Cavitex toll break seen to cost P300 million

MANILA, Philippines — The Metro Pacific Group will forgo P300 million in revenues as a consequence of the presidential directive to declare a toll holiday in the Manila-Cavite Expressway (CAVITEX).

Cavitex Infrastructure Corp. (CIC) president and general manager Raul Ignacio confirmed to The STAR that the company would forgo as much as P300 million in revenues during the toll holiday in July.

Based on data from CIC, CAVITEX is being used by at least 181,841 vehicles daily, as it serves as one of the most crucial linkages between Metro Manila and Southern Tagalog.

CAVITEX collects P35 from Class 1 vehicles passing through its R1 Expressway, running from Coastal Road in Parañaque City to Zapote in Las Piñas City. Meanwhile, the tollway charges P73 on Class 1 units for the use of the extension to Kawit, Cavite.

Further, CAVITEX imposes a toll of P70 and P104 on Class 2 and Class 3 vehicles, respectively, on the R1 Expressway. In the extension, the rates go up to P146 for Class 2 and P219 for Class 3.

In spite of this, Ignacio assured President Marcos that CIC will comply with the order to observe a toll break in CAVITEX for 30 days from July 1, as approved by the Toll Regulatory Board (TRB).

“We will fully implement a 30-day toll holiday in all exits of CAVITEX for all vehicle classes in support of the decision of the TRB, (and) this will help our motorists with the rising costs of fuel and inflation,” Ignacio said.

The toll holiday in CAVITEX will cover all of its interchanges, providing motorists free passage in exits in Kawit, Parañaque, Merville, Taguig and Sucat.

However, it must be noted that CIC, as toll operator, will bear the financial cost of the toll break. CIC sources its budget for capital and debt expenditures from toll collection, using the proceeds to recoup investments, settle loans and upgrade assets.

CIC is also expanding CAVITEX on both ends to improve its accessibility to motorists, and these efforts require billions of pesos. Last week, CIC opened the second segment of the CAVITEX-C5 Link, called Sucat Interchange, a project that cost P6.7 billion.

The concessionaire will also spend P4.1 billion to put up the remaining leg of the CAVITEX-C5 Link and P2.2 billion to build a connector road to the Cavite-Laguna Expressway.

CIC, a subsidiary of the Metro Pacific Tollways Corp., maintains the concession to operate and maintain CAVITEX in partnership with the Philippine Reclamation Authority.