PNCC sets terms for expressway stations

The Philippine National Construction Corp. (PNCC) has finalized the terms of reference (TOR) that will govern the construction of new service stations in the South and North Luzon expressways.

PNCC chairman Luis Sison, in an interview, said with the approval of the TOR, they expect the proponents to give them the best offer next week.

"Publication will be done in three weeks’ time. After that we expect interested parties to submit their respective formal bids by first week of May," Sison said.

Among others, the approved TOR provides that the new gas stations should not be less than five kilometers away from each other; and that they should be full service gas stations complete with other amenities like restaurant. Interested oil companies should be the one to look for property and should not involve PNCC.

So far, Sison said they are considering two applications from Totalfinaelf Philippines Inc. and Seaoil.

He said there are only three remaining available slots that are being eyed by possible locators. "There is one in South expressway southbound; one in North expressway coming from Manila; and another one going towards Clark. More or less there would be three new stations to be accommodated," he said.

According to Sison, an oil company will have to spend about P120 million to put up a full service station. Service facilities include convenience stores, cafeterias, mini-restaurants, shops and rest areas, which are necessary for the traveling public.

Sison is optimistic that the memorandum of agreement (MOA) between the PNCC and the Big 3 oil companies will not be an "impediment" to the new TOR.

The MOA gives the three major oil firms, Petron Corp., Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc., "exclusive rights" in putting up service stations in the North and South expressways. The agreement was supposed to last up to 2007 or until after the three oil firms recoup their investments.

"I believe that the MOA signed with the Big 3 oil firms was null and void by Oil Deregulation Law," he said.

However, he said the PNCC would be ready if the oil firms would question their decision. "If they will file a suit. Let them be. If this will be the case, then it only goes to show that they do not want full deregulation and don’t want a level playing field and healthy competition," he said.