toll regulatory board - philippines

8/18/2019 Toll Regulatory Board - Philippines

1/62

Toll Regulatory Board

A Report by Group 3

Federico S. Rayos del Sol

Erica C. Perez

Janette J. Payoyo

Pierre E. Collado

Nadine B. Lichauco

Roslayn H. Enano


2/62

History and Creation of the TRB

!arch "#$$ % P.D. 1112 &as issued creating the Toll Regulatory Board

'TRB(.

P.D. 1113 granted the PNCC 'Phili))ine National Construction Cor)oration*

for+erly Construction ,e-elo)+ent Cor)oration of the Phili))ines( the

franchise to o)erate* construct and +aintain toll facilities in the North and

South Luzon Toll&ays. "## % the ,e)art+ent of Budget and !anage+ent allo&ed the TRB to

e+)loy "$ regular e+)loyees.

"##" / the 0eneral 1))ro)riations 1ct recognized the TRB as a regular

go-ern+ent agency* )ro-iding for 23 )er+anent e+)loyees.

The current +e+4ers of the 4oard5


3/62


4/62

6uasi%legislati-e and Po&ers of the TRB/ Po&er to grant ad+inistrati-e franchises for toll

facility )ro7ects

PD 1112, Section 3

a.Su47ect to the a))ro-al of the President of the Phili))ines* to enter into

contracts in 4ehalf of the Re)u4lic of the Phili))ines &ith )ersons*

natural or 7uridical* for the construction* o)eration and +aintenance of

toll facilities such as 4ut not li+ited to national high&ays* roads* 4ridges*and )u4lic thoroughfares.

4.,eter+ine and decide the 8ind* ty)e and nature of )u4lic i+)ro-e+ent

that &ill 4e constructed and9or o)erated as toll facilities:

c.Conde+n )ri-ate )ro)erty for )u4lic use su47ect to the )ro-isions of

e;isting la&:

d.


5/62

e. To grant authority to o)erate a toll facility and to issue therefore the necessary

=Toll >)eration Certificate?

'"( That the >)erator shall desist fro+ collecting toll u)on the e;)iration of the Toll

>)eration Certificate.

'@( That the entire facility o)erated as a toll syste+ including all o)eration and

+aintenance eAui)+ent directly related thereto shall 4e turned o-er to the

go-ern+ent i++ediately u)on the e;)iration of the Toll >)eration Certificate.

'2( That the toll o)erator shall not lease* transfer* grant the usufruct of* sell orassign the rights or )ri-ileges acAuired under the Toll >)eration Certificate to any

)erson* fir+* co+)any* cor)oration or other co++ercial or legal entity* nor +erge

&ith any other co+)any or cor)oration organized for the sa+e )ur)ose* &ithout the

)rior a))ro-al of the President of the Phili))ines. )eration Certificate* the Transferee shall 4e su47ect to all the

conditions* ter+s* restrictions and li+itations of this ,ecree as fully and co+)letelyand to the sa+e e;tent as if the Toll >)eration Certificate has 4een granted to the

sa+e )erson* fir+* co+)any* cor)oration or other co++ercial or legal entity.


6/62

'( That in ti+e of &ar* re4ellion* )u4lic )eril* e+ergency* cala+ity* disaster or

distur4ance of )eace and order* the President of the Phili))ines +ay cause the

total or )artial closing of the toll facility or order to ta8e o-er thereof 4y the

0o-ern+ent &ithout )re7udice to the )ay+ent of 7ust co+)ensation.

'3( That no guarantee* Certificate of )eration Certificate.

'( The Toll >)eration Certificate +ay 4e a+ended* +odified or re-o8ed &hene-er

the )u4lic interest so reAuires.

'a( The Board shall )ro+ulgate rules and regulations go-erning the )rocedures for

the grant of Toll Certificates. The rights and )ri-ileges of a grantee under a Toll

>)eration Certificate shall 4e defined 4y the Board.

'4( To issue rules and regulations to carry out the )ur)oses of this ,ecree.


7/62

TRB Quasi-Judicia !unction

Rate/fi;ing


8/62


9/62

Filed at the TRB E;ecuti-e ,irectorDs>ffice for any relief

For+ 'ca)tion* title* signature* address

and in $ co)ies( Su4stance

erification

Peadin+s


10/62

Peadin+s

Certification of Non/Foru+ Sho))ing

a. no action9clai+ &as co++enced to any

court:

4. if thereDs )ending case* state the status:

c. if learned thereafter that sa+eaction9clai+ has 4een filed or

)ending* notify TRB "it#in %ie '

days fro+ the ti+e it &as 8no&n.

Ser-ice u)on )arties ')leadings9order( thru )ersonaldeli-ery or 4y +ail.


11/62

/earin+s The TRB +ay* at his discretion* con-ene en 4anc or desi+nate any

!e+4er of the Board or the E, to hear a))lications* )etitions for

re-ie&* or o))ositions to initial or ad7usted toll rates.

Su47ect to the reAuire+ents of ,E PR>CESS* hearing officer

shall5

a. Preside during hearings and regulate the )roceedings 4eforehi+ and to do acts and ta8e all +easures necessary or )ro)er

for the efficient )erfor+ance of his duties:

4. 1-ail of all reasona4le +eans to ascertain rele-ant facts: and

c.


12/62

/earin+s ,uring clarificatory conference or )roceeding* as8

Auestions only for the )ur)ose of clarifying )oints of la& orfact in-ol-ed in the +atters at hand and shall li+it to

+atters rele-ant to issues.

The hearing officer shall file his re)ort in &riting setting

forth his findings of facts and conclusions of la& &ith all the

su))orting docu+ents

The Board +ay acce)t the re)ort and render 7udge+ent or

it +ay reco++it the sa+e to the hearing officer for further

re)ort of facts or it +ay acce)t the re)ort in )art and re7ect

it in )art* and it +ay +a8e such order or render such 7udge+ent in accordance &ith la& and e-idence.


13/62

Decisions and )rders


14/62

Appea !ode and Period5 1 )arty ad-ersely affected 4y

any decision* order* ruling or resolution of the

Board +ay* "it#in a period o% %i%teen 1' days

%ro& notice thereof or "it#in %i%teen 1' days

%ro& notice o% denia o% a &otion o%reconsideration* file an a))eal &ith the )%%ice

o% t#e President in accordance &ith the

)rocedure set forth in Cha)ter * Boo8


15/62

Juris)rudence

!rancisco, Jr . TRB G.R. 0os. 11$,11,

133$,143'. )ctober 1, 2$1$

/ )etitioners sought to nullify the 1)r @$* @GG$ T>C

&9c TRB issued to PNCC to e;tend toll&ay o)erationfranchise for SLE 'P, "#( 4ecause they argued

that only Congress can e;tend the ter+ of PNCCs

franchise &9c e;)ired on !ay "* @GG$.

/ The RTC ruled in fa-or of IPES and that the T>C

issued 4y TRB &as ordered annulled and set aside.


16/62

!rancisco, Jr . TRB G.R. 0os. 11$,11, 133$,143'.

)ctober 1, 2$1$


17/62


)ctober 1, 2$1$

Auasi/7udicial functions 'e.g. rate/fi;ing(* does not

support a %indin+ o% a ioation o% due process or t#e

(onstitution.


18/62


)ctober 1, 2$1$

Li+ited delegation of 7udicial or Auasi/7udicial

authority to ad+inistrati-e agencies is &ell

recognized in our 7urisdiction* 4asically 4ecause

the need for specia co&petence ande5perience as essential in the resolution of

Auestions of co+)le; or speciai6ed c#aracter

and 4ecause of a co+)anion recognition that

the doc8ets of our regular courts ha-e re+ainedcro&ded and clogged.


19/62

2. Bara7ue . TRB, G.R. 0o. 14123. !ebruary 23, 2$1'

% TRB K PNCC entered into a Toll >)eration 1gree+ent 'T>1(

)ursuant to P, """2 granting to the latter the right* )ri-ilege and

authority to construct* o)erate and +aintain toll facilities in the

NLE and SLE for a )eriod of 2G years starting !ay "* "#$$.

% !etro !anila E;)ress&ay '!!E( )ro7ect &as included &ith the

co-erage of PNCC )ursuant to P, "# &hich a+ended P, """2.

2G years re+ained the sa+e for the NLE K SLE &hile the

franchise granted for !!E )ro-ided a ter+ of 2G years

co++encing fro+ the date of co+)letion of the )ro7ect.

%


20/62

Bara7ue . TRB, G.R. 0o. 14123. !ebruary 23, 2$1'

/ 1* the design and construction of the )ro7ect roads 4eca+e the

)ri+ary and e;clusi-e )ri-ilege and res)onsi4ility of C!!TC. The o)eration

and +aintenance of the )ro7ect roads 4eca+e the )ri+ary and e;clusi-e

)ri-ilege and res)onsi4ility of the PNCC S8y&ay Cor) 'PSC(* a &holly o&ned

su4sidiary of PNCC* &hich undertoo8 and )erfor+ed the latterDs o4ligations

under the ST>1

/ >n July "* @GG$* the Phili))ines thru TRB* (88T( and P0(( e;ecuted the

assailed 1+end+ent to the Su))le+ental Toll >)eration 1gree+ent 'AST)A(.

The 1ST>1 incorporated t#e a&end&ents, reisions, and &odi%ication

necessary to coer t#e desi+n and construction o% Sta+e 2 o% t#e Sout#

8etro &ania S9y"ay and S)8() repaced PS( in per%or&in+ t#eoperations and &aintenance o% Sta+e 1 o% t#e Sout# 8etro &ania S9y"ay.


21/62


/ >n July @G* @GG$* Secretary Leandro !endoza of ,>TC a))ro-ed the 1ST>1

)ursuant to E> #$.

/ >n ,ece+4er @* @GG$* the TRB issued T>C to S>!C> authorizing to o)erateand +aintain Stage " of the South !etro +anila S8y&ay effecti-e "G5GG)+ on

,ece+4er 2"* @GG$.

/ The )etitioners sought to annul the5 ". 1ST>1* @. !e+orandu+ a))ro-ing the

1ST>1: and 2. T>C issued to S>!C>.

:SS;*S<

". hether the TRB has the )o&er to grant authority to o)erate a toll facility

@. hether the T>C issued to S>!C> &as -alid

2. hether the a))ro-al of the 1ST>1 4y the ,>TC Secretary &as -alid

R;=:0G<

". By e;)licit )ro-ision of la&* the TRB &as gi-en the )o&er to grant ad+inistrati-e

franchise for toll facility )ro7ects* Sections 2a K e of P, """@ and Section of P,"#. Li8e&ise* this +atter has already 4een settled 4y the Court in Francisco*

Jr -. TRB


22/62


Section of P.,. "# s)ecifically +entions the Toll

>)eration 1gree+ent. The ST>1 &as one such

+odification or a+end+ent of the franchise of PNCC. So

&as the 1ST>1* &hich further +odified the franchise.

P0(( cannot be said to #ae breac#ed its %ranc#ise

"#en it trans%erred t#e to operations to S)8().

P0(( re&ained t#e %ranc#ise #oder %or t#econstruction, operation, and &aintenance o% t#e

pro>ect roads? it only o)ted to )artner &ith in-estors in

the e;ercise of its franchise leading to the organization of

co+)anies such as PSC and S>!C>.


23/62


@. The T>C* as a grant of authority fro+ the go-ern+ent* is su47ect to the

latterDs control insofar as the grant affects or concerns the )u4lic. For TRB*

those s)ecified under Sec 2 of P, """@. Part of the T>C issued to S>!C> reads5 =Pursuant to Sec 2e of P, """@*

S>!C> is here4y gi-en authority to o)erate and +aintain Stage " of the

South !etro +anila S8y&ay effecti-e as of "G5GGP! of 2" ,ece+4er @GG$?.

This authorization is issued u)on the clear understanding that the o)eration

and +aintenance of Stage " of the South !etro !anila S8y&ay as a tollfacility and the collection of toll fees shall 4e closely su)er-ised and

regulated 4y the 0rantor* 4y and through the Board of ,irectors* in

accordance &ith the ter+s and conditions set forth in the ST>1* as

a+ended* the rules and regulations duly )ro+ulgated 4y the 0rantor for toll

road o)erations and +aintenance* as &ell as the la&ful orders* instructions

and conditions &hich the 0rantor* through the TRB* +ay i+)ose fro+ ti+eto ti+e in -ie& of the )u4lic nature of the facility.


24/62


1llegation that none of the reAuire+ents for )u4lic 4idding &as o4ser-ed

4efore the T>C &as issued to S>!C>* this +atter &as also sAuarely

ans&ered 4y the Court in Francisco, Jr. v. TRB

nder the ST>1 in this case* PNCC )artnered &ith C!!TC in Stages "

and @ of the South !etro !anila S8y&ay. The ST>1 ga-e 4irth to PSC*

&hich &as )ut in charge of the o)eration and +aintenance of the )ro7ect

roads. The 1ST>1 had to 4e e;ecuted for Stage @ to acco++odate

changes and +odifications in the original design. The 1ST>1 then 4roughtforth the incor)oration of S>!C> to re)lace PSC in the o)erations and

+aintenance of Stage " of the South !etro !anila S8y&ay. (eary, no

pubic biddin+ "as necessary because P0((, t#e %ranc#isee, &erey

e5ercised its &ana+e&ent prero+atie "#en it decided to underta9e

t#e construction, operation, and &aintenance o% t#e pro>ect roads

t#rou+# co&panies "#ic# are products o% >oint entures "it# c#osenpartners.


25/62


The )etitioners assu+ed that PNCC in so+e &ay leased*

transferred* granted the usufruct of* sold* or assigned to S>!C> itsfranchise or the rights or )ri-ileges PNCC had acAuired 4y it.

!C> in this case.


26/62


2. The ,octrine of Aualified )olitical agency a))lies &here

acts of the ca4inet secretaries on circu+stances thatreAuire the President to act )ersonally* e;ecuti-e and

ad+inistrati-e functions are )resu+a4ly the acts of the

latter unless disa))ro-ed. Secretaries are the PresidentDs

M&n alter ego? 'Constantino -. Cuisia: 1ngeles -. 0aite(

1 4y the ,>TC

Secretary had the sa+e effect as a))ro-al 4y the President

e-en &ithout the issuance of E> G$* &hich s)ecifically

delegate to the ,>TC Secretary the authority to a))ro-econtracts entered into 4y the TRB.


27/62

Rule

Procedure for 1))ro-al of


28/62

Section @

>nce the initial toll rate is a))ro-ed* the grantee has to

)u4lish in full its a))lication or )etition* the a))ro-ed rate*and toll fee +atri; at least once a &ee8 for three

consecuti-e &ee8s in a ne&s)a)er of general circulation.

The )u4lication has to include5

% The date of effecti-ity % 1 notice that a user of the toll &ay +ay file* &ithin 2G

days after the first )u4lication* a )etition for the re-ie&

of the rates.

No a))ro-ed toll rate &ill 4e i+)osed and collected &ithouta Notice to Start Collection 4eing first issued 4y the Board.


29/62

Section 2

nless other&ise told to do so* the grantee shall

su4+it on or 4efore Se)te+4er 2G of the year an

a))lication for the ad7ust+ent of toll rates.

The Board shall ha-e it in )u4lication* 4oth theold rate and the )ro)osed rate* including a

notice that users +ay file a )etition for re-ie& of

the )ro)osed ad7usted toll rates &ithin thirty days

after the date of )u4lication.


30/62

Section $


31/62

Rule 35 Procedure for 1))ro-al of

Pro-isional Toll Rates

The Board +ay grant the a))lication for a))ro-al of )ro-isionaltoll rates* including the date of i+)le+entation &hen )etition+eets the follo&ing reAuisites5

% Petition is sufficient in for+ and su4stance %


32/62

Rule 5 Po&er to !odify Toll

Rates Section "5 Notice of Hearing

%


33/62

Rule "G5 !iscellaneous

Pro-isions Section "5 1ccess to Records

% The Board +ay reAuire the )arties to su4+it records such as 4oo8s of accounts*financial state+ents* etc.

Section @5 Confidential )ening of an Escro& 1ccount

%


34/62

%The B>T La&Franchise 1&arding

%Pu4lic Bidding %,irect Negotiation

T>19ST>1

The TRB in Public-PrivatePartnerships


35/62

The B>T La&R1 #3$

R1 $$"


36/62

Build/>)erate/Transfer

1 contractual arrange+ent &here4y the

)ro7ect )ro)onent underta8es the

construction* including financing* of a gi-en

infrastructure facility* and the o)eration

+aintenance thereof.


37/62


The )ro7ect )ro)onent o)erates the facility

o-er a %i5ed ter& during &hich it isallo&ed to charge facility users a))ro)riate

tolls* fees* rentals* and charges not e;ceeding

those )ro)osed in its 4id or as negotiated andincor)orated in the contract to enabe t#epro>ect proponent to recoer itsinest&ent, and operatin+ and

&aintenance e5penses in t#epro>ect.


38/62


The )ro7ect )ro)onent transfers the facility tothe go-ern+ent agency or local go-ern+entunit concerned at the end of the fi;ed ter+

&hich s#a not e5ceed %i%ty '$ years5

Pro-ided* That in case of an infrastructure orde-elo)+ent facility &hose o)eration reAuires a)u4lic utility franchise* the )ro)onent +ust 4e

Fili)ino or* if a cor)oration* +ust 4e dulyregistered &ith the Securities and E;changeCo++ission and o&ned u) to at least si;ty

)ercent 'G( 4y Fili)ino


39/62

"#$ Constitution 1rticle


40/62

Processes

1&arding of Franchise Certificates

% >riginally* franchises are a&arded to the PNCC

through P, """2

% Through R1 #3$* as a+ended 4y R1 $$"*)ri-ate co+)anies +ay 4e a&arded franchises

for go-ern+ent )ro7ects


41/62

Ho& are franchises a&arded

".Pu4lic Bidding

@.,irect Negotiation


42/62

Through Pu4lic Bidding

=the contract shall 4e a&arded to t#e o"est

co&pyin+ bidder based on t#e present aue

o% its proposed tos, %ees, rentas, and c#ar+es

oer a %i5ed ter& OQ For this )ur)ose* t#e

"innin+ contractor s#a be auto&aticay+ranted by t#e in%rastructure a+ency or oca

+oern&ent unit t#e %ranc#ise to operate and

&aintain t#e %aciity* including the collection of

tools* fees* rentals* and charges in accordance&ith Section hereof?


43/62

Through ,irect Negotiation

@Direct ne+otiation s#a be resorted

to "#en t#ere is ony one co&pyin+

bidder e%t as defined hereunder5?


44/62

?'a(


45/62

Pu4lic Bidding Process


46/62


47/62


48/62


49/62


50/62

T>19ST>1

T>1

Pro-ides detailed ter+s and conditions for the

construction* +aintenance and o)eration of

e;)ress&ays


51/62

T>19ST>1

ST>1

The ST>1 defines the scope o% t#e road pro>ect

coera+e, t#e ter&ina date o% t#e concession*

and includes )ro-isions on initial toll rate and a4uilt/in for+ula for ad7ust+ent of toll rates*

in-est+ent reco-ery clauses and contract

ter+ination in the e-ent of the concessionaires*

PNCCs or TRBs default* as the case +ay 4e


52/62

Francisco -. TRB* 0R No. "#"G

='4( the Re)u4lic of the Phili))ines* through the TRB* asgrantor* PNCC* as o)erator* and the ne& cor)oration* as

in-estor9concessionaire* &ith its lender* as the case +ay

4e* then e5ecute a Suppe&enta To )peration

A+ree&ent ST)A to i&pe&ent t#e T)A preiousyissued: and 'c( once the reAuisite ST>1 a))ro-al is gi-en*

)ro7ect )rosecution starts and u)on the co+)letion of the

toll road )ro7ect or of a di-isi4le )hase thereof* the TRB

fi;es or a))ro-es the initial toll rate after &hich* it )asses a

4oard resolution )rescri4ing the )eriodic toll ratead7ust+ent.?


53/62

Easy Trip

E-Pass

E-Tap

Electronic Toll Collection On-Board Unit


54/62


55/62


56/62


57/62


58/62


59/62


60/62

References


61/62

References5

Cor)uz* J.* Tur4olencia* J.* K Turingan* J. '@G"3* June G(. 'R. Enano* N. Lichauco* J. Payoyo* E. Perez* K F.

Rayos del Sol*


62/62

Than8 you

toll regulatory board - philippines

Documents