50-50 revenue, cost sharing for SCTEx eyed
MANILA, Philippines - Manila North Tollways Corp. (MNTC), a unit of Metro Pacific Investments Corp. (MPIC), proposed a 50-50 revenue and cost sharing scheme with government in the operation of the Subic-Clark-Tarlac Expressway (SCTEx).
MPIC Chairman Manuel V. Pangilinan said the proposal, which they submitted to state-run Bases Conversion and Development Authority (BCDA), was in line with the true spirit of the Public-Private Partnership program.
“It's 50-50 net since we also need to pay the operating expenses to run the road system as well as the capital expenditures to maintain the road,” he said.
Pangilinan added the company would pay government starting in the first year of the agreement. “We would give them upfront cash and share in the net cash flows.”
MNTC, a unit of Metro Pacific Tollways Corp. (MPTC), submitted the proposal to BCDA late March.
This was the third time that the MPIC group revised its offer for SCTEx. Previously, the group offered to give government a 30% (raised from the original 20%) share in revenues.
MNTC won the contract to operate SCTEx in 2010, under the administration of former President and now Pampanga Rep. Gloria Macapagal Arroyo. The contract, however, was placed under review by the Aquino administration.
MPTC said it was earmarking P2.5 billion for capital expenditures in 2013 to bankroll major road projects involving the North Luzon Expressway (NLEx) and SCTEx.
The company is spending about P1.6 billion for the construction of a 2.1-kilometer expressway from NLEx Cloverleaf to McArthur Highway in Valenzuela.
The company is also spending P600 million to link NLEx and SCTEx. - Rappler.com