MANILA, Philippines - The contract to operate the Subic-Clark-Tarlac Expressway (SCTEx) remains up for grabs between Manila North Tollways Corp. (MNTC) and Northlink Toll Management, Inc., the state agency in charge said in a statement yesterday.

While both bids were found non-compliant with the "Terms of Reference" laid down by the Bases Conversion and Development Authority (BCDA), the firms can still file their appeals.

"Thus, [we] have not declared a failure of bidding," the BCDA said.

The two firms were the only ones that submited proposals to manage the 94-kilometer highway out of the five interested developers.

Northlink -- a joint venture between San Miguel Corp. (SMC) and Star Tollways Corp. -- was declared ineligible "on the ground that it did not comply with the technical requirements set forth in the Terms of Reference," the BCDA said.

The National Economic and Development Authority’s rules for such auctions provide that financial proposals of ineligible bidders -- in this case, that of Northlink -- must be disregarded altogether if their technical proposals are deemed lacking.

This left MNTC, whose sister company, Tollways Management Corp., is the interim SCTEx operator, as the sole eligible bidder.

"[But when] the financial bid of MNTC was opened on January 25, [we] declared the financial bid...as failed or non-complying since it fell short of BCDA’s minimum requirements," the state agency said.

The state agency had earlier pegged the minimum lease of the SCTEX to two price points: either 20% of gross toll sales or a fee equal to the loan payments due to the Japan Bank International Cooperation (JBIC), whichever is higher.

JBIC had provided a P28-billion loan to build the tollway.

BCDA Vice-President Aileen R. Zosa declined to specify in what way the two firms’ bids were lacking.

"Since there might still be request for reconsideration or protests which the bidders will file, now is not the time to discuss it yet," Ms. Zosa said in a text message.

MNTC similarly declined to elaborate on its financial bid, saying only via an e-mail from Marlene N. Ochoa, vice-president for corporate communications: "We submitted the best financial bid...which in our opinion gives the best value to BCDA."

Northlink has until today to file its appeal, while MNTC has until Feb. 1, BCDA said.
The state agency must act on the appeal within 30 days.

Still interested

MNTC’s Ms. Ochoa hinted the firm may indeed ask for reconsideration, saying in an e-mail that the company will "review [its] options."

MNTC had said it was eyeing the SCTEx contract to complement its operation of the North Luzon Expressway.

If it wins, the firm will reconfigure toll collection systems to integrate the two toll roads, MNTC President and CEO Rodrigo E. Franco said in a statement yesterday.

SMC, which holds 60% of Northlink, similarly hinted it may petition the BCDA.

An appeal is "maybe" in the works, SMC President Ramon S. Ang confirmed in a separate text message.

The diversifying conglomerate had expressed interest in the expressway even before the bidding was opened.

If BCDA upholds the original decision in which only MNTC is eligible, the rules provide that negotiations on the firm’s financial proposal will ensue and MNTC will be asked to submit a revised proposal.
If this fails to meet the minimum requirements again, another round of "competitive selection" can be held.

SMC share prices were unchanged yesterday at P71.50 apiece, while those of Metro Pacific Tollways Corp. -- the parent firm of MNTC -- rose 1.9% to P2.70.

Metro Pacific Tollways is the infrastructure arm of Metro Pacific Investments Corp., the local unit of Hong Kong-based First Pacific Co. Ltd., which partly owns the Philippine Long Distance Telephone Company (PLDT).

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