SCTEx deal finally awarded to MVP group
THE BASES Conversion and Development Authority (BCDA) and Manuel V. Pangilinan-led Manila North Tollways Corp. (MNTC) have signed a new concession agreement for the Subic-Clark-Tarlac Expressway (SCTEx).
This new deal, which extends MNTC’s contract to operate SCTEx, paves the way for the firm’s takeover of the toll road that will be linked seamlessly with the North Luzon Expressway (NLEx).
Both parties described the agreement as “truly reflective of the intentions and spirit of the partnership from the beginning.”
“The signing of the agreement has concluded a series of talks between BCDA and MNTC executives, which enabled both parties to clarify further the original aspirations and intentions of each one,” BCDA said.
“This is a major breakthrough towards establishing a good business model for Public-Private Partnerships vigorously pushed by the Aquino administration as the linchpin of national economic development,” BCDA president Arnel Casanova said.
Under the agreement, MNTC will operate and manage SCTEx for 33 years, instead of the previous 25 years that is extendable for another eight.
MNTC will also assume the responsibility of relieving BCDA of its debt with the Japan International Cooperation Agency (JICA). The JICA loan will mature in 2041.
“BCDA is provided sufficient funds to repay its JICA loan through revenue sharing and agreed-on advances during shortfalls,” the state-owned agency said in a statement.
MNTC, a unit of infrastructure giant Metro Pacific Investments Corp., was supposed to take over SCTEx earlier this year. However, a review of its contract was initiated by the BCDA, which sought better terms for the government.
“This agreement reflects the re-affirmation of our alliance with BCDA in running SCTEx, and reiterates our group’s commitment to support the PPP program of the government,” Pangilinan said.
He earlier warned that the review of a supposedly “perfected” contract might cast doubt on the credibility of the administration’s campaign to attract new investors.
