State-run Bases Conversion and Development Authority said the holding of a price challenge for the Subic-Clark-Tarlac Expressway deal was well within the legal bounds of the business and operating agreement (BOA) the agency signed with the Manila North Tollways Corp. (MNTC) in 2011.
“We at the BCDA have been observing the requirements in the BOA in good faith. The price challenge is consistent with the BOA because it is a consequence of the President’s approval which is a condition precedent to the effectivity of the BOA itself. The BCDA is confident of the legality of its position,” said BCDA president and chief executive officer Arnel Paciano D. Casanova.
“We agree that the bidding process should be transparent and fair. As such, no one party should have undue advantage over the others by having a hand in the crafting of the terms of reference,” Casanova added.
The BCDA issued the statement following reports quoting the MNTC, operator of the North Luzon Expressway, as saying that it would not honor the price challenge if it would not be based on the BOA.
“We have invited all interested parties including the MNTC to the conference on Jan. 6 to discuss the concerns on the SCTEx price challenge. To ensure the integrity of the process, there should be no communication other than the official channels,” Casanova said.
“We are pleased with MNTC’s keen interest in the undertaking because it only shows that SCTEx is a very profitable project that other parties will also find attractive,” he added.
Earlier this month, the BCDA board approved and released the guidelines for the SCTEx price challenge, finally allowing the bidding for the long-term contract to operate and maintain the toll road to push through. Interested parties are required to submit a higher price than the P3.5-billion upfront cash offer—on top of the 50-50 sharing of gross revenues—from the MNTC, a firm led by businessman Manuel V. Pangilinan.
The MNTC has the right to match the highest bid for the management of the 94-kilometer toll road.
At stake would be the rights, interest and obligations in relation to the management, operation and maintenance of the four-lane divided expressway that passes through the provinces of Bataan, Pampanga and Tarlac, and which is directly linked to the North Luzon Expressway.