Government saves P774 million from SCTEX construction

MANILA, Philippines - The government was able to save P774 million in the construction of the Subic Clark-Tarlac Expressway, the Bases Conversion Development Authority (BCDA) said over the weekend.

In an interview, BCDA president Narciso L. Abaya said that the government was able to build the highway for P20.2 billion, lower than the projected cost of P20.97 billion.

As such, Abaya reported that they may not tap the supplemental loan worth P7.5 billion granted by the Japananese government.

On the average, 12,000 vehicles pass through the 94-kilometer highway daily. The target, Abaya said, is 32,000 vehicles per day. He projected that they will hit this in three years time.

Likewise, Abaya said that they will finish the Porac, Panday Pira and Florida Blanca interchange by June this year.

With regards to the operations and management (O&M) of the highway, Abaya said that they will extend the contract of their interim operator but they will hold a bidding before the end of the year.

First Philippine Holdings Corp., Egis Road Operation and Tollways Management Corp. served as interim service provider for six months. Their contract was renewable for another six months.

Earlier, SCTEX spokesperson Roberto Gervacio said that the term period for the SCTEX O&M is yet to be determined but it is likely that it will be good for 10 years.

Gervacio said that the SCTEX now serves as the new economic backbone for Central Luzon and the adjoining regions, creating wider opportunities for investment, trade and employment in the area.

Potential operators must have an approved budget for contract in the amount equal to 12.2 percent of the 10-year projected toll revenues.

The contract involves the provision of the following support services like toll collection, traffic management, roadway maintenance, general admission and greening and landscaping.

The road is a four-lane divided tollway consisting of two parts; the 50.5-km., four-lane Subic-Clark section; and the 43.27-km., four-lane Clark-Tarlac portion.