BCDA open to selling stake in SCTEx to Metro Pacific group for over P20B
The Bases Conversion and Development Authority (BCDA) is considering selling its 50-percent stake in the Subic-Clark-Tarlac Expressway (SCTEx) to the Metro Pacific group for more than P20 billion. This move would allow the government agency to pay off debts and receive a significant windfall.
BCDA President and CEO Joshua Bingcang revealed that the Manuel Pangilinan-led Metro Pacific Tollways Corp. (MPTC) has shown interest in purchasing the government-owned and -controlled corporation’s shares in the 93.77-kilometer expressway. The current concession agreement, with eight of the 30 years already completed, involves a 50:50 revenue sharing from tollway operations.
Bingcang stated that MPTC aims to prepay all projected future shares of BCDA for the remaining 22 years of the concession. A technical working group has been established to determine the appropriate valuation for the transaction, which is expected to be finalized next month.
The proposed amount of over P20 billion is seen as an opportunity to settle the government’s loans from the Japan International Cooperation Agency, which financed the construction of the infrastructure. Additionally, the BCDA receives an annual profit share of P1 billion from SCTEx operations, a figure expected to increase due to rising traffic volume projections.
Furthermore, MPTC has expressed interest in acquiring PEATC’s 10-percent share in the Manila-Cavite Expressway (Cavitex). However, a dispute has arisen as PEATC filed a petition to take full control of the expressway management and toll fee collection, arguing that MPTC no longer has the authority to handle Cavitex operations after the expiration of its agreement in 2021.
MPTC’s portfolio also includes the North Luzon Expressway (NLEx), NLEx Connector, Cavite-Laguna Expressway, and Cebu-Cordova Link Expressway. The parties involved will continue discussions to reach a mutual agreement on the potential sale of BCDA’s stake in SCTEx and the resolution of the Cavitex dispute.
