PCCI backs SCTEX price challenge

MANILA, Philippines - The Philippine Chamber of Commerce and Industry (PCCI) backs the price challenge to be conducted by the Bases Conversion and Development Authority (BCDA) for the management, operation and maintenance of the Subic-Clark-Tarlac Expressway (SCTEX), citing that such promotes fair competition.

PCCI president Alfredo Yao told reporters the price challenge for the 94-kilometer SCTEX which traverses the provinces of Bataan, Pampanga and Tarlac, would be beneficial for the country, particularly in providing a more competitive environment.

“That is good for the government because (environment) would be more competitive unlike before… That is good for the country,” he said.

The BCDA is conducting a price challenge for the management, operation and maintenance of the SCTEX in line with a directive from the Office of the President in the interest of transparency and fair competition.

While a business operating agreement (BOA) was signed with Manila North Tollways Corp. (MNTC) in 2011 for the operation and management of the SCTEX, the BCDA has said the price challenge to be conducted is consistent with the terms of the agreement.

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

A pre-selection conference to discuss the Terms of Reference for the price challenge is scheduled on Jan. 6, 2015.

Interested firms are given until Jan. 30, 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.

Apart from submitting proposals higher than MNTC’s offer, interested firms should 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.

MNTC has the right to match the upfront cash proposal of the highest rated and responsive proponent (HRRP) during the price challenge.

Should MNTC fail to match the upfront cash offer of the HRRP, the latter would be awarded the contract.

The PCCI supports the promotion of fair competition to create a level playing field necessary to attract new investments and allow businesses to flourish.

The BCDA, which is mandated to transform former US military bases into alternative productive civilian use, engages in public-private partnerships to promote infrastructure projects such as tollways, airports, seaports, as well as other major real estate developments.