Metro Manila Skyway

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The Philippine government has awarded two BOT contracts for the construction and operation on the Metro Manila Skyway to Citra Metro Manila Tollways Corp. (CMMTC). CMMTC is a consortium whose members were, as of Dec. 31, 2008, PT Citra Marga Nusaphala Persada (20%), PT Citra Lamtorogung Persada (14%), PT Bhaskara Duniajaya (16%), PT Mara Sarana Arsitama (5%), Filipina Stradec (10%), Phillippine National Construction Corporation (PNCC) (20%), and AIG (15%). CMMTC had already completed part of the first 9km section when it was awarded the contract for the second section in 1997. CMMTC reached financial closure on funding for the first section in 1996. Stage 1 cost US$ 514 million (of which, US$ 262 million was to be financed with a 5-year loan). As of Dec. 31, 2008, CMMTC was finalizing a US$195 million loan agreement with local banks to provide funding for Stage II, a 6.88 km stretch connecting Bicutan and Alabang. In 1999, the sponsors raised toll rates by 420%; in response to this action, the government ordered the freezing of new increases. The sponsors have argued that this move by the government is a contract breach and may jeopardise the project.