Manila North Tollways Corp. secured a P5-billion loan from Philippine National Bank to fund capital expenditures in 2016.
Metro Pacific Investments Corp. said in a disclosure to the stock exchange unit MNTC signed an agreement with PNB for a 10-year fixed-rate term loan facility amounting to P5 billion.
“The proceeds of the loan will be used by MNTC to finance its capital expenditures and for other general corporate purposes,” MNTC said.
MNTC president and chief executive Rodrigo Franco said in a text message the loan proceeds “will be used for various projects like our NLEx widening and SCTEx projects.”
The North Luzon Expressway widening project would involve expanding the Sta. Rita to San Fernando segment to three lanes on both directions. The segment currently has two lanes.
Further north, the Dau to Sta. Ines section will be expanded to two lanes each from the existing one.
MNTC earlier reported a net income of P2.22 billon in the January-September period, up 22 percent from P1.82 billion a year ago, mainly due to high traffic growth and toll revenues generated during the period.
MNTC’s revenues in the nine-month period grew 10 percent to P6.04 billion from P5.47 billion last year as average daily traffic hit 199,196, up 9 percent in 2014.
MNTC, however, said “the continuing inaction of the Toll Regulatory Board on periodic toll rate adjustments filed by the company for 2013 and 2015 can hamper growth in toll revenues moving forward.”
The NLEx operator in September last year filed a petition with TRB for the bi-annual toll adjustment that was supposed to fall due on Jan. 1, 2015, as provided in the concession agreement.
MNTC’s new petition is in addition to a pending request it filed in 2012 for a toll increase scheduled in January 2013.
The current petition will bring the cumulative toll adjustment to 15 percent, including 12 percent that is long overdue.
MNTC said it sent the government through TRB a final demand letter for compensation amounting to P2.44 billion based on overdue 2013 and 2015 toll adjustments, respectively, which the TRB had declined to implement.
“With the Republic/TRB not heeding the final demand letter, MNTC sent a notice of dispute in accordance with Clause 19 [Settlement of Disputes] of the STOA. As a procedural matter, MNTC confirmed its availability to agree on the amicable means by which to settle the dispute,” the NLEx operator said.
Franco earlier said revenues could increase 15 percent next year if the TRB granted the toll hike petition. The company expects revenue to hit P8 billion this year.
MNTC is currently implementing the construction of Segment 10 at NLEx, part of the Harbor Link project leading to the Port Area, which is estimated to cost around P10.5 billion. Segment 10 is expected to open by the second quarter of 2017.
State-run Bases Conversion and Development Authority formally turned over the management, operation and maintenance of the Subic-Clark-Tarlac Expressway to MNTC.
