Abuse of supplemental toll operation agreements (STOAs)
In short, many of our new expressways get approved faster because expressway operators abuse a loophole where they can just propose new expressways as mere extensions to their existing ones. By proposing them as extensions instead of a new expressway, it bypasses a lot of normal review procedures and careful project evaluation.
STOAs are also encouraging anti-competitive practices because expressway operators are able to use their expressway "extensions" to expand their territory without competition.
Because of this, companies like San Miguel are able to pump out expressways without limits, as long as it claims that they are all "extensions" of the Metro Manila Skyway or the South Luzon Expressway. And since it basically "dominates" the area in which those expressways are in, it discourages any competition from creating any better proposals.
And with San Miguel currently building expressways like the Pasig River Expressway and the Southern Access Link Expressway, it's only going to get worse from there.
Posted Oct 1, 2022, 1:54 AM UTC