The primary purpose of the company is to carry on the conduct a general contracting business with the private or government department, subdivision, instrumentality, office, institution of agency, including the designing, constructing, enlarging, repairing, remodeling, operation, maintenance, financing or otherwise engaging in any work upon buildings, roads, sidewalks, highways, bridges, dams, public markets, irrigation systems, manufacturing plants or other public improvements, to engage in iron, steel, wood, bricks, concrete, stone, cement masonry and earth construction; and to enter into and execute contracts or to receive assignments of contracts therefore or relating thereto; also to manufacture and/or furnish building materials, equipment and supplies connected herewith; and to engage in any and all activities and business undertaking as may be necessary or incidental to accomplish the primary purpose and objectives of the Corporation that will contribute to the economic development of the country.

     On March 31, 1977, PD 1113 was issued granting CDCP the 30 year franchise to construct, operate, and maintain toll facilities in the North & South Luzon Tollways and Metro Manila Expressway.  (PD 1113 has been amended under PD 1894 issued on December 22, 1983).

      A distinguished partner in Philippines progress and economic development, the PNCC is known for its landmark projects, its expertise and its vision.

     Established in 1966 as the Construction Development Corporation of the Philippines (CDCP), the Company was subsequently handled, managed and operated by the National Government starting in 1983 by virtue of the debt-to-equity conversion pursuant to and under the directives of LOI 1295, dated February 23, 1983 which resulted in ownership by the Government of the majority of the shares of the Company. Because of the entry and participation of the Government in the Company, the corporate name of CDCP was changed to PNCC in order to reflect the Government’s majority equity interest in the Company.

     In 1981, the Government, in order to strengthen the financial structure of the Company, issued LO1 1136, mandating the NDC to invest in the Company for fresh capital infusion by means of subscription of the Company’s shares of stock.

     In 1983, the Government made ventures to further improved the profitability, liquidity and financial stability and viability of the Company, which was then in dire straits. As part of the directives of the National Government for the financial rehabilitation of the Company, LO1 1295 was issued on February 23, 1983, directing various GFIs with direct and guaranteed loans to the Company maturity by the end of the years 1982 and 1983, to convert the same into equity in the PNCC. A conversion was effected as compliance wit the directives of LO1 1295, which conversion was confirmed by the GFIs concerned in a Deed of Confirmation notarized on April 14 and 27, 2000. The substantial equity of the Government arising from the conversion resulted to the change in CDCP’s name to Philippine National Construction Corporation.

     On December 8, 1986, Proclamation No. 50 was issued, promoting the privatization “for the prompt disposition of the large number of non-performing assets of the government financial institutions, and certain government-owned and controlled corporations, which have been found unnecessary or inappropriate for the government sector to maintain.”
Proclamation No. 50 likewise provides for the creation of the COP and APT.

Thus, on February 3, 1983, pursuant to Proclamation No. 50, Administrative Order No. 14 was issued, approving the identification of the transfer to the National Government of certain assets and liabilities of the DBP and the PNB. Likewise, on March 24,1988, Administrative Order No. 64 was issued, approving the identification of and transfer to the National Government of certain assets and liabilities of the PEFLGC and the NDC.

By virtue of LO1 1136 and LO1 1295, 77.48% of the PNCC’s voting equity has been held by various GFIs, most of which is now held by the APT by virtue of Administrative Orders No. 14 and 64, series of 1987 and 1988, respectively. Furthermore, the PCGG has been holding/representing some 13.82% of the company’s voting equity by virtue of a writ of sequestration and as result of the voluntary surrender of certain shares thereto. In fine, only 9.70% of the Company’s voting equity is strictly under private ownership.     ABOUT US    HOME     TOP