Title
Establishment and Regulation of Toll Facilities
Law
Presidential Decree No. 1112
Decision Date
Mar 31, 1977
The Toll Operation Decree in the Philippines allows for the regulation and supervision of toll facilities, granting the Toll Regulatory Board the authority to enter into contracts, determine toll rates, and oversee the operation and maintenance of these facilities.
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Creation and Composition of Toll Regulatory Board

  • Establishes the Toll Regulatory Board ("Board").
  • Composition includes the Minister of Transportation and Communications as Chairman, minus Director-General for Program and Projects of NEDA, Deputy Ministers of Public Highways and Finance, and a private sector representative (lawyer or economist) appointed by the President.

Powers and Duties of the Toll Regulatory Board

  • Enter into contracts for construction, operation, and maintenance of toll facilities with Presidential approval.
  • Determine types of public improvements to be tolled.
  • Exercise eminent domain to condemn private property for public use.
  • Establish, modify, or revoke toll rates after public hearing; appeals go to the Office of the President.
  • Grant Toll Operation Certificates with conditions regarding operation period, transfer restrictions, government takeover, and non-issuance of government securities.
  • Formulate rules and regulations for toll operations and procedures.

Conditions Imposed on Toll Operators

  • Prohibition on toll collection after certificate expiry.
  • Mandated turnover of facilities to the government at contract end.
  • Restrictions on transfer, lease, or sale of the toll operation rights without Presidential approval.
  • Government’s authority to close or take over toll facilities during emergencies with just compensation.
  • No government-backed securities issuance for toll operator financing.

Establishment of Technical Staff

  • Board authorized to create a technical and support staff for operational assistance.
  • Authority to grant honoraria, allowances or overtime pay as needed.

Requirements for Toll Rate Publication

  • Toll rate changes must be published in a newspaper of general circulation once a week for three consecutive weeks before effective collection.

Exemptions from Toll Fees

  • Exempts government vehicles on official business from toll fees.
  • Procedures for such exemptions to be established by the Board.

Funding and Appropriations for Board Operations

  • Initial operational expenses funded by fees from existing toll operators with an annual appropriation of P300,000 for three years.
  • Subsequent funding to be included in the Annual General Appropriations Decree.

Repeal and Effectivity

  • Repeals inconsistent laws, decrees, and orders.
  • The Decree takes immediate effect upon promulgation.

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