San Miguel, Metro Pacific groups vie for right to operate SCTEX

MANILA, Philippines - The Bases Conversion Development Authority (BCDA) said it may declare by next week if the Manuel Pangilinan-led Manila North Tollways Corp. (MNTC) and Northlink Management Corp. and a joint venture between San Miguel Corp. and Star Tollways Corp. are eligible to operate the Subic Clark Tarlac Expressway (SCTEX).

The two groups were the only ones that filed their eligibility documents with the BCDA before the Jan. 4 deadline. Rolando C. Manalo, acting head for the technical working group for SCTEX, said they have yet to determine whether MNTC and Northlink are eligible.

After being declared as eligible, the BCDA will then open the financial proposal of the qualified bidders.

The BCDA is bidding out the right to operate, manage and maintain the tollway.

Last November, BCDA opened the SCTEX data room at the Bonifacio Technology Center in Taguig City, following the bidders’ request that they be provided all the information needed to come up with an accurate and realistic offer.

Under the SCTEX privatization program, the winning bidder will enter into a lease or concession agreement with BCDA to manage, operate and maintain the SCTEX on “as is, where is,” basis for a period of 33 and a half years until 2043.

The winning bidder will be responsible for the operational funding requirements in running the country’s longest tollway, including periodic maintenance and emergency works, which will be covered by a performance security.

The private sector partner will also arrange for the insurance of the toll road. BCDA will receive a semi-annual lease/concession fee from the winning bidder, amounting to either: The peso equivalent of the yen-dominated JBIC/JICA loan debt servicing as well as all financing charges payable to BCDA 10 days prior to its due dates secured by a rolling five-year letter of credit; or 20 percent of audited gross revenues whichever is higher.

BCDA reported that vehicles using the SCTEX more than doubled since it was opened two years ago. Data from the state-run agency showed that vehicle traffic went up by 162.2 percent this year.

This is good news for the groups vying for the right to operate and maintain the 93.77-kilometer toll road.

From April 2008, when the road network opened, to December 2008, total traffic volume at SCTEx was only at 2.29 million vehicles. But for the first 11 months this year, traffic volume increased to 6.12 million vehicles.