THE Permanent Court of Arbitration has ruled in favor of the Philippine government in the arbitration case filed by Nlex Corp. It likewise ordered the termination of the arbitration case filed by Cavitex Infrastructure Corp.
Metro Pacific Tollways Corp. President Rodrigo E. Franco said the group respects the decision of the court and vowed to continue helping the government in accelerating infrastructure development to help the economy bounce back from the ill effects of the pandemic.
“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,” he said.
The court decided to set aside the Nlex claim for compensation and damages arising from the delayed toll rate adjustments for 2012 and 2014. The government, however, allowed it to implement the increase in toll in March 2019.
“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 said.
Separately, the tribunal also ruled to terminate the case of Cavitex as its arbitration claims have also been withdrawn.
To recall, Metro Pacific Investments Corp. and the Department of Transportation agreed in 2018 to drop the arbitration cases for both Nlex and Cavitex, as they have agreed to implement the toll increases “gradually.”
In 2016, Nlex and Cavitex sought compensation for P3.877 billion in foregone revenues due to the delayed implementation of their toll increases since 2011.
“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 said.
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