SCTEX price challenge consistent with BOA – BCDA

MANILA, Philippines - The upcoming price challenge for the management, operation and maintenance of the Subic-Clark-Tarlac Expressway (SCTEX) is in line with the requirements of the business operating agreement (BOA) signed three years ago, the Bases Conversion and Development Authority (BCDA) explained yesterday.

“We at the BCDA have been observing the requirements in the BOA in good faith. The price challenge is consistent with the BOA because it is a consequence of the President’s approval which is a condition precedent to the effectivity of the BOA itself. The BCDA is confident of the legality of its position,” BCDA president and chief executive officer Arnel Paciano Casanova said in a statement.

The statement was issued amid Manila North Tollways Corp.’s (MNTC) warning that it would not honor the result of the price challenge for the SCTEX if it is not in accordance with the BOA it signed with the BCDA.

“If they don’t follow the terms of the agreement and they unilaterally conduct the price challenge, the process result may not be binding,” MNTC president Rodrigo Franco said earlier.

In 2011, the MNTC signed a BOA with BCDA for the 94-kilometer SCTEX which traverses the provinces of Bataan, Pampanga and Tarlac.

Under the BOA, MNTC would operate and manage SCTEX for 33 years, while BCDA would be relieved of payment of the P34-billion debt to the Japan International Cooperation Agency for the construction of the tollway.

A price challenge is being conducted for the management, operation and management of the SCTEX following directions from the Office of the President in the interest of transparency and fair competition.

A pre-selection conference to discuss the Terms of Reference (TOR) for the price challenge is scheduled to be held on Jan. 6.

“We agree that the bidding process should be transparent and fair. As such, no one party should have undue advantage over the others by having a hand in the crafting of the TOR,” Casanova said.

Interested firms have been given until Jan. 30, 2015, to submit proposals higher than MNTC’s offer of an upfront cash payment of P3.5 billion, inclusive of 12 percent value-added tax to the BCDA, in addition to the 50-50 sharing of gross revenues, for the price challenge.

Interested proponents should also accept other commercial terms for the price challenge such as assumption of operation and maintenance costs and responsibilities over SCTEX and the ongoing integration agreement for the toll collection system of the North Luzon Expressway and the SCTEX.