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BCDA upholds SCTEX contract
Author: BCDA
Posted: June 01, 2011 | Category: SCTEX
Bases Conversion and Development Authority (BCDA) Chairman Felicito C. Payumo stated that both the BCDA and the Manila North Tollways Corporation (MNTC) are continuing negotiation to further improve certain provisions of the contract for the management, operations and maintenance of the Subic-Clark-Tarlac Expressway (SCTEX).
Due to certain supervening events, the need to continue the negotiation was sought by the previous BCDA board of directors to improve the benefits from the contract and ensure that the BCDA can meet its loan obligations for the construction of the SCTEX. Both the present BCDA board of directors and MNTC acknowledge this.
BCDA President and CEO Arnel Paciano D. Casanova said that the BCDA has not rescinded nor terminated the contract. “The contract is currently being reviewed as matter of due diligence by the new BCDA Board to ensure that the government gets the best deal and maximize returns. The BCDA’s move is consistent with the contract. Negotiations between the BCDA and MNTC are now underway in order to have a final contract that addresses the public and private sector interest. We definitely believe in protecting the sanctity of contracts and this is part of that commitment,” said Casanova.
Atty. Casanova further said that the bottom line is BCDA wants to ensure that the cash it will receive as concession fees is enough to service its Japan International Cooperation Agency (JICA) debt anytime, all the time so that the taxpayers would not be burdened by this. “This is also to ensure that MNTC will have reasonable returns in operating the SCTEX,” he said.
For his part, Chairman Payumo said the MNTC has agreed to negotiate an agreement that includes risks and benefits sharing between the two parties in order to provide an efficient tollway service to motorists and cargo haulers using SCTEX. “Needless to say, the contract should be able to stand public scrutiny,” he stressed.
Chairman Payumo is confident that both parties can successfully draw up a mutually acceptable public-private partnership (PPP) agreement. President Benigno S. Aquino III has intended the PPP to be the flagship program of his administration.
