Subic-Clark-Tarlac Expressway (second semester 2011)

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The Subic-Clark-Tarlac Expressway (SCTEx) was a 94 km, 4-lane expressway connecting the Subic Bay Freeport zone with the interior of the Philippines. The expressway was constructed in 2005 by the state-owned Bases Conversion Development Authority (BCDA), with a discounted loan from the Japan International Cooperation Agency (JICA). It became operational in March 2008, with a final project cost of US$ 760 million. The loan was due to mature in 2041. In July 2011, the Manila North Tollways Corporation (MNTC) signed an agreement to take over the operation and management of the SCTEx from the BCDA. The agreement was for 25 years, renewable for another 8 years. No information was publicly available on the bidding process. The Manila North Tollways Corporation (MNTC), a SPV composed by Leighton Holdings Limited (17%) and Metro Pacific Investments Corporation (MPIC) (67%), has signed a lease contract to manage and operate the project. The MNTC operate the North Luzon Expressway since 2001 under a 30 year concession contract. MNTC expected to link North Luzon Expressway to the STEx. Under the agreement signed in July 2011, the toll revenues from the expressway were to be share between MNTC and BCDA under the following rules: From 2011 to 2013, the MNTC would retain a 45% of the toll revenues and transfer the remaining 55% to BCDA; from 2014 to 2016, MNTC would retain 40% and transfer the remaining 60% to BCDA; from 2017 to 2043, the MNTC would retain 80%, and transfer the remaining 20% to BCDA. The contract also stipulated that MNTC provide all ancillary facilities, equipment, and resources to run the STEx; the company announced its commitment to spend US$479 million over the duration of the contract , but these expenses have not been broken down into Capital Expenditures and/or Operations and Management expenses. In the same period, the state-owned BCDA expected to gain US$ 1.487 billion from the expressway, which should adequately cover its remaining debt of US$ 627 million. Update title - drop (second semester 2011) MNTC, being in charge of the operations and maintenance of the toll road, has committed to spend P20.6 billion (USD 470 million) on the tollway for the duration of the 33-year contract, according to CEO, Mr. Rodrigo Franco.