Monday, July 29, 2013

PNCC under Malacañang management even as PNoy gripes about its mismanagement


Let's put this in perspective. Highways and toll roads in Luzon used to be the sole responsibility of the Philippine National Construction Corporation a government owned and controlled corporation. It was originally established in 1966 as the Construction Development Corporation of the Philippines by alleged Marcos crony Rudy Cuenca. It was granted a fifty-year franchise to commission and perform construction work throughout the Philippines.

The CDCP, as a monopoly, ran the toll expressways. At really, really, really cheap rates. As might be expected from an enterprise that charged below market rates, the company went belly up. They incurred a heavy debt burden, financing the road infrastructure while government, among other things, refused to allow it to charge appropriate toll to recover interest and expenses, let alone their original capital investment.

In 1977, Presidential Decree No. 1113 was issued, granting the CDCP a thirty-year franchise to operate and maintain the various limited-access toll highways in the Philippines. Around 1981, the Marcos government provided the dying company with an additional infusion of capital. In 1983, the CDCP changed it's name to PNCC. In December of that year, Marcos issued Presidential Decree No. 1894. This modified the PNCC franchise to include Circumferential Road 6 (C6), NLEx and SLEx. If you wanted to build a road in Luzon, you'd have to be in bed with the PNCC. Today, the Philippine government and the GSIS control up to 80 percent of the PNCC; it is supervised directly by the Secretary of the Department of Trade and Industry.

Here's the kicker. Five presidents have been elected since Marcos including the current one. Not one sought to repeal either 1113 or 1894 that granted the PNCC franchise. This is the same PNCC whose officers and directors have to be vetted by Malacañang. The same PNCC that the president complains is the hold up for his promised metro expressways.

Now, who is the victim here? And who is the real villain?

Source:
http://getrealphilippines.com/blog/2013/07/has-joseph-erap-estrada-changed-for-the-better/comment-page-1/#comment-114402

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