BCDA effort to lower P11-B bid delays Subic-Clark-Tarlac expressway project

The construction of the first phase of the P18.74-billion Subic-Clark-Tarlac expressway project (SCTEP) has been delayed by efforts of the Bases Conversion Development Authority (BCDA) to lower the P11-billion bid price submitted by Japanese contractor Hazama-Taisei-Nippon Steel Group.

The first phase of the SCTEP comprises of 44-kilometer, four-lane superhighway that would connect Clark to Tarlac.

Construction was originally scheduled to begin last February or early March, with completion targeted by 2006.

The Hazama-Taisei-Nippon Group had submitted the lowest bid out of the three pre-qualified Japanese joint venture bidders. The two other bidders were the MTI group and the KOJM join venture.

The Hazama-Taisei-Nippon joint venture is made up of Hazama Corp. Taisei Corp. and Nippon Steel Corp.

The Philippine government received an overseas development assistance (ODA) loan from the Japan Bank for International Cooperation (JBIC) amounting to ¥41.931 million, which represents 85 percent of the total package cost of the 94.5-km tollway. The remaining 15 percent will have to be counterfunded by the BCDA.

According to BCDA president and chief executive officer Rufo Colayco, they are still trying to negotiate with the Hazama-Taisei-Nippon group to bring down its bid price to match the P8-billion budget allocated for the first phase of the SCTEP.

"We’re still negotiating, but we’re getting there," Colayco said.

Colayco acknowledged construction cost that has been affected by the construction boom in China.

China’s demand for steel, cement, asphalt and other construction materials has had a global impact, raising the cost of such materials.

Hence, Colayco cannot yet definitely say when construction of the first phase of the SCTEP would begin.

Once the SCTEP is completed, travel time between Subic and Clark and be shortened to 30 minutes compared to the present two-hour drive.