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PRESIDENTIAL DECREE NO. 1113
PRESIDENTIAL DECREE NO. 1113 -
GRANTING THE CONSTRUCTION AND DEVELOPMENT CORPORATION OF THE
PHILIPPINES (CP) A FRANCHISE TO OPERATE, CONSTRUCT AND MAINTAIN TOLL
FACILITIES IN THE NORTH AND SOUTH LUZON TOLL EXPRESSWAYS AND FOR OTHER
PURPOSES
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WHEREAS, it
has been determined that the realization of the Government's
developmental goals will be hastened by involving the private sector in
the construction, maintenance and operation of infrastructure toll
facilities as enunciated in Presidential Decree No. 1112;chanroblesvirtualawlibrary
WHEREAS, the construction of the Manila North and Manila South
Expressways has spawned immense benefits to the country's economic
development, serving as a main artery in the transportation of trade
and commerce, that their continued maintenance and further extensions
is necessary; and
WHEREAS, the Construction and Development Corporation of the
Philippines herein has proposed a scheme of operation which will
tap private resources and enterprise in this undertaking and which will
at the same time allow the government to redirect its own resources to
other infrastructure projects;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Any provision of law to the contrary
notwithstanding, there is hereby granted to the Construction and
Development Corporation of the Philippines (CP), a corporation duly
organized and registered under the laws of the Philippines, hereinafter
called the GRANTEE, for a period of thirty (30) years from May 1, 1977
the right, privilege and authority to construct, operate and maintain
toll facilities covering the expressways from Balintawak (Station 9 +
563) to Carmen, Rosales, Pangasinan and from Nichols, Pasay City
(Station 10 + 540) to Lucena, Quezon, hereinafter referred to
collectively as North Luzon Expressway, respectively.
The franchise herein granted shall include the right to collect toll
fees at such rates as may be fixed and/or authorized by the Toll
Regulatory Board hereinafter referred to as the Board created under
Presidential Decree No. 1112 for the use of the expressways
above-mentioned. chanroblesvirtualawlibrary
Section 2. In consideration of this franchise, the
GRANTEE shall:cralaw:red
(a) Pay the Government a scheduled annual concession
fee as shall be determined by the Board which fee shall cover the
expenditure of the Government in the construction of Manila North and
Manila South Expressways including the extension of the Manila South
Expressway to Calamba, Laguna;chanroblesvirtualawlibrary
(b) Construct at its own expense, expansions of the
expressways herein specified and/or extension thereat from Angeles City
to Carmen, Rosales, Pangasinan of the North Luzon Expressway and from
Calamba, Laguna to Lucena, Quezon of the South Luzon Expressway;chanroblesvirtualawlibrary
(c) Reimburse the Government for payments made for
external debts in connection with the construction and improvements of
the extensions of Manila North Expressway from Burol, Balagtas, Bulacan
up to Angeles City;chanroblesvirtualawlibrary
(d) Discharge and forever release all the
certificates of indebtedness evidencing the outstanding obligations of
the Government to the GRANTEE in connection with the construction and
subsequent rehabilitation of the Manila North and South Expressways; and
(e) Turn over the toll facilities and all equipment
directly related thereto to the government upon expiration of the
franchise period without cost.
Should the GRANTEE fail to comply with any of the foregoing obligations
within a reasonable time after notice of such failure has been given,
the Government shall have the right to cancel the franchise upon which
the GRANTEE shall turn over the toll facilities as provided in Section
4 hereof.
Section 3. This franchise is granted subject to such
conditions as may be imposed by the Board in an appropriate contract to
be executed for this purpose, and with the understanding and upon the
condition that it shall be subject to amendment, alteration or repeal
when public interest so requires.
Section 4. In the event that the Government should
desire to maintain and operate for itself the toll facilities
authorized under this franchise, the GRANTEE shall turn over to the
government all the facilities therein upon payment of just compensation.
Section 5. In cases of force majeure
attributable to acts of God, such as, but not limited to, floods,
earthquake and other calamities or national emergency rendering the
expressways totally or partially inoperable, the annual concession fee
due the government shall be proportionately reduced to the extent
determined by the Board in order to allow the GRANTEE to recover such
losses in revenue incurred due to such calamities. chanroblesvirtualawlibrary
In cases of force majeure attributable to acts of government or
man, such as, but not limited to, war, rebellion, insurrection,
sedition, riot or public peril when public safety so requires, the
government shall have the right to cause the closing of the expressways
totally or partially or to take over the use and operation thereof
without prejudice to payment of just compensation to the GRANTEE.
Section 6. No private property shall be taken for any
purpose by the GRANTEE without proper condemnation proceedings and just
compensation paid or tendered therefor, and any authority contained
herein to take and occupy land shall not authorize the taking, use or
occupation of any land except such as is actually necessary and
required for the purposes for which the franchise is granted.
Section 7. The GRANTEE shall hold harmless the
municipal, provincial and national government of the Philippines, from
all claims, demands or actions arising out of accidents or injuries,
whether to property or to persons occasioned by the exercised of
GRANTEE'S privilege under this franchise.
Section 8. The GRANTEE shall not lease, transfer,
grant the usufruct of, sell or assign this franchise nor the rights or
privileges acquired hereby, to any person, firm, company, corporation
or other commercial or legal entity, nor merge with any other company
or corporation without the prior approval of the President of the
Philippines. In the event that this franchise is sold, transferred or
assigned, the transferee shall be subject to all the conditions, terms,
restrictions and limitations of this Decree as fully and completely and
to the same extents as if the franchise has been granted to the same
person, firm, company, corporation or other commercial or legal entity.
Section 9. For the purposes of this franchise, the
Government, shall turn over to the GRANTEE not later than April 30,
1977 all physical assets and facilities including all equipment and
appurtenances directly related to the operations of the North and South
Toll Expressways: Provided, That, the extensions of such Expressways
shall also be turned over to GRANTEE upon completion of their
construction or of functional sections thereof: Provided, However, That
upon termination of the franchise period, said physical assets and
facilities including improvements thereon, together with equipment and
appurtenances directly related to their operations, shall be turned
over to the Government without any cost or obligation on the part of
the latter.
Section 10. The provisions of existing laws to the
contrary notwithstanding no other tax, charges or fees of any kind,
nature or description levied now or in the future by any municipal,
city, provincial or national authority shall be levied or assessed on
the GRANTEE for the exercise of the privileges under its franchise upon
its activities pursued in accordance with and pursuant to this Decree,
except taxes on its income and real property in conformity with
existing laws.
Section 11. If the GRANTEE shall not commence the
exercise of the privilege granted by this franchise within one year
from the date of the approval of this Decree, unless prevented by an
act of God, force majeure, or any other cause beyond the GRANTEE'S
control, this franchise shall be null and void.
Section 12. All laws, decrees, orders, rules and
regulations inconsistent with the provisions of this Decree are hereby
repealed or modified accordingly.
Section 13. This Decree shall take effect immediately.
DONE in the City of Manila,
this 31st day of March, in the year of Our Lord, nineteen hundred and
seventy-seven.
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