BCDA opens talks with MNTC for SCTEX contract

MANILA, Philippines - The Bases Conversion Development Authority (BCDA) has declared a failure of bidding for the operations, management and maintenance contract of the Subic-Clark-Tarlac Expressway (SCTEX), paving the way for negotiations with Metro Pacific unit led Manila North Tollways Corp. (MNTC).

The BCDA has earlier rejected the financial bid of MNTC, the lone bidder for the contract after Northlink Toll Management Inc., a joint venture between diversifying conglomerate San Miguel Corp. and Star Tollways Corp., was declared ineligible to join the bidding.

BCDA said MNTC did not challenge its decision denying MNTC’s request to reconsider its financial bid, thus forcing the state-run firm to end the bidding process.

BCDA gave MNTC until Feb. 18 to file its protest but instead, the MNTC, in a letter to the BCDA dated Feb. 17, manifested its willingness and readiness to enter into negotiations.

BCDA president and CEO Narciso L. Abaya said the bidding process undertaken so far and the negotiations to be undertaken with MNTC are all intended to secure the most advantageous terms and conditions for the government in the lease/concession, management, operation and maintenance of SCTEX.

MNTC and Northlink both submitted bids last Jan. 4 for the selection of BCDA’s private sector partner in the Management, Operations and Maintenance of the SCTEX. Furthermore, the terms of reference (TOR) requires that a bidder is required to pass all eligibility requirements as well as the technical requirements to be declared an “eligible” bidder.

Northlink, was declared ineligible primarily because of a fatal flaw in its technical proposal where it indicated that “periodic maintenance, special/major/emergency, other additional works, enhancements and/or improvement works” are for ‘owners’ account.

BCDA said this violates the TOR which requires that all expenses for maintenance, operations and management shall be for the account of the private sector operator and not for the account of BCDA, the owner of the SCTEX. Also, there were some incomplete eligibility documents in Northlink’s submission. BCDA subsequently denied Northlink’s request for reconsideration and protest on the declaration of Northlink’s ineligibility.

On the other hand, BCDA declared MNTC eligible to bid having passed all technical requirements. However, the financial bid of MNTC opened on Jan. 25 did not comply with BCDA’s minimum requirements under the TOR. MNTC’s financial bid was declared as “failed/non-complying” due to the following violations: shortfalls in the payment of the semi-annual lease/concession fee; failure to commit that the lease/concession fee will be secured by a letter of credit; and a conditional payment by MNTC of the value-added-tax (VAT) and creditable withholding tax, among others.

SCTEX, the country’s largest tollway, is a 94-kilometer four-lane expressway passing through two major economic zones – Subic and Clark.