The toll-road arm of Metro Pacific Investments Corp. (MPIC), Manila North Tollways Corp. (MNTC), has taken control of the Subic-Clark-Tarlac Expressway (SCTEX), capping years of challenges to its concession agreement.
In a disclosure to the Philippines Stock Exchange on Tuesday MPIC announced that the Toll Regulatory Board last Friday gave MNTC a Toll Operation Certificate (TOC) that allowed them to operate and maintain the 93.77 kilometer expressway running from Subic to Tarlac.
Pursuant to the TOC and a business agreement with the Bases Conversion Development Authority (BCDA), MPIC said its unit had “commenced the management, operation and maintenance of the SCTEX on October 27, 2015.”
“Our team looks forward to implementing world-class seamless travel for our NLEX and SCTEX motorists. We remain commited in delivering safe, convenient travel to our motorists.” MNTC president and CEO Ramoncito Fernandez said in a statement.
MNTC was awarded the SCTEX contract in February following the failure of a price challenge to the firm’s P3.5-billion offer. Its 33-year concession to run the expressway, granted in 2011, had been subjected to a review by the Aquino government.
The administration had wanted a bigger revenue share and called for a price challenge last year. Two parties signed up but did not submit offers in January.
MNTC is currently integrating the SCTEX with the North Luzon Expressway, which it already operates.
“This concession further solidifies Metro Pacific’s leadership in the Philippine toll road industry. We will continue to innovate and pursue technologies to ensure delivery of our mission.” Fernandez said.