Toll regulatory body for 3rd bridge OK’d

CEBU, Philippines — The Cebu City Council has passed an ordinance establishing the Local Toll Regulatory Council (LTRC) of Cebu-Cordova Link Expressway (CCLEX).

Authored by Councilor Raymond Alvin Garcia, the ordinance is entitled “CCLEX Toll Ordinance”

“Pursuant to the JVA (joint venture agreement), LGU (local government unit) Cebu City and LGU Cordova, as Grantors, and Cebu Cordova Link Expressway Corporation (‘CCLEC’ or the ‘Concessionaire’), as Concessionaire, entered into and executed a Concession Agreement dated 03 October 2016, which was amended on January 16, 2019 (the ‘Concession Agreement’),” read the proposed ordinance.

It states that to establish an LTRC, the LGUs of Cebu City and Cordova must each enact the corresponding ordinance.

Section 2 provides that during the operation period of CCLEX, the Concessionaire is authorized to impose and collect tolls from the users of the project in the amounts determined in accordance with the Concession Agreement for each entry of each vehicle class and irrespective of the exits used by each vehicle, subject to any toll rate adjustment authorized under the said agreement.

Per Section 3, there shall be created an LTRC for the purpose of implementing and setting the rates of toll under the Concession Agreement.

The council shall consist of five members— one appointed member from LGU Cebu City; one appointed member from LGU Cordova; three jointly appointed members by the grantors from a list of nominees submitted by the Concessionaire.

There shall be a chairman who shall be elected by a majority vote of all the members of the LTRC.

Section 4 provides among the powers and duties of LTRC are to issue, amend, and promulgate from time to time, in accordance with the provisions of the Concession Agreement, the rates of toll that will be charged the direct users of CCLEX; to issue permits or certificates authorizing the collection of toll, whether initial, periodic or otherwise, for CCLEX; and to promulgate implementing rules and regulations to carry out the purposes of the ordinance.

The LTRC’s principal office shall be located either in Cebu City or Cordova and it is authorized to establish the following offices: secretariat, technical and legal, that shall assist and administer their affairs pursuant to its purpose and mandate.

Section 6 states the operational and administrative expenses of the LTRC shall be funded by the Concessionaire, provided that it shall not exceed the allowable Project Overhead Expenses as provided in Section 9.5.4 of the Concession Agreement.

The council shall, at all times, act as an independent body in the exercise of its power and performance of its functions and responsibilities. — KQD (FREEMAN)