Metro Pacific Bares Tribunal Rulings On Tollway Subsidiaries

Metro Pacific Investments Corp today disclosed to the Philippine Stock Exchange (PSE) the rulings it received relative to its tollway subsidiaries.

Photo Insert: A stretch of Cavitex

It said that NLEX Corporation and CAVITEX Infrastructure Corporation, toll road subsidiaries of Metro Pacific Tollways Corp., received notice of the rulings of the Permanent Court of Arbitration (“Tribunal”) in their respective arbitration cases filed with the Tribunal against the Republic of the Philippines, acting by and through the Toll Regulatory Board (the “TRB”).

In the NLEX case, while the Tribunal ruled that it has jurisdiction over the claims presented by NLEX Corporation, the Tribunal held that under the factual circumstances of the case, the TRB is not liable for unreasonable delay on the petitions for toll rate adjustment filed in 2012 and 2014 (“2012 and 2014 Petitions”).

The rejection of the claim is without prejudice to further review by the TRB of the said petitions. The Tribunal also noted that the TRB already decided on the 2012 and 2014 Petitions when the TRB issued its resolution in 2018 approving an upward adjustment in the toll rates in NLEX, which have been implemented since March 2019.

Based on the foregoing, the Tribunal also denied NLEX Corporation’s claim for damages. The Tribunal also ruled that each Party will bear the costs of arbitration in equal shares and will bear their own costs of legal representation and assistance

In the case of Cavitex, the Tribunal issued its final Termination Order, considering that the claimants Cavitex Infrastructure Corporation and Philippine Reclamation Authority have earlier withdrawn both their claims for compensation arising from non-approval of their Petitions for rate adjustment filed in 2011 and 2014.

The Order thus terminated the Cavitex arbitration case. In the meantime, the said petitions are now being processed by the TRB.

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