Supplemental Toll Operation Agreement

By April 13, 2021Uncategorised

The increase in SLEx tolls was included in the 2006 contract between regulator TRB and private dealer South Luzon Tollway Corp (SLTC). The disputed toll increases were welcomed by the government of the popular President Aquino, who took office on June 30, 2010, around the same time that the toll increase was due to begin at SLEx. However, strong opposition from different political groups highlighted the economic impact of rising transportation costs and cases were brought before the Court of Justice to challenge the constitutional basis of the increase. In separate petitions, MPs Imee Marcos and Ronaldo Zamora, the Philippine Consumer Centre (CUP) and consumer groups, have also attempted to wipe out the Ramos-era STOA for the NLEx project. They argued that the agreement extended the franchise of Philippine National Construction Corp. (PNCC) on the NLEx project for a further 30 years without congressional approval. They argued that this was unconstitutional, since only Congress had the power to extend a franchise. The CPPC franchise expired on May 1, 2007. “It is not for the courts to conclude the wisdom and practicality that are behind the exercise of its contractual privileges by the TRB…

Evidence of a serious abuse of judgment that would warrant judicial review,” the ruling states. In a bench decision unanimously, the Supreme Court overturned the Court of Justice`s August 13, 2010 order that prevented the Toll Regulatory Board (TRB) from implementing the controversial 250% increase in SLEx tolls. As of January 27, 2005, the TRB has signalled the initial 300% toll increase along NLEx. STOA, in April 1998, was awarded to Dealers Philippine National Construction Co. (PNCC) and Manila North Tollways Corp. (MNTC), controlled by the infrastructure company of a conglomerate led by Manny Pangilinan. In order to recover its investments, STOA planned a series of toll increases that had to be approved by the TRB. The first round of toll increases was scheduled to begin on June 30 last year, but has been postponed several times. The 75-part judgment of Justice Presbitero Velasco also paved the way for the long-delayed interest rate hikes foreseen by agreements between the government and NLEx and skyway dealers.