MNTC petitions for toll adjustments at NLEx

MANILA NORTH Tollways Corp. (MNTC) has filed a petition before the Toll Regulatory Board (TRB) to adjust toll fees at the North Luzon Expressway (NLEx), according to a notice published in a newspaper on Sunday.

“Notice is hereby given that the Manila North Tollways Corporation filed a petition for approval of adjustment to authorised toll rates with application for provisional relief for the North Luzon Expressway,” the TRB said in its notice dated May 11, which also enjoined “any interested expressway user to file, within a period of 90 days from the date of the first publication of this notice, a petition for review with the TRB.”

The tollway arm of Metro Pacific Investments Corp. (MPIC) filed the petition last February to recoup investments made, particularly expansion projects it undertook in the priority sections of the “project roads” as stipulated in the STOA (Supplemental Toll Operation Agreement). The move is seen to avoid delays in improving service and enhancing the toll road.

“In its letter to MNTC of Nov. 5, 2012, the Honorable Board requested MNTC to submit a project proposal to implement the expansion of priority sections to address carrying capacity and to maintain the optimal levels of service,” MNTC said in its petition, which was part of the published notice.

MNTC said, in compliance with the TRB letter, it conducted a review of the request and subsequently proposed to design, develop and construct a new project consisting of 56 new- lane kilometers from Sta. Rita, Guiguinto, Bulacan to San Fernando City, in Pampanga in Segment 2 and a completely new 2-lane carriageway consisting of 8 new lane kilometers from Dau to Sta. Ines, also in Pampanga in Segment 3, with a construction program costing P2.9 billion.

MNTC said the TRB Board “conditionally approved” the construction of the project, subject to conditions, with the recommended add-on toll rates to be re- submitted for final approval and implementation. On Feb. 1 last year, the Board approved the project worth P2.72 billion and subsequently issued “A Notice to Proceed for the construction of the NLEx Widening Project First Phase” in a letter dated March 4, 2016.

In its notice, the TRB said the MNTC has proposed the following “add-on toll rates” per kilometer, exclusive of value-added tax ( VAT):

• Class 1 vehicles, including cars, jeepneys, pickup trucks and vans, additional P0.2650 per kilometer from the current authorized toll rates for closed system of P2.378885;

• Class 2 vehicles, including two- axle trucks, buses and vans, an additional P0.6625 from P5.957213; and

• Class 3 vehicles, including trucks and trailers with three or more axles, an additional P0.7950 per kilometer from the current P7.136655.

“Relying upon the approval of the Honorable Board, MNTC proceeded to implement and construct the new project, at no expense to the grantor, and with no additional right-of-way on the part of the grantor, relying solely on the Honorable Board’s approval as its basis for recovering the huge investment,” MNTC said in its petition.

The initial rate adjustment are: P0.3250 per kilometer for Class 1 vehicles; P0.8125 for Class 2 vehicles; and P0.9750 for Class 3 vehicles but was “adjusted downward” following the Department of Finance’s validation of the new project.

“On Dec. 14, 2016, MNTC wrote to the Honorable Board that the new project was substantially complete and was ready to be inaugurated after having been completed three months ahead of the construction schedule and in time for Christmas holidays. MNTC also requested that the Certificate of Substantial Completion be forthwith issue(d) to be followed by the issuance of a Toll Operation Permit for the operation and maintenance of the new project, and that the authorise(d) add-on toll rate be collected on the Closed Systems after a deferment of its collection for a period of 30 days,” the petition also read.

MNTC sought TRB to “immediately issue” an order granting the provisional relief, i.e., an order approving and implementing the authorized toll rates effective March 1.

NLEx is a 84-km road, which runs from Balintawak in Quezon City to Sta. Ines in Pampanga. It has 15 exits and interchanges, its Web site said.

Metro Pacific Tollways Corp. President and CEO Rodrigo E. Franco said earlier this month that overdue toll rate adjustments for the North Luzon Expressway ( NLEx) and Manila- Cavite Toll Expressway (Cavitex) have reached around P6 billion.

In April last year, MPIC through NLEx Corp., formerly known as Manila North Tollways Corp., filed a notice of arbitration against the government to obtain compensation worth about P3 billion for toll rate adjustments due to take effect for NLEx on January 2013 and January 2015. In the same month, MPIC through Cavitex Infrastructure Corp. also issued a notice of arbitration and statement of claim to the government to seek compensation worth P877 million for the latter’s inaction on the toll hike petition for Cavitex due to take effect on Jan. 1, 2012, Jan. 1, 2014 and Jan. 1, 2015.

Apart from NLEx and Cavitex, MPIC also operates the Subic-Clark-Tarlac Expressway.

MNTC is a subsidiary of MPIC. MPIC is the local unit of Hong Kong’s First Pacific Co. Ltd., which partly owns Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary Media Quest Holdings, Inc., maintains interest in Business World through the Philippine Star Group.