BCDA TURNS OVER SCTEX TO MNTC:

The Bases Conversion and Development Authority formally turned over the Subic-Clark-Tarlac Expressway to the Manila North Tollways Corp. in a simple ceremony held at the SCTEX Toll Operations Center in Mabalacat, Pampanga. In photo are (from left) MPIC president Jose Ma. Lim, BCDA chairman Ma. Aurora Geotina Garcia, BCDA president and chief executive officer Arnel Paciano Casanova, who is presenting to MNTC president and CEO Rodrigo Franco the SCTEX flag, and MPTC president and CEO Ramoncito Fernandez.

The Bases Conversion and Development Authority ( BCDA) and Manila North Tollways Corp. (MNTC) expect to generate P275 billion in revenues from the Subic-Clark-Tarlac Expressway (SCTEX) over the 28-year contract for the tollway.

“The SCTEX is a viable government project that is seen to generate some P275 billion in revenues under the 28-year contract period,” BCDA chairperson Aurora Geotina-Garcia said during the formal turnover of the tollway to the MNTC yesterday.

Of the total revenues, 50 percent or P137 billion represents the share of BCDA which will be used to pay the P25 billion loan from the Japan International Cooperation Agency to build the tollway.

The remaining revenues, meanwhile, will be used to fund future government programs and projects.

Last month, President Aquino approved the Supplemental Toll Operations Agreement among BCDA, MNTC and Toll Regulatory Board, a move formally granting the concession to manage, operate and maintain the 94-kilometer (km) SCTEX to MNTC.

MNTC was awarded the contract to manage, operate and maintain the SCTEX which covers the provinces of Bataan, Pampanga and Tarlac until October 30, 2043, after no other firms submitted offers for the toll road during the price challenge held in January.

While BCDA and MNTC entered into a business operating agreement covering the management and operation of the SCTEX for a period of 33 years in 2011, a price challenge was conducted in line with a directive from the Office of the President in the interest of transparency and fair competition.

Interested firms had to submit offers higher than MNTC’s for the price challenge.

MNTC offered 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.

During the turnover ceremony, MNTC handed over the check for the P3.5 billion upfront payment to BCDA, while the BCDA gave the SCPr TEX flag to symbolically recognize MNTC as the private concessionaire of the toll road.

Following the turnover of the operations and maintenance of the SCTEX, MNTC president and chief executive officer Rodrigo Franco said motorists could expect additional investments in SCTEX aimed to further improve the service.

“Our investment in the SCTEX will focus on the delivery of better service to the motoring public. Improved service is good investment as this will bring in more motorists to patronize the toll road,” he said.

For his part, Metro Pacific Tollways Corp. (MPTC) president and chief executive officer Ramoncito Fernandez said the takeover of the SCTEX is expected to cement the firm’s position in the Philippine toll road industry.

“The concession further solidifies Metro Pacific’s leadership in the Philippine toll road industry and MPTC will continue to innovate and pursue technologies to ensure efficient delivery of our mission,” he said.

MPTC, which is a subsidiary of Metro Pacific Investments Corp., is the largest toll road operator in the country, operating 60 percent of the country’s 320 kms of toll roads.

Aside from SCTEX, MPTC also operates the North Luzon Expressway through MNTC and the Manila Cavite Expressway through the Cavitex Infrastructure Corp.