Title
Exemption of Kennon and Baguio-Bontoc-Halsema Toll Fees
Law
Presidential Decree No. 1004
Decision Date
Sep 22, 1976
Presidential Decree No. 1004 exempts toll fees from the Kennon and Baguio-Bontoc-Halsema Toll Roads from being transferred to the General Fund, allowing the funds to be used exclusively for the maintenance, repair, and improvement of these roads in order to ensure the safety and convenience of the travelling public.

Rationale for the Exemption

  • Transfer of toll fees under PD No. 711 created funding shortages impacting the upkeep of these specific mountainous toll roads.
  • The roads are susceptible to natural hazards such as landslides and erosion, requiring immediate and continuous maintenance.
  • Ensuring the availability of funds is critical to keeping the roads safe, open, and functional for commuters and the transport of essential goods.

Scope and Application of Toll Fee Utilization

  • Toll fees collected from the said roads must be disbursed solely for the road maintenance programs.
  • Disbursement is to conform with work programs prepared by the Highway District Engineer of Benguet.
  • The approved work program must receive the consent of the Highway Regional Director concerned to ensure proper administration.

Legal Effectivity

  • The decree took effect immediately upon issuance, ensuring no gap in funds for road maintenance activities.

Key Legal Authority

  • Issued by President Ferdinand E. Marcos exercising constitutional powers.
  • Represents an executive order that modifies the financial handling of toll revenues specifically for these toll roads.

Importance of the Decree

  • Facilitates dedicated funding for critical infrastructure in vulnerable geographic areas.
  • Prevents disruption of vital transport routes by securing funds for constant road upkeep.
  • Balances national fiscal management with local infrastructure needs through targeted exemptions.

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