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Metro Pacific sweetens SCTEx offer to PHP 90 billion
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Tuesday, 20 Nov 2012

Manila Standard Today reported that the Metro Pacific group sweetened its offer to operate the 94 kilometers long Subic Clark Tarlac Expressway by raising the concession fees and revenue share of the government by 40% to PHP 90 billion over a 30 year period.

Bases Conversion and Development Authority president Mr Arnel Casanova said in an interview that Metro Pacific's Manila North Tollroad Corporation improved its offer to PHP 90 billion from the original PHP 64.4 billion, after the Finance Department called for a re bidding of the expressway's operation.

Mr Casanova said the PHP 90 billion in concession fees would be paid to the government over a period of 30 years or until 2043. The improved offer was based on the assumption that vehicular traffic along SCTEx would generate as much as PHP 278 billion during the 30 year period.

He added that "There is a big improvement in the offer. Because from nominal proceeds, we were going to receive about PHP 64 billion. It's now PHP 90 billion. This is for entire concession until 2043."

Mr Casanova said the higher concession fees in the new proposal were computed with the adjustment in the government's share in the SCTEx revenues from 20% to 30%.

He said the PHP 90 billion proceeds would cover the payment of debt servicing, concession fees and the government's share in the expressway's revenues. Mr Casanova said his agency submitted the improved offer to Malacañang for approval.

Metro Pacific upgraded its offer to appease the Finance Department, which was inclined to re bid the operations and management of SCTEx in order for the government to get a bigger share of revenues from the expressway.

Manila North Tollroad Corporation was supposed to handle the SCTEx concession. MNTC earlier said it planned to invest P600 million for the integration of the various toll ways, including the North Luzon Expressway and SCTEx to make them a seamless network. Motorists under the integrated system will also no longer have to make stops between Quezon City and Tarlac.

MNTC also said it would invest PHP 20 billion until 2043 for road improvements, lighting, signages and other facilities to improve the safety of the highway and enhance convenience for motorists. This is the second time Metro Pacific revised the commercial term of the agreement. The BCDA and MNTC signed the concession agreement for SCTEx in November 2010.

The BCDA, however, requested improvements in the terms in February 2011. The BCDA board and MNTC renegotiated and obtained improvements in the commercial terms and signed a business and operating agreement, which was subsequently endorsed to Malacañang.

The BCDA informed MNTC that there were still concerns about the revenue sharing agreement in June 2012. The MNTC, after a series of meetings with BCDA, submitted a final offer in response to the request for improved terms.

Source - Manila Standard Today


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