MNTC ready to remit P3.5-B upfront payment for SCTEX deal

MANILA, Philippines - Manila North Tollways Corp. (MNTC), a unit of infrastructure giant Metro Pacific Investments Corp. (MPIC), is ready to remit the upfront payment of P3.5 billion for the takeover of the 94-kilometer Subic-Clark-Tarlac expressway (SCTEX).

MNTC president Rodrigo Franco said the funding is already available and would be handed over to the Bases Conversion and Development Authority (BCDA) once a new business operating agreement (BOA) and the concession agreement are signed.

According to him, MNTC has 30 days to enter into a revised BOA after receiving a Notice of Award from the BCDA last Monday.

 “Upon the signing of the BOA, we will pay P3.5 billion upfront payment to the government,” Franco said.

He earlier said MNTC is looking at taking over SCTEX within the month after interested companies led by diversified conglomerate San Miguel Corp. (SMC) failed to submit a counter proposal under a price challenge conducted by the BCDA.

MNTC and BCDA signed a BOA in 2011 for the operation and maintenance of the four-lane SCTEX for 33 years, subject to the approval of the President. BCDA incurred a P34-billion debt from the Japan International Cooperation Agency (JICA) to construct the toll road.

However, Malacañang has ordered the price challenge for the SCTEX maintenance and operations management in the interest of transparency.

SMC and a group represented by the law firm of Aguirre, Abano, Pamfilo, Paras, Pineda, and Agustin have expressed interest in the toll road. Interested companies were supposed to submit offers better than the P3.5-billion upfront payment and share 50 percent of the gross toll revenues with the BCDA offered by MNTC.

No bids were submitted to the BCDA when the deadline expired last Jan. 30.

Franco earlier said the company is spending around P650 million after MNTC and BCDA signed the integrated toll collection agreement for the SCTEX and the 86.7-km North Luzon expressway (NLEX) in front of Senate President Franklin Drilon last Feb. 5.

Traffic along SCTEX grew 12 percent to 31,000 vehicle entries per day while that of NLEX.