MVP group hopes 'improved' SCTEx proposal will get OKd
MANILA, Philippines - Manila North Tollways Corp. (MNTC) of the Pangilinan group is hopeful that Malacañang will approve its improved offer for the concession to operate the Subic-Clark-Tarlac Expressway (SCTEx) before the year ends.
The Bases Conversion and Development Authority (BCDA) has endorsed the proposal of MNTC to the Palace, according to Ramon Fernandez, president of the Metro Pacific Tollways Corp., the parent firm of MNTC.
The proposal's improved terms include increasing the revenue share of BCDA in SCTEx to P90 billion from P64 billion, and extending to 2019 from 2016 the commitment of MNTC to subsidize the payment of BCDA's P31-billion debt to the Japan International Cooperation Agency (JICA) for the toll road. The JICA loan will mature in 2041.
MNTC will also provide government fixed fees of P800 million from 2020 to 2030, and increase the advance facility payment to P2 billion, with an option to provide more if there will be shortfalls due to lower-than-projected traffic.
MNTC, part of Manuel V. Pangilinan-led Metro Pacific Investments Corp., bagged the concession to operate SCTEx in 2011, but Aquino has yet to approve the contract. BCDA and MNTC moved to revise the terms of the contract in July this year.
Under the contract, BCDA will assign MNTC the management, operations and maintenance of the tollways as well as the government agency's right in the toll operations agreement to collect toll revenues for 25 years, renewable for another 8 years. - Rappler.com