Manila signs SCTEX operation concession

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Manila signs SCTEX operation concession

Manila North Tollways Corporation (MNTC) and Bases Conversion and Development Authority (BCDA) have signed the Subic-Clark-Tarlac Expressway (SCTEX) O&M PPP project in the Philippines.

MNTC will be responsible for the management, operation and maintenance of the road for a 28-year period. To be more specific, the concession involves the management services, toll collection, traffic safety and security management, toll road and facilities maintenance, and all necessary support services until October 30, 2043.

The road is expected to generate P275 billion (US$5.8 billion) in revenues during the contract period. Half of the projected revenues will be the share of BCDA, which will use the part of this funds to pay the P25billion (US$528 million) Japan International Cooperation Agency (JICA) loan provided to develop the road. The reamining revenues will be for MNTC, which in turn will handed over a P3.5 billion (US$73.9 million) check as upfront payment.

Breaking ground on April 5, 2005, the SCTEX is the country's longest expressway at 93.77 km. The four-lane expressway is divided into two major segments:

  • Subic-Clark Segment - 50.5 kilometers (Contractor: Kajima-Obayashi-JFE Engineering-Mitsubishi Heavy Industries, Inc. Joint Venture)
  • Clark-Tarlac segment - 43.27 kilometers (Contractor: Hazama-Taisei-Nippon Steel Joint Venture)

Commercial operations started on April 28, 2008, with the opening of the Subic-Clark Segment. The opening of the remaining Clark-Tarlac Segment was on July 25, 2008.

The SCTEX aims to transform the Central Luzon region into a world-class logistics hub in the Asia-Pacific region through the integration of economic activities in the Subic Bay Freeport, the Clark Freeport Zone, and the Central Techno Park in Tarlac and by linking major infrastructures such as the Seaport in Subic and the Diosdado Macapagal International Airport in Clark.

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