Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1112)
The official name of Presidential Decree No. 1112 is the "Toll Operation Decree."
The main purpose of the Decree is to authorize the establishment of toll facilities on public improvements, create a regulatory board for toll operations, and provide a framework to attract private sector investments in infrastructure projects by allowing toll fee collection with regulation in the public interest.
The Toll Regulatory Board (TRB) is created to regulate toll operations.
The Board is composed of the Minister of Transportation and Communications as Chairman, the Deputy Director-General for Program and Projects of the National Economic and Development Authority, the Deputy Minister of Public Highways, the Deputy Minister of Finance, and a private sector representative (preferably a lawyer or economist with experience in public utilities regulation) appointed by the President.
The Board has powers including entering into contracts for toll facility construction and operation, determining the type of public improvements to be tolled, condemning private property for public use, issuing and regulating toll rates, granting Toll Operation Certificates with conditions, promulgating rules and regulations, and overseeing the overall regulation of toll operations.
Operators must cease toll collection upon certificate expiration, turn over the total facility to the government at expiration, must not transfer or assign rights without Presidential approval, and must comply with possible government takeover in emergencies, among others.
The Board issues, modifies, and approves toll rates. Increases require notice and hearing, and decisions may be appealed to the Office of the President within 10 days without suspending the rates. The petitioner for increase must deposit a trust fund to protect toll payers if the increase is later reversed.
Yes, government vehicles on official business are exempted from toll fees under procedures prescribed by the Board.
An initial appropriation of Three Hundred Thousand Pesos (P300,000) per year for three years shall be set aside from toll fees of existing facilities for the Board's operational expenses, after which funding shall be included in the Annual General Appropriations Decree.
No, the Decree specifically prohibits issuance of government guarantees, certificates of indebtedness, collateral, securities, or bonds for financing toll operations under the Toll Operation Certificate.