MNTC given till next week to protest BCDA decision

MANILA, Philippines - Manuel Pangilinan-led Manila North Tollways Corp. (MNTC) was given until next week to protest the decision of the state-owned Bases Conversion Development Authority (BCDA) to reject MNTC’s bid for the operation and management of the Subic-Clark-Tarlac Expressway (SCTEX).

BCDA’s Asset Disposition Program (ADP) Committee denied MNTC’s Request for Reconsideration. This action was confirmed by the BCDA Board during its meeting held last Feb. 10, 2010.

BCDA has given the MNTC until Feb. 18 to protest the denial.

The BCDA has earlier declared the financial bid of MNTC as “failed/non-complying” because it was below the minimum requirements set by the terms of reference (TOR).

On the other hand, Northlink Management Corp., a joint venture between San Miguel Corp. and Star Tollways Corp submitted a protest before the BCDA last Jan. 29. BCDA has declared Northlink ineligible on the ground that it did not comply with the technical requirements set forth in the TOR.

The BCDA Board denied Northlink’s letter of protest during its meeting held last Feb. 10, 2010.

Under the SCTEX privatization program, the winning bidder will enter into a lease or concession agreement with BCDA to manage, operate and maintain the SCTEX on “as is, where is,” basis for a period of 33 and a half years until 2043.

The winning bidder will be responsible for the operational funding requirements in running the country’s longest tollway, including periodic maintenance and emergency works, which will be covered by a performance security. 

The private sector partner will also arrange for the insurance of the toll road. BCDA will receive a semi-annual lease/concession fee from the winning bidder, amounting to either: the peso equivalent of yen-dominated JBIC/JICA loan debt servicing as well as all financing charges payable to BCDA 10 days prior to its due dates secured by a rolling five-year letter of credit; or 20 percent of audited gross revenues whichever is higher.

BCDA reported that vehicles using the SCTEX more than doubled since it started operating two years ago.Data from the agency showed that vehicle traffic went up by 162.2 percent this year. This is good news for the six firms fighting for the right to operate and maintain the 93.77 kilometer toll road.

From April 2008, when the road network opened, to December 2008, total traffic volume at SCTEx was only at 2.29 million vehicles. But for the first 11 months this year, traffic volume increased to 6.12 million vehicles.