Turnover of SCTEX to MPIC seen this mo

MANILA, Philippines - The Metro Pacific Group expects government to finally turnover the management and operation of the Subic-Clark-Tarlac Expressway (SCTEX) before the end of the month.

Metro Pacific Tollways Corp. (MPTC) president Ramoncito Fernandez told The STAR that they are just awaiting confirmation from the Office of the President of the revised supplemental toll operation agreement (STOA) recently approved by the Toll Regulatory Board (TRB).  

Under the revised business and operations agreement with the Bases Conversion Development Authority (BCDA) that built the toll road, MNTC will operate and manage SCTEX for 33 years, while relieving BCDA of the heavy financial burden of paying its debt to the Japan International Cooperation Agency (JICA). The JICA loan used to construct SCTEX will mature in 2041.

The original agreement was for Manila North Tollways Corp. (MNTC) to operate and manage the tollroad for 25 years, renewable for another eight years.

BCDA officials said as to the original intent of the agreement, BCDA will be 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 JICA.

Once MNTC officially takes over the SCTEX, the company’s plan to integrate SCTEX with the North Luzon Expressway (NLEX) will be put in motion. This will result in a seamless travel experience for motorists.

As SCTEX co-concessionaire, MNTC will assure 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.

The former BCDA management virtually cancelled the contract with MNTC due to the latter’s alleged failure to comply with at least eight conditionalities, setting into motion the renegotiation between the company and the new BCDA management led by chairman Felicito Payumo.

BCDA president Arnel Casanova earlier explained to The STAR that the original contract between BCDA and MNTC provides that the latter will pay for the Japanese loan contracted by the BCDA and used to build the expressway only for the first five years of the contract.

“After five years, the contract provides that we get 20 percent and they get 80 percent. But what if the BCDA’s 20 percent share is not even enough to pay for the Japanese loan? What we want is for MNTC to pay for any shortfall over the duration of our paying for the loan so that eventually, it will be the users of the tollway, not the taxpayers who will pay,” he said.