San Miguel awarded Boracay Bridge project

By Rjay Zuriaga Castor

Despite opposition from the provincial government, the Department of Public Works and Highways (DPWH) has awarded the proposed 2.54-kilometer Boracay Bridge Project in Malay, Aklan, to San Miguel Holdings Corp. (SMHC).

A notice of award was issued to SMHC on March 30 following a resolution approved by the Public-Private Partnership (PPP) Prequalification, Bids and Awards Committee on March 25.

The DPWH confirmed that SMHC, the original proponent, will finance, design, construct, operate, and maintain the project.

The project carries an approved total cost of PHP 7.78 billion, inclusive of financing costs.

With the issuance of the notice of award, SMHC must comply with post-award conditions within 20 calendar days from receipt.

These include submitting a signed notice of award, posting a performance security, and providing proof of the formation of a special purpose company that will serve as the concessionaire.

The company must also present financial documents, including audited financial statements, tax clearance, and proof of secured financing and equity commitments to cover the project cost.

Under the terms, failure to submit the required documents within the prescribed period will result in automatic cancellation of the award and forfeiture of the bid security.

Once compliance is confirmed, SMHC is expected to sign the concession agreement with the DPWH within five calendar days. Failure to do so will likewise result in withdrawal of the award.

In October last year, the Sangguniang Panlalawigan (SP) of Aklan formally rejected the project, arguing that it would be “inimical to the economic and social conditions” of residents.

The SP also noted that there had been no formal endorsement, application, or consultation from the DPWH and SMHC regarding the bridge proposal.

Under PPP rules for unsolicited proposals, large private-led projects typically require endorsement from affected local government units and the provincial government. The Aklan SP’s rejection effectively withholds that key local approval.

SMHC is the infrastructure arm of San Miguel Corp. and is behind several of the country’s largest infrastructure projects, including the New Manila International Airport in Bulacan, the redevelopment of Ninoy Aquino International Airport, and the expansion of the Tarlac-Pangasinan-La Union Expressway.

San Miguel Corp. has faced criticism over several infrastructure and energy projects, particularly on environmental impact, social displacement, and transparency concerns.