Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1701

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

Presidential Decree No. 1894, issued by then President Ferdinand E. Marcos in 1982,
granted the Toll Regulatory Board (TRB) the jurisdiction and supervision over the Philippine
National Construction Corporation (PNCC) ~ formerly the Construction and Development
Corporation of the Philippines (CDCP) ~ which holds the franchise or the right, privilege, and
authority to construct, maintain and operate the North and South Luzon Expressways, the
Metro Manila Expressway, as well as any and all such extensions, linkages, or stretches and
the toll facilities appurtenant thereto.

Such jurisdiction and supervision includes the approval of the toll that the PNCC will
charge the users of the expressways. Section 8 of PD No. 1894 states that, “The Toll
Regulatory Board shall have the authority to approve such initial toll rates without the
ity of any notice and hearing.” Section 9 thereof states, “Any adjustment in the then
current toll rate(s) resulting from the application of the formula ... shall be published once by
the GRANTEE in a newspaper of general circulation not later than November 30 of each year
and (ii) be enforceable and collected by the GRANTEE effective on the first day of January
of the immediately succeeding year.”

This bill seeks to require the TRB to conduct public hearings prior to the approval of
initial toll rates of any such infrastructure that may yet be constructed, or any proposal to
increase the toll rates of the existing ones.

Though declared to still be a private corporation by a Supreme Court decision in the
case of PNCC versus Pabion and Ramiro, in G.R. No. 131715, December 8, 1999, as it was
organized pursuant to the Corporation Code, and previously — in 1998 ~ declared to be an
“acquired asset corporation” by Administrative Order No. 59, issued by then President
Corazon C. Aquino, the Philippine National Construction Corporation’s majority
shareholders are government financial institutions. This being the case, this bill also
implicitly appeals to the government to exercise its power, in cognizance of the current
economic situation, to render decisions that are more responsive to the call of the times

In light of the foregoing, approval of this bill is earnestly sought.

Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS

First Regular Session

House Bit No. 1701

Introduced by Hon. Rodolfo G. Biazon

AN ACT
REQUIRING THE TOLL REGULATORY BOARD TO CONDUCT PUBLIC
HEARINGS PRIOR TO THE APPROVAL OF TOLL RATES OR ANY INCREASE
‘THEREIN, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE
NUMBERED EIGHTEEN HUNDRED NINETY-FOUR

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1, Presidential Decree No. 1894 is hereby amended to read as follows:

tion 8. X Xx.

(b) x xx The Toll regulatory Board shall have the authority to approve such initial toll
rates AFTER DUE NOTICE AND PUBLIC HERAINGS ARE CONDUCTED FOR THE
PURPOSE [without the necessity of any notice and hearing}. For such purpose, the
GRANTEE shall submit for the approval of the Toll Regulatory Board the toll propose to be
charged the users. After approval of the toll rate(s) by the Toll Regulatory Board and
publication thereof by the GRANTEE once in a newspaper of general circulation, the toll
shall immediately be enforceable and collectible upon opening of the expressway to traffic
use.

{Any interested Expressways use shall have the right to file, within a period of ninety
(90) days after the date of publication of the initial toll rate, a petition with the Toll
Regulatory Board for a review of the initial toll rate; provided, however, that the filing of
such petition and the pendency of the resolution thereof shall not suspend the enforceability
and collection of the toll in question. The Toll Regulatory Board, at a public hearing called
for the purpose, after due notice, shall then conduct a review of the initial toll to determine
the propriety and basis thereof. Decisions of the Toll Regulatory Board on petitions for
review of the initial toll shall be appealable to the Office of the President within ten (10) days
from the promulgation thereof. The GRANTEE may be required to post a bond in such
amount and from such a surety or sureties and under such terms and conditions as the Toll
Regulatory Board shall fix in case of any petition for review of, or appeal from, decisions of
the Toll Regulatory Board,


In case it is finally determined, after a review by the Toll Regulatory Board or appeal
therefrom that the GRANTEE is not entitled, in whole or in part, to the initial toll, the
GRANTEE shall deposit in an escrow account the amount collected under the approved
initial toll rate and such amount shall be refunded to Expressways users who had paid such
toll in accordance with the procedure as may be prescribed or promulgated by the Toll
Regulatory Board.]

Section 9. The GRANTEE shall have the right and authority to adjust any existing
toll being charged the users of the Expressways under the following guidelines:

XXX

b) Any adjustment in the then current toll rates resulting from the application of the
formula and indicated in the aforesaid written statement shall (i) be published once in a
newspaper of general circulation not later than November 30 of each year and (ii) SHALL
BE SUBJECT TO THE APPROVAL OF THE TOLL REGULATORY BOARD AFTER
DUE NOTICE AND PUBLIC HERAINGS ARE CONDUCTED FOR THE PURPOSE AND
SHALL be enforceable and collected by the GRANTEE effective on the first day of January
of the [immediately succeeding] year FOLLOWING THE APPROVAL THEREOF.”

Section 2. The Toll Regulatory Board shall formulate the rules and regulations
necessary for the effective implementation of this Act within sixty (60) days from its
effectivity.

Section 3. All laws, presidential decrees, executive orders, issuances, not consistent
with this Act are hereby repealed or modified accordingly.

Section 4. This Act shall take effect after publication in the Official Gazette or in two
(20 newspapers of general circulation.

Approved,