CLARK FREEPORT – The Bases Conversion Development Authority (BCDA) has finally turned over to the Manila North Tollways Corp. ( MNTC) the operation and management of the Subic-Clark-Tarlac Expressway (SCTEx) for the next 33 years.
BCDA signed last Wednesday a “business and operating agreement” with the MNTC to finally clinch the deal over SCTEx which was funded from a P34-billion loan from the Japan International Cooperation Agency (JICA).
“Motorists will soon enjoy the benefits of integration in the form of seamless travel between the North Luzon Expressway (NLEx) and the SCTEx,” said a press statement jointly issued yesterday by BCDA and MNTC which also operates the NLEx.
Under the Agreement, MNTC will operate and manage SCTEx for 33 years, while “relieving BCDA of the heavy financial burden of paying the latter’s P34-billion debt to the JICA.”
“The JICA loan will mature in 2041. True to the original intent of the (MNTC-BCDA) agreement, BCDA is provided sufficient funds to repay its JICA loan through revenue sharing and agreed-on advances during shortfalls.
The agreement satisfies BCDA’s requirement to cover the state firm’s debt service obligation to JICA,” the statement said.
BCDA chair Felicito Payumo said “this agreement is our contribution to the Aquino government’s Public-Private Partnership (PPP) program.”
He noted that “by virtue of this Agreement, we can say the SCTEx was built at no cost to the government.”
Payumo said the pact “also assures the MNTC of a reasonable return to cover commercial risks as SCTEx’s co-concessionaire.”
The statement also quoted MNTC chair Manuel V. Pangilinan as saying that “the contract is truly reflective of the intentions and spirit of the partnership from the beginning.”
MNTC’s takeover of the SCTEx, Pangilinan said, “signals the advent of a new era in comfortable and safe travel offered by a seamless traffic along the North Luzon Expressway (NLEx) as strategically linked to the SCTEx that both meet world-class standards.”
BCDA president and CEO Arnel Casanova hailed the signing of the contract, saying “it represents a fusion of the strengths of the two partners that would ensure the maximum benefits to the public and the country.”
He added that “the agreement is a major breakthrough towards establishing a good model for public-private partnership (PPP) vigorously pushed by the Aquino administration as the linchpin of national economic development.”
“The government has the fixed resources and policy environment that assure the private sector of stability and security, plus a positive regulatory atmosphere founded on transparency,” Casanova said.
The MNTC said that “the deal paves the way for the company to provide the best services to motorists using SCTEx at par with the high standards applied on the NLEx.”
“As SCTEx’s co-concessionaire, the MNTC will have overall management of the entire operations and supervision of the tollway, linking Subic Freeport Zone in Zambales, Clark Special Economic Zone in Pampanga, and the Central Techno Park in Tarlac,” it added.
The joint statement noted that the MNTC “will also provide all necessary ancillary facilities and equipment, plus resources needed to run SCTEx efficiently – including assuring security and safety for motorists on the tollway round the clock.”
