MPTC offers to buy out govt stake in SCTEX, but BCDA not biting yet

NEW CLARK CITY—THE Bases Conversion and Development Authority (BCDA) has received a buyout offer from Metro Pacific Tollways Corp. for its stake in the Subic-clark-tarlac Expressway (SCTEX).

However, BCDA President and CEO Joshua M. Bingcang said the offer was below what the government expects from its investment in the expressway.

The offer, he said, is “in the 10 digits,” confirming that it is more than P20 billion, or the amount of debt balance from the Japan International Cooperation Agency (Jica).

“From our end, in order for us to consider that proposal, our balance of debt to Jica is around P20 billion. So you want at least a minimum of that in order to be assured of your debt. You will have better sleep—that for the next 20 years, you are assured of paying the foreign lender. Right. So that will be the starting point,” he said at the sidelines of the One Clark Forum organized by the Economic Journalists Association of the Philippines (Ejap) and the BCDA.

MPTC, led by businessman Manuel V. Pangilinan, holds the concession to operate and maintain the SCTEX. The BCDA has a 50-percent revenue share in the earnings of the tollway.

Bingcang explained that the BCDA wants “more” than P20 billion, which was roughly the initial buyout proposal sent by the Pangilinan-led company.

“[We want more] because P20 billion is just our investment. You want something for the government, for the public. Normally, how much returns would you want when you have made an investment? It should be at least 100-percent return or double your investment. So those are the numbers we are approaching right now,” he said.

Already, the BCDA and MPTC are negotiating for better terms and Bingcang’s instruction is to complete the discussions by June.

“We met with them last week and we are yet to form a technical working group to come up with a proper valuation—the point is, we should come up with a good price for the government and we intend to contribute whatever revenues that we will raise for that arrangement with the Metro Pacific to the national government,”he said.

In 2023, the BCDA recorded a P2-billion earning from the SCTEX. Half of this was used for debt servicing, while the other half was written as profit.

MPTC, through Nlex Corp., has a 30-year concession to operate and maintain the SCTEX. It is set to expire in 22 years.

“The good thing about the SCTEX right now, it is already giving us enough funds to finance other projects. At first I did not pay attention to it [the buyout offer], but when I come to think of it, if they are really serious about it, the simple thing for us to do is to come up with a good pricing,” Bingcang said.