Authorizing The Establishment Of Toll Facilities On Public Improvements, Creating A Board For The Regulation Thereof And For Other Purposes

Case Overview and Summary

Summary of Presidential Decree No. 1112

Establishment of Toll Facilities on Public Improvements
- Authorizes the establishment of toll facilities on public improvements like national highways, roads, bridges, and public thoroughfares to attract private sector investment. (Section 1)

Toll Regulatory Board
- Creates the Toll Regulatory Board composed of officials from NEDA, Department of Public Highways, and Department of Finance. (Section 2)
- Powers and duties of the Board: (Section 3)
    - Enter into contracts with private entities for construction, operation, and maintenance of toll facilities, subject to Presidential approval.
    - Determine the type of public improvement to be constructed and operated as toll facilities.
    - Condemn private property for public use.
    - Issue, modify, and promulgate toll rates, and approve or disapprove petitions for rate increases after notice and hearing. Decisions on rate increases are appealable to the President within 10 days.
    - Grant authority to operate a toll facility and issue "Toll Operation Certificate" with conditions like:
        1. Operator shall desist from collecting toll upon expiration of the certificate. (Section 3(e)(1))
        2. Entire facility and equipment shall be turned over to the government upon expiration. (Section 3(e)(2))
        3. Operator cannot transfer or assign rights without Presidential approval. (Section 3(e)(3))
        4. President may order closing or takeover of facility in times of war, emergency, etc. (Section 3(e)(4))
        5. No government guarantee or securities shall be issued for operator's financing. (Section 3(e)(5))
        6. Certificate may be amended, modified, or revoked in public interest. (Section 3(e)(6))
    - Promulgate rules and regulations for granting Toll Certificates and define grantee's rights and privileges.
    - Issue rules and regulations to carry out the purposes of the Decree.

Technical Staff and Operational Expenses
- Board is authorized to create a technical staff and grant honoraria, allowances, or overtime pay. (Section 4)
- P300,000 shall be set aside each year for the first three years from fees or obligations due from toll operators to defray operational expenses. Thereafter, operational expenses shall be included in the Annual General Appropriations Decree. (Section 7)

Publication of Toll Rates and Exemption
- New toll rates shall be published in a newspaper of general publication once a week for three consecutive weeks before collection. (Section 5)
- Government vehicles on official business shall be exempted from toll fees under procedures promulgated by the Board. (Section 6)

Separability and Effectivity
- All inconsistent laws, decrees, and orders are repealed or modified accordingly. (Section 8)
- The Decree shall take effect immediately. (Section 9)