BCDA urged to reconsider MNTC financial bid for SCTEX

MANILA, Philippines - Manila North Tollways Corp. (MNTC) will ask the Bases Conversion Development Authority (BCDA) to reconsider its decision that found MNTC’s financial bid for the operation and management of the Subic-Clark-Tarlac Expressway (SCTEX) short of the minimum requirements.

Metro Pacific Investments Corp. (MPIC) chairman Manuel V. Pangilinan said in an interview that a letter of reconsideration will be sent to BCDA on the matter.

MNTC, a unit of Metro Pacific Tollways Corp. which, in turn, is a subsidiary of MPIC, was earlier declared as the lone bidder for the multi-billion peso tollroad project.

SCTEX, owned by BCDA, is envisioned to serve as a backbone of development in the Central Luzon region.

On the sidelines of yesterday’s Philippine Business for Social Progress (PBSP) general membership meeting, Pangilinan reiterated their group’s interest in entering into a partnership with BCDA for SCTEX.

Under the SCTEX privatization program, the winning bidder will enter into a lease or concession agreement with the BCDA to operate SCTEX on an “as is, where is,” basis for a period of 33 and a half years from April 28, 2010 to Oct. 30, 2043.

MNTC president and CEO Rodrigo Franco earlier said while BCDA has found MNTC’s financial bid short of the minimum requirements, the company has until Monday to file a request for reconsideration.

Under the rules of the National Economic and Development Authority on joint venture agreements between the public and private sectors, when financial bids fail to meet the criteria set for a project, the bidders can enter into negotiations.

Franco earlier emphasized that the operation and maintenance of SCTEX by MNTC will facilitate the integration of SCTEX into North Luzon Expressway (NLEX) in order to give motorists greater benefits, adding that MNTC will redesign and reconfigure certain toll plazas and the toll collection systems to achieve full integration of the two expressways, thereby allowing customers to discover an even more pleasurable and convenient travel experience.

MNTC is the concessionaire and builder of the 93-kilometer NLEX. MPTC president and CEO Ramoncito Fernandez emphasized that MNTC has a proven track record in managing NLEX to the highest global standards and that its robust financial performance is consistently validated with the highest credit rating of PRS Aaa from PhilRatings.

MNTC will soon open its Phase 2-Segment 8.1 expansion project that will link Mindanao Avenue to the NLEX mainline. It will have the same modern and high-tech features as the NLEX, including a cloverleaf interchange, fully computerized toll collection system, efficient traffic management, and well-maintained pavement.

Six firms have originally expressed interest to bid for SCTEX, namely Star Tollways Corp., San Miguel Corp., MNTC, Skyway operator Citra Group, India-based IL&FS Transportation Network Ltd and Amicus Holdings, but it was only MNTC and the consortium of SMC and Star Tollways, Northlink Toll Management that submitted proposals to the BCDA.

According to BCDA, the private sector partner shall be responsible for the operational funding requirements for SCTEX, including insurance and the provision of management services, toll collection, traffic safety and security management, toll road maintenance, including other support services.

The winning bidder will also provide BCDA a semi-annual lease/concession fee amounting to the peso equivalent of the yen-dominated loan from the Japan Bank for International Cooperation (JICA)  as well as all financing charges, payable to BCDA 10 days prior to its due dates, or 20 percent of the audited gross toll revenues, whichever is higher.

BCDA financed the construction of the 93.77 kilometer tollroad through a P22-billion concessional loan from the JICA.

The Tollways Management Corp. (TMC), partly owned by MPTC, currently operates the SCTEX.

The Lopez Group earlier sold its tollways business held in First Philippine Infrastructure Inc. (FPII) to MPIC for P12.2 billion. MPIC has renamed FPII into MPTC.

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 MNTC and 46 percent of TMC.