Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FIFTEENTH CONGRESS First Regular Session HOUSE RESOLUTION No.

212 Introduced by Rep. TEDDY A. CASIO RESOLUTION DIRECTING THE COMMITTEE ON TRANSPORTATION, TO CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, ON THE IMPENDING 300 PERCENT TOLL FEE HIKE OF THE SOUTHERN LUZON EXPRESSWAY (SLEX) WHEREAS, the Southern Luzon Expressway (SLEX) is a 30-km highway running from Alabang, Muntinlupa to Calamba, Laguna with a 7.6-km extension road linking it to the Southern Tagalog Arterial Road (STAR) in Sto. Tomas, Batangas; WHEREAS, SLEX is a key link between the National Capital Region (NCR) and the southern provinces. An estimated 60% of total merchandise exports ply the route; WHEREAS, the Toll Regulatory Board (TRB) intends to impose 300-percent increase in toll fees to be collected on vehicles passing through SLEX effective August 16, 2010. The tolloperation certificate was awarded to Southern Luzon Tollway Corporation (SLTC) allowing it to collect toll fees at the SLEX; WHEREAS, the increased toll fees are 85 pesos from 22 pesos for Class 1 vehicles, 170 pesos from 43 pesos for Class 2 vehicles and 255 pesos from 65 pesos for Class 3 vehicles. The new toll rates are inclusive of the 12-percent VAT; WHEREAS, Class 1 vehicles are cars, public utility jeepneys, pick-ups and vans. Class 2 vehicles are light trucks, tourist/school buses, and public utility buses. Class 3 vehicles are heavy and multi-axled trucks and trailers; WHEREAS, Class 1 vehicles account for 70-percent (estimated 175,000 units) of the daily toll traffic, Class 2 is 20-percent (50,000 units) and Class 3 is 10-percent (25,000 units); WHEREAS, the proposed toll fees are said to be part of the Supplemental Toll Operations Agreement (STOA) entered on behalf of the government by TRB with SLTC. SLTC is owned 80-percent by MTD Manila Expressways, Inc. (MTDME), a Malaysian company, and 20percent by Philippine National Construction Corporation (PNCC). The STOA gives 25-year concession of SLEX rehabilitation, expansion, operation and maintenance to SLTC;

WHEREAS, the STOA stipulates the fixed rate and the amount of toll fees for the 25-year duration of the contract; WHEREAS, TRB committed grave abuse of discretion by entering into STOA which fixes the toll rates, and increases thereof, without prior notice and public hearing as mandated in Section 3(d) of PD No.1112, which states, (d)Issue, modify and promulgate from time to time the rates of toll that will be charged the direct users of toll facilities and upon notice and hearing, to approve or disapprove the petitions for the increase thereof. x x x WHEREAS, the fixed toll rates are predetermined, thereby negating the legal procedure for toll increases as stipulated in Section 3 of PD No. 1112; WHEREAS, the refusal by parties involved in the STOA to disclose the contents of the said contract arouses suspicions of over-collection and over-compensation in favor of SLTC, majority of which is owned by a foreign entity; WHEREAS, the TRB appears to have failed to protect the interest of the Filipino people by entering into a contract which charges exorbitant toll fees. This action puts undue economic pressure on the road users, particularly the ordinary commuters, who use SLEX daily, as excessive toll fee increases result in proportional fare hikes; WHEREAS, an accounting of the toll fees collected from the start of the contract up to the time of the new toll hike should be conducted to determine if the collections are aboveboard; WHEREAS, a hike in toll fees are imbued with public interest. The TRB and SLTC must disclose the pertinent sections of the contract to determine if the fixed toll fees are justified and not disadvantageous to the SLEX users; NOW THEREFORE BE IT RESOLVED, that the Committee on Transportation conduct an investigation, in aid of legislation, on the impending 300 percent toll fee hike of the Southern Luzon Expressway. RESOLVED FINALLY, that measures be taken for the TRB and SLTC to suspend the implementation of the new rates pending the congressional investigation on the matter. Adopted, TEDDY A. CASINO Bayan Muna Party-list