Price challenge to MNTC’s 3.5-B management of SCTEX opened

BCDA deadline next month

Companies interested to operate and maintain the Subic- Clark-Tarlac Expressway (SCTEX) have until next month to submit offers to match the bid of the Manila North Tollway Corp. ( MNTC) to manage the state- run facility.

In an invitation published this week, the Bases Conversion and Development Authority (BCDA) has formally commenced the price challenge for the

3.5 billion bid of MNTC for the SCTEX concession until 2043.

According to the BCDA, the price challenge only covers the upfront cash bid of MNTC.

To recall, the BCDA and MNTC have signed in 2011 a business and operating agreement (BOA) for SCTEX but the Office of the President has postponed the approval of the BOA and instead directed that the MNTC offer be subject to a price challenge in the interest of transparency and fair competition.

Apart from the payment of 3.5 billion up-front cash, the MNCT also offered 50-50 sharing of gross revenues with the government, assumption of the operation and maintenance costs of running the SCTEX and assumption of ongoing integration agreement for the toll collection system of the North Luzon Expressway ( NLEX) and SCTEX.

Under the price challenge, the BCDA said “the MNTC has the right to match the upfront cash proposal of the highest rated and responsive proponent (HRRP), in which case, the MNTC shall be awarded the contract. If MNTC fails to match the upfront cash offer of the HRRP, the latter shall be awarded the contract.”

Aside from registration and ownership requirements among government contractors, interested bidders should have at least three years worth of experience in managing, operating and maintaining a toll road either as an operator or concessionaire within the last 10 years. Bidders are likewise required to purchase the price challenge’s terms of reference ( TOR) worth 500,000.