MPIC revives plans to sell stake in highway PPP

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MPIC revives plans to sell stake in highway PPP

Local sources report that Philippine infrastructure developer Metro Pacific Investments Corp. (MPIC) may sell at least a 20 % stake in Metro Pacific Tollways Corp. (MPTC) to renew capital for other major infrastructure projects to be undertaken by the Aquino administration.

Metro Pacific Tollways Corporation is the largest toll road operator in the Philippines. It operates 63 % of the total of 320Km of toll roads in the country:Projects owned by MPTC:
Project NameLength (kms)
Subic-Clark-Tarlac Expressway (SCTEX)93.77
North Luzon Expressway (NLEX)86.70
Manila Cavite Toll Expressway (CAVITEX)13.50
MPTC president Ramoncito Fernandez said to local sources the plan could be revived next year if MPIC wins one of the PPP projects currently in tender process in the Philippines, such as the Laguna Lakeshore and the integrated transport system (ITS) projects.

MPIC said last May that at least two foreign investors have expressed interest in taking a 20 to 30 percent stake worth P16 billion ($356 million) to P24 billion($534 million) in MPTC.

However, the plan was put on hold after MPIC failed to win the contract for the Cavite - Laguna expressway (Calax) project.

Likewise, he added that MPIC is also awaiting the decision of the government on its planned toll road that would connect the North Luzon and South Luzon expressways. MPIC is awaiting to know whether the project will be undertaken through the joint venture or unsolicited proposal route.

Mr. Fernandez said MPIC prefers the joint venture scheme because it is more expeditious.

The NLEX SLEX connector project was originally submitted to the DPWH in May 2010. In August 2012, the Department of Transportation and Communications (DOTC) recommended that MPIC's Metro Pacific Tollways Development Corp. (MPTDC) enter into a joint venture agreement with a government-owned company to expedite the connector road project.

The Department of Justice (DOJ) said last July that the project should be reverted back to the unsolicited proposal and should be subjected to a Swiss Challenge.

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