The Bases Conversion and Development Authority (BCDA) has expressed its willingness to divest its ownership in the Subic-Clark-Tarlac Expressway (SCTEX) to a group led by businessman Manny V. Pangilinan (MVP).
BCDA President and Chief Executive Officer Joshua Bingcang said that the formal buyout proposal from the MVP group was received in a letter, with copies also sent to the Department of Finance (DOF) and Malacañang.
“At first, I thought they were not serious about that offer… until we received a letter copied from the Department of Finance [DOF], copied Malacañang,” Bingcang told reporters on the sidelines of the EJAP-BCDA One Clark Forum.
Initially cautious about the offer, Bingcang said that BCDA's doubts were alleviated upon receiving a letter from the DOF.
“Indeed, the MVP group is willing to buy the shares of, the interest of BCBA, in SCTEX,” he added.
The Subic-Clark-Tarlac Expressway (SCTEX) is the longest expressway in the Philippines, stretching over 93.77 kilometers.
Under the existing agreement, half of the revenues from the SCTEX are channeled to the Pangilinan-led NLEX Corp., the concessionaire, while the other half is allocated to the BCDA.
The BCDA is currently obligated to repay its debt to the Japan International Cooperation Agency (JICA) amounting to ¥59.04 billion, which was used for the construction of the SCTEX.
“They're not buying the property because it will remain with the government. Because we have a 30-year concession with them, I think we already have eight years done,” Bangcang said.
“So, the remaining 22 years, they want to prepay all the future, projected future shares of this area,” he added.
The BCDA chief said that the offer made by MVP could be considered if the government is open to discussion and if the price is right.
“We met with them last week… to form a technical working group to come up with a proper valuation, which the point is we should come up with a good price for the government,” Bingcang explained.