BCDA confident of maximum bid

The Bases Conversion and Development Authority (BCDA), the government’s arm in the sale and development of former military properties, is confident to get a maximum revenue potential as it gears up for the price challenge for the 28-year contract to operate and maintain the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEX).

BCDA President and CEO Arnel Paciano Casanova said they are inviting all interested parties including the Manila North Tollways Corp. (MNTC), which is owned by businessman Manny Pangilinan to attend the pre-selection conference on January 6, 2015 to discuss the terms of reference on the SCTEX price challenge.

Deadline of submission of eligibility, documents, technical and financial proposals is on January 30, 2015.

It could be recalled that BCDA and MNTC signed a business operating agreement on SCTEX subject to the approval of the President of the Philippines. As a condition for the approval, Malacanang ordered the price challenge in the interest of transparency.

“Interested proponents are expected to submit a higher price than MNTC’s upfront cash offer of P3.5 billion in addition to the 50-50 sharing of gross revenues,” Paciano said.

“We are pleased with MNTC’s keen interest in the undertaking because it only shows that SCTEX is a very profitable project that other parties will also find attractive,” he said.

In the SCTEX price challenge, Manila North Tollways Corporation (MNTC) will have the right to match the highest bid for the project.

The BCDA is bidding out the rights, interest and obligations in the management, operation and maintenance of the SCTEX under a business and operating  agreement (BOA) for a period of twenty-eight years or ending in 2043.

The SCTEX is a four-lane divided expressway traversing the provinces of Bataan, Pampanga and Tarlac and is directly linked to the North Luzon Expressway.

The BCDA and MNTC signed a business operating agreement on SCTEX subject to the approval of the President of the Philippines. As a condition for the approval, Malacanang ordered the price challenge in the interest of transparency.

Interested proponents are expected to submit a higher price than MNTC’s upfront cash offer of P3.5 billion in addition to the 50-50 sharing of gross revenues.

Foreign and local firms subject to eligibility requirements are expected to participate in the bidding process which starts this week. They can either be registered corporations or joint ventures and consortia.

To ensure the integrity of the process, Paciano said there should be no communication other than the official channels.

“We agree that the bidding process should be transparent and fair. As such, no one party should have undue advantage over the others by having a hand in the crafting of the terms of reference,” he said.

“We at the BCDA have been observing the requirements in the BOA in good faith. The price challenge is consistent with the BOA because it is a consequence of the President’s approval which is a condition precedent to the effectivity of the BOA itself. The BCDA is confident of the legality of its position,” he said.

source:  Manila Bulletin