BCDA to award contract for SCTEP job

The Bases Conversion Development Authority (BCDA) is set to award to two Japanese consortiums a P20.96 billion worth of contract for the construction of the 93.77 kilometer Subic-Clark-Tarlac Expressway Project (SCTEP).

The BCDA is expected to award this week the contract for the construction of Package I of the toll road project to Kajima Corp., Obayachi Corp., JFE Engineering Corp., Mitsubishi Heavy Industries Co. Ltd. (KOJM) Joint Venture.

Package I covers 50.5 kilometers from Subic to Clark while Package II will be awarded to Hazama-Taisei-Nippon Steel Joint Venture.

Package II consists of 43.27 kilometers from Clark to Tarlac.

The contracts will finally be awarded to the two Japanese consortiums after the BCDA was able to bring down the bid price to P21 billion, the approved NEDA Board construction cost.

The final price for Package I is P12.69 billion while Package II is P8.27 billion, for a total construction cost of P20.96 billion.

The total project cost of the SCTEP is P27.5 billion.

The JBIC loan of Y41.913 billion or P21.3 billion will finance the cost of construction and consultancy services.

Terms of the loan are: 0.95 percent interest per annum; 40 years repayment with a 10-year grace period; and 50- percent Japanese content requirement.

The balance of P6.2 billion will be financed by the BCDA as counterpart funding. The P6.2 billion to be funded by the BCDA will cover right-of-way acquisition; project management expenses; physical contingency; and taxes and duties.