Gov't eyes toll-free Skyway during EDSA rehab—but who covers the cost?

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May 27, 2025 | 5:51pm

MANILA, Philippines — With EDSA’s rehabilitation set for June, one of the government’s key interventions involves making a section of the Skyway toll-free for motorists. But what does this mean for the corporation that owns the Skyway?

The Metro Manila Skyway, a public-private partnership (PPP) between the government and San Miguel Corp. (SMC), was designed to be a revenue-generating venture for the company in exchange for providing a public utility.

Under the new arrangement, parts of the Skyway along EDSA will be toll-free 24 hours a day, seven days a week, until the completion of the rehabilitation project in 2027.

While the announcement to waive tolls on the Skyway to ease EDSA congestion has been welcomed, Transport Secretary Vince Dizon said the agreement has so far been made "in principle" but the details were still being finalized.

"There are significant revenue losses for SMC, and the government is exploring ways to compensate for these losses," Dizon said at a Senate hearing on Tuesday, May 27.

When Sen. Raffy Tulfo asked if the government would directly subsidize SMC for lost profits, Dizon responded, "Not necessarily." He explained that the government was considering other options, such as extending the concession term for the operator.

This arrangement, he argued, would allow the government to avoid direct financial outlays, while SMC would be less affected by the revenue losses. Dizon also said SMC would not raise toll fees to recoup losses.

“The president did not agree to that,” Dizon said in Filipino, referring to any potential toll hikes.

There is, however, a loophole. The toll-free deal does not prevent SMC from implementing its regular toll increases in the future.

Corp's side. San Miguel’s legal representative, lawyer Melissa Encanto-Tagarda, confirmed that the details were still being negotiated but emphasized the company’s willingness to cooperate.

“We’re open to remedies like extending the concession agreement, as long as it’s fair to San Miguel, given our investment in the project,” she said.

In addition to the EDSA Skyway, SMC recently acquired the rights to operate Ninoy Aquino International Airport.

What's a PPP? It is a long-term partnership where the government collaborates with a private entity to provide a public asset. The Philippine government has frequently employed PPPs for large transportation projects, including major train lines and airports.