Metro Pacific, Israeli group to bid for SCTEx

Metro Pacific Investments Corp. (MPIC) is teaming up with Israeli conglomerate Africa Israel Investments to bid for the 10-year operation and maintenance of the P21-billion ($430-million) Subic-Clark-Tarlac Expressway (SCTEx).

"We are partnering with Africa Israel, which has a subsidiary that builds tollroad," said MPIC president Jose Ma. K. Lim.

Africa Israel, which is controlled by billionaire Lev Leviev, has interests in real estate, shopping malls, energy, fashion, telecommunications, media and infrastructure. Its shares are traded on the Tel Aviv Stock Exchange.

It has a joint venture with Filinvest Land Inc. for a real estate project covering 144 acres. The project, called Timberland Heights, is located in San Mateo, Rizal.

The 93.77-kilometer SCTEx is reportedly the longest of its kind in the Philippines. It is a flagship project of President Arroyo and is among the mega infrastructures intended to transform Central and Northern Luzon into super regions.

Aside from MPIC, others that have submitted their letters of intent to participate in the bidding process are the Lopez-controlled First Philippine Holdings Corp., Mideast Alliance Resources Corp., SBC Lavalin International, Ausphil Tollways Corp., Pacific Concrete Products, Inc., UEM-MARA Philippines Corp., R.D. Policarpio Co, Inc., Ayala Property Management Corp., STAR Infrastructure Development Corp., J.V. Angeles Construction Corp., and Piertas Builders Inc.

The BCDA, which will oversee the bidding, has set a ceiling bid of 12.2 percent from toll fees collected within the 10-year contract period. The remaining toll fees collected will be allotted to the debt servicing of the loan used to finance construction of the toll road.

The BCDA bankrolled the contruction of the project through a P21 billion loan from the Japan Bank for International Cooperation (JBIC). It also secured a standby P2.5 billion credit line facility from local banks to ensure that construction of the toll road will be finished on schedule.

The SCTEx is a four-lane divided toll way consisting of two parts: the Subic-Clark section and the Clark-Tarlac portion. Once operational, travel time along the SCTEx would take only about 30 minutes from Clark to Subic, and 20 minutes from Clark to Tarlac.

MPIC, together with DMCI Holdings, won the auction to take over the water concession in the western portion of Manila with its bid of $447.23 million for Maynilad.

The company recently invested in cash-strapped Makati Medical Center.

MPIC is 76 percent owned by the First Pacific Group of Hongkong, parent company of Metro Pacific. It was formed to continue the expansion of Metro Pacific’s real estate business and raise new capital for planned investments in infrastructure, power generation and consumer foods businesses.