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MPIC to submit revised SCTEx proposal

Rappler.com

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This is the 3rd time the Manuel V. Pangilinan-led group is submitting a proposal to operate and maintain the 94-kilometer Subic-Clark-Tarlac expressway (SCTEx)

MANILA, Philippines – The Pangilinan-led infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) is set to submit to the government a revised proposal to operate and maintain the 94-kilometer Subic-Clark-Tarlac expressway (SCTEx).

Christopher Lizo, chief financial officer of MPIC’s toll road unit, Metro Pacific Tollways Corp. (MPTC), told reporters on Thursday, March 21, that its proposal will be submitted to that state-run Bases Conversion and Development Authority (BCDA), which oversees SCTEx, by March 31.

“We are in discussions now with the government in terms of submitting a new proposal. We should have a submission by March 31,” he stressed.

“Maybe in the next few days we will sit down with the DOF (Department of Finance, the consultant of BCDA for the SCTEx deal). We are talking about it we are in continuous discussion with the government,” he said.

Third time

This is the 3rd time MPTC is revising its offer for the SCTEx. The recent round focuses on the revenue sharing scheme between MPTC and the government.

Previously, MPTC proposed that it would keep 70% of toll and other revenues from the toll road operations while the remaining 30% would go to the government.

This was higher than the original 20% government share in a previous proposal.

When asked if MPTC is considering a 50-50 share agreement, Lizo replied, “That is part of the discussion.”

MPTC already submitted an improved offer last year including a guaranteed share of P90 billion for the BCDA instead of only P65 billion.

MPTC’s unit Manila North Tollways Corp. (MNTC) won the contract to operate SCTEX in 2010 under the administration of previous President and now Pampanga Rep. Gloria Macapagal Arroyo.

However, the contract that is valid until 2043 was placed under review by former Transportation secretary Manuel Roxas II under the Aquino administration.

Focus on structure

The two parties have been prioritizing two points: the sharing scheme and the structure of the transaction.

MPTC is focusing on the transaction structure, Lizo stressed. “I think if it is structured properly we can consider reviewing the revenue sharing.”

“Among the things we are discussing is the structure whether it is gross or net in sharing. There are pros and cons because if we use the net income then operationally (the government) has to cooperate and share in the expenses,” he added. – Rappler.com

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