Nograles urges colleagues to extend PNCC franchise

House Majority Leader Prospero Nograles urged his fellow lawmakers to extend the franchise of the state-owned Philippine National Construction Corp. (PNCC), which operates the North and South Luzon expressways.

"It is best for our national interest that Congress extends the PNCC franchise, which expires on April 30, 2007, in order to support and protect a vital player in infrastructure development in the country," he said.

He said the North and South Luzon expressways serve around 500,000 vehicles a day.

These vehicles transport millions of people and goods that contribute immensely to the economic well-being of the country, he said.

Nograles added that the non-renewal of the franchise could send wrong signals to the global economic community.

He said foreign investors and creditors would further shy away from investing in the country if the government itself cannot take care of its own.

Nograles pointed out that PNCC has entered into joint venture agreements with various foreign entities, including Malaysian, Indonesian, Australian and European groups, to fund, build and operate certain portions of the expressways.

The PNCC is headed by former Quezon City Rep. Maite Defensor, a sister of Mike Defensor, President Arroyo’s chief of staff who is also a former congressman.

Their district is now represented by their father, Matias Defensor, who was among Mrs. Arroyo’s allies who voted last Wednesday for dismissing the impeachment complaint against her.

Nograles said the national government has an exposure of almost P6 billion in the PNCC, "which amount may not be recovered should Congress choose not to extend its franchise and to privatize the operation of the expressways."

He said even the proposed extension and rehabilitation of the South Luzon Expressway from Alabang in Muntinlupa City to Sto. Tomas in Batangas would be prejudiced.

The PNCC has entered into a joint venture with MTD Capital Bhd. of Malaysia for this project, he added.

The House committee on legislative franchises is set to deliberate on the proposed measure next week.