PNCC pays P420 million in concession fees to government

MANILA, Philippines - The Philippine National Construction Corp. (PNCC) has paid the government P420 million in concessions fees as operator of the South Luzon Expressway (SLEX).

PNCC spokesperson Chat Zamora said the payment represented 16 percent of the gross toll collections in the SLEX during the interim period from 2008 to 2010.

The rest of its collections went to the operations, maintenance and repairs of the SLEX and separation pays for the retrenchment of over 1,000 employees affected by the turn-over of SLEX operations from the PNCC to the Malaysian-backed South Luzon Tollway Corp. last May.

“PNCC is a corporation organized for the purpose of tollway operations and management, and not a collecting agency of the government,” PNCC president/CEO Ma. Theresa Defensor said.

Earlier, the agency had said its collection of toll fees at the SLEX after the expiration of its franchise on April 30, 2007 is legal.

Clarifying issues linked to the toll collections, the Zamora said the PNCC had submitted a comprehensive report to Finance Secretary Cesar Purisima.

The report showed PNCC had turned over to the national government, through the toll regulatory board (TRB), the SLEX facilities, equipment and toll operations three days before its franchise expired.

The TRB issued a toll operation certificate (TOC) effective May 1, 2007, authorizing PNCC to act as interim operator of the SLEX operations, required to continue operations since the STLC was still in the process of undertaking the SLEX rehabilitation and expansion.

As a consequence, the PNCC has been authorized to collect toll fees as consideration for PNCC’s operation and maintenance of the SLEX which entails costs, Zamora explained.

Zamora said PNCC has been restored to financial profitability since 2007 and is up to date with its tax payments.

He said it has paid its back taxes amounting to P125 million and was awarded as one of the top taxpayers of Mandaluyong City in 2007.