Gov’t move will lead to higher fees, MPIC warns

THE GOVERNMENT’S decision to require private investors to spend for the acquisition of “right of way” property for infrastructure projects will lead to higher fees to be borne by consumers, Metro Pacific Investments Corp. (MPIC) said.

According to MPIC chair Manuel V. Pangilinan, the acquisition of “right of way,” or privately owned land that has to be bought to make way for infrastructure projects—historically has been a government function.

But the Department of Justice earlier this year said that private investors would have to be the ones to pay for “right of way” in unsolicited projects.

“All we want are clear ground rules. If they want the private company to spend for the right of way, the government has to be flexible when it comes to tariffs,” Pangilinan said on Friday.

The DoJ opinion affects MPIC’s proposed P27-billion “connector road” project that will link the North Luzon Expressway and Metro Manila Skyway.

The “right of way” acquisition will jack up the project price by another P7 billion, and this will have to be passed on to consumers through higher toll rates. The ruling will also affect infrastructure projects by other companies, Pangilinan pointed out.

“No private company will invest in a project if there are no returns,” he said.