MPIC open to compromise on toll hike disputes
METRO PACIFIC Investments Corp. (MPIC) is open to a possible compromise to resolve its disputes with the government over rate hikes for its toll roads.
“Both parties favor a shorter resolution. The tribunal can arrange ... sa preliminary [conference] naman tinatanong na ’yan kung mayroon bang ( it is asked if there is an) opportunity for settlement,” Manila North Tollways Corp. (MNTC) Senior VicePresident, Legal, Regulatory Affairs and Government Relations Romulo S. Quimbo, Jr., told reporters in a recent interview when asked if they are open to a settlement.
NLEX Corp., formerly MNTC — a unit of Metro Pacific Tollways Corp. (MPTC) — the tollway arm of MPIC, and Cavitex Infrastructure Corp. (CIC) currently have ongoing arbitration cases against the government.
MPTC President and CEO Rodrigo E. Franco said in May that overdue toll rate adjustments for the North Luzon Expressway ( NLEx) and Manila- Cavite Toll Expressway ( CAVITEx) have reached around P6 billion, adding that the amount is “accumulating everyday.”
The government and the Metro Pacific group will have a preliminary conference in Singapore on June 27 with the international arbitration panel to agree on the timeline.
“Mag-iistart sa 27 ang preliminary conference ( The preliminary conference will start on the 27th). It’s like a pre- trial kasi where people seat down and agree on the schedule, sort of a mutually agreed timetable, that’s all... walang resolution na naiissue doon (no resolution will be issued there),” Mr. Quimbo said.
In April last year, MPIC, through NLEX Corp., filed a notice of arbitration against the government to obtain compensation worth some P3 billion for toll rate adjustments due to take effect for NLEx for both January 2013 and January 2015.
During the same month, the infrastructure conglomerate, through CIC, also issued a notice of arbitration and statement of claim seeking compensation worth P877 million for the government’s inaction its toll hike petition for CAVITEx which was due to take effect on Jan. 1, 2012, Jan. 1, 2014 and Jan. 1, 2015.
Last month, MNTC also filed a petition with the Toll Regulatory Board seeking approval for a toll rate increase at NLEx to recover the P2.9 billion the company spent on road widening.
CLAIM TO BE UPDATED
Mr. Quimbo said they will have to update the claim to “reflect the current” cost.
The preliminary conference, he added, is for both CAVITEx and NLEx, “for administrative efficiency.”
Apart from NLEx and CAVITEx, MPIC also operates the Subic- Clark-Tarlac Expressway ( SCTEx). It was also awarded other tollway projects such as the Cavite-Laguna Expressway, Cebu-Cordova Link Expressway and NLEx- South Luzon Expressway Connector Road.
MPIC’s core net income rose 14% to P3.13 billion in the first quarter of 2017 from the P2.7 billion recorded during the same period last year supported by solid growth across its toll road, power, water, and hospital businesses.
NLEX Corp. saw its consolidated net income reached P1.07 billion in the January to March period, 16% up compared to the P921.61 million posted during the first quarter of 2016 driven by higher revenues on the back of sustained traffic growth across NLEx and SCTEx as average daily traffic for the NLEx reached 229,633 daily vehicle entries, higher by 7% while average daily traffic in SCTEx reached 51,128, up 20%.
MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and 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 through the Philippine Star Group, which it controls.
Shares in MPIC lost four centavos or 0.65% to end Tuesday trading at P6.15 apiece.