MNTC clinches deal with BCDA to manage SCTEX

Manila North Tollways Corp. (MNTC) has formally closed a deal with the Bases Conversion Development Authority (BCDA) to manage and operate the Subic-Clark-Tarlac Expressway or SCTEX. In a statement Monday to the Philippine Stock Exchange, MNTC said it signed an agreement with the Bases Conversion and Development Authority (BCDA) for a revenue-sharing partnership involving the highway. Arnel Casanova, BCDA president and chief executive officer, said the signing of the business concession agreement is a "major breakthrough towards establishing a model public-private partnership (PPP)." Under the agreement, MNTC will operate and manage SCTEX for 33 years relieving BCDA of the financial obligation involving debts owed to the Japan International Cooperation Agency (JICA) which funded the SCTEX. The JICA loan will mature in 2041. BCDA will be receiving the money from the revenue-sharing deal as well as pre-agreed advances with MNTC to repay the loan. "This agreement reflects the re-affirmation of our alliance with BCDA in running SCTEX, and reiterates our group's commitment to support the PPP program of the government," said MNTC chairman Manuel V. Pangilinan. As a co-concessionaire, MNTC will have overall management of the entire operations and supervision of the tollway that links the Subic Freeport Zone in Zambales, Clark Special Economic Zone in Pampanga, and the Central Techno Park in Tarlac. — VS, GMA News