BCDA Considers Selling SCTEX Stake to MVP Group for Over P20 Billion

New Clark City, Philippines – The Bases Conversion and Development Authority (BCDA) is open to the possibility of selling its remaining stake in the Subic-Clark-Tarlac Expressway (SCTEX) to the MVP Group, provided the offer meets their financial expectations. This disclosure was made by BCDA President and CEO Joshua Bingcang at the EJAP-BCDA One Clark Forum.

Details of the Proposal

According to Bingcang, the MVP Group, led by renowned tycoon Manuel Pangilinan, has expressed interest in buying out the remaining 22 years of their 30-year concession with BCDA. The proposal includes prepaying all future shares from SCTEX’s revenues, as the current revenue-sharing arrangement sees both NLEX Corp., a Pangilinan-led concessionaire, and BCDA receiving 50% each.

Financial Considerations and Negotiations

The BCDA, which continues to service its debt to the Japan International Cooperation Agency (JICA) for the ¥59.04 billion construction of SCTEX, collected approximately P2 billion in revenues from the expressway in 2023. With half of these earnings allocated for debt payments, the authority netted a profit of P1 billion last year.

Bingcang highlighted the importance of securing a deal that provides substantial returns for the government and the public. He suggested that the price for the BCDA’s stake should be significantly higher than P20 billion, considering the potential for profits over the remaining years of the concession. “More than P20 billion because the P20 billion is just the capital. You should want something for the government, for the public, so more,” Bingcang explained, indicating that a 100% return or doubling of the investment would be a desirable outcome.

Background of SCTEX

SCTEX, a crucial 94-kilometer expressway that connects Bataan, Pampanga, and Tarlac, has been under the management, operation, and maintenance of NLEX Corp. since October 2015. This expressway is a vital infrastructure component contributing significantly to the regional economy and connectivity.

Broader Implications and Future Prospects

The potential sale to the MVP Group, which is part of a larger discussion involving NLEX Corp.’s possible merger with Ramon Ang’s SMC Tollways, signals a significant shift in the landscape of major infrastructure projects in the Philippines. This development could reshape the dynamics of expressway operations and ownership in the country, impacting everything from traffic management to regional development.

Conclusion

As discussions progress, the BCDA’s decision will hinge on achieving a deal that maximizes financial returns and benefits for the public sector. This move is watched closely by industry analysts and stakeholders, given its potential to influence the strategic direction of the country’s major expressway networks.