MANILA, Philippines - Metro Pacific Tollways Corp. (MPTC), the toll road arm of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC), is set to submit a revised proposal to the state-run Bases Conversion and Development Authority (BCDA) to operate and maintain the 94-kilometer Subic-Clark-Tarlac expressway (SCTEx).
Christopher Lizo, chief financial officer of MPTC, told reporters yesterday that the revised proposal to be submitted within the month would include a sweeter revenue sharing between the concessionaire and the government.
“We are in discussions now with the government in terms of submitting a new proposal. We should have a submission by March 31,†he said.
According to him, MPTC would sit down with the Department of Finance (DOF) which is serving as the consultant of the BCDA in the discussions.
“Maybe in the next few days we will sit down with the DOF. We are talking about it we are in continuous discussion with the government,†he said.
This is the third time that MPTC has been forced to revise its offer for the SCTEx. Under the previous proposal, 70 percent of toll and other revenues from SCTEx would go to MPTC, while the remaining 30 percent (raised from an original 20 percent) goes to BCDA.
Lizo said the company is considering offering a revenue sharing of 50 percent to the government and 50 percent for the concessionaire.
“That is part of the discussion,†he explained.
According to him, MPTC is focusing on the structure of the transaction rather than the revenue sharing scheme.
“You should not look at the revenue sharing you should look at the structure also. It is the way you structure the transaction. So I think if it is structured properly we can consider reviewing the revenue sharing,†Lizo said.
For one, he said that the structure of the revenue sharing whether it would be based on the net income or the gross income has yet to be determined.
“Among the things we are discussing is the structure whether it is gross or net in sharing. There are pros and cons because if we use the net income then operationally (the government) has to cooperate and share in the expenses,†he added.
It can be recalled that MPTC’s unit Manila North Tollways Corp. (MNTC) won the contract to operate SCTEX in 2010 under the administration of previous President and now Pampanga Rep. Gloria Macapagal Arroyo.
However, the contract that is valid until 2043 was placed under review by former Transportation Secretary Manuel Roxas II under the Aquino administration.
MPTC already submitted an improved offer last year including a guaranteed share of P90 billion for the BCDA instead of only P65 billion.
MPTC earlier said it is earmarking P2.5 billion for its capital expenditures this year to bankroll major road projects particularly at the 84-kilometer North Luzon expressway (NLEX).
The company is spending about P1.6 billion to bankroll segment involving the construction of a 2.1-kilometer expressway from NLEX Cloverleaf to McArthur Highway in Valenzuela.
The road segment also involves the construction of a four-lane highway with an interchange and two vehicular overpasses.
Furthermore, the company is also spending P600 million to connect NLEX with SCTEx where it committed to invest P20 billion until 2043.