MPIC to choose infra projects carefully

MANILA, Philippines - Infrastructure giant Metro Pacific Investments Corp. (MPIC) is still keen on pursuing infrastructure projects despite the recent setback in two major toll roads.

MPIC chairman Manuel V. Pangilinan said in an interview with reporters on the sidelines of the MVP Bossing Awards 2015 the company would carefully study infrastructure projects including those under the public private partnership (PPP) scheme before joining the bidding.

 “I don’t think we are going to bid in all PPP projects that come between now and 2016. We will still be looking at those projects, if not some, most of them,” he told reporters.

The MPIC Group is interested in the P123 billion Laguna Lakeshore Expressway Dike project rolled out by the Department of Public Works and Highways (DPWH). MPIC’s Metro Pacific Tollways Corp. (MPTC) has expressed interest in the P2.5 billion integrated transport system – Southwest Terminal of the Department of Transportation and Communications (DOTC).

Pangilinan made the statement after Malacanang ordered a price challenge for the privatization of the 93.77-kilometer Subic-Clark-Tarlac Expressway (SCTEX).

MPIC’s Manila North Tollways Corp. (MNTC) bagged the right to lease, manage, operate, and maintain the toll road in 2010 during the term of former President Gloria Macapagal Arroyo. However, the Aquino administration suspended the deal and ordered MNTC to revise its offer several times.

This time, the Office of the President has ordered the Bases Conversion Development Authority (BCDA) to conduct a price challenge for the SCTEX after raising concern about the revenue sharing scheme.

 “They will have the final say. I think it’s framed on one hand by the best offer we’ve put to them and on the other hand the parameters have been approved by the Office of the President, so just have to wait,” Pangilinan added.

According to him, the company would wait for the terms of reference to be released by the BCDA for the price challenge.

 “We are just dealing with the situation as it is. Lets just deal with the facts. I think the government decided to put it up to a price challenge and we have been officially told that it would be subjected to a price challenge, so be it,” he said.

MPTC president Ramoncito Fernandez said the company has offered P2.9 billion upfront cash and an investment of P600 million for the integration of NLEX and SCTEX.

He added that the company also proposed a 50 percent revenue sharing scheme while the government would take care of the debt while the company would maintain the toll road.

On the other hand, MNTC’s proposed P18 billion toll road connecting the North Luzon expressway and South Luzon expressway (NLEX-SLEX) has yet to take-off pending clarification form the Department of Public Works and Highways (DPWH).

MPIC is in favor of pursuing the joint venture with state-run Philippine National Construction Corp. (PNCC) to expedite the much delayed toll road project but the Department of Justice (DOJ) issued a legal opinion that the unsolicited proposal should be subjected to a “Swiss Challenge.”

DPWH Secretary Rogelio Singson earlier said MPIC would have the last say on how to undertake the NLEX-SLEX connector road as it could pursue the joint venture with PNCC or subject the unsolicited proposal to a “Swiss Challenge.”

As early as August 2012, the government was supposed to undertake the “Swiss Challenge” process as stated under the BOT Law. However, the Department of Transportation and Communications (DOTC) recommended that MPIC’s Metro Pacific Tollways Development Corp. (MPTDC) enter into a joint venture agreement with PNCC to expedite the connector road project.