Metro Pacific Tollways Corp. and its unit Cavitex Infrastructure Corp. (CIC) have offered to buy out the government’s stake at the Manila Cavite Tollway Expressway project (Cavitex) for P2.5 billion.
the company in the past has made several offers to the Philippine Reclamation Authority (PRA) to buy the government stake at Cavitex and address the issue on revenue-sharing.
“That is something that we want to pursue (buyout) to resolve the problem now,” said Rogelio Singson, MPTC president and chief executive officer, in a briefing yesterday.
Singson added: “We have a discussion with (Finance) Secretary Ralph Recto; we are working on the acquisition of the government shares.”
Under the joint venture agreement between the two parties signed in 1998, CIC undertakes the design, construction, and financing of the project while the PRA operates and maintain Cavitex with 90-10 percent revenue sharing, in favor of the CIC.
Christopher Lizo, MPTC chief finance officer, said the company made an offer for the fourth time last year, but the government has not responded.
“It’s a standing offer, unfortunately, they never replied to the offer. But if they did of course we are willing to negotiate with them on the offer. Right now, we don’t know if the offer is acceptable.” He added.
Last week, PRA through its subsidiary PEA Tollway Corp., (PEATC) filed a mandamus case to shift the revenue sharing in Cavitex from 90-10 percent to 60-40 percent in favor of the government.
MPTC said the shift to 60-40 revenue will take effect upon the full payment of all the debts obtained by the company for the construction and expansion of Cavitex.
“You can only shift if once all the loans are secured to the project are fully paid,” Lizo said.
To date, the CIC has spent P25 billion on Cavitex, including the completion of the C5 link project.
It has an outstanding debt of P7 billion to finance the completion of the project’s two segments and another P4 billion bank debt.
Singson also questioned the authority of PEATC’s officer-in-charge to file a case of mandamus and that the company is not a party to the agreement.
The operations and maintenance (O&M) of Cavitex is the responsibility of PEATC, and the 485 regular employees and contract personnel involved in the O& M are the employees of PEATC based on the joint venture agreement. CIC responsibility is for design, finance, and construction.
“We believe that, based on the advice of our lawyers, the case should be dismissed outright by the Court of Appeals because of a false and defective verification and certification and something as basic as filing the mandamus without proper authority of the PEATC or PRA Board and without the sign-off of the proper counsel.
