Public Estates Authority Tollways Corp Demands Control Over CAVITEX Operations

QUEZON CITY – The Public Estates Authority Tollways Corp. (PEATC) is pressing for the turnover of the Manila-Cavite Expressway (CAVITEX) operations and maintenance from CAVITEX Infrastructure Co. (CIC), stating that the existing operations and maintenance agreement (OMA) concluded in August 2021.

According to Philippines News Agency, the agreement that delegated O&M responsibilities to CIC expired on August 25, 2021, as per Philippine Reclamation Authority (PRA) Board Resolution 5383. Esteban articulated that as of January 1, 2022, the operations should have reverted to PEATC, a government-owned corporation established by the PRA for tollways management. Despite ongoing discussions between the PRA and CIC, CIC insists on maintaining control, which Esteban disputes.

The revenue-sharing model, which currently favors CIC with 90 percent of earnings, is also slated for revision. Esteban predicts a shift to a 60-40 split in favor of the government should control revert to PEATC, potentially leading to a reduction in toll charges.

In February, PEATC filed a writ of mandamus with the Court of Appeals due to CIC’s refusal to relinquish control of CAVITEX. Esteban clarified that this legal action is not a dispute but a request for judicial assistance in enforcing the turnover, stressing that it concerns a ministerial duty neglected by CIC.

Esteban also highlighted concerns about governance and alleged corruption under CIC’s management, including tollbooths operating without point-of-sale machines, thus failing to record transactions for tax purposes. Additionally, union representatives from CAVITEX’s security workers and the PEA Tollways Union accused CIC of blocking wage increases for a decade and providing inadequate equipment, which has led to system failures and compromised service quality.

Legal manager Sylvester Golez reaffirmed that CAVITEX is government property, both the reclaimed land and the road built upon it, questioning CIC’s continued involvement post the expiration of the OMA. He argued that returning O&M to PEATC would ensure proper governmental oversight and transparency to the public.

Amidst these discussions, PEATC spokesperson Ariel Inton refuted claims by Metro Pacific Tollways Corp. (MPTC), CIC’s parent company, about the government’s lack of technical capability to manage CAVITEX. Inton highlighted the government’s potential for increased revenue earnings if CAVITEX’s operations were managed internally, dismissing MPTC’s offer to buy out the government’s revenue share for PHP2 billion as disproportionate to the expressway’s earnings.

The ongoing conflict reflects deeper issues of governance, financial interests, and public accountability in managing one of the country’s major tollways.