No one challenged its P35-B cash offer to run expressway
THE Bases Conversion and Development Authority (BCDA) yesterday said that it did not receive any challenger for Manila North Tollways Corp.’s P35 billion upfront cash offer to operate the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEX) .
There was no taker on the Swiss Challenge ordered by the Office of the President for the MNTC offer BCDA earlier agreed to in 2011.
Earlier, San Miguel Corp. and a company represented by law firm Aguirre Abano Pamfilo Paras Pineda and Agustin showed interest in the project.
BCDA said that under the terms of reference for the price challenge, MNTC will be awarded the project.
“We have observed all the transparency required for this deal and worked hard to preserve the integrity of the process,” BCDA President and Chief Executive Officer Arnel Paciano Casanova said.
He added “We are happy to move on and close this deal, proceed to working for the improvement of the service in SCTEX, and serve the public interest.”
“This just proves that the latest improved offer of MNTC is the best offer in the market,” Casanova added.
For his part, Rodrigo Franco, MNTC president said in a text message that, “I don’t know if they share our view of the value of the SCTEX concession.”
He also said that “We are grateful that they did not challenge our contract with BCDA. We commit to provide the best service to our customers.”
The SCTEX is a fully operated and world-class four-lane expressway traversing the provinces of Bataan, Pampanga and Tarlac. The road provides a direct link to Metro Manila via the Northern Luzon Expressway (NLEX).
MNTC offered payment of upfront cash of P35 billion, inclusive of 12 percent value added tax (VAT) to BCDA. It also offered 50/50 sharing of gross toll revenues with BCDA. MNTC likewise agreed to work on a single collection system between NLEX and the SCTEX.
The object of the price challenge is limited to the cash offer which should be payable upon signing of the agreement.
MPTC and MNTC are subsidiaries of Metro Pacific Investment Corp. (MPIC).
Manuel Pangilinan, who is also MPIC president, said the contract has been renegotiated two times and is now on its third year.