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Thursday, June 05, 2008
Arroyo orders cut in NLEX toll rates
MINALIN, Pampanga -- President Gloria Macapagal-Arroyo on Wednesday ordered the reduction of toll rates at North Luzon Expressway (NLEX) starting June 30.
Arroyo, during the Minalin Egg Festival and Food Caravan Send Off ceremonies here, ordered the Toll Regulatory Board (TRB) to sum up with a new toll rate adjustment formula that would determine the new set of rates or "package of benefits for all types of vehicles using NLEX."
Arroyo Watch: Sun.Star blog on President Arroyo
NLEX charges a minimum of P67 to P180 for class one or the light vehicles; P166 to P449 for class two vehicles like buses; and P200 to P539 for class three like heavy trucks.
"I hereby direct the TRB to implement the downward adjustment of NLEX toll rates as a result of the new toll rate formula to take effect on June 30 this year," Arroyo said.
The President said the reduced toll rates stemmed from the "huge windfall" that the Manila North Tollways Corp. (MNTC) is generating after it secured a dollar dominated loan for the NLEX rehabilitation several years ago, when the exchange rate was still at P54 a dollar.
They are now paying off this debt at an exchange rate of about P43 to a dollar, which is 31 percent lower than what they used to pay, owing it to "the favorable exchange rate regime and favorable interest rate regime."
Arroyo said the high debt service cost had already been factored in the computation of its toll matrix, which means "the MNTC can pass on part of its huge windfall to the public via reduced toll rates."
"TRB's approval of the new formula will facilitate MNTC conversion of its remaining US dollar loads into pesos. The operation of this new toll rate adjustment formula will reduce the NLEX toll rates since the MNTC will realize foreign exchange rates resulted from the favorable economic conditions," she said.
"The resulting stability of the toll rate will generate for NLEX motorists an additional benefit: first, there shall be no increase of toll rate within the next two years and six months; second, subsequent increases shall be in smaller increments, owing to the new adjustment rate formula that is no longer subject to foreign exchange fluctuation," she added.
Arroyo said a toll rate reduction would bring relief to those passing through NLEX, including residents from Metro Manila, Central Luzon, and the Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) region, which benefit from the food, produce, construction materials and other goods that pass through the expressway.
"We expect that the benefits to the public of a toll rate reduction will be immense specifically on the cost of basic food items. Metro Manila and several areas in Calabarzon depend on haulers and food producers from Central Luzon and Northern Luzon for the rice, meat, poultry and vegetable needs. Lower rate toll means lower transport cost for producers and haulers," she said.
President Arroyo urged traders who would benefit from the reduced delivery costs that would stem from the lower NLEX toll rates to pass on the benefits to the public through lower prices of commodities and to the farmers through higher pay.
She said another expected benefit is that "transportation fares charges by the major provincial bus operators between Central Luzon and Metro Manila and Northern Luzon will hopefully remain at the 2004 level."
She said it is only fitting that all sectors benefit from the lower NLEX rates. (JMR/Sunnex)
For more Philippine news, visit Sun.Star Dumaguete. (June 5, 2008 issue)
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