Metro Pacific Preparing for Two Arbitration Hearings
Saturday, November, 21, 2015
Metro Pacific Investments Corp. is contemplating an arbitration cases against the Filipino government for non-implementation of tariff adjustments on two toll roads under the supplemental toll operation agreement. The roads in question include the North Luzon Expressway and the Cavite Expressway.
The company is permitted to seek arbitration 60 days after sending a letter of demand to the Toll Regulatory Board, which it did in September. The board asked the company to delay any plan by another 60 days, to which the company was willing to agree, provided that if nothing happens during that time period to resolve the issue it would be free to move forward with arbitration for both roads.
Representatives from the company stated publicly, “We are only amenable to a 30 day extension on the condition [the board is] willing to waive the 90 day conciliatory period for the North Luzon Expressways [case].” They want to deal with both cases at the same time to save on resources. The goal is to synchronize the filing of both cases, which would not be an option if they are forced to wait 90 days. Basically, they are looking for a compromise.
The Cavite case would be filed in Geneva, Switzerland, and the North Luzon case in New York. There is already an ongoing arbitration case between Metro Pacific and the government regarding the water rate adjustments of unit Maynilad Water Services, Inc.
Depending on the outcome of the case, Metro Pacific would receive the go-ahead to make tariff adjustments on both roads.