'Got hold of a "Movement to Stop NLEX Toll Hike" flyer

[nicolodeon]

I got a hold of copy of the "Rollback NLEX toll fee movement" flyer.

Here's what the flyer basically says:

The NLEX project started as a joint venture between the Lopezez & PNCC. PNCC ceeded all of it's franchise rights

to the Lopez group (MNTC/TMC/FPDIC). Currently, PNCC owns 2.5% of the venture. According to the flyer, this is illegal because:

a. There was no public bidding.

b. The transfer, which was made by FVR in 1998 under PD 1113/PD 1894, is against the Constitution because it is only Congress that has the right to give/grant franchises on public services. Note: these PDs are Marcos-era PDs.

c. The 1998 Supplemental Toll Operating Agreement (STOA) states that the goverment gave a "state guarantee" to the Lopezes, that in case the Lopezes default, the goverment would shoulder the debt. This is against PD 1112 Note: which could be another Marcos-era PD.

d. There is agreement betwee the Lopezes and the government that if the government fails to implement the 1998 STOA, it is the government who whould shoulder the toll rate difference.

e. The Lopezes won't pay taxes for the next 6 years.

f. According to a Supreme Court and Court of Appeals decision last 1989, the franchise license of the PNCC has expired, so according to the movement, the transfer of frachise is illegal and the Lopezes should have applied for a new franchise.

The flyer also says that the original project cost that is indicated on the 1998 STOA (Phase I) is at P 6 billion. When the project started, the project cost increased by as much as 300%. The total project cost is over P 18 billion.

The flyer also states that, under Section 9 of PD 1894 and the 1998 STOA, the approved STOA rate could only be implemented if it has been published in major newspapers on or before November 30, 2004, and that there should be aa one-year waiting period before it is implemented. The TRB and MNTC only announced the new toll rates last February 9, 2005. Based on the one-year wait period, the toll rates should only be increased starting January 1, 2006.

On the 1998 STOA, the approved toll fees should only be as follows:

1. Class 1 (Open system) - P 14.00
2. Class 2 (Open System) - P 35.00
3. Class 3 (Open system) - P 42.00

For the closed system:

Class 1 - P 0.82/km Current rate: P2.91/km
Class 2 - 2.05/km Current rate: 7.27/km
Class 3 - 2.46/km Current rate: 8.73/km

The flyer also said that one of the major reason why the government has not started repairs on McArthur hiway is to ensure that the new NLEX would be used, therefore starting the feeding process for the new cash cow of the Lopezes.

There is a strong rumor here in Bulacan that the propopents behind this movement are the prominent politicians from Bulacan and Pampanga, some of which are currently incumbent.

[mazdamazda]

The flyer also said that one of the major reason why the government has not started repairs on McArthur hiway is to ensure that the new NLEX would be used, therefore starting the feeding process for the new cash cow of the Lopezes.

the valenzuela-meycauayan portion of the mcarthur highway have already been widened & elevated since the late 2000.

There is a strong rumor here in Bulacan that the propopents behind this movement are the prominent politicians from Bulacan and Pampanga, some of which are currently incumbent.

ahh... those wanting to get a piece of the NLEX pie... no wonder...

[boybi]

b. The transfer, which was made by FVR in 1998 under PD 1113/PD 1894, is against the Constitution because it is only Congress that has the right to give/grant franchises on public services. Note: these PDs are Marcos-era PDs.

c. The 1998 Supplemental Toll Operating Agreement (STOA) states that the goverment gave a "state guarantee" to the Lopezes, that in case the Lopezes default, the goverment would shoulder the debt. This is against PD 1112 Note: which could be another Marcos-era PD.

unless repealed or ammended, afaik, PDs are still in effect even if the president who signed it is no longer the president.

d. There is agreement between the Lopezes and the government that if the government fails to implement the 1998 STOA, it is the government who whould shoulder the toll rate difference.

ganyan din ang agreements usually ng government with other BOTs, ex. is the MRT.

e. The Lopezes won't pay taxes for the next 6 years.

yung Ford Phils. i think was given a 10 year tax break.

f. According to a Supreme Court and Court of Appeals decision last 1989, the franchise license of the PNCC has expired, so according to the movement, the transfer of frachise is illegal and the Lopezes should have applied for a new franchise.

yes, the franchise of PNCC have expired long ago, ang the government took control of the NLEX and what happened? that was the time when the NLEX became dilapidated. if i remembered correctly, hindi naningil ng toll fee during that time. hindi kayang i-maintain ng government ang NLEX so they returned the NLEX to PNCC.

The flyer also says that the original project cost that is indicated on the 1998 STOA (Phase I) is at P 6 billion. When the project started, the project cost increased by as much as 300%. The total project cost is over P 18 billion.

did they know that the exchange rate of the Peso against the US dollar also increased during this period?

On the 1998 STOA, the approved toll fees should only be as follows:

1. Class 1 (Open system) - P 14.00
2. Class 2 (Open System) - P 35.00
3. Class 3 (Open system) - P 42.00

For the closed system:

Class 1 - P 0.82/km Current rate: P2.91/km
Class 2 - 2.05/km Current rate: 7.27/km
Class 3 - 2.46/km Current rate: 8.73/km

as mentioned above, the project cost increased by 300%, and that was because of the exchange rate.

The flyer also said that one of the major reason why the government has not started repairs on McArthur hiway is to ensure that the new NLEX would be used, therefore starting the feeding process for the new cash cow of the Lopezes.

how did they know about this?

There is a strong rumor here in Bulacan that the propopents behind this movement are the prominent politicians from Bulacan and Pampanga, some of which are currently incumbent.

dapat ginawa nila ito bago pa nagstart ang construction/rehabilitation ng NLEX. hindi yung tapos na tsaka sila nag ngangaw-ngaw. ang sabi sa flyer, kapag nagdefault ang MNTC, government will assume the debt. so kapag napuno ang mga Lopezes dyan sa mga complainants, pwede nilang iiwan nalang ang NLEX at ibigay sa government. so ang government na ang magbabayad ng utang ng NLEX, and saan ito kukunin? sa taxes! so pati mga hindi gumagamit ng NLEX e madadamay na rin!

[mazdamazda]

yung Ford Phils. i think was given a 10 year tax break.

telecom companies are also given tax holidays for a number of years. this is to offset the high capex needed for those kinds of investments.

did they know that the exchange rate of the Peso against the US dollar also increased during this period?

MNTC also stated that the toll fee will go down IF the peso:dollar exchange rate improves.

[falken]

Pag nirollback ang toll fees, sino ang magmemaintain nito? I still remember when SLEX and NLEX were stopped from collecting toll fees kaya nabulok ang mga ito, mahirap dito sa atin gusto lang puro maganda't libre, eh puwede ba yon. I'm not rich but I've accepted the fact that In this world, nothing comes for free.