Diokno: Honor contracts with private sector

MANILA, Philippines — The government needs to honor and implement its obligations with the private sector if it is to secure more investments, according to Finance Secretary Benjamin Diokno.

Diokno issued the statement after the Toll Regulatory Board (TRB) approved the rate adjustment for the North Luzon Expressway (NLEX), which could stir opposition from various groups.

The government owns a total of 649,198 shares in NLEX, representing 3.46 percent of the outstanding common shares in the Manuel V. Pangilinan-led NLEX Corp.

“The government has to honor its contract or else it will have no credibility in future contracts,” Diokno told reporters.

New toll rates will be implemented starting June 15. The new rates were part of the authorized NLEX periodic adjustments due in 2012, 2014, 2018 and 2020.

“The NLEX rate increase is for staggered implementation – not a one-time implementation. It is staggered over several years,” Diokno said.

“The increase piled up because of the inaction of previous administrations. The Marcos Junior administration had to act on petitions from 2010,” he said.

The toll board allowed NLEX Corp. to implement the last tranche of the 2012 and 2014 periodic toll rate adjustments.

On the other hand, only half of the 2018 and 2020 provisionally approved periodic toll rate adjustments were approved amid existing inflationary concerns and to cushion the impact on the users of the expressway.

Nonetheless, public utility jeepneys under the Pasada Pass and the Tsuper Card Discount and rebate program will continue to pay old toll rates.

“The petitions were carefully studied and analyzed. They were approved objectively and fairly,” Diokno said.

The finance chief argued that the government needs to perform its contractual obligations, especially as it is promoting public-private partnership (PPP) projects.

“The government will have no credibility as a partner if it does not comply with its contractual obligations under past PPP contracts,” Diokno said.

NLEX Corp., a unit of MVP-led Metro Pacific Tollways Corp., is engaged in the development, design, construction, financing, operation and maintenance of toll roads.

It holds the concession for the NLEX and the NLEX Connector Road Project, as well as the right to manage, operate and maintain the Subic-Clark-Tarlac Expressway.