Question & AnswerQ&A (TRB)
The IRR are prescribed pursuant to Section 3(f) and (g) of P.D. No. 1112 to carry out the powers and duties of the TRB, including the regulation and supervision of toll facilities established and operated by the private sector in the Philippines.
Toll Operation involves the development, improvement, upgrading, expansion, rehabilitation, reconstruction, modernization, and/or construction and operation and maintenance of toll facilities as per TRB requirements pursuant to P.D. No. 1112.
A Toll Facility includes national highways, roads, bridges, and public thoroughfares where users are charged tolls as authorized under P.D. No. 1112.
A TOC may be granted to Filipino citizens or corporations/associations qualified under the Constitution and authorized by law to engage in toll operations, allowing them to develop and operate toll facilities for a fixed term not exceeding 50 years.
A TOA is a contract entered into by the TRB on behalf of the Republic of the Philippines, with natural or juridical persons qualified under the Constitution, for the development and operation of toll facilities, subject to the approval of the President, with a fixed term not exceeding 50 years.
The TRB can determine the type of public improvements to operate as toll facilities, condemn private property for public use, issue and regulate toll rates, approve or disapprove petitions for toll rate increases, and promulgate rules and regulations for toll facilities.
They include construction and development programs, operation and maintenance plans, toll rates and adjustment procedures, indemnities, amenities, incentive packages, restrictions on transfer of rights, and provisions for takeover during emergencies.
The term shall not exceed fifty (50) years.
Proponents must be Filipino individuals or corporations with at least 60% Filipino ownership, demonstrate relevant experience in similar projects, have sufficient financial capability and commitments, and submit necessary legal documents including agreements if in joint ventures or consortia.
Bidders must submit their bids in two sealed envelopes containing separate technical and financial proposals, accompanied by bid security, within the prescribed deadline. Late or incomplete bids may be rejected.
The TOC/TOA may be terminated if the TRB breaches its major obligations unremedied for an unreasonable time; or if the proponent fails to perform obligations with due diligence causing substantial breach, which if not corrected after notice, results in rescission and possible government takeover or reassignment.
Incentives include fiscal benefits under the Omnibus Investment Code upon BOI registration, government appropriations which may cover up to 50% of project cost, and credit enhancements such as government guarantees capped at 50% of project costs.
The TRB approves the Notice of Award within 7 days after decision to award, and for TOAs, the President's approval is required before final execution.
The PBAC executes the prequalification, bidding, and award processes including preparing bidding documents, prequalifying bidders, conducting bid evaluation, resolving disputes, and recommending bid acceptance or cancellation to the TRB.
The grantee must submit a performance security bond to guarantee faithful performance of obligations and project construction timely completion, with amounts depending on the form of security and percentage of government appropriations or credit enhancements involved.