Manila North Tollways Corp. (MNTC), a subsidiary of Metro Pacific Investments Corp. (MPIC), Tuesday submitted a letter to the Bases Conversion Development Authority explaining why its financial bid should be considered compliant of the requirements for the bidding of the 33-year contract to operate, manage and maintain the Subic-Clark Tarlac Expressway.

“While BCDA has declared MNTC as sole eligible bidder for the SCTEX, we will submit Wednesday a letter explaining our financial bid and asking for reconsideration,” said a text message from MNTC vice president for corporate affairs Marlene Ochoa.

MNTC was given until Monday, February 1, 2010 to file for request for reconsideration while rival San Miguel-led Northlink Toll Management Inc. (Northlink) was given until Friday, Jan. 29, 2010. Northlink was reportedly filed its protest last Friday.

Ochoa, however, refused to give details as to the content of its letter for reconsideration to the BCDA.

BCDA then declared the financial bid of MNTC as “failed/non-complying” since it fell short of BCDA's minimum requirements as set forth in the TOR but declared its technical bid eligible.

BCDA, on the other hand, also declared the technical bid of rival bidder San Miguel Corp.-led Northlink ineligible for failure to comply with the technical requirements set forth in the TOR and.
The BCDA, however, said that Northlink is not yet out of the race to bag the 33-and-half year-contract to manage, maintain and operate SCTEX.

“Not yet. Technically, they (Northlink) are not yet out. They can still protest, but I don’t know if they will file for protest,” said BCDA vice-president for business development Aileen Zosa.

Under the SCTEX privatization program, the winning bidder will enter into a lease or concession agreement with BCDA to manage, operate and maintain the SCTEX on “as is, where is,” basis for a period of 33 and a half years until 2043.

The winning bidder will be responsible for the operational funding requirements in running the country’s longest tollway, including periodic maintenance and emergency works, which will be covered by a performance security. The private sector partner will also arrange for the insurance of the 93.77-kilometer toll road.

BCDA will receive a semi-annual lease/concession fee from the winning bidder, amounting to either: the peso equivalent of yen-dominated JBIC/JICA loan debt servicing as well as all financing charges payable to BCDA 10 days prior to its due dates secured by a rolling five-year letter of credit; or twenty percent of audited gross revenues whichever is higher.