CAVITEX INFRASTRUCTURE Corp. (CIC) and the Philippine Reclamation Authority (PRA) have proposed a toll fee increase for the R-1 Expressway and R-1 Expressway Extension of the Manila-Cavite Expressway (Cavitex).

In a petition to the Toll Regulatory Board (TRB) dated Sept. 27, 2017, CIC and PRA, manager and operator of Cavitex, respectively, proposed toll fees for the R-1 Expressway of P31 (from P24) for Class 1 vehicles, P63 (from P48) for Class 2 vehicles, and P94 (from P72) for Class 3 vehicles.

For the R-1 Expressway Extension, the proposed toll fees are P95 (from P64) for Class 1 vehicles, P189 (from 129) for Class 2 vehicles, and P284 (from P194 for Class 3 vehicles.

All proposed new fees are inclusive of value-added tax (VAT).

“…The periodic adjustment to the Agreed Toll Rates is necessary to ensure the sustainability and viability of the MCTEP [Manila-Cavite Toll Expressway Project] and its expressways, which in turn redounds to the benefit, safety, and convenience of the public,” the petition read.

The current toll fees for the R-1 Expressway were in effect since January 2009, and in September 2011 and September 2014, CIC and PRA submitted petitions for increases that are yet unresolved.

For the R-1 Expressway Extension, the fees were in effect since May 2011 and petitions (also unresolved) were filed in September 2013 and September 2016.

The petitioners had requested the implementation of the new fees by January 1 this year, as well as provisional increase if this is not granted on the requested date. There has been no official approval from TRB as of reporting.

Metro Pacific Investments Corp. (MPIC) through CIC in April 2016 issued a notice of arbitration and statement of claim to the government to obtain P877 million in compensation for what it says is inaction by the government over toll fee hike petitions due since 2012. Adjustments were due since Jan. 1, 2012; Jan. 1, 2014; and Jan. 1, 2015.

Last June, Romulo S. Quimbo, Jr., senior vice-president for Legal, Regulatory Affairs and Government Relations of Manila North Tollways Corp., said MPIC is open to a possible compromise with the government to resolve the dispute over toll fee increases covering Cavitex and the North Luzon Expressway (NLEx).

MPIC also filed in April 2016, through NLEX Corp. a notice of arbitration for around P3 billion in compensation for toll rate adjustments due to take effect on NLEx in both January 2013 and January 2015.

In November, the TRB approved a provisional fare increase of P0.25 for NLEx, or P18 for 72 kilometers, subject to VAT, in response to a petition by Metro Pacific Tollways Corp. to implement a toll increase of P0.27, intended to recover its investment in expanding the expressway.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

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. — Patrizia Paola C. Marcelo

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