Chapter 5 Supervision and Administration
Article 40
A private entity may, based on the following factors, set the fare rate for operating the transportation infrastructure project encouraged under this Statute and the schedule and method for adjustment of such fares in the financial plan of its application:
1.Cost expenditures for planning, building and/or operating and other financial matters;
2.Income from operating and ancillary businesses;
3.Number of years for the period permitted;
4.Payment of royalties;
5.Price Index;
6.Market competition; and
7.Other related factors.
The fare rate and schedule and method of adjustment thereof referred to in the preceding Paragraph shall be reported to the competent authority concerned for approval and be subsequently announced in a public notice before implementation.
The competent authority, before granting approval pursuant to the preceding Paragraph, shall refer the matter to the relevant fare rate reviewing committee for review.
Article 41
Where the difference between actual operating revenue and expenditure recorded of a private entity encouraged under this Statute during the period of operation and the operating revenue and expenditure stated in its originally approved financial plan reaches a certain threshold, the amount of its royalty payment may be adjusted by the competent authority ex officio or upon request of said private entity.
The threshold of difference and the method of adjustment of royalty payment referred to in the preceding Paragraph shall be prescribed by the competent authority.
Article 42
A private entity shall not assign, lease or make as object of execution in a civil action the right to build and/or operate a transportation infrastructure project obtained under this Statute, nor shall it assign, lease or create any encumbrance on any asset and/or equipment obtained from building and/or operating the transportation infrastructure project without consent from the competent authority concerned; otherwise the assignment, lease or creation of encumbrance shall be pull and void.
Article 43
Should serious delay in work schedule, major faults in quality control of the construction work, poor operation, or other grave mistakes occur during the period of building and/or operation by a private entity encouraged under this Statute, the competent authority concerned may take the following measures:
1.To order an improvement within a given time limit.
2.To stop part or all of the construction work or operation in case no improvement is made within the given time or the improvement is ineffective.
3.In case a punishment of cease of construction work or operation continues for more than six(6) months without any improvement, the building or operation permit shall be revoked.
In respect of the measures prescribed in the preceding Paragraph, in case of emergency where a delay is likely to result in serious damage to public interests or safety of transportation, cease of part or all of the construction work or operation may be ordered.
In case a cease of part or all of the construction work or operation, or abolishment of operating permit is ordered pursuant to Paragraphs 1 and/or 2, the competent authority shall take proper measures to continue transportation service without any interruption and, if necessary, may compulsorily take over the operation in accordance with regulations governing compulsory take-over of operation, which shall be prescribed by MOTC.
Article 44
If a private entity encouraged under this Statute is punished with repeal of its building or operating permit, the superficies and lease agreement of the land obtained by it under this Statute shall be terminated and the competent authority concerned may compulsorily purchase the necessary and usable operating assets and on-going construction.
The operating assets and on-going construction compulsorily purchased by the competent authority may be assigned to another private entity approved by law to continue the construction or operation, or may be built or operated by a specailly designated government agency.
Article 45
A private entity encouraged under this Statute upon expiry of the operation period approved pursuant to Article 7 shall have all available operating assets assigned to the competent authority concerned generally with or without compensation pursuant to the original approved conditions.