Obligations of the Grantee (CDCP)
- Pay an annual concession fee covering government expenditures related to expressway construction including South Expressway extension to Calamba, Laguna, as determined by the Toll Regulatory Board.
- Construct at its own expense expansions/extensions: North Luzon Expressway from Angeles City to Carmen, Rosales, Pangasinan; South Luzon Expressway from Calamba, Laguna to Lucena, Quezon.
- Reimburse the government for payments made against external debts related to expressway extensions from Burol, Balagtas, Bulacan to Angeles City.
- Discharge and release government certificates of indebtedness related to initial and rehabilitative construction costs.
- Turn over toll facilities and related equipment to the government at the end of the franchise without cost.
- Failure to comply allows government to cancel franchise and take over facilities.
Conditions and Regulatory Oversight
- Franchise subject to Board-imposed conditions and to amendment, alteration, or repeal in the public interest.
- Board contract to govern operational terms.
Government Option to Operate
- Government may choose to operate toll facilities directly.
- Requires turning over of facilities by grantee upon payment of just compensation.
Force Majeure Provisions
- Annual concession fee shall be proportionally reduced for natural calamities or national emergencies rendering expressways inoperable, as determined by the Board.
- Government may close or take over expressways due to war, rebellion, public peril without prejudice to compensation.
Property Acquisition and Use
- GRANTEE cannot take private property without proper condemnation procedures and just compensation.
- Land occupation limited strictly to what is necessary for franchise purposes.
Liability and Indemnification
- GRANTEE shall hold harmless government entities from all claims arising from accidents or injuries connected to the franchise operations.
Transfer and Assignment Restrictions
- Franchise rights are non-transferable, non-assignable, and non-leaseable without prior presidential approval.
- Transferees are bound by all franchise terms and conditions.
Turnover of Government Assets
- Government to transfer all physical assets and equipment related to expressway operations to GRANTEE by April 30, 1977.
- Extensions of expressways to be turned over upon completion.
- Upon franchise expiration, all assets revert to government without cost.
Tax Exemptions
- No taxes, charges, or fees other than income and real property taxes may be imposed on GRANTEE by local or national authorities in relation to franchise rights and activities.
Commencement of Operations
- Franchise becomes void if GRANTEE does not begin operations within one year of approval, except for force majeure or uncontrollable events.
Repeal of Conflicting Laws
- All laws, decrees, orders, rules or regulations inconsistent with this Decree are repealed or modified accordingly.
Effectivity
- The Decree takes effect immediately upon promulgation.