BCDA confirms review of SCTEx deal
MANILA, Philippines—The Bases Conversion and Development Authority (BCDA) said the privatization of the Subic-Clark-Tarlac Expressway (SCTEx) was just one of several big-ticket projects being reviewed by the Aquino administration for being possibly “tainted by corruption.”
BCDA president and CEO Arnel Casanova said the agency wanted to “start on the right path,” vowing transparency by committing to disclose the records pertaining to the SCTEx concession such as the original terms of reference and the signed final contract.
This would be done to ensure that the public would know the reasons for the collection of the toll fee and for how much. “We owe it to the paying public and taxpayer.”
Manila North Tollways Corp. (MNTC), the company that won the project contract last year, has agreed to a review to help ensure that “benefits for both the government and private sector and for the greater interest of the public” were maximized.
Manuel V. Pangilinan, chairman of MNTC parent firm Metro Pacific Investments Corp. (MPIC), last week said the BCDA’s previous management tried to introduce several revisions to the contract’s financial terms.
In a statement, Casanova said he appreciated MPIC’s “commitment to support the public-private partnership and to pursue a long-lasting partnership with BCDA by coming up with a concession agreement that could withstand public scrutiny.”
Last year, MNTC won the 25-year concession agreement for the SCTEx.
All other bidders for the project were disqualified for failing to meet the financial and technical requirements, forcing the BCDA to enter into a negotiated deal with MNTC. Pangilinan said the company has agreed to have the contract reviewed by the BCDA’s new management.
However, he urged the government to honor its contract by retaining the original provisions of the deal.
Under the contract, MNTC will pay concessional fees for the first eight years and the money will be used to pay loans that funded the SCTEx construction. For the rest of the project duration, MNTC will give the government a 20-percent share in toll revenues.
BCDA’s Casanova emphasized that some government projects in the past have failed because of the lack of transparency and onerous modifications tainted by corruption, which proved to be grossly disadvantageous to the government.
