Granting The Construction And Development Corporation Of The Philippines ( CP) A Franchise To Operate, Construct And Maintain Toll Facilities In The North And South Luzon Toll Expressways A

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PRESIDENTIAL DECREE No. 1113

GRANTING THE CONSTRUCTION AND DEVELOPMENT CORPORATION OF THE PHILIPPINES ( CP) A FRANCHISE TO OPERATE, CONSTRUCT AND MAINTAIN TOLL FACILITIES IN THE NORTH AND SOUTH LUZON TOLL EXPRESSWAYS AND FOR OTHER PURPOSES

WHEREAS, it has been determined that the realization of the Government's developmental goals will be hastened by involving the private sector in the construction, maintenance and operation of infrastructure toll facilities as enunciated in Presidential Decree No. 1112.

WHEREAS, the construction of the Manila North and Manila South Expressways has spawned immense benefits to the country's economic development, serving as a main artery in the transportation of trade and commerce, that their continued maintenance and further extensions is necessary; and

WHEREAS, the Construction and Development Corporation of the Philippines herein has proposed a scheme of operation which will tap private resources and enterprise in this undertaking and which will at the same time allow the government to redirect its own resources to other infrastructure projects;

NOW, THEREFORE, I, FERDINAND E....

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Summary of Presidential Decree No. 1113

Granting the Construction and Development Corporation of the Philippines (CDP) a Franchise
- Grants CDP a 30-year franchise from May 1, 1977 to construct, operate and maintain toll facilities on the North Luzon Expressway (Balintawak to Carmen, Rosales, Pangasinan) and South Luzon Expressway (Nichols, Pasay City to Lucena, Quezon). (Section 1)
- Includes the right to collect toll fees at rates fixed by the Toll Regulatory Board. (Section 1)

Obligations of CDP
- Pay the government an annual concession fee determined by the Toll Regulatory Board, covering the government's expenditure on the expressways. (Section 2a)
- Construct expansions of the expressways at its own expense. (Section 2b)
- Reimburse the government for payments made for external debts related to the expressway extensions. (Section 2c)
- Discharge and release all outstanding obligations to CDP related to the expressways' construction and rehabilitation. (Section 2d)
- Turn over the toll facilities and equipment to the government without cost upon expiration of the franchise period. (Section 2e)

Conditions and Provisions
- The franchise is subject to conditions imposed by the Toll Regulatory Board in a contract. (Section 3)
- The franchise may be amended, altered or repealed when public interest requires. (Section 3)
- If the government desires to maintain and operate the toll facilities, CDP shall turn them over upon payment of just compensation. (Section 4)
- In cases of force majeure (acts of God or national emergency), the annual concession fee shall be reduced to allow CDP to recover losses. (Section 5)
- In cases of force majeure (acts of government or man), the government may close or take over the expressways without prejudice to paying just compensation to CDP. (Section 5)
- Private property shall not be taken without proper condemnation proceedings and just compensation. (Section 6)
- CDP shall hold the government harmless from claims arising from accidents or injuries related to the franchise. (Section 7)
- CDP shall not transfer or assign the franchise without the President's approval. (Section 8)
- The government shall turn over physical assets and facilities related to the expressways to CDP by April 30, 1977, and upon completion of extensions. (Section 9)
- CDP is exempt from taxes, charges or fees levied by any authority, except income tax and real property tax. (Section 10)
- If CDP does not commence exercising the franchise within one year, unless prevented by force majeure, the franchise shall be null and void. (Section 11)
- Inconsistent laws, decrees, orders, rules and regulations are repealed or modified accordingly. (Section 12)