Government names panel member in MNTC toll hike petition

MANILA, Philippines – The government has nominated a member to the arbitration panel that would look into the move of a unit of Metro Pacific Investments Corp. (MPIC) to seek compensation for inaction on toll hike petitions for the users of the North Luzon Expressway (NLEX).

Rodrigo Franco, president and chief executive officer of Metro Pacific Tollways Corp. (MPTC) told reporters the government issued on May 4 its reply to the notice of arbitration from NLEX operator Manila North Tollways Corp. (MNTC) to obtain compensation amounting to P3 billion for failure to act on toll rate adjustments.

“The Office of the Solicitor General, this is for NLEX, has nominated their arbitrator,” he said, noting former chief justice Reynato Puno was nominated by the government.

MNTC meanwhile, nominated retired justice Jose Vitug to the arbitration panel for the proceedings.

Following the nomination of members, the arbitration panel will convene to decide on the case.

MNTC decided to go to arbitration after the government failed to act on petitions filed by the firm to raise toll fees since Jan. 1, 2013, as provided for in the existing Supplemental Toll Operation Agreement between the MPIC unit and the government.

The firm first filed a petition before the Toll Regulatory Board (TRB) or a toll hike in 2012 with the adjustment scheduled to take effect in January 2013.