TOR for expressway gas stations out soon

Energy Secretary Vincent S. Perez said yesterday the Philippine National Construction Corp. (PNCC) will release next week the terms of reference (TOR) for the establishment of new service stations along the expressways.

Perez said he was informed by PNCC chairman Luis Sison that the TOR will be finalized this week or next week even as he noted that the PNCC has yet to firm up the list of new oil players that have expressed interest to set up new gas stations along the north and south expressways. "We don’t have details on pending applications," he said.

The TOR will signal the start of the bidding for those who are interested to construct gasoline stations and other service facilities in the area.

Perez said the bidding will follow shortly after the TOR is finalized. "Once the TOR is completed then we can proceed with the public bidding," he said.

The energy chief said the TOR will include the guidelines on the technical and financial capabilities of the firms keen on operating gasoline and service facilities along the expressways. Service facilities include convenience stores, cafeterias, mini-restaurants, shops and rest areas.

He said the move to allow other companies to build facilities along the superhighways indicates the government’s strong economic policy of free enterprise and fair competition.

"We are fully satisfied that finally the new players in the downstream oil industry and other non-oil companies can already construct their service facilities along the north and south expressways. We are aware that they have been batting for the right to operate facilities in the area for many years now. The Downstream Oil Industry Deregulation Law of 1998 specifically calls for a level playing field for everyone. Allowing their entry along the expressways gives a strong push towards this end," Perez said.

He said this will not only lead to fair competition in the market but will also bring in additional revenues for PNCC in terms of tax and royalty fees and create new jobs.

New oil firms such as Totalfinaelf, PTT Philippines Inc., Seaoil and Unioil Petroleum Philippines Inc. had filed their respective applications at the PNCC three years ago to construct facilities along the expressways.

But these were deferred because of an existing memorandum of agreement (MOA) between major oil companies – Petron Corp., Pilipinas Shell Petroleum Corp., and Caltex Philippines Inc. – and PNCC giving "exclusive" rights on the use of expressways to the three.

However, a legal opinion issued by the Office of the Government Corporate Counsel (OGCC) declared that the MOA has been rendered invalid with the enactment of the Downstream Oil Industry Deregulation Law.

Under the new guidelines, PNCC will apply uniform tariff rates for both the major and new firms interested to construct new facilities in the area to fully achieve fair competition and eventually provide efficient service to the end-consumers. – Donnabelle Gatdula