MPIC seeks clarification on NLEX-SLEX road

MANILA, Philippines - Infrastructure giant Metro Pacific Investments Corp. (MPIC) is awaiting clarification from the government on the delayed P18-billion toll road that would connect the North Luzon and South Luzon expressways.

Rodrigo Franco, president of MPIC’s Manila North Tollways Corp. (MPIC), said there is a need for the government to clarify what scheme should be taken for the massive infrastructure project.

“We need to get clarification,” Franco said.

Public Works Secretary Rogelio Singson earlier said MPIC would have the last say on how to undertake the NLEX-SLEX connector road being implemented by the Department of Public Works and Highways (DPWH).

Singson pointed out that MPIC could pursue the joint venture with state-run Philippine National Construction Corp. (PNCC) or subject the unsolicited proposal to a Swiss Challenge.

“Both are legally possible. They are the proponent and at the end of the day we have to respect what the proponent is saying,” the DPWH said earlier.

For his part, Franco explained that the government should clarify the options available to the company.

“We have not made a decision as we are not too clear on the options,” he said.

During the last meeting of the National Economic and Development Authority (NEDA) board, he pointed out that President Aquino instructed the DPWH to thresh out the legal hindrances to the connector road.

“In the last discussion among the Cabinet Cluster, we have been asked to finally sort out the legal aspect. Whether it is best on a joint venture or if it follows the original proposal under the Build Operate Transfer Law,” Singson said.

As early as August 2012, the government was supposed to undertake the “Swiss Challenge” process as stated under the BOT Law. However, the Department of Transportation and Communications (DOTC) recommended that MPIC’s Metro Pacific Tollways Development Corp. (MPTDC) enter into a joint venture agreement with PNCC to expedite the connector road project.

The NEDA board approved the amendment or extension of an existing joint venture between MPTDC and PNCC as well as the supplemental toll operations agreement (STOA) to cover the extension of the franchise of NLEX under Presidential Decree 1894.

The NLEX SLEX connector project was originally submitted to the DPWH in May 2010 under the BOT Law.

However, the Department of Justice (DOJ) issued a legal opinion last July stating that the project should be reverted back to being an unsolicited proposal which should be subjected to a “Swiss Challenge.”