DOF ‘exploring’ MPTC’s proposal to buy out gov’t in CAVITEX

The Department of Finance (DOF) is exploring how it can facilitate Metro Pacific Tollways Corp.’s proposal to buy out the government in the joint venture handling the Manila-Cavite Expressway (CAVITEX).

“MPTC has formally written a letter to DOF,” Finance Undersecretary for Privatization and Partnerships Catherine Fong said in a text message to GMA News Online.

“DOF is open to the idea, except PRA (Philippine Reclamation Authority) is not under DOF,” Fong said.

Asked how the DOF can facilitate in the MPTC’s plan to fully takeover CAVITEX, she said, “We’re still exploring it.”

CAVITEX is a joint venture between MPTC’s Cavitex Infrastructure Corp. (CIC) and the PRA.

The PRA operates and maintains CAVITEX through its unit Public Estates Authority Tollways Corp. (PEATC), while CIC is the concessionaire of the toll road.

CIC and PRA have a 90-10 revenue sharing scheme, in favor of CIC.

MPTC is intending to fully take over CAVITEX from PRA.

Last week, PEATC filed a petition for mandamus before the Court of Appeals to fully transfer the management of CAVITEX to the agency, citing issues on the existing revenue sharing scheme.

The MPTC, in a statement, said PEATC has no authority to file such a mandamus since it is not a party to the joint venture agreement. The parties to the agreement are CIC, PRA, and the Toll Regulatory Board.

 Asked if the full privatization of CAVITEX will be more advantageous to the government, Fong said, “There’s the price consideration… then there’s the efficiency aspect [but] PRA’s mandate is not really on tollways… anyway, it has to be valued as a whole.”—LDF, GMA Integrated News