Manila North Tollways Corp. said it is now open to an out-of-court settlement with the government over a P3-billion compensation claim, stemming from the regulator’s refusal to approve toll increase since 2013.
MNTC filed an arbitration case against the government in Geneva after the Toll Regulatory Board froze toll along North Luzon Expressway, despite an existing agreement that provided for periodic adjustments.
“The settlement can happen anytime, but the procedure is we nominate and they will nominate and then they will convene,” MNTC president and chief executive Rodrigo Franco said.
MNTC nominated former Supreme Court justice Jose Vitug as one of the members of the arbitration panel while the government on May 4 chose former Supreme Court justice Reynato Puno.
The Office of Solicitor General and MNTC also named their arbitrators, but they have yet to nominate a third arbitrator to preside over the proceedings. The arbitration proceedings will be held in Geneva.
MNTC on April 4 issued a notice of arbitration and statement of claim to the government through TRB, consistent with the dispute resolution procedures under the existing supplemental toll operation agreement.
The operator of NLEx was seeking a P3-billion compensation as of end-2015 for TRB’s alleged inaction on lawful toll adjustments which were due since Jan. 1, 2013.
MNTC filed a petition with TRB in September 2014 for bi-annual toll adjustment that was supposed to start on Jan. 1, 2015, as stipulated under the concession.
The new petition is on top of the previous petition the company filed in 2012 for a toll increase scheduled in January 2013. This would bring the cumulative toll adjustment to 15 percent, of which 12 percent was long overdue.
Toll at NLEx from Mindanao Avenue to Sta. Ines currently amounts to P218 for Class 1 vehicles (cars, jeepneys, pickup trucks and vans), P544 for Class 2 vehicles (two-axle trucks, buses and vans) and P652 for Class 3 vehicles (trucks and trailers with three or more axles).
Cavitex Infrastructure Corp., operator of Manila-Cavite Expressway, also filed an arbitration case against the government, requesting an P800-million compensation for failure to increase toll rates.
Cavitex also proposed a toll hike for Class 1 vehicles to P27 from P22; Class 2 vehicles to P54 from P44; and Class 3 vehicles to P81 from P66.
The two companies said the periodic toll rate adjustment was a contractual right the toll operators were entitled to under the toll operation agreement.
TRB consultant for traffic management and safety Albert Suansing earlier said the Commission on Audit was reviewing the petition of MNTC and Cavitex Infrastructure for toll increases.
Suansing, however, said the current administration was unlikely to complete the review process and “probably the next administration” would act on the toll hike petition.