The Bases Conversion and Development Authority (BCCDA) on Friday said it is open to the idea of selling its stake at the Subic Clark-Tarlac Expressway (SCTEX) to Metro Pacific Tollways Corp. (MPTC) but only if the price is right.
“I was told that if the right price will be offered then the government will seriously consider it,” Joshua Bingcang, BCDA president and chief executive, told reporters on the sidelines of the EJAP-BCDA Clark Forum.
Bingcang said the MPTC has offered to buy the government stake in SCTEX for P20 billion. The concession has run only eight of its 30-year corporate life.
But according to the BCDA executive, a good offer has to consider that the Japan International Cooperation Agency or JICA helped fund the project.
“In order for us to consider that proposal, our debt to JICA is around P20 billion. So you want at least a minimum of that in order to be assured of paying the foreign lender. That will be the starting point,” Bingcang said.
He explained the P20 billion offer covers only the cost of the project.
“You want to leave something for the government, for the public, and so (you offer) more. Normally, how much is the return one would want when one has made an investment? So at least you have 100 percent return or double your investment. So, those are the numbers we are crunching right now,” he said.
According to Bingcang, the government negotiating team will meet MPIC next week to determine if the sought after government interest at SCTEX will eventually be sold.
“I hope, and in the interest of the public, they do not take a hard line stance,” Bingcang said.
It was noted the MPTC was rather flippant when it first informally offered to buy the BCDA interest at SCTEX but that this time around its intent is considered firm.
The SCTEX is a 91-kilometer expressway stretching from Subic-Tipo until La Paz, Tarlac that connects the special economic zones at Subic and Clark, Olongapo City, to Tarlac City.
MPTC also offered to buy the government’s interest at the Manila-Cavite Expressway (Cavitex) project for P2.5 billion.
