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PTT bags BCDA dev’t contract

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PTT bags BCDA dev’t contract

By: - Reporter / @amyremoINQ
/ 04:41 AM May 15, 2014

MANILA, Philippines—PTT Philippines Corp. bagged the contract for the long-term lease and development of a two-hectare property along the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEx), the top official of the state run Bases Conversion and Development Authority (BCDA) said on Wednesday.

BCDA president and CEO Arnel Paciano D. Casanova said that the board already approved the notice of award to PTT Philippines for the Macangcung service area in Barangay (village) Santiago, Concepcion, Tarlac.

Casanova said the proposal for PTT Philippines would undergo a legal review.

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Barring any unforeseen developments and hitches, BCDA is expected to sign the contract soon.

As the winning bidder, PTT Philippines is expected to establish, operate and maintain a gasoline station with amenities in the said block under a 25-year contract, which is renewable for another 25 years.

Aside from a gasoline station, the oil firm must also put up other prescribed facilities such as rest rooms, sufficient and adequate parking slots, emergency First Aid station, potable water and lighting system, emergency vehicle repair shop and convenience stores.

BCDA offers a rent-free period of four years. The minimum starting annual fixed lease, to start on the fifth year, should be P3.5 million. This will be inclusive of value-added tax and subject to 5-percent annual escalation.

Upon contract signing, PTT Philippines will need to remit to the BCDA a security deposit, equivalent to the winning bid and must post a surety bond with a face value of P7 million.

Seven firms have vied for the contract to develop the Macangcung Service Area, but only two reportedly submitted offers.

The Macangcung service area was one of two lots along the 94-kilometer toll road offered for auction by the BCDA last year. Seaoil Philippines won the other auction to operate the Concepcion service area.

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TAGS: Bases Conversion and Development Authority (BCDA), contracts, oil and gas, Philippines, property, PTT Philippines, SCTEx
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