The Manila North Tollways Corp. (MNTC) yesterday reported it failed to meet its P8 billion revenue goal because it was not allowed toll fees increase.
MNTC President Rodrigo Franco and Metro Pacific Tollways Corp. President Ramoncito Fernandez warned in July that they might find it difficult to achieve the revenue goal.
MNTC said that on a daily basis, the NLEX has an average traffic volume of “close to 180,000” vehicles, while the SCTEX has some 28,000 and Cavitex has about 101,000.
According to its concession agreement, MNTC was supposed to hike its toll by 11 percent effective January 2013. The concession allows for toll adjustments every two years.
In November last year, MNTC said that its failure to hike toll fees would translate to about P1.8 billion in revenue losses.
MNTC filed a petition with the TRB for the bi-annual adjustment of toll rates in the North Luzon Expressway (NLEX), which falls due on January 1, 2015 under its concession terms.
MNTC said that the rate adjustment is on top of an earlier petition it submitted in 2012, which was supposed to have taken effect in January 2013. The latest petition would bring the cumulative toll rate adjustment to 15 percent, of which 12 percent, according to the corporation, is long overdue.
Meanwhile, MNTC reported a 6 percent growth in net income in the third quarter to P1.82 billion, against last year’s comparative P1.71 billion.
Furthermore, Franco added that, “Our revenue target for this year is around P8.1 billion from P7.5 billion [in 2014].”
The official also said that the driver of the growth is mainly [vehicle]traffic and hoping for the rate adjustment.
He added that because of the continuous dropping in oil prices, people are encourage to travel and this will be reflected in the higher traffic.
At present, tolls at NLEX from Mindanao Avenue to Sta. Ines amount to P218 for Class 1 vehicles (cars, jeepneys, pickup trucks and vans), P544 for Class 2 vehicles (two-axle trucks, buses and vans), and P652 for Class 3 vehicles (trucks and trailers with three or more axles).
It said average daily traffic on NLEX reached close to 183,000 vehicles in in 2014 versus 163,400 vehicles in 2013.
MNTC cited the need for a road widening to decongest the expressway, particularly in key toll exits.
MNTC keeps the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEX) operations until 2043. The Bases Conversion and Development Authority (BCDA) said recently that it did not receive any challenger for Manila North Tollways Corp.’s P35 billion upfront cash offer to operate
There was no taker on the Swiss Challenge ordered by the Office of the President for the MNTC offer BCDA earlier agreed to in 2011.
BCDA said that under the terms of reference for the price challenge, MNTC will be awarded the project.
The SCTEX is a fully operated and world-class four-lane expressway traversing the provinces of Bataan, Pampanga and Tarlac. The road provides a direct link to Metro Manila via the Northern Luzon Expressway (NLEX).
MNTC offered payment of upfront cash of P35 billion, inclusive of 12 percent value added tax (VAT) to BCDA. It also offered 50/50 sharing of gross toll revenues with BCDA. MNTC likewise agreed to work on a single collection system between NLEX and the SCTEX.
The object of the price challenge is limited to the cash offer which should be payable upon signing of the agreement.
MPTC and MNTC are subsidiaries of Metro Pacific Investment Corp. (MPIC). Manuel Pangilinan, who is also MPIC president, said the contract has been renegotiated two times and is now on its third year.
Metro Pacific Tollways Corp. (MPTC) is the parent company of MNTC. MPTC is a subsidiary of conglomerate Metro Pacific Investments Corp., which is led by tycoon Manuel Pangilinan.