‘We respect the Arbitration Tribunal’s ruling’- MPTC
Metro Pacific Tollways Corporation’s subsidiaries — NLEX Corporation (NLEX) and Cavitex Infrastructure Corporation (Cavitex) — received notice today, September 7, on the decisions of the Permanent Court of Arbitration in their respective arbitration cases.
In the case of NLEX, the Arbitration Tribunal decided in favor of government and ruled against NLEX on the matter of its claims for damages due to delayed approval of scheduled toll rate adjustments.
The Tribunal set aside the NLEX claim for compensation and damages arising from delayed toll rate adjustments. The Tribunal noted that the Toll Regulatory Board (TRB) in its October 2018 resolution already approved toll rate adjustment petitions filed in 2012 and 2014. NLEX started implementing the adjustments in March 2019.
“Given that the toll rate adjustments subject of this case are already being implemented, we wish to reiterate that we respect the Tribunal’s decision. For now, we believe that it is best for us to focus on supporting our government’s efforts to end the pandemic and do our part in accelerating economic recovery through infrastructure developments,” said Rodrigo E. Franco, MPTC president and CEO.
“We have noted the present government’s policy to fairly evaluate requests for toll adjustments and will take this in consideration as we continue to closely cooperate with government agencies for the implementation of vital infrastructure projects,” Franco pointed out.
In a separate case, the Arbitration Tribunal issued its final order in the case of Cavitex and the Philippine Reclamation Authority, based on the withdrawal by both claimants of their arbitration claims. The claims were based on TRB’s inaction on their rate adjustment petitions filed in 2011 and 2014. In its termination order, the Tribunal did not rule on the merits of their claims. Meanwhile, Cavitex is working with TRB on processing its toll rate petitions.
“The government has been very gracious in approving our long-overdue tariff adjustments and we are grateful for their support for our various expansion efforts. We are prepared to set our differences aside and are united with them in our common goal of enabling sustainable growth at a time when our country needs it the most. Bearing in mind the concerns of all our stakeholders, we will continue to work with our partners in government for mutually beneficial resolutions to our outstanding petitions,” Franco declared.