The operator of North Luzon Expressway said net income rose 22 percent in the first nine months of the year, but a delay in toll adjustments could hamper the company’s revenue growth.
Manila North Tollways Corp. said net income amounted to P2.22 billon in the January-to-September period from P1.82 billion year-on-year, mainly due to high traffic growth and toll revenues generated during the period.
MNTC’s revenues in the nine-month period grew 10 percent to P6.04 billion from P5.47 billion on year.
Average daily traffic during period hit 199,196, up 9 percent in 2014.
MNTC, however, said “the continuing inaction of the Toll Regulatory Board on periodic toll rate adjustments filed by the company for 2013 and 2015 can hamper growth in toll revenues moving forward.”
The NLEx operator in September last year filed a petition with the TRB for the bi-annual toll adjustment that was supposed to fall due on January 1, 2015 as provided in the concession agreement.
MNTC’s new petition is in addition to a pending request it filed in 2012 for a toll increase scheduled in January 2013.
The current petition will bring the cumulative toll adjustment to 15 percent, including 12 percent that is long overdue.
MNTC said it sent the government through TRB a final demand letter for compensation amounting to P2.44 billion based on overdue 2013 and 2015 toll adjustments, respectively, which the TRB has declined to implement.
“With the Republic/TRB not heeding the final demand letter, MNTC sent a notice of dispute in accordance with Clause 19 [Settlement of Disputes] of the STOA. As a procedural matter, MNTC confirmed its availability to agree on the amicable means by which to settle the dispute,” the NLEX operator said.
MNTC president and chief executive Rodrigo Franco said revenues could increase 15 percent next year if the TRB granted the toll hike petition. The company expects revenue to hit P8 billion this year.
NLEX is currently implementing the construction of Segment 10, part of the Harbor Link project leading to the Port Area, which is estimated to cost around P10.5 billion. Segment 10 is expected to open by the second quarter of 2017.
The Bases Conversion and Development Authority has formally turned over the management, operation and maintenance of the Subic-Clark-Tarlac Expressway to MNTC.