MPTC expects deal on SCTEX takeover

MANILA, Philippines - Metro Pacific Tollways Corp. (MPTC) expects to ink soon a concession agreement with the Bases Conversion Development Authority (BCDA) for the takeover of the management, operation and maintenance of the Subic-Clark-Tarlac Expressway (SCTEX), the country’s longest expressway.

MPTC president Ramoncito Fernandez told The STAR that the Office of the Government Corporate Counsel (OGCC) has already given the go-signal for BCDA to enter into the agreement with MPTC. “We expect the closing of the negotiations and the turnover of SCTEX to us soon,” he said.

MPTC subsidiary Manila North Tollways Corp. (MNTC) was earlier awarded by the BCDA the right to negotiate a 25-year concession agreement for SCTEX.

Fernandez explained that it is a requirement for any government agency entering into such an agreement with the private sector to get the go-signal from the OGCC.

Once the agreement is signed, BCDA will assign to MNTC the concession over the 94-kilometer SCTEX.

As the SCTEX concessionaire, MNTC will be responsible for, among others, the overall management and supervision of the tollway; management of the toll operations center, toll plazas, and all other related ancillary facilities and equipment.

It will also provide appropriate resources to run the toll operations, implement a traffic safety and security management program for the entire stretch of the tollway set up an adequate patrol system for the whole stretch of the tollway as well as provide for an emergency response and incident management on a 24-hour basis in coordination with appropriate law enforcement agency. The maintenance of greenery and landscaping along the tollway is also part of its responsibilities.

The SCTEX contract requires MNTC to pay BCDA a semi-annual concession fee amounting to the peso equivalent of the yen-denominated debt service requirements of the project for 2010 to 2016. SCTEX was funded from a loan from the Japanese government.

Fernandez said the new concession shall add 94 kilometers to MPTC’s toll road portfolio without construction risk and shall enable the group to secure a long-term operation and management contract for the toll road.

MNTC was formerly owned by the Lopez Group through its infrastructure arm First Philippine Infrastructure Development Corp. (FPIDC). MPIC later bought FPIDC, making MPIC the majority owner of MNTC. The other MNTC shareholders are: Egis Projects S.A. of France, the world’s biggest tollways operator; Leighton Asia Ltd. of Australia, a civil works specialist with an extensive track record in toll road construction; and Philippine National Construction Corp. (PNCC), the state-owned company that holds the franchise for the operation of the expressway.

MNTC is the builder and concessionaire of the 84-km North Luzon Expressway (NLEX). MPTC officials earlier said the group’s taking over SCTEX will allow them to seamlessly connect the operations of the latter with the North Luzon Expressway (NLEX).

Fernandez said an integration plan is under way to allow a seamless expressway travel using NLEX and SCTEX.

He also noted that MPTC is also expanding its portfolio through acquisition of shares in other toll road concessionaires.

“Among several prospects, we have increased our stake in Citra Metro Manila Tollways Corp., the concession holder for the Metro Manila Skyway. We have also expressed interest to acquire a stake in South Luzon Tollway Corp., the concessionaire for the SLEX,” he revealed.

Meanwhile, MPTC is also set to build the P17-billion, 13.2-km road that will connect the NLEX to the South Luzon Expressway (SLEX) along the rail tracks of the Philippine National Railways (PNR).

Fernandez said this is being done to minimize the right-of-way acquisition costs in this densely populated urban center.

He pointed out that the connector road will allow travel from NLEX to SLEX and vice-versa to be shortened to only 15 to 20 minutes.

Fernandez said they are in talks with the Japan International Cooperation Agency (JICA) as well as other funding sources to provide financing for the project.

The 13-km connector road or Segment 11 will connect the NLEX Harbor Link to the Skyway.

MNTC has commenced commercial operations of Segment 8.1 or the NLEX-Mindanao Avenue link. The extension spans 2.7 kilometers from Mindanao Avenue connecting to the NLEX mainline in Valenzuela through a full cloverleaf, the biggest in the country today.

He also announced that they have made significant progress in the pre-construction activities for Segments 9 and 10, collectively called the ‘NLEX Harbor Link’.

“We have successfully obtained approval from the Toll Regulatory Board (TRB) for the modified alignment following the rail tracks of Northrail and Southrail. The detailed engineering design for Segment 9, a 2.4-kilometer road extending NLEX westward from the new NLEX cloverleaf to MacArthur Highway, was substantially completed. We are now working hand in hand with the government to complete the acquisition of right of way for construction to begin” he added.

Meanwhile, Segment 10 is a 5.6-km elevated road from the end of Segment 9 and will be built along the tracks of Northrail and Southrail up to C-3 Road. “We expect that the detailed engineering design would be completed before the year ends,” he said.

He pointed out that the NLEX Harbor Link shall provide a direct access to the North Harbor from Northern and Central Luzon and from eastern Metro Manila through Mindanao Avenue without the truck ban.

“This shall allow faster movement of goods and services among various economic centers and would further accelerate economic growth,” Fernandez said.

Segment 9 and 10 will cost P1.7 billion and P6.3 billion, respectively.

About P7.5 billion, or 30 percent of the project cost of Segments 9, 10, and 11 will be financed from the proceeds of an increase in MPTC’s authorized capital.