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Purisima hits court's ruling

By Jennifer Ambanta
Manilastandardtoday.comr
12:01 am | June 03, 2014


      Finance Secretary Cesar Purisima on Monday denounced the decision of the Makati regional trial court directing toll road companies to remit their collection to Philippine National Construction Corp., instead of the national government.

      Makati RTC Judge Rommel Baybay issued a writ of preliminary injunction on May 9, 2014, directing Manila North Tollways Corp., Citra Metro Manila Tolways Corp., South Luzon Tollways Corp. and Maila Toll Expressway Systems Inc. "to forward the entire amounts to be remitted by them" under their respective supplemental toll operation agreements to PNCC.

      "The Baybay injunction order provokes the public to question the integrity of our courts. I am appalled that Judge Baybay has the gall to contradict the decisions of the Supreme Court on these issues," Purisima said.

      Purisima said the injunction probihited the implementation of the interim rules and guidelines created by the Toll Regulatory Board and the Commission on Audit and contradicted earlier decision of the Supreme Court,

      The interim rules and guidelines, issued in 2012, set the formula for the net income remittable by PNCC to the national government. The Supreme Court ruled that after the expiration of PNCC's franchise, the toll fees collected by PNCC are public funds that "are merely held in trust by PNCC for the national government." PNCC's franchise expired on May 1, 2007."

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SC stops Makati court from withholding toll remittances to gov't

By Zinnia B. Dela Pena
The Philippine Star
12:00 am | August 17, 2014


      MANILA, Philippines - The Supreme Court stopped the Makati regional Trial Court from implementing an order that probihited the implementation of the Interim Rules and Guidelines created by the Toll Regulatory Board (TRB) and the Commission on Audit (COA).

      The Makati court ruling specifically directed private toll road operators to remit collections to the Philippine National Construction Corp., as provided under their respective Supplemental Toll Operation Agreements (STOA).

      Issued in 2012, the Interim Rules and Guidelines set the formula for the net income remittable by PNCC through the joint venture companies to the government.

      These toll road companies include the Manila North Tollways Corp. (MNTC), Citra Metro Manila Tollways Corp. (CMMTC), South Luzon Tollways Corp. (SLTC) and Manila Toll Expressway Systems Inc. (MATES).

      The lower court's injunction order was in response to a case filed by businessman Rodolfo Cuenca, an associate of the late president Ferdinand Marcos and PNCC shareholder, in August last year against the private toll road operators.

      The Supreme Court said the issuance of a temporary restraining order was necessary to protect the government from grave abd irreparable damage.

      According to the Supreme Court, the ruling deprives the government income based on government's direct wnership of the said assets.

      In 2009, the Sc ruled that PNCC's toll assets and facilities, including the net income derived from these toll assets and its share in various joint venture agreements were automatically turned over to the government upon the expiration of PNCC's franchise on May 1, 2007.

      The Supreme Court then directed the Toll Regulatory Board and the Commission on Audit to finalize the implementing rules and guidelines for determining the net income remittable by PNCC to the government.

      Last year, the Bureau of Treasury collected almost P800 million worth of remittances from MNTC, SLTC and CMMTC.

      MNTC operates the North Luzon Expressway, while CMMTC operates the Skyway, SLTC and MATES operates South Luzon Expressway.

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MPTC, PNCC finalize toll road tie-up

By Lenie Lectura
www.businessmirror.com.ph | January. 19, 2014

      METRO Pacific Tollways Corp. (MPTC) and Philippine National Construction Co. (PNCC) will sign an agreement on Tuesday to formally seal their partnership for a road project that will link the north and south portions of Metro Manila.

      MPTC President Ramoncito Fernandez said in a text message that a signing ceremony for the joint-venture agreement will take place.

      He, however, pointed out that the Toll Regulatory Board has yet to issue an amended supplemental toll agreement. "That is the next step," Fernandez said.

      MPTC, the toll road unit of Metro Pacific Investments Corp. (MPIC), submitted an unsolicited proposal to construct a 13.2-kilometer, four-lane elevated expressway that will link North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX) through a connector road. Since the proposal was unsolicited, it was supposed to undergo a Swiss challenge, which means the government would have to entertain other proposals from interested parties and conduct a bidding.

      However, the government decided that MPTC and PNCC, which owns the franchise for both the NLEX and SLEX, form a joint venture instead, saying it will be faster to implement the project with less legal implications.

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Finally, something is moving!

DEMAND AND SUPPLY By Boo Chancoo
The Philippine Star
12:00 am | January 17, 2014


      At very long last, something is finally moving in this administration by way of a major infrastructure project. The San Miguel-Citra version of the connector road will break ground on Thursday next week, Jan. 23, with no less that P-Noy doing the honors.

      The project had long been awarded by San Miguel-Citra to DMCI but it took a long while for P-Noy's Cabinet members to sort out a legal issue over PNCC's participation. It took two opinions from DOJ to convince Finance Secretary Cesar Purisima to allow the project to go with PNCC participation.

      A Marcos decree which remains a law of the land until repealed by Congress gives PNCC the right to participate in any tollway project that connects to the original North and South Expressways. Sec. Purisima was worried, and rightly so, that the loss of PNCC's franchise affects that right. Apparently, it does not

      From the San Miguel-Citra connector road, PNCC will earn 2.5 percent of gross revenues for years one to four, three percent for years four to seven, 3.5 percent for years seven to 10, and four percent for years 10 onward. PNCC also gets 10-percent equity for free.

      From Metro Pacific's connector road, PNCC will get 2.5-percent equity for free and six percent of gross revenue from day one to 30 years.

      So now it is full steam ahead for this project. The paperwork was completed and signed in time for Ramon Ang's birthday last Tuesday.

      I understand San Miguel-Citra plans to complete the first stage from Buendia, where the current Skyway ends, to Nagtahan in time for the APEC meeting in November next year. That will assure a smooth ride, free of traffic congestion, for visiting heads of state from the airport to Malacanang.

      I hear MetroPac has finished commercial negotiations for their version of the connector road and the ball is now with the Toll Regulatory Board or TRB. Hopefully, this agency under DOTC will act faster than the lawyers at head office.

      This second connector road laso has an aggressive construction schedule. One segment that links NLEX to MacArthur highway is 2.4 kms long and costs P1.6 billion with completion middle of this year.

      The next segment called the Harbor Link is 5.8 kms with total cost of approximately P10 billion. Hopefull, this segment will start construction within the second quarter. This segment connects the North and South Expressways to the Manila port area. The cargo trucks using this road will help decongest ground traffic in Metro Manila.

      Construction of the connector road over PNR right of way can start in July if all approvals are given within the first quarter with its final cost to depend on negotiations with PNR. This segment will join a common alignment with San Miguel-Citra in Plaza Dilao at Paco to Buendia.

      It seems that Louie Sison and his PNCC crew are on a roll. I understand that C6, the road that will provide another north to south link parallel to C5 and EDSA is also ready to be constructed by the same Citra-San Miguel consortium. All it is waiting for now is the STOA from TRB. PNCC will get the same deal here from the San Miguel-Citra consortium as that is prescribed in their connector road project for Metro Manila.

C-6 will go through the lakeshore area of Laguna de Bay passing the towns of Taguig, Pateros, Pasig crossing Ortigas Ave. Extension, Valley Golf area and the Batasan area for its first phase. The second phase will connect C-6 with NLEX at Bocaue via San Jose del Monte.

      I understand the 15-hectare PNCC property in the reclamation area at Macapagal Avenue will be jointly developed with a private investor as a world class recreational area following the no case contribution formula of PNCC's participation in the tollways projects. This is a job tailor made for former DTI usec Tito Panlilio who is now a PNCC director and chair of the JV Nego Committee.

      All these projects make PNCC a valuable company again. Its share in the income of these new tollways, at no cost to PNCC, will be substantial once operations start.

      The Commission on Audit (COA) should reconsider its opinion of this GOCC and see it as a going concern again. A favorable COA ruling will be a basis for a lifting of the trading suspension on PNCC shares at the PSE. PNCC would be a good bet on the future of the country.

      Government should consolidate all its holdings at PNCC and use it as its corporate arm to fast track infrastructure development. Provided PNCC is managed professionally as it is managed today, it could be a key government asset. The problem is that past administrators, specially Ate Glue's, used it as a milking cow of political alies.

      Indeed, they shouldn't have sold PNCC's property in Mandaluyong. They should have just entered into a joint venture development deal. The commercial potential of that site was so obvious that its disposition almost looks like plunder.

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MetroPac finalizes road link deal

By Jennifer B. Austria
Manilastandardtoday.com
12:02 am | Dec. 09, 2013


      HONGKONG- Metro Pacific Tollways Corp. has finalized the terms of a joint venture agreement with state-owned Philippine National Construction Corp. to build and operate the P23-billion road project that will link two major expressways in Metro Manila.

      MPTC chief finance Christopher Liz said both parties signed an agreement in which PNCC would have a 2.5-percent equity interest in the partnership and a 6-percent share in the gross revenues.

      Manila North Tollways Corp., a unit of MPTC, will own a 97.5-percent stake.

      Lizo said the agreement was still subject to the approval of the Toll Regulatory Board, which would meet next week to discuss it.

      The Transportation, Public Works, Finance and Justice departments earlier agreed to extend the concession between PNCC and MPTC over the connector road project through a new joint venture.

      Lizo said once MNTC secured the TRB approval, the joint venture would be ready to start the construction of the 13-kilometer road project.

      The project, which will link the North Luzon Expressway and South Luzon Expressway, is expected to be completed after 24 months. It is designed to ease traffic congestion in Metro Manila.

      Lizo said to finance project, MPTC planned to raise fresh funds. Aside from raising funds through the debt market, Metro Pacific Investments Corp. chief finance officer David Nicol said MPTC could get a strategic investor to help in the financing side.

      Nicol said the company was in talks with prospective investors. He said most foreign investors were waiting for the outcome of the ongoing arbitration between Metro Pacific's water subsidiary, Maynila Water Services, Inc. and the government regarding water rates before making any investments in the Philippines.

      Meanwhile, Lizo said traffic along the North Luzon Expressway grew 5 percet in the first 11 months of the years from a year ago, while the volume along the Cavite Expressway increased 12 percent year-on-year.

      He said while traffic along the two major highways reached record levels, the company was still waiting for the government's approval to raise tariff rates in the two highways.

      Lizo said Cavitex had an application to raise rates it filed two years ago, while NLEX asked for a rate increase at the start of 2013.   PNCC Reply

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MPIC reaches agreement on 'connector road' project

By Miguel R. Camus
Philippine Daily Inquirer
10:19 pm | Thursday, December 5th, 2013


      Metro Pacific Tollways Corp., the toll-road arm of Metro Pacific Investments Corp. has concluded successful negotiations with state-run Philippine National Construction Corp., on a massive elevated toll road linking the southern and northern arts of Metro Manila, a top executive said.

      Metro Pacific Tollways president Ramoncito Fernandez said in an interview Thursday that an agreement "in principle" with PNCC has been reached regarding its joint venture investment proposal.

       The net step would be for the Toll Regulatory Board (TRB) to approve the investment proposal, which Metro Pacific Tollways hopes would come before the end of the year.

       Obtaining the approval would allow Metro Pacific Tollways to proceed with construction of the 13-kilometer "connector road" that would link the company's North Luzon Expressway to the South Luzon Expressway, operated by rival San Miguel Corp. and the Citra Group of Indonesia, while easing congested roads in Metro Manila.

       "We hope they [TRB] act on it so we can start construction by the first quarter of next year," Fernandez said.

       He said assuming approvals are received on time, they are expecting to complete the connector-road before President Aquino steps down in 2016.

       PNCC officials did not immediately respond to a request for comment. TRB spokesman Julius Corpuz said separately that the proposal has yet to be taken up by TRB board, which is tentatively lookng to hold its next meeting in the second or third week of this month.

       The completion of negotiations with PNCC was viewed as a key step as the latter holds the franchise for both NLEX and SLEX. Fernandez earlier said their proposal would use an existing joint venture with PNCC.

       Metro Pacific Tollways is considered the country's biggest toll-road operator with about 64 percent of the country's toll roads under its management, information on its website showed.

       The company operates the 84.96-km North Luzon Expressway and is still talks with the government, which has yet to complete the turnover of the 93.7-km Subic-Clark-Tarlac Expressway to the toll road operator.

       In the south, it operates the 14-km Manila-Cavite Expressway.

       Most of its flagship projects are still located in the north, but its connector road would bridge the gap between its main assets and its expansion plans in the south.   PNCC Reply

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MetroPac, PNCC starts talks on P23-b road

By Lailany P. Gomez
ManilaStandardToday.com
12:03 am | November 27, 2013

      State-run Philippine National Construction Corp. said Tuesday it started discussion with Metro Pacific Investment Corp. to form a joint veture for a new P23-billion road linking the South Luzon Expressway to the North Luzon Expressway.

      PNCC president and chiel executive Luis Sison said the two parties "are now nogotiating the terms for the agreement."

      "If an agreement is reached, then we will proceed with the JV," he said.

      Metro Pacific proposed to construct a 13-kilometer connector road for P22.95 billion. The project is expected to ease traqffic congestion in Metro Manila.

      The Transportation, Public Works, Finance and Justice DEpartments earlier agreed to extend the concession agreement between PNCC and MPIC for the connector road project through new joint venture.

      Metro Pacific, however, asled the government to incorporate the connector road project to the existing contract between the PNCC and PIC which is said would make the toll rates lower.

      Metro Pacific is the majority owner of Manila North Tollways Corp.

      Meanwhile, Metro Pacific chairman Manuel Pangilinan said the company would likely submit a bid for the P64.9-billion Light Rail Transit 1 Cavite Extension project, following improvement in the terms of the concession agreement.

      "Yes, we're looking at it. We will quite likely to bid for the LRT project," Pangilinan told reporters Tuesday at the sidelines of the launching of the Philippine Business for Environmental Stewardship.

      The National Economic and Development Authority board on Thursday approvd the revised terms of the project, which now has a total cost of P64.9 billion. PNCC Reply

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PNCC Foundation mounts music workshop culminating activity, May 26

      The participants of PNCC Foundation's Musical Theater Summer Workshop will stage their culminating performance on May 26, 3 p.m. at the Philippine National Construction Corporation (PNCC) Training Room, PNCC Compound, Reliance St., Mandaluyong.

      Conducted by theater performers Meliza Reyes and Jake Macapagal the former lead actors of "Miss Saigon" in Stuttgart, Germany, classes are free-of-charge and open to the children of PNCC employees. The workshop ran for five weeks with classes every Monday and Thursday from 10-12 noon and 2-4 p.m.

      The workshop participants were a fun mix of pre-schoolers and kids in their early teens. The age differences were not a hindrance to the participant's willingness to learn and pursue their interest in music and theater.

      The summer workshop was a welcome breather for the former "Miss Saigon" star. "This is my first time to teach, and I am really enjoying it. It's nice to share what I know, especially to young kids, who are eager to learn," she explained.

     Meliza played "Kim" in the Germany production of "Miss Saigon." She lived in Germany for three years, and then moved to Las Vegas with her husband and children. She returned to Manila in 2003 to resume her theater career. She was in the Cultural Center of the Philippines (CCP) production of "Himala, the Musical" (2005), she also played the role of Maria Clara in Bulwagang Gantimpala's production of "Noli Me Tangere" (2006). She played the role of Tuptim in the Asian tour of "King and I." Directed by Bobby Garcia, Meliza performed in China, Malaysia, Korea and Singapore. The musical was mounted by Broadway Asia, New York-based production company. Early this year, Meliza was also in the cast of "Zsa Zsa Zaturnah" which was staged at the CCP.

      For the culminating activity, Meliza and Jake's students will perform songs from "Annie," "Les Miserables," "Joseph and the Technicolor Dreamcoat" and many more.

      Meliza is looking forward to conducting more classes in the future. "For the first batch, participants were all children of PNCC employees. In the future, the classes will be open to the public," she said.

      The summer music workshop is just one of the many projects of the PNCC Foundation. The socio-civic arm of the Philippine National Construction Corporation, the foundation recognizes its responsibility to inspire the youth while extending assistance to the underprivileged. Established in 2008, the foundation has initiated three active projects that focus on education, arts and health.

      According to Foundation Director Rose Bonifacio, the summer music workshop is designed to expose students to musical concepts. "Studies show that early exposure of children to music has a lot of benefits. It enhances skills in math, it also fosters creativity, communication and listening."

      Aside from the music and theater workshop, the PNCC Foundation also conducts "English Enhancement Workshop" for public school students.   HOME    TOP

PNCC implements toll adjustment effective 1 August 2006

      The Philippine National Construction Corporation (PNCC) is increasing the toll rates at the South Luzon Expressway (SLEX) effective 12:01 a.m. on Tuesday, August 1, 2006.  The increase will only affect the Alabang - Calamba route, which is currently covered by the toll franchise of PNCC.

     The toll fee adjustment has been deferred twice to accomodate government and public clamor.  The increase was supposed to be effective January 1, 2006 and again last May 15, 2006.   The new rates that will ba taking effect on August 1 were submitted to the Toll Regulatory Board (TRB) by the PNCC last September 2005.

     Toll fee adjustments are provided for under Presidential Decree 1894 (PD 1894) which allows the PNCC an annual increase in its toll prices.  The new rates were computed to accomodate cost increase in factors affecting the return-on-rate base formula, a method approved by the TRB in computing for rate adjustment, between the period July 2004 to June 2005.

     Some factors considered in the computation include the increase of prices in equipment, property and plant valuation of the tollway; its two-month average working capital and the deficiency on the actual revenue versus the computed reenue based on invested capital.

     The new rates for Class 1 vehicles will be P27 from its present rate of P21.  The rates for Class 2 and 3 vehicles will likewise be adjusted accordingly.  Class 2 vehicles will pay P53 from P41; while Class 3 vehicles will pay P80 from P62.

    Despite this increase in toll fee prices, toll rates at SLEX remain the lowest among all tollways in the country.   HOME    TOP


SLTC conducts axle load testing along SLEX to establish road specification

     
South Luzon Tollway Corporation (SLTC), the joint venture company of south tollway operator PNCC and their Malaysian partners for the SLEX Rahabilitation Project, MTD Group, has conducted a series of axle load survey among heavy vehicles along the South Luzon Expressway (SLEX) for the entire month of March.

“The axle load survey aims to determine the actual load of the vehicles running at a certain location of the expressway at a given time of the day. This is an engineering requirement which will help us facilitate the specifications of the road when we begin the rehabilitation of the SLEX,” explains SLTC President Mark A Dumol. “This will also serve as a traffic survey such that we will determine the frequency for heavy vehicles running along the SLEX,” he further informs.

According to SLTC, it will establish ten (10) survey stations along the stretch of the SLEX during the five-week survey period. Heavy vehicles like trucks and trailers will be randomly flagged down and weighed at these stations.

“The survey will only take several minutes, maximum of 5 minutes per vehicle and we hope to get the support of our motorists in this activity in order that we will obtain the necessary data that we need before we start the construction and rehabilitation of the SLEX,” Dumol said.     HOME    TOP