Posts Tagged ‘Metro Pacific Tollways Corp. (MPTC)’

MetroPac, PNCC to sign road agreement today

Manila Standard Today, 21 January 2014

By Lailany P. Gomez

 

State-run Philippine National Construction Corp. and Metro Pacific Tollways Development Corp. will sign a joint venture agreement today over the construction of a road that will connect the North Luzon Expressway and South Luzon Expressway.

Metro Pacific Investments Corp., parent of Metro Pacific Tollways, proposed to construct the 13-kilometer connector road for P22.95 billion.

Under the government’s proposal, the Segment 10 phase of the project will be redefined to cover the NLEX-SLEX Connector Road.

MPIC is the majority owner of Manila North Tollways Corp., which operates NLEX. Other MNTC shareholders are Egis Projects S.A. of France, Leighton Asia Ltd. of Australia and PNCC, which holds the franchise to run the expressway.

The Transportation, Public Works, Finance and Justice departments have agreed to extend the concession agreement between PNCC and MPIC to the connector road project through the creation of a new joint venture to speed up constuction.

MPIC, however, has proposed to merely incorporate the connector road project to the existing contract between PNCC and MPIC to make the toll lower.

The supplemental toll operations agreement covers the construction of Segment 10, a 5.65-kilometer road that starts where Segment 9 ends on MacArthur Highway and stretches all the way to Circumferential Road 3. Segment 9 is a 2.4-kilometer portion linking NLEX to MacArthur Highway.

Without the amendment to the supplemental toll operations agreement, government rules require that a Swiss challenge must be undertaken since the NLEX-SLEX connector road project was an unsolicited proposal.

 

MPIC, PNCC set to ink joint venture

The Philippine Star, 21 January 2014

By Lawrence Agcaoili

 

MANILA, Philippines – Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) and state-run Philippine National Construction Corp. (PNCC) will sign a joint venture agreement today for the construction of a P23-billion toll road that would connect the North and South Luzon expressways.

The NLEX-SLEX Connector Road Project would be implemented by the joint venture partners through Manila North Tollways Corp. (MNTC), which operates NLEX.

Under their joint venture, PNCC will get a 2.5-percent equity in the new project and a six percent share in gross revenues.

MPIC chairman Manuel V. Pangilinan earlier said the company was willing to tie up with PNCC  to start the construction of the NLEX-SLEX connector road project.

“If that’s the government’s desire, we will follow. We’re prepared to enter into some joint venture framework with PNCC so we could begin construction and complete the connector. We have no problem with that,” Pangilinan earlier said.

Transportation and Communications Secretary Joseph Emilio Abaya earlier said he sees no legal challenges for the planned expressway as the project would be undertaken through a joint venture between MPTC and PNCC.

Abaya said the DOTC, Department of Public Works and Highways (DPWH), the Department of Finance (DOF), and the Department of Justice (DOJ) agreed to expand the supplemental toll operations agreement (STOA) between PNCC and MPTC to cover the connector road project.

The DOTC wants the construction of the connector roads to start early next year so that this infrastructure would be completed in time for the Leaders Meeting of the Asia Pacific Economic Cooperation (APEC) which the Philippines would be hosting in 2015.

As early as April, officials of the Department of Public Works and Highways (DPWH) said the unsolicited proposal of MPTC for the P23-billion road that would connect the North and South Luzon expressways would be subjected to a Swiss challenge.

Both MPTC and Citra Metro Manila Tollways Corp. of diversified conglomerate San Miguel Corp. (SMC) should have a common area spanning five kilometers from Quirino in Manila up to Nagtahan in Sta. Mesa in Manila crossing the Pasig river.

 

Metro Pacific, PNCC to seal JV on NLEX-SLEX connector road

ABS-CBN News, 20 January 2014

 

MANILA, Philippines – Metro Pacific Investments Corp. and
the state-run Philippine National Construction Corp. (PNCC) are set to ink a joint venture agreement for the toll road connecting the North and South Luzon expressways on Tuesday.

The agreement between Metro Pacific Tollways Development Corp. (MPTDC) and PNCC will pave the way for the construction of the P23 billion NLEX-SLEX connector road, to be implemented by Manila North Tollways Corporation (MNTC).

The PNCC will get a 2.5 percent equity and a 6 percent share in gross revenues under the agreement.

The Department of Transportation and Communication (DOTC) wants construction to begin early 2014 so that the NLEX-SLEX Connector Road will be completed in time for the Leaders Meeting of the Asia Pacific Economic Cooperation (APEC) in 2015.

 

Metro Pacific, PNCC set to seal joint venture for NLEX-SLEX Connector Road

InterAksyon, 20 January 2014

By Darwin G. Amojelar

 

MANILA – Metro Pacific Tollways Development Corp (MPTDC) and state-run Philippine National Construction Corp (PNCC) will sign a joint venture agreement on Tuesday for the construction of a road connecting the North Luzon Expressway (NLEX) to the South Luzon Expressway (SLEX).

Rodrigo Franco, MNTC president, said in a text message the NLEX-SLEX Connector Road Project would be implemented by the joint venture partners through Manila North Tollways Corp (MNTC), which operates NLEX.

Under their joint venture, PNCC will get a six percent share in gross revenues and will maintain its 2.5 percent equity in the project.

MPTDC owns 71 percent of MNTC, while France’s EGIS Projects SA  has 10 percent. The SM group owns the remaining shares after buying out Australia’s Leighton Asia Ltd in 2009.

A key shareholder of MNTC, MPTDC had submitted an investment proposal for the P22.95 billion NLEX-SLEX Connector Road Project to the Toll Regulatory Board (TRB), which has yet to approve the project.

Since the proposal is unsolicited, government rules require that the offer be subject to a Swiss challenge. To go around this requirement, MPTDC and PNCC amended the scope of an existing Supplemental Toll Operations Agreement (STOA) to include the NLEX-SLEX Connector Road.

The STOA covers the construction of Segment 10, a 5.65-kilometer road that starts where Segment 9 ends on MacArthur Highway and stretches all the way to C3 Road. Segment 9 is a 2.4-kilometer portion linking the NLEX to MacArthur Highway.

PNCC is the holder of the NLEX franchise, which MNTC manages on behalf of the government.

The project is expected to be completed on June 2016, or before the end of the term of President Benigno S. Aquino III.

InterAksyon.com is the online news portal of TV5, which like MPTDC is a member of the MVP Group.

 

MPTC, PNCC finalize toll road tie-up

Business Mirror, 19 January 2014

By Lenie Lectura

 

METRO Pacific Tollways Corp. (MPTC) and Philippine National Construction Co. (PNCC) will sign an agreement on Tuesday to formally seal their partnership for a road project that will link the north and south portions of Metro Manila.

MPTC President Ramoncito Fernandez said in a text message that a signing ceremony for the joint-venture agreement will take place.

He, however, pointed out that the Toll Regulatory Board has yet to issue an amended supplemental toll agreement. “That is the next step,” Fernandez said.

MPTC, the toll road unit of Metro Pacific Investments Corp. (MPIC), submitted an unsolicited proposal to construct a 13.2-kilometer, four-lane elevated expressway that will link North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX) through a connector road. Since the proposal was unsolicited, it was supposed to undergo a Swiss challenge, which means the government would have to entertain other proposals from interested parties and conduct a bidding.

However, the government decided that MPTC and PNCC, which owns the franchise for both the NLEX and SLEX, form a joint venture instead, saying it will be faster to implement the project with less legal implications.

 

Joint venture agreement signed for NLEx-SLEx connector

Business World, 08 December 2013

By Lorenz Cristoffer S. Marasigan

 

A PUBLIC-PRIVATE partnership project that is expected to facilitate movement of people and goods between areas north and south of Metro Manila has cleared a key hurdle, as parties concerned finally signed a joint venture deal late last month, a company official said on Friday last week.

The project involves construction, operation and maintenance of a 13.4-kilometer four-lane elevated expressway over the Philippine National Railway line between Caloocan City and Makati City that will connect North Luzon Expressway (NLEx) and South Luzon Expressway (SLEx).

Metro Pacific Tollways Corp. (MPTC) and state-run Philippine National Construction Corp. (PNCC) have agreed to build the P22.95-billion connector road through the existing NLEx concessionaire which they form.

“Last Friday (Nov. 29), we signed an agreement with PNCC, the agreement is that the connector road will be done under MNTC (Manila North Tollways Corp.)… and the terms of the agreement are substantially the same as the terms of the existing concession of NLEx now,” MPTC Chief Financial Officer Christopher Daniel C. Lizo said in a Metro Pacific Investments Corp. (MPIC) briefing in Hong Kong.

Both MNTC and MPTC are subsidiaries of conglomerate MPIC.

The existing joint venture structure has MPTC with 67.1% interest and PNCC with just 2.5%.

MPIC had proposed the P22.95-billion project back in 2010.

“It will be an amendment of the existing STOA (Supplemental Toll Operations Agreement),” he said.

Amendment of the STOA is easier and faster than going through a new contract, MNTC President and Chief Executive Officer Rodrigo E. Franco had explained earlier.

“The last obstacle in the agreement is the TRB (Toll Regulatory Board) approval,” Mr. Lizo said.

“[W]e understand that on Dec. 17 TRB will have its board meeting, so hopefully we get the proposal approved.”

PNCC officials were not available for comment.

The official said that the company is sticking to its June 2016 target to complete the road project.

“For the connector road, I think we have to look at our financing strategy first in consultation with MPIC,” Mr. Lizo added.

The final joint venture structure is also subject to government approval.

MPIC reported a total comprehensive income of P8.101 billion as of September, 7.8% more than the P7.515 billion recorded in the same nine months last year, as revenues rose 11.40% to P22.879 billion from P20.537 billion on increases in the conglomerate’s water supply and sewerage, tollway, hospital and school revenues.

MPIC shares lost six centavos or 1.32% to close at P4.50 apiece on Friday last week from P4.56 each last Thursday.

MPIC is a local unit of Hong Kong-based First Pacific Company Ltd., which partly owns Philippine Long distance Telephone Co. (PLDT).

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld.

 

Metro Pacific group, PNCC seal joint venture for NLEX-SLEX Connector Road

InterAksyon, 08 December 2013

By Krista Angela M. Montealegre

 

HONG KONG – The Metro Pacific group may bring in a strategic partner to finance the construction of a road connecting the north and south of Metro Manila after the conglomerate sealed a deal with state-run Philippine National Construction Corp (PNCC) for the toll road.

Christopher Lizo, Metro Pacific Tollways Corp (MPTC) chief financial officer, told reporters flown here that Manila North Tollways Corp (MNTC) has reached an agreement with PNCC for a joint venture where the state-run firm will get a six percent share in gross revenues and will maintain its 2.5 percent equity in the project.

“MNTC signed an agreement with PNCC [last November 29]. The agreement is that the connector road will be done under MNTC and the terms of the agreement is substantially the same as the terms of the existing concession of NLEX now,” Lizo said.

Metro Pacific Tollways Development Corp (MPTDC), the key shareholder of MNTC, has submitted an investment proposal for the P22.95 billion NLEX-SLEX Connector Road Project, which would link the North Luzon Expressway to the South Luzon Expressway.

Since the proposal is unsolicited, government rules require that the offer be subject to a Swiss challenge. To go around this requirement, MPTDC and PNCC amended the scope of an existing Supplemental Toll Operations Agreement (STOA) to include the NLEX-SLEX Connector Road.

The STOA covers the construction of Segment 10, a 5.65-kilometer road that starts where Segment 9 ends on MacArthur Highway and stretches all the way to C3 Road. Segment 9 is a 2.4-kilometer portion linking the NLEX to MacArthur Highway.

PNCC is the holder of the NLEX franchise, which MNTC manages on behalf of the government.

Expected completion date of the project is on June 2016, or before the end of the term of President Benigno S. Aquino III, Lizo said.

But before MNTC can start the construction of the 13-kilometer toll way, the Toll Regulatory Board (TRB) would have to approve the project. The TRB will hold its next board meeting on December 17.

MNTC may issue more bonds to finance the development, but with a crowded capital market in the first quarter of 2014, the company must “look at our financing strategy” with Metro Pacific Investments Corp (MPIC), Lizo said.

“It’s a great business and we would rather do it with a private strategic partner…If we do need extra equity that we won’t be able to fund ourselves, then we will bring in a private strategic partner,” MPIC chief financial officer David Nicol said.

The connector road project has attracted “a lot of interest” from local and foreign firms, but there is no imminent deal as of the moment, Nicol said.

“The Japanese expressway operators were the original partners here, but the process took too long. We had to wait for the DOTC approval on alignment. The alignment up to now is still an issue. Despite the President prioritizing it, we hadn’t got the clearance on final alignment of the connector road that’s why discussions with the Japanese stopped…,” MPIC president and chief executive officer Jose Ma. K. Lim said.

“I’m sure once we get all the requirements in place, local and foreign interest will come back,” Lim said.

The NLEX-SLEX Connector Road Project will complete the north-south industrial development beltway transport axis through the construction of a 13.4-kilometer four-lane elevated expressway. The project aims to decongest traffic in Metro Manila and provide better access to Manila’s ports. The project should start this year and end in 2016.

Earlier, the President approved the Metro Manila Skyway Stage 3 Project, which will also connect SLEX to NLEX. The project will be fully funded by the Citra Central Expressway Corp at an estimated cost of P26.5 billion.

InterAksyon.com is the online news portal of TV5, which like MPTDC and MPIC, is chaired by Manuel V. Pangilinan.

 

Connector road joint venture structure finalized this month

Business World, 05 December 2013

By Lorenz Cristoffer S. Marasigan

 

THE FRAMEWORK for a new joint venture that will build a multibillion-peso road linking North Luzon Expressway (NLEx) and south Luzon Expressway should be finalized by the end of this month, a top official of one of the parties said in a text message earlier this week.

Metro Pacific Investments Corp. (MPIC) had proposed a P22.95-billion 13.4-kilometer four-lane expressway that will run over Philippine National Railway lines from Caloocan City to Makati City.

A top official of MPIC subsidiary Manila North Tollways Corp. (MNTC), which operates NLEx, said he expects the joint venture structure for the new project to be finalized by the end of the month, after getting the green light from the Toll Regulatory Board (TRB).

“We hope to finalize the structure of the joint venture later this month after receiving the go signal from the TRB and PNCC (Philippine National Construction Corp.),” MNTC President and Chief Executive Officer Rodrigo E. Franco said via text.

EASIER
MNTC, a joint venture (JV) of Metro Pacific Tollways Corp. (MPTC) and PNCC, submitted its investment proposal to the toll body last month.

“Our proposal is to build the connector road using the existing JV agreement — MNTC as the implementing agency,” Mr. Franco explained.

This means the existing supplemental Toll Operations agreement (sTOa) will be amended to include components of the Connector Road.

The existing joint venture structure has MPTC with 67.1% interest and PNCC with just 2.5%.

Mr. Franco said that it is much easier to amend the existing sTOa than to go through a new agreement.

PNCC President Luis F. sison confirmed that the state-run firm is now in talks with MPTC.

“We are in the midst of a negotiation with the MPIC group and we are represented by a board-created negotiating committee,” Mr. sison said via text message.

He noted, however, that there are certain details the two parties need to settle first before agreeing on the final joint venture structure.

“There are legal and financial issues that must be ironed out, but I think that they can all be resolved as long as both parties keep the importance of this road within their sights at all times,” Mr. sison said, without elaborating.

Toll regulators were not replying to queries.

“The proposal to use the old JV comes from MNTC and we have not agreed as legal and financial issues have to be resolved,” Mr. sison admitted, but would not go into details.

The final joint venture structure is also subject to government approval.

MPTC is also a toll road subsidiary of MPIC.

MPIC reported a total comprehensive income of P8.101 billion as of september, 7.8% more than the P7.515 billion recorded in the same nine months last year, as revenues rose 11.40% to P22.879 billion from P20.537 billion on increases in the conglomerate’s water supply and sewerage, tollway, hospital and school revenues.

Shares of MPIC lost 19 centavos or 4% to close at P4.56 apiece yesterday from P4.75 each last Wednesday.

MPIC is a local unit of Hong Kong-based First Pacific Company Ltd., which partly owns Philippine Long distance Telephone Co. (PLdT). Hastings Holdings, Inc., a unit of PLdT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake inBusinessWorld.