Posted on December 05, 2013 10:17:13
PM [ BusinessWorld Online ]
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 in BusinessWorld. -- Lorenz Christoffer S. Marasigan
_____________________________________________________________
