THE CONCESSION holder of the Manila-Cavite Expressway (CAVITEx) said it is expecting use of the toll road to grow 5-6% this year with the opening of Phase 1 of an enhancement program in Parañaque City.
Cavitex Infrastructure Corp. (CIC) President and General Manager Roberto V. Bontia told reporters on Dec. 21 that 2018 vehicular traffic on CAVITEx grew 8% to an average of almost 160,000 cars daily.
“Traffic growth (for 2019 will be) roughly 5% to 6%. But that also assumes that there will be a] rate adjustment… If the rate adjustments don’t happen, it will be very difficult to achieve,” Mr. Bontia said.
CIC applied with the Toll Regulatory Board (TRB) last year for a 20-centavo per kilometer add-on toll rate at CAVITEx for the Phase 1 of its enhancements, which covers the widening of lanes and construction of a left-turn facility at the Marina flyover.
The enhancements were inaugurated on Dec. 18, and will lead to a P1 toll fee adjustment to P25 if the TRB approves CIC’s petition.
Mr. Bontia said that in 2018, revenue growth from CAVITEx was purely dependent on traffic growth because there was no toll adjustment.
He added that customers are very sensitive to fuel prices, and expects a favorable outcome for the company if crude oil prices keep going down.
“When the country’s economy is positive, generally the traffic follows… But the moment gasoline prices rise, it will depress traffic,” Mr. Bontia said.
CIC is part of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp. (MPIC).
MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez
