BCDA urged to implement SCTEx deal

MANILA, Philippines - The tollways arm of Metro Pacific Investments Corp. (MPIC) is asking the Bases Conversion Development Authority (BCDA) to expedite the implementation of an agreement that would pave the way for the takeover of the 94-kilometer Subic Clark Tarlac Expressway (SCTEX).

MPIC president Jose Ma. Lim said on the sidelines of the launching of the North Luzon expressway (NLEX) Metro Expressway link project that BCDA as well as the Department of Finance (DOF) have already endorsed the project of the Manila North Tollways Corp. (MNTC) and Metro Pacific Tollways Corp. (MPTC) to the Office of the President.

“We have expressed to the BCDA that we would like the delays in the implementation of our agreement with them to be curtailed and for them to implement it,” Lim said.

Under the terms of the contract, BCDA shall assign to MNTC the management, operations and maintenance of SCTEX as well as the government agency’s rights in the Toll Operations Agreement, including the right to collect toll revenues for 25 years, renewable for another eight years.

He pointed out that the commercial terms of the revised agreement have already been addressed by the BCDA and DOF while the Toll Regulatory Board (TRB) is still firming up the concession agreement.

“We believe that the requirement of the approval of the President is based on the TRB requirement which has nothing to do with the commercial terms of the project. Therefore as far as qualifications of MPTC and MNTC are concerned BCDA should have no problem with that after all they prequalified our company in the public bidding which failed and was negotiated into this contract,” he added.

According to him, MNTC has been preparing to takeover the toll road for the seamless integration with NLEX.

“This contract has been renegotiated two times so it is now on its third year and we think that it is now imperative to undertake the integration of SCTEX and NLEX to make it seamless and more convenient to motorists,” he said.

The concession agreement has been revised three times by MPTC and MNTC. MNTC proposed a 50-50 sharing scheme for the net cash flow of the operations of SCTEX but the government would also have to shoulder half of the operating expenses as well as capital expenditures to maintain the tollroad system under the true spirit of the public-private partnership (PPP) scheme.

Under the previous proposal, 70 percent of toll and other revenues from SCTEX would go to MPTC, while the remaining 30 percent (raised from an original 20 percent) goes to BCDA.

It can be recalled that MNTC won the contract to operate SCTEX in 2010 under the administration of previous President and now Pampanga Rep. Gloria Macapagal Arroyo.