Welcome to Manila North Tollways Corporation!

Welcome Remarks during the Signing Ceremony & Cocktail Reception of MNTC’s Refinancing Program (November 8, 2006)
Palawan Room, EDSA Shangri-La Hotel
by JOSE P. DE JESUS

	We are gathered here this evening under auspicious circumstances.  On the economic sphere, the Philippine peso is gaining more strength against the dollar and inflation is under control; this means we can expect, among other things, more stable prices of basic goods and services as well as the lowering of costs of doing business.  Yes, even a reduction of toll fees in the NLEX.

	For those of us in the private sector we try to do our jobs well as our way of helping government, not only in delivering essential services to the public, but in strengthening the country’s economic fundamentals.

 On the same note, it is worth mentioning that, from the start, the multi-billion peso North Luzon Expressway project did not need government guarantee in order to persuade global and multilateral creditors to fund it.  

	The situation is more encouraging today. Our local creditors have joined up with our global lenders to participate in the re-financing and restructuring of our loans!  In the past, the loans were purely dollar denominated. This time, there will be a peso loan component – in the amount of 5.5 billion pesos – supported by major local banks with ING and BDO Capital as lead arrangers. The other good news is the global creditors who had been with us from the beginning have decided to stick with us with a 100 million dollar loan, with Mizuho as lead arranger.  

	The dollar and peso loan combination is a well thought-out strategy to reduce foreign exchange risks for MNTC.  We know that, in this country, many well-meaning companies, operating quite well in the past, went bankrupt or were easy prey to hostile or friendly acquisition due to drastic foreign exchange fluctuations.  

	As your management team overseeing and operating the most modern and safest expressway, we want to make sure MNTC is not vulnerable to such unwanted hazards of the trade.

	There are actually other reasons we have opted to refinance our loans, but let us leave the task to the experts to explain the agreements’ finer ramifications. There is only one thing I want to emphasize: A good thing like the NLEX must not suffer simply because we have not shielded it from risks – financial or otherwise.  

	The high standards of road quality structure and service will continue to be upheld. The comfort and ease that we who are motorists have already experienced must remain part of our everyday lives.  And the catalyst that has spurred development in Central Luzon and beyond must remain well managed – so that our cherished growth goals are met. 

	Fortunately our shareholders, creditors and various stakeholders continue to place their confidence in us – as we move forward.  We respond therefore, with even greater resolve, to do our job exceedingly well.  And our creditors like those in our midst will have every reason to continue giving us their support not only with money but with things money cannot buy: their TRUST.

	May I thus welcome you all to this signing ceremony and celebration! 

				
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