Despite its failure to fully comply with the required project milestones, the Board of Investments has approved the registration the P7.6 billion South Luzon Expressway (SLEX) project of the Malaysian-backed South Luzon Tollways Corp. (SLTC).

Trade and Industry Undersecretary and BOI managing head Elmer C. Hernandez said the approval of the SLTC registration was only to facilitate the company's availment of the preferential one percent duty on its importation of capital equipment needed for the SLEX project.

Hernandez said the company has still to reckon with the issue of income tax holiday, which approval is dependent on the full compliance of the project milestones.

So far, the civil works including the road widening of the SLEX have been completed but the toll plaza and the toll booth exits have yet to be completed.

In order for the company to be able to avail of the ITH, Hernandez said, "It is incumbent upon them to show to use that it has complied with its commitments."

The SLTC project was approved in the last quarter only and would form part of the 2009 total BOI investments tally. The application, which was filed in the second quarter of 2009, has a project cost of P7.6 billion only although recent reports put its total cost to have breached P12 billion level.

The SLTC project has three components: rehabilitation and widening of 1.2 kilometer Alabang viaduct; rehabilitation and widening of 27.3 km expressway linking Alabang to Calamba, Laguna and; construction of the 7.6 km extension from Calamba to Sto. Tomas, Batangas linking SLEX with Southern Tagalog Arterial Road .

In May 2009, DTI Secretary Peter B. Favila met with all the stakeholders of the SLTC project including its main proponent Malaysian-owned MTD Capital, Metro Manila Skyway operator Citra Metro Manila Tollways Corp., Toll Regulatory Board and the Philippine National Construction Corp.

The original target of completion of the project was December 2008.

During the meeting, Favila had asked SLTC to apprise him of the status of the project, timelines for completion and read them the Riot Act.

Riot Act means to reprimand rowdy characters and warned them to stop behaving badly or to give someone a severe scolding for behaving badly.