Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1113)
The main purpose of Presidential Decree No. 1113 is to grant the Construction and Development Corporation of the Philippines (CDCP) a franchise to construct, operate, and maintain toll facilities on the North and South Luzon Toll Expressways for a period of thirty years.
The Construction and Development Corporation of the Philippines (CDCP) was granted the franchise.
The franchise is granted for a period of thirty (30) years starting from May 1, 1977.
The franchise covers the expressways from Balintawak (Station 9+563) to Carmen, Rosales, Pangasinan and from Nichols, Pasay City (Station 10+540) to Lucena, Quezon, collectively called the North Luzon Expressway.
The grantee must (a) pay a scheduled annual concession fee to the government, (b) construct expansions/extensions at its own expense, (c) reimburse the government for external debt payments related to construction and improvements, (d) discharge certificates of indebtedness, and (e) turn over toll facilities and equipment to the government at franchise expiration without cost.
The government may cancel the franchise if the grantee fails to comply with its obligations under the decree within a reasonable time after notice of failure has been given.
No, the grantee cannot lease, transfer, sell, or assign the franchise or its rights without prior approval of the President of the Philippines.
The grantee has the right to collect toll fees at rates fixed or authorized by the Toll Regulatory Board created under PD No. 1112.
The toll facilities and all equipment must be turned over to the government without cost upon expiration. If the government wants to operate the facilities itself before expiration, it may take over upon payment of just compensation.
In cases of force majeure caused by acts of God, the annual concession fee to the government shall be proportionately reduced. If caused by acts of government or man (e.g., war, rebellion), the government may close or take over the expressways without prejudice to paying just compensation.
Yes, but only through proper condemnation proceedings with just compensation paid or tendered. The grantee may only take land actually necessary for the franchise purposes.
The grantee must hold the municipal, provincial, and national governments harmless from claims or actions arising from accidents or injuries related to the franchise operations.
No, no other taxes, charges, or fees from any government authority shall be levied on the grantee for the exercise of the franchise privileges except for income and real property taxes.
The franchise shall become null and void unless prevented by force majeure or cause beyond the grantee's control.