The toll-road unit of conglomerate Metro Pacific Investments Corp. aims to sign the P600-million deal for integration of the North Luzon Expressway (Nlex) and the Subic-Clark-Tarlac Expressway (SCTEx) with the Bases Conversion and Development Authority (BCDA) next week.
Manila North Tollways Corp. President Rodrigo E. Franco said the already delayed project needs to be implemented as soon as possible to provide a seamless connection between the two thoroughfares.
“The signing is scheduled on February 5, but we still need the approval of the BCDA board,” he told the BusinessMirror on Thursday.
The integration—which entails the removal of toll barriers and the subsequent construction of toll plazas—was included in the business and operating agreement (BOA) signed between the government and the toll road operator in 2011.
In March last year the expressway operator suggested to “delink the integration, from the BOA and start the construction immediately.”
The company, Franco said, is willing to initially shoulder the cost for the integration as this would be beneficial to the riding public.
“This will definitely benefit the motorists, as this would elevate the service quality level at our expressways,” he said.
Integrating the two toll roads would allow for a more seamless travel between Northern and Central Luzon, as it removes the additional burden of making stops at toll plazas between Quezon City and Tarlac.
The group of businessman Manuel V. Pangilinan earlier won the contract to operate and maintain the longest toll road in the Philippines under the Arroyo administration. However, President Aquino refused to sign the deal, ordering in December last year that the contract be subjected to a price challenge.
The expressway operator offered to pay the government P3.5 billion for the deal. Half of the gross revenues, according to the terms laid out by the private-sector partner, will also go to the government’s disposition agency.
Earlier this month interested parties met with the BCDA to openly discuss the terms of the price challenge. San Miguel Corp., which operates the South Luzon Expressway and the Skyway System, was present during the pre-selection conference.
The deadline for the submission of bids for the competitive challenge has been set for January 30.
The government’s move to subject the deal to a dispute has earned the ire of the Pangilinan-led toll company, warning that it may resolve to legal means to block the state from executing such deal.
Awarding the contract to the private partner would partially free the government from servicing its P31-billion debt to the Japan International Cooperation Agency, as the private partner would subsidize the liability payments. In return, the concessionaire shall manage, operate and maintain the 94-kilometer toll road for 25 years. The concession period, under the terms of reference, could be extended by another eight years.