MNTC turns over P3.5-B to BCDA
BCDA and MNTC sign SCTEX Business Agreement
President Benigno S. Aquino III and French President Francois Hollande witnessed yesterday (26 February 2015) the ceremonial signing of the Subic-Clark-Tarlac Expressway Business Agreement between the state-owned Bases Conversion and Development Authority (BCDA) and the Manila North Tollways Corporation (MNTC) held in Malacanang. French firm EGIS Projects SA is a part owner of MNTC and is part of the consortium that will provide the toll equipment for the upgrading of the SCTEX systems.
Metro Pacific Investment Corporation (MPIC) and MNTC Chairman Manuel V. Pangilinan signed on behalf of the MNTC while the BCDA was represented by its president and chief executive officer Arnel Paciano D. Casanova.
The MNTC also turned over a check worth P3.5-B to the BCDA. Under the SCTEX Business Agreement, an upfront cash in the amount of P3.5-B is payable upon the signing of the agreement.
“We are happy that finally, the contract is signed, and we can move on with the full operation and further upgrading and development of the SCTEX, particularly the NLEX-SCTEX toll integration as well as providing the facilities and service areas that are needed to serve the public,” Casanova said.
He added that he is pleased with the turnout of the recent SCTEX price challenge conducted by the BCDA as it upheld President Aquino’s policy of good governance.
“The price challenge was conducted in a very transparent manner. We are grateful to MNTC for having the patience to undergo the process. This just proves that good governance is good economics,” he said.
Rodrigo Franco, MNTC president, said that the signing of the agreement means that motorists will soon begin to enjoy a travel experience to the north and back mirroring the NLEX experience in SCTEX. “The management, operation and maintenance of the road and its facilities, the brand of customer service available, and the world class technology used in NLEX will all be extended to the SCTEX,” Franco added.
For his part, Ramoncito Fernandez, president of Metro Pacific Tollways Corporation (MPTC), said that “the acquisition of SCTEX is only the beginning of MPTC’s plan to link the countryside and Metro Manila and boost socioeconomic development in the regions.” MNTC is a subsidiary of MPTC.
Under the SCTEX Business Agreement, MNTC shall be responsible for the management services, toll collection, traffic safety and security management, toll road and facilities maintenance, including greening and landscaping, public relations and marketing, and all necessary support services. The agreement also includes the payment of concession fees equivalent to 50% of SCTEX gross toll revenues. The contract period will be for 29 years until October 30, 2043.
Earlier this month the BCDA and MNTC signed the NLEX-SCTEX toll integration agreement that involves the conversion of separate NLEX and SCTEX toll collection systems into a single system that should allow for more efficient toll collection and faster movement of traffic for motorists.
The toll integration, which is expected to cost some P600 million and will be shouldered by MNTC, will improve lane throughput to 800 transactions per hour from 200 transactions.
The BCDA is the builder and owner of the SCTEX.