1. What is PNCC?

PNCC stands for Philippine National Construction Corporation. Formerly known as Construction and Development Corporation of the Philippines (CDCP), the PNCC was incorporated in November 22, 1966 with the primary purpose of general contracting.

2. What business does PNCC engage in?

The PNCC specializes in a wide range of construction and engineering activities and phases. Among the services it offers included all phases of a project from feasibility studies, designs and detailed engineering, procurement, construction and project management, concrete pre-casting, steel fabrication, materials processing and equipment rental/leasing. The company is also undertaking other support services such as pre-fabrication, materials processing and equipment rebuilding.

Aside from general contracting, PNCC also engages in:
     - tollway operations and management
     - joint ventures with any person, natural or judicial, domestic or foreign, to undertake projects        allied with the purpose of the corporation
     - purchase, sell own, hold and develop claims and properties, agricultural and real estate        development

3. What does PNCC hope to achieve (Mission Statement)?

PNCC aims to deliver. The company endeavors to build infrastructure for socio-economic development. It aims to provide quality construction and tollways management services, guided by the values of excellence, professionalism and dynamism.

4. What are the company’s future endeavors (Vision Statement)?

By the year 2007, the Philippine National Construction Corporation shall have reasserted its strength in tollways systems management, revitalized its construction capabilities and realized the synergies brought about by its subsidiary alliances.

Our tollways franchise shall be secure and joint venture partnership shall be equitable. We shall ensure our ability to meet our customers’ expectations.

We shall re-establish the significant presence of PNCC in the construction industry by aggressively pursuing projects. This requires upgrading our manpower and equipment. Self-sufficiency and maximum contribution to company overhead will be our guiding norms. Likewise, we shall maintain contribution to company overhead will be our guiding norms. Likewise, we shall maintain existing subsidiaries based on their ability to enhance overall efficiency.

We will continually improve our systems and procedures to streamline the organization structure. Accordingly, we shall develop our human resources and establish a work environment of excellence, professionalism and dynamism. These conditions shall facilitate our gaining ISO accreditation.

Prudent funds management, highlighted by a reduction of debts, increased collection efforts, and liquefication of non-performing assets, underlies all our plans.

5. Where does the company obtain its resources?

The company is represented by various government financial institutions (GFIs), which include the Philippine National Bank, the Government Service Insurance System, the National Development Corporation, the Philippine Export and Foreign Loan Guarantee Corporation, the Development Bank of the Philippines and the Landbank of the Philippines. These GFIs actively participates in the company’s business affairs as the government recognized the PNCC’s role as industry leader and a viable contributor to the nation’s economy.

Also sitting, as directors in the PNCC Board are representatives from the Asset Privatization Trust and the Presidential Commission on Good Government, This set-up provides a strong foundation to ensure proper execution and prompt completion of PNCC project.

6. Tell us about the tollway business of the company.

The opening of the North and South Luzon Tollways propelled the start of PNCC’s ascent as this credits the company of building and managing the two most important thoroughfares of Metro Manila and the vital links to neighboring provinces.

PNCC completed the 27-kilometer, four-lane divided highway from Balintawak in Quezon City to Tabang, Bulacan, known as the Manila North Expressway (MNEX), in the 1960’s. This first big success in public works construction gave way to PNCC’s rise in the road building industry.

The construction of Manila South Expressway (MSEX) in 1967 was the second major roadway project completed by PNCC. It opened on December 16, 1969 and provided a vital artery to southern Luzon stretching 15 kilometers from Makati to Alabang.
On August 4, 1968, the MNEX opened as a tollway facility with PNCC managing its operations and maintenance, later followed by the MSEX. In 1977, the government issued Presidential Decree 1113 granting PNCC a franchise to manage, operate, maintain and extend the MNEX and MSEX, now called the North and South Luzon Tollways. The franchise started on May 1, 1977 and will end on April 30, 2007.

In 1976, the NLT was extended with an additional 50.9 kilometers of concrete road as part of a highways program of the International Bank for Reconstruction Development. The project featured the five-kilometer Candaba Viaduct, a construction innovation utilizing precast beam systems. The NLT now stretches up to 84 kilometers from Balintawak, Quezon City to Sta. Ines, Pampanga.

The SLT, on the other hand, now extends to another 29 kilometers up to Calamba, Laguna. It includes a 1.2-kilometer long viaduct, which crosses over Alabang, Muntinlupa City.

7. The Company is said to have entered into joint venture partnerships. Why and what are these undertakings?

In order that it may continue to deliver the goods to its motorists, the PNCC has entered into joint venture partnerships with internationally notable engineering and tollway management companies and other reputable local corporations.

The Metro Manila Skyway
A product of this partnership is the Metro Manila Skyway Project, the first elevated tollway in the Country built in joint partnership with Indonesian firm P. T. Citra Lamtoro Gung Persada.

The Metro Manila Skyway is a flagship project openly supported by the Philippine government to help ease the worsening traffic conditions in the nation’s capital. Funded and built by the private sector under joint venture with franchise holder Philippine National Construction Corporation (PNCC) and propelled by superior technology and industry experience, the Skyway is meant to dramatically improve the lives of Filipino motorists and the nation’s economy as well.

Citra Metro Manila Tollway Corporation (CMMTC) is the joint venture corporation of the private sector P. T. Citra Lamtoro Gung Persada (CLGP), Indonesia’s premier toll road developer, and the Philippine National Construction Corporation (PNCC), the government-owned franchise of the South Luzon Expressway and the North Luzon Expressway. The government’s Toll Regulatory Board gave CMMTC the right to design, fund, and build the Skyway, and PNCC the responsibility to operate and maintain. PNCC chose CLGP, as a partner on the strength of the latter’s experience and reputation in Indonesia and Malaysia, as well as its expertise in the road infrastructure industry.

The present ownership structure of CMMTC is as follows: Indonesia’s CLGP, Citra Marga Nusaphala Persada, Bhaskara Dunlajaya, and Matra Sarana Aristama; Avenue Asia Special Situations Funds III; and Philippine companies Strategic Development Corporation, Metro Strategic Infrastructure Holdings, Inc., as well as the Philippine National Construction Corporation.

So far, the partnership has already opened the 9.3 kilometer elevated road from Bicutan, Parañaque City to the Makati Central Business District and the rehabilitation of the 13.5-kilometer Alabang to Magallanes section of the South Luzon Tollway.

This has slashed travel time from the southern entries to the MCBD by as much as 50%. The first phase (Bicutan to Magallanes elevated section) was opened in December 1998 while the final phase (Pasay Road/Amorsolo on/off ramps) was opened in December 1999.

The New North Luzon Expressway
Another product of the joint undertaking efforts is the rehabilitation of the 84-kilometer North Luzon Tollway from Balintawak, Quezon City to Sta. Ines, Pampanga.

The First Philippine Infrastructure Development Corporation (FPIDC) was formed in April 1994 to enter into partnership with PNCC for the Manila North Expressway Project.

In August 1995, a Joint Venture Agreement (JVA) was signed between PNCC and FPIDC, which was earlier approved in principle in July 1995 by the PNCC Board and then by President Fidel V. Ramos. The JVA effected the assignment of the usufructury rights of the NLE project concession from PNCC to the FPIDC/PNCC JV.

Manila North Tollway Corporation (MNTC) was incorporated as the Joint Venture company in February 1997, by FPIDC, Egis and PNCC to execute the NLE Concession. Following detailed discussions, the Supplemental Toll Operations Agreement (STOA) was signed in April 1998 amongst MNTC, PNCC and the Republic of the Philippines Sacting through the (TRB) as an amendment to the original PNCC TOA of 1977.

The STOA was approved by the then President Ramos in June 1998. Under the STOA, the Government recognized the assignment by PNCC of its usufructuary rights, interest and privileges under the original PNCC franchise in favor of MNTC. These rights included the right to operate and maintain the NLE Project Roads and charge tolls. The Concession Period or the Phase of the MNE Project or December 31, 2030, whichever is earlier. At the end of the Concession Period, MNTC will transfer the NLE Project Roads back to the government without cost, free from any liens and encumbrances, and in good operating condition.

The new NLEX is now being managed by the Tollway Management Corporation (TMC), the operations and maintenance company of MNTC. The PNCC turned over the new facility to MNTC last February 10, 2005.      
TOP   HOME