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New North Luzon Expressway and Rotary’s Four-Way Test: Speech before the Rotary Club of Makati (September 2004)
by JOSE P. DE JESUS
    (Greetings) 	

    Introduction

    Winston Churchill, whose reputation as a great speaker is well settled in history, left three pieces of advice to speakers like you and me.  

    First, he said, never try to walk up a wall that’s leaning towards you. Second, never try to kiss a person that’s leaning away from you.  

    Third, never speak to a group that knows more about a subject than you do.

    Let me tell you that I have neither the intention to conquer an inhospitable wall nor to dare kiss anyone other than my wife.  

    And, yes, I am not driven by any desire at all to lecture you on the Rotary movement – since, surely, you know much more than I do about the subject.  As for me, all I know about Rotary can be summarized in two:  One, many of my finest friends are Rotarians – and, two, some of the best quotations that I know by heart are embodied in Rotary’s Four-Way Test.

    Is it the truth?

    Is it fair to all concerned?

    Will it build goodwill and better friendships?

    Will it be beneficial to all concerned?


          Our Shared Dream

    And so, in the light of this Four-Way Test,  I wish to speak to you about one thing that we both know and which we share: It is our dream to accelerate development in our country wherever it is needed, whenever it is required.

    That when, I believe, is now.  Now that the country is going through a financial crisis of sorts. Now that everyone is asked to make himself count for a nationwide effort to bring us back, however slowly, to financial health.

    I believe that the best way to help our country is to give anything that we are doing our best shot.  Those of us who are in production must seek ways to achieve higher productivity.  Those who are in marketing must find ways to perk up demand for goods.  Those who are in finance are expected to bring in the best ways to deploy financial resources.  

    And, yes, those of us in other disciplines must find our most essential contributions, not only to keep our economy afloat – but, more important, to ultimately build a robust socio-economic foundation for our country’s future. 

    Distinguished Rotarians, in my case, I have decided to do the best I can to finish an 84-kilometer stretch from Balintawak in Metro Manila to Santa Ines in Pampanga.  I am referring to the new North Luzon Expressway, which we can call the "expressway of our cherished dreams."

    I am sure that most of you have gone out of Metro Manila quite recently, and therefore you had the chance to traverse the new expressway. If you were wide-awake, you would not have failed to notice the transformation of the former North Diversion, from a road punctuated with potholes to a structure miraculously without them. 

    Now, if you slept through the entire journey, you have the expressway to thank for lulling you to deep slumber – to wake up later at your destination rested, refreshed and reinvigorated.


        Passing the Rotary’s Crucible

    Today, allow me to speak to you about this Expressway – the Rotary Way.  Using Rotary’s Four-Way Test, I invite you to place this declaration in the crucible of fire: The North Luzon Expressway is the much-awaited catalyst for accelerating the development  in Central and North Luzon – and thus impact positively on the entire country. 

    The first test inquires into the truth that lies beneath our collective aspiration for development.  Thus the question: Is it the truth?

    The truth is that every human being has the dignity of one created in the image of the Divine.  Therefore, every individual must enjoy two basic freedoms – freedom from want and freedom from fear.  Ultimately, every person must be liberated from hunger and destitution.  And how are these twin freedoms won? It is through real and lasting development.

    A book, titled "Development as Freedom," written by Nobel Prize winner in Economics Amartya Sen, defines development thus: "Development requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as intolerance or overactivity of repressive states."


        NLE: Major Force for Development

    Today, the question confronts us all: Are we speaking the truth if we say that speeding up development strides is the first order of the day and that,  the new North Luzon Expressway is a major force for the accelerated development of Central and North Luzon in particular – and of the entire country in general?

    The facts reinforce such a claim.  As a basic principle, a superior road infrastructure quickens the growth strides of any barangay, town or province.  It serves as a magnet to investors because easy transport is imperative.  Thus industries abound which, in turn, create more jobs for our people. 

    The question that must be in your minds is this: Should it be your concern in Metro Manila to seek the accelerated growth of Central and North Luzon?  And my answer – and, maybe, your answer too – is that any development stride in any part of our country has impact on the overall performance of the Philippine economy.  That much is obvious.
	
    More to the point, I believe that some of you here are from Central and North Luzon – or your friends are.  Furthermore, chances are, your businesses may already be involved in areas up north.  Better still, you may want to consider putting up some businesses up there.

    The central truth is, as Rotarians, you do not only think "national"; you think global.  You and I believe with poet John Donne that "no man is an island."  To paraphrase the poet, every region’s growth increases us – and, so conversely, every region’s decay or economic stagnation diminishes us.

    The next Rotary crucible invokes what is just.  Thus the inescapable question: Is it fair to all concerned?

    The question impels us to place our options in the balance of supposed contending interests. The question requires us to use a modern-day yardstick when we ask: Will it create a "win-win" situation?   Fairness rejects the "zero-sum" game – where the winner takes all and, yes, the loser is left with nothing.  The I-win-you-lose mindset has no place in a humane, caring and freedom-loving society. Surely, such a mindset does not belong to us in the Manila North Tollways Corporation, nor does it belong to any Rotarian anywhere around the country and the world.


           Win-Win Formula for All

    This impels us to face squarely a question that must be uppermost in your minds: Do the new toll rates represent a "win-win" formula for all concerned – for motorists, for bus operators, for truckers – and the largest segment of our population, the passengers?  

    I declare that everybody wins and nobody loses when we view the toll rates in relation to the new expressway that enables everyone to realize savings in vehicle operating costs.


        New Paradigm: Look at Entire
           Transport Cost, Not Toll Rate Only

    May I invite you take a look at the bigger picture while you consider the new toll rates.  Many of us have been used to focus on the toll rates alone when, in reality, toll rates are just one component of an entire range of transport costs – which include fuel, tire wear, maintenance and even time.

    Let me tell you first about the new toll rates – in this practically brand-new expressway.

    For light vehicles (Class 1), motorists will pay approximately P2.49 per kilometer.  For buses (Class 2), the new toll rate  will be approximately P6.23 per kilometer.  And for heavy vehicles (Class 3), the new toll rate will be  P7.47 per kilometer.  These estimated toll rates are based on a formula fixed and approved by the Government way back in 1998.

    Some say the rates are high.  But when we consider the hefty savings that accrue from a completely new expressway that speeds up travel, that generates savings for motorists and other vehicle operators – then the situation looks very positive.

    A study of the University of the Philippines has noted the positive impact of a seamless expressway in reducing the costs of fuel and of maintenance.  For example, Class 1 vehicles, after deducting toll fees, will still realize net savings of 95 centavos per kilometer.  If these vehicles run the entire 80 kilometers, they will enjoy net savings of P76!

    Class 2 vehicles, again after deducting toll fees, will enjoy net savings of P7.44 per kilometer.  For 80 kilometers, substantial savings run up to a whooping P596.80.  

    Finally, Class 3 vehicles – representing trucks carrying cargo.  Even after paying the toll fees, truck owners will still realize savings of P5.03 per kilometer.  For a distance of 80 kilometers, they will generate dramatic savings of P402.40.

    (Allow me to project on the screen couple of charts to show you that these savings are real – and will thus impact positively on all motorists.)

    What you have just seen is a refreshing view of the NLE actually doing a favor to motorists.  In the old North Diversion, the motorist might be paying a low toll rate, but the transport costs are much higher.  On the other hand, in the new NLE, the toll rate may, at first glance look high.  But since the transport costs have dramatically gone down – the motorists entire traveling cost is lower under the new NLE.


        Get Ready for Something New

    I suppose  many of us are not prepared for a reality such as this. After all, we are not also used to a modern expressway – one without potholes, one without heavy traffic.  We are unfamiliar with an expressway with a total of 433 lane kilometers – from the previous 295.  

    How long really are 433 lane kilometers? If you connect these lanes end-to-end from Balintawak, the new and upgraded lanes would go beyond Aparri and into the China Sea.

    Furthermore, the policy of the new expressway passes Rotary’s fairness test, affirming two principles.  The first principle is this: "When you invest, you must reap some returns."  Isn’t it just fair that those who have invested P18 billion in this project should realize at least a reasonable return?  Investors have, in fact, settled for a lower internal rate of return of 13.9 percent, which is then translated into reasonable toll rates.  Other expressway builders get a return of 20 percent – and it is still considered fair and reasonable.

    The second is the "users pay principle." This means that those who use the expressway will pay for such use, and those who don’t use it will not pay. It would be unfair if the government levies taxes on everyone from Aparri to Jolo in order to raise money for the North Luzon Expressway.  It is certainly not fair to those who may not have a chance in their lifetime ever to use this expressway in North Luzon!  

    In human relations, when you are just and fair, you are actually building a reservoir of goodwill.

    That brings us to the third Rotary test: Will it build goodwill and better friendships?  


      Investors’s Article of Faith: Serve the Public

    I fully appreciate this question, because it enables me to share with you the underlying philosophy of the people behind the building of this P18 billion infrastructure.  These investors are visionaries themselves.  They have chosen to invest heavily in public service industries because they sincerely have this article of faith: They can serve people better in public service industries.

    To these people, infrastructure building is a calling.  They know that once such infrastructure is completed – it enhances mobility, it brings people to their work places faster, it enriches human exchange and interaction. And, yes, it brings people back faster to their work places – or to their loved ones at home.

    Our expressway, yours and mine, expands our sense of community. Hitherto isolated communities are now reachable by others.  So new friendships are formed.  


        Fidelity to Common Commitments

    What about goodwill? Goodwill will be built – and tested – through the years.  We in MNTC are committed to serve the traveling public in the next twenty-five  years.  This is a long-term commitment. And, yes, let’s promise one another that we shall be around into the next twenty-five years! 

    And through these two and one half decades, the people in Central and North Luzon – and beyond – will find MNTC as a valuable partner.  Both partners will discover and re-discover the value of each one being faithful to common commitments. And through these years, mutual trust is built and solidified – strengthened each day by promises delivered and deepened every passing day by acts of self-disclosure, caring and service that should be the hallmark of an enduring – mutually beneficial and enriching partnership.

    The final Rotary test – Will it be beneficial to all concerned? – provides a fitting conclusion to my talk.  Indeed, we must finally ask the question: Is the Expressway a blessing to all of us?  Structures either edify or destroy people’s lives.  Floods are caused by faulty design of dams. Environmentally unsound factories pollute rivers.  Bad mining facilities discharge toxic tailings and destroy our environment.  

    The new North Luzon Expressway is clearly a boon – not a bane – to Luzon, the communities around it, and the people who will benefit from the new dynamic of social and economic activity. 


        Sharing the Blessings, Burden

    Is it beneficial to all concerned?  This question fortunately raises the issue that with benefits come some costs.  In the case of our Expressway, the investors shelled out funds to build it, the creditors helped with loans – and we who will benefit from it are willing to pay toll fees. This is a covenant of partners.  We shoulder the costs together, and we reap the blessings together.

    Ladies and gentlemen of Rotary, may I now ask you: Has the NLE passed Rotary’s four-way test?  My friends in Rotary: I believe that once this Expressway – and its role in development – passes the Four Way Test, you distinguished and admired Rotarians will respond, I hope, by supporting and embracing it as your  own.  Atin ito.

    Thank you. 

				
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