BCDA, MNTC sign accord on SCTEX

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) and the Manila North Tollways Corp. (MNTC) have signed an agreement that firms up the partnership on the Subic Clark Tarlac Expressway (SCTEX) concession. Both parties described the agreement as “truly reflective of the intentions and spirit of the partnership from the beginning.”

BCDA chairman, Felicito Payumo said “The signing of the agreement has concluded a series of talks between BCDA and MNTC executives, which enabled both parties to clarify further the original aspirations and intentions of each one. “

BCDA president and CEO Arnel Casanova said the signing of the business concession agreement is a “major breakthrough towards establishing a good business model for public-private partnership (PPP) vigorously pushed by the Aquino administration as the linchpin of national economic development.”

Under the agreement, MNTC will operate and manage SCTEX for 33 years, while relieving BCDA of the heavy financial burden of paying the latter’s debt to JICA. The JICA loan will mature in the year 2041. True to the original intent of the agreement, BCDA is provided sufficient funds to repay its JICA loan through revenue sharing and agreed-on advances during shortfalls. The agreement satisfies BCDA’s requirement to cover the state firm’s debt service obligation to the Japan International Cooperation Agency (JICA).

Manuel V. Pangilinan, MNTC chairman, said: “This agreement reflects the re-affirmation of our alliance with BCDA in running SCTEX, and reiterates our Group’s commitment to support the PPP program of the government.”

MNTC said that the deal paves the way for the company to provide the best service to motorists using SCTEX – at par with the high standards applied on the North Luzon Expressway (NLEX).

Once MNTC officially takes over the SCTEX, plans to integrate SCTEX with NLEX will be put in motion. This will result in a seamless travel experience for motorists.

As SCTEX co-concessionaire, MNTC will have overall management of the entire operations and supervision of the tollway, linking Subic Freeport Zone in Zambales, Clark Special Economic Zone in Pampanga, and the Central Techno Park in Tarlac.