MANILA, Philippines - Metro Pacific Tollways Corp. (MPTC) has submitted an unsolicited proposal to the Bases Conversion Development Authority (BCDA) for the right to operate, maintain, and collect toll from the Subic-Clark-Tarlac Expressway (SCTEX).
The proposal was made through Metro Pacific Tollways Development Corp. (MPTDC), a wholly-owned subsidiary of MPTC.
The proposal involves the assignment and transfer by the BCDA of all its usufructuary title, rights and interests in SCTEX to MPTDC. In exchange for such assignment, MPTDC has proposed to pay BCDA certain concession fees and a share in future revenues over the life of the concession.
“When accepted, the proposed acquisition of SCTEX will strengthen MPTC’s leadership position in the Philippine tollroad industry, increasing our share to approximately 67 percent in linear kilometers from the existing 33 percent,” MPTC president and CEO Ramoncito Fernandez said.
He noted that ultimately, the motorists will benefit from the consolidation of the toll roads in Northern Luzon by providing them a seamless network of expressways, therefore reducing travel time and making ‘motoring’ all the more convenient.
Earlier, The STAR reported that two of the country’s biggest infrastructure conglomerates have expressed interest in acquiring a stake in the SCTEX from the BCDA.
Both the Metro Pacific group and San Miguel Corp. (SMC) confirmed their interest in acquiring government’s interest in the project.
BCDA financed the construction of the 93.77 km tollroad through a P22-billion loan from the Japan Bank for International Cooperation (JICA).
MPTC chairman Manuel Pangilinan earlier confirmed to The STAR his group’s interest in acquiring the SCTEX from government as well as his desire that the JICA concessional loan remain.
BCDA officials said that they are always open to the possibility of a sale of SCTEX but added that they are not sure how that would impact on the JICA loan.
Meanwhile, the SMC group is said to have offered to enter into a joint venture with the BCDA for SCTEX.
The Tollways Management Corp. (TMC), partly owned by Metro Pacific Tollways, currently operates the 94-km SCTEX as well as the North Luzon Expressway (NLEX). The Manila North Tollways Corp. (MNTC) holds the concession for NLEX.
The Lopez Group earlier sold its tollways business held in First Philippine Infrastructure Inc. (FPII) to Metro Pacific Investment Corp. (MPIC) for P12.2 billion. MPIC has renamed FPII into the Metro Pacific Tollways Corp.
Of the total outstanding shares in FPII, approximately 0.16 percent is publicly held. FPII owns 100 percent of First Philippine Infrastructure Development Corp. (FPIDC), which in turn owns 67.1 percent of Manila North Tollways Corp. (MNTC) and 46 percent of TMC.
SCTEX is the country’s longest tollroad. A flagship project of BCDA, SCTEx expressway that runs through the provinces of Bataan, Pampanga, Tarlac and Zambales. This four-lane expressway interconnects three major economic zones in Central Luzon, namely Central Techno Park in Tarlac, Clark Freeport Zone and Subic Bay Freeport Zone.
Meanwhile, Pangilinan said around P20 billion would be spent on the road that will link the North and South Luzon Expressway (SLEX).
MPTC and state-owned Philippine National Railways (PNR) earlier signed a deal to conduct a prefeasibility study that will link the NLEX and SLEX by road and rail. The link will be an integrated rail and tollway project using the PNR’s right of way, which cuts across Metro Manila.
Initial discussions focused on the development of an 18-kilometer integrated rail and tollway project that will have “at-grade” and elevated roads over the existing PNR line.
The project is an alternative to various plans to link the two tollways. Other alternatives include the government’s P420-million plan of building a flyover that will connect the C-5 Road to Commonwealth Ave. in Quezon City, so that vehicles from the SLEX do not have to deal with traffic on EDSA to get to the NLEX.