MPTC keen on taking over Cavitex operations
INQUIRER FILE PHOTO
MANILA, Philippines – Metro Pacific Tollways Corp. (MPTC) is keen on taking over the operations and maintenance (O&M) of Manila-Cavite Expressway (Cavitex) by buying out the remaining interest of the government, which recently petitioned to handle not just expressway management but the toll collection as well.
Rogelio Singson, president and CEO of the Pangilinan-led company, said in a virtual press briefing on Tuesday that they hoped to have the O&M of the major toll road linking Metro Manila and Cavite privatized.
This is to pattern their setup with other public-private partnership projects in the country whereby the private concessionaire manages and develops government assets, he explained.
READ: Cavitex operator wants peaceful settlement of dispute with PRA
Under its current deal with joint venture partner Philippine Reclamation Authority (PRA), PRA unit Public Estates Authority Tollway Corp. (PEATC) is in charge of the expressway’s O&M. MPTC’s Cavitex Infrastructure Corp. (CIC), meanwhile, is tasked with the design, finance, and construction of the toll roads.
PRA stake
To assume control of O&M, Singson said they were willing to acquire the 10 percent interest of PRA in the project.
This was not something new, however, as MPTC said it had extended the offer to the government four times but had not received a reply.
READ: Metro Pacific unit allots P11.95B to improve, fast-track Calax, Cavitex
Just last year, the tollway operator put forwarded a P2.5-billion proposal to buy out PRA but to no avail. PEATC recently filed a case at the Court of Appeals to transfer both the O&M and toll fee collection to the government agency, explaining that CIC no longer has the authority to handle Cavitex operations.
The operations and management agreement expired in 2021 but the service contract deal with CIC was still in place. These services include security and building and equipment maintenance.
Apart from this, PRA flagged the current 90-10 income division in favor of CIC, which has been in place for 26 years. It wants the division revised to 40:60 in favor of the government, as the toll expressway has already been generating significant revenues.
CIC saw its toll revenues improve by 24 percent to P2.1 billion in 2022 from P1.69 billion in 2021. This resulted in its net income rising by 50 percent to P782.85 million in 2022.
Singson, however, explained that the request could not be granted yet as they have to first fulfill two conditions according to the joint venture agreement: completion of the tollway road construction and payment of loans related to building the infrastructure. INQ
