx to the TPLEx. All the Palace has to do is approve the O&M contract between the BCDA and MNTC, which has been pending since 2009 .

The Arroyo administration deferred approval of this contract with MNTC in deference to the incoming Aquino government, which promptly cancelled it. Within a year, there were no other qualified takers for the interim operation and maintenance of the SCTEx. Understandably so, as O&M contracts entail huge investments that should have at least a 10- or, ideally, a 20- or even 30-year term. It is not a security agency contract that one can cancel on a whim as there are gazillions of other options out there. Not so with outfits experienced in tollway O&M.

So its back to the original BCDA MNTC contract, by which time MNTC was already absorbed by Metro Pacific Tollways. After three years and three further sweeteners, the DoF finally endorsed the contract to the Palace and that is where it sits, gathering dust as traffic to the TPLEx piles up.

Its only natural for the officials in power to have their favorites, specially when the performance of such favorites enhances their prestige. By extension, those who are not in the inner circles, deserved or not, won’t be able to count on favorable treatment. Metro Pacific’s Maynilad water utility, which heavily invested in greatly improving the city’s water supply, was not allowed by the MWSS a price hike as per contract. It was even imposed a price cut. Metro Pacific’s Meralco, hard hit by the shutdown of the Malampaya gas field, couldn’t even get a compensatory power rate hike from the ERB as mandated by the EPIRA law. Instead, the Supreme Court issued a restraining order while other administrative arms want to investigate the members of the Energy Regulatory Board. The DoE, bowing to populist pressure and other powerful interests, is again “open” to having Congress review the EPIRA law. Metro Pacific’s MRT has been prevented from investing in new trains, new tracks, signaling equipment and maintenance contracts but the DoTC has not yet bought out Metro Pacific and other private investors in the MRT.

Tactically and strategically, it is always good populist ad copy to be against price increases to try to please the masses as the alleged “bossings” of this administration. So it’s tough being a business conglomerate that owns and funds power, water and rail infrastructure and not be in the inner circle of favorites and idols.

Prejudices aside, the delay in approving the long term SCTEx O&M contract that integrates it to the NLEx is prolonging the agony of those heading for the TPLEx. The private sector, idol or otherwise, has put in a lot of time and money to realize a fully functioning TPLEx three years ahead of schedule. It would be a tragic irony if this administration fails to improve traffic flow by having delayed the SCTEx O&M integration with the NLEx. But if we believe the hype that we are the “bossings” -- us motorists stuck in long toll queues at San Miguel Tarlac temporary toll plaza heading for the TPLEx -- then we hope the Palace gets the integration contract going. That way, there is, at least, a semblance of a “level playing field”. Even just for appearances sake. What, indeed, are we in power for?

source:  Businessworld's Column of Tito Hermoso