Press Release
October 10, 2011

ROAD USER'S TAX EYED TO FUND METRO MANILA
TRAFFIC CONTROL SYSTEM UPGRADE

Proceeds from the motor vehicle user's charge (MVUC) or road user's tax are being eyed to fund the upgrade of traffic light system in Metro Manila.

Senator Franklin Drilon, chairman of the Senate Finance Committee, said upgrading traffic control system in the metropolis falls within the mandate of the Road Board, which oversees the disposal of the MVUC.

He added he will prod Public Works Secretary Rogelio Singson to allocate MVUC for the upgrade of 453 traffic light intersections and sit down with the Metropolitan Manila Development Authority (MMDA) and the Department of Public Works and Highways.

"We commit to assist the MMDA to get the MVUC funds," Drilon assured MMDA Chairman Francis Tolentino during a hearing on the P1.375 billion budget of the agency.

Tolentino lamented the "obsolete" traffic light system being used in Metro Manila, saying Cebu and Davao had been using a modern and computerized system that can monitor and prioritize areas which are heavily congested. He said that the MMDA needs approximately P1.5 billion to upgrade traffic lights.

Tolentino said that the Road Board is "willing to fund" about P400 million this year to develop a modern traffic response system, which could be implemented in several phases.

"Doing it in phases would be more feasible rather than a one-time upgrade," said Tolentino.

The balance, Drilon said, would be requested to the Road Board to complete the upgrade.

According to the MMDA chief, only P29 million of the agency's budget has been allocated for maintenance of traffic lights, which he added is insufficient to implement an upgrade.

The Road Board has exclusive jurisdiction over the projects which will be funded by the proceeds from MVUC. Republic Act 8794 that created it cites specific purposes for its use such as maintenance of roads, improvement of drainage system, installation of road safety devices and air pollution control.

The fee is collected from owners who are mandated by law to register their private, public as well as government vehicles annually at the Land Transportation Office.

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