MNTC Submits 3rd Proposal on Taking over of SCTEX Concession

Article excerpt

SINGAPORE - Metro North Tollways Corporation, a member of the Metro Pacific group of companies, is currently negotiating with the government for the terms of what will be its third proposal for taking over the concession of the Subic-Clark-Tarlac Expressway (SCTEX).

In a press briefing on the group's plans, Metro Pacific Investments Corporation president Jose Ma. Lim said "a third one (proposal) is in order because the government is not convinced that (the second) proposal is acceptable to them on terms that will not require a market challenge."

Lim explained that "what we would like to adjust in that proposal is to make it clearer to the government that, in the course of taking over the debt service, we will be contributing a specified amount of equity that will be comparable to what the government has invested."

He added that "we will allow the governmentt to start earning returns from it to show the proposal is equitable to the government and the concessionaire." Lim said they are currently negotiating with the Finance Department.

"We are still tweaking the proposal," said Metro Pacific Tollways Corporation president Ramon Fernandez.

MPTC's second proposal was accepted and endorsed to the Office of the President by the Bases Conversion and Development Authority last year. …