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NLEX Corp. needs to comply with requirements laid down by Valenzuela city government for the suspension of its business permit to be withdrawn
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The toll operator must provide concrete solutions to problems arising from implementation of mandatory cashless toll collection on expressways
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The toll operator should reimburse those “accidentally charged with toll fee during implementation of toll holiday in Valenzuela City” on December 7 when the business permit suspension was served
Toll operator NLEX Corp. must comply with requirements outlined by the city government of Valenzuela—including clear and concrete solutions with specific deadlines—for the suspension of the company’s business permit to be lifted.
READ: Valenzuela suspends NLEX operator’s permit over ‘abysmal’ RFID system
Valenzuela City mayor Rex Gatchalian, in a December 9 letter to NLEX Corp. president and general manager J. Luigi Bautista, said the suspension will be lifted once NLEX Corp. undertakes clear and concrete solutions to the various problems encountered by the public due to the toll operator’s implementation of the mandatory cashless toll collection on its expressways.
These problems include radio frequency identification (RFID) stickers that easily or immediately wear out; sensors that can’t read RFID stickers promptly; missing and/or untimely crediting of loads; erroneous and/or delayed and/or bulk charging of toll fees; and display systems installed at toll gate not showing the real time load.
The solutions should have clear and specific deadlines, Gatchalian added.
Among the requirements include the following:
- Establish measureable performance indexes of success, such as high readability rate of NLEX Corp. sensors at toll plazas
- Furnish the Valenzuela City government copies of monthly performance reports
- Furnish the Valenzuela City Business Permit and Licensing Office copies of computer-generated reports of all collections made via the RFID system, or cash, if any, since the toll holiday was implemented last December 7
- Within 24 hours from receipt of the December 9 letter, reimburse all those who were “accidentally charged with toll fee during implementation of toll holiday in Valenzuela City.”
Gatchalian said the city government reserves the right to suspend the company’s business permit again should it fail to furnish the monthly reports and/or in the event of low rate or poor performance.
“It bears emphasizing that these permanent long terms solutions must be concrete, consistent, and satisfactory to the city government and the public,” Gatchalian added.
The city government will check NLEX Corp.’s compliance after the latter confirms it has fulfilled the requirements.
Gatchalian said the letter is also a warning to NLEX Corp. to “strictly comply with the executive orders issued by the city government, otherwise we will revoke your business permits for all your toll plazas within our jurisdiction.”
The Valenzuela City government on December 7 suspended the business permit of NLEX Corp. for failing to submit an action plan addressing the heavy traffic at the North Luzon Expressway (NLEX) interchanges generated by the mandatory cashless transaction implemented at the start of the month.
While NLEX Corp.’s business permit is suspended, motorists can still pass through the NLEX interchanges in Valenzuela City without the need to pay the toll fee.
The Valenzuela City mayor earlier said the “monstrous traffic jam caused by the technical glitches in your RFID system is already taking its toll on the economic, mental, and general well-being of our citizens.”
The use of RFID stickers for cashless transaction starting December 1 on all Luzon expressways was ordered by the Department of Transportation (DOTr) and Toll Regulatory Board (TRB) as part of their toll collection interoperability project launched in 2017.
READ: Mandatory cashless toll collection on Luzon expressways starts Dec 1
The program, however, started to cause heavy traffic at toll plazas even prior to December 1 with motorists scrambling to get their RFID stickers before the deadline.
NLEX Corp. earlier acknowledged that the implementation of mandatory cashless toll collection on December 1 has led to birth pains and technical problems.
READ: Toll operator to implement NLEX traffic measures
The company said it was already “working to eliminate the inconvenience caused to our customers by the new compulsory tollway cashless transaction system using RFID that is required by the Department Order of the Department of Transportation.”
TRB, in a statement on December 9, warned toll operators they could face penalties and even suspension if they continue to violate the implementing rules and regulations of the mandatory cashless transactions on expressways.
READ: Toll operators warned of penalties, suspension over RFID woes
DOTr earlier said no apprehensions of motorists would be made until January 11, and that the tollways may practice leniency toward those with no RFID stickers.
