Supplemental Toll Operation Agreement

Supplemental Toll Operation Agreement

The controversial toll increases welcomed the government of the very popular President Aquino, who took office on June 30, 2010, around the same time that the toll increase was due to begin at SLEx. However, strong opposition from different groups has pointed to the economic impact of the increase in transportation costs and cases have been brought before the courts in order to question the constitutional basis of the increase. In order to recommit its investments, STOA planned a series of toll increases requiring the approval of the TRB. The first round of toll increases was supposed to start on June 30, but has been postponed several times. The 75-page ruling by presbitero judge Velasco, which is assessable, also paved the way for the long-delayed interest rate hikes set out in agreements between the government and NLEx and Skyway dealers. These three highways connect the economic and political capital of the country to the rest of Luzon. In a unanimous decision, the Supreme Court overturned the Tribunal`s injunction (TRO), issued on August 13, 2010, that prevented the Toll Regulatory Board (TRB) from implementing the controversial 250% increase in SLEx tolls. As early as 27 January 2005, TRB gave the signal to start the initial toll increase of 300% along the NLEx. The April 1998 STOA was awarded to the philippine national construction co. (PNCC) concessionaires and Manila North Tollways Corp(MNTC), controlled by the infrastructure company of a conglomerate led by Manny Pangilinan. In separate petitions, MPs Imee Marcos and Ronaldo Zamora, the Consumers` Union of the Philippines (CUP) and cause-oriented groups also attempted to repeal the Ramos-era STOA for the NLEx project. They argued that the agreement extended Philippine National Construction Corp.`s (PNCC) franchise on the NLEx project for an additional 30 years without congressional approval. They argued that this was unconstitutional since only Congress has the power to extend a right to vote.

The PNCC franchise died on May 1, 2007. “It is not for the courts to examine the wisdom and practical aspects of the exercise of TRB`s prerogatives in the design of the contract. the absence of evidence of a serious abuse of discretion that would justify judicial review,” the decision states. The contract entered into in 2006 under the name “Toll Toll” Operation Agreement (STOA) gave SLTC the right to manage and operate SLEx`s tolls after the company had assumed the costs of extending and rehabilitating the 29-kilometre-long motorway. MANILA, Philippines – There are no stops on the main arteries that connect Metro Manila to the southern and northern provinces. In the early 1990s, in accordance with then-President Fidel V. Ramos` Philippine 2000 program, the government and the Philippine National Construction Corporation (PNCC) began seeking joint venture partners with technical, operational and financial resources to sanitize and modernize the original NLEX as a “flagship project,” extending it to the Subic and Clark Special Economic Zones and the northern portion of circumferential Road C-5 of The University of the Philippines in Malabon City near the port of Manila.In 1998. MNTC has been granted the NLEX concession, which is included in a Toll Supplementary Operation Agreement (STOA) between the Republic of the Philippines (ROP) by TRB and PNCC.

Under STOA, the Government confirmed the transfer by PNCC of its usufruct rights, interests and privileges over the existing NLEX, including all enlargements, interconnections and deviations in favour of MNTC. These concessions enabled MNTC to build, finance, manage, operate and maintain all roads covered by Phases 1, 2 and 3 of the Manila North Expressway (MNE) and to collect tolls. After successfully obtaining the necessary funding for the project, MNTC began construction of Phase 1 in February 2003. . .