The tollway unit of San Miguel Corp. is spending P3.04 billion this year to finance the expansion of South Luzon Expressway.
South Luzon Tollways Corp. said the bulk of the capital expenditures, or P2.32 billion, would be used to construct additional lanes and toll plaza at TR2 and TR4.
TR2 involves the widening of the SLEx segment between Filinvest and Sta. Rosa, Laguna from four to eight lanes and the segment between Sta. Rosa and Calamba from four to six lanes.
TR4 involves the construction of a four-lane toll road from Sto. Tomas, Batangas to Lucena City.
SLTC will spend P438.1 million for flood mitigation, seamless toll project and toll collection system, while the remaining P275 will be used for asphalt resurfacing, pavement repair, bridges and slope embankment.
The company earlier posted a net income of P712.81 million in the first quarter, down by 12 percent from P812.20 million last year.
SLTC blamed the decline in net income to the expiration of income tax holiday in 2016.
The company’s toll revenue went up 8 percent to P1.39 billion from P1.29 billion on higher traffic volume indicating high socio-economic activity in the south.
Majority of vehicles that utilize SLEx belong to the Class 1 category which accounts for about 83 percent of the total traffic volume.
Costs and expenses fell 5.9 percent to P401.49 million from P379.12 last year.
San Miguel’s infrastructure unit, San Miguel Holdings Corp. and Philippine National Construction Corp. earlier signed an agreement to jointly undertake the expansion of toll roads under the existing joint venture worth P554 billion.