Revenue-sharing revisions pave way to SCTEX contract renewal

The Bases Conversion and Development Authority (BCDA) has renewed its contract with the Manila North Tollways Corp. (MNTC) to continue the operation and maintenance of the Subic-Clark-Tarlac Expressway (SCTEX), albeit with revisions on revenue sharing. BCDA president and chief executive Arnel Casanova explained how the revenue sharing agreement was revised with the MNTC. He said under the new agreement, the Pangilinan-led firm will provide the BCDA with the needed cashflows to cover the state firm’s debt service obligation to the Japan International Cooperation Agency (JICA). The construction of the SCTEX was made possible when JICA extended a P31-billion loan to fund its construction. The JICA loan will mature in the year 2041. “They increased the advance facility from P1 billion to P2 billion with an option of providing more if there will be shortfalls due to lesser traffic than projected." He said. “It is a cashflow efficient agreement and advantageous to the government." Under the new contract, the BCDA shall assign to the MNTC the management, operation and maintenance of the tollway as well as BCDA’s rights in the Toll Operations Agreement, including the collection of toll revenues for a period of 25 years, renewable for another 8 years. MNTC chairman Manuel V. Pangilinan said, “This agreement reflects the re-affirmation of our alliance with BCDA in running SCTEX, and reiterates our Group’s commitment to support the PPP [public-private partnership] program of the Government." MNTC said that the deal allows the company to provide the best service to motorists using SCTEX with high standards on a par with the North Luzon Expressway (NLEX). Moreover, MNTC has plans to integrate SCTEX with NLEX to provide motorist with “a truly seamless travel experience." As SCTEX co-concessionaire, MNTC will have overall management of the entire operation and supervision of the tollway linking together the Subic Freeport Zone in Zambales, the Clark Special Economic Zone in Pampanga, and the Central Techno Park in Tarlac. 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 on a 24/7 basis. — MRT/VS, GMA News