| HOUSE OF PEPRESENTATUES
| RECEIVER

| oa: JUN 2016

1 THe 52d

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

First Regular Session

| BY:
SEVENTEENTH CONGRESS
REGISTRATION LNT
|
i

BILLS AND INDEX SEAVIDE
House Bill No. 250

Introduced by Representative Gabriel H. Bordado, Jr.

EXPLANATORY NOTE

As stated by former Representative and now Vice President Maria Leonor G.
Robredo when she first filed this bill in the 16%" Congress, “the first rail tracks in the
Philippines were laid in 1891. The tracks trailed from Manila to Dagupan and were
extended to more places in central and northern Luzon. On September 13, 1931, the
first train to Bicol was put into operation. From then, our trains served as bridge in
bringing central government services to Bicol’s grassroots. Known presently as the
Bicol Express, the Philippine National Railways’ (PNR) Bicol-bound trains have been
vital in the Region’s economic growth and development.”

In an essay written by the undersigned and published by a national periodical,
he noted, however, that the Bicol Express alternately underwent periods of
rehabilitation, neglect, and decay--a vicious cycle entailing wastage of billions of
pesos in public funds. This bill intends to stop the cycle by upgrading and not merely
rehabilitating the PNR. As it stands, all developed countries of the world have
effective and efficient railway systems.

The passage of this bill is, therefore, on track in sustaining the socio-economic
growth and development of the country.

Kecheclltoly

Representative, Third District of Camarines Sur


worvaueuns

rT
12
13
4
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No.__ 250

Introduced by Representative Gabriel I. Bordado, Jr.

“AN ACT AMENDING REPUBLIC ACT NO. 4156, ENTITLED “ AN ACT

CREATING THE PHILIPPINE NATIONAL RAILWAYS, PRESCRIBING

ITS POWERS, FUNCTIONS AND DUTIES, AND PROVIDING FOR THE
NECESSARY FUNDS FOR ITS OPERATIONS,” AS AMENDED BY
REPUBLIC ACT NO. 6366 AND PRESIDENTIAL DECREE NO. 741”

Be it enacted by the Senate and House of Representatives ofthe Philippines in Congress assembled
Section 1. Section 1 of Republic Act 4156, as amended, is hereby amended as follows:

Term Extension. As a deciared national policy, the Philippine National Railways, being a factor for
socio-economic development growth, shall (a) remain in and under the majority ownership of government
with a share of at least 51 percent during its corporate existence to ensure the primacy of the public interest
in a nationwide railway system; (b) become open to join ventures with the private sector with proven
experience in rail operations and other relevant qualifications up to a maximum share of 49 percent subject
to public bidding and applicable laws in order to bring private sector efficiency and business expertise into
the organization; (c) be administered with the view of maximizing the value of its franchise and assets in
‘order to support its train service and operations including entering into commercial and other business
ventures with the private sector subject to public budding and applicable laws procurement law; and its
corporate life is hereby extended for another 50 years.

Sec. 2. Section 3 of Republic Act 4156, as amended, is hereby amended as follows:

Authorized Capital Stock of the Philippine National Railways. The authorized capital slock of
the Philippine National RaiWway shall be One Hundred Billion Pesos (Php 100,000,000,000.00) divided into
Five Hundred Million (500,000,000) common shares all with par value at Two Hundred Pesos (Php200.00),
Which shall include the present authorized capitalization of One Billion Five Hundred Million Pesos
(Php1,500,000,000.00); Provided, the increase in the authorized capital shall be subscribed up to at least
51% by the National Government and other govemment institutions, corporations, instrumentaliies, and
agencies, whether national or local, within the framework of their respective charters, with the remaining
49% to be opened to subscription and investment by the private sector in accordance with Section 1 above;
Provided further, that all the obligations of the Philippine National Railways to the National Government and
its instrumentalities, including, but not limited to, the Bureau of Internal Revenue and the Government
Service Insurance System, as of the date of the approval of this Act, as recommended by the Board of
Directors of the Philippine National Raiwways and determined and agreed upon by the Department of
Transportation and Communications, shall be converted into capital stocks of the Philippine National
Railways and made part of the subscription; Provided further, that the authorized capital can be increased
from time to time as may be needed, as recommended by the Board of Directors ofthe Philippine National

1


Railways and determined and agreed upon by the Department of Transportation and Communications and
approved by the President of the Republic of the Philippines, to be placed on behalf of the National
Government under the name of a government entity, as may be legally practicable, such as, but not limited
to, the Bureau of Treasury.

Whenever balanoe remaining of the authorized capital of the Philippine National Railways shall be paid
using a continuing annual appropriation of any funds in the National Treasury, to be programmed and
released by the Department of Budget and Management in accordance with the schedule of cash
requirements to be prepared and submitted by the Philippine National Railways specially insofar as capital
expenditures are concemed, such as, but not limited to, maintenance and rehabilitation of railways, to
improve andlor inorease its track lines; Provided, that this continuing annual appropriation shall remain in
force until the authorized capital stock subscribed by the Government shall have been paid in ful

Sec. 3. Section 12 of Republic Act 4156, as amended, is hereby amended as follows:

Exemption from taxes, duties and port charges or dues, customs bonds and port charges. All
revenues and assets of the government-owned shares of the Philippine National Railways used directly and
indirectly by it in relation to its principal purpose of providing a nation-wide raitoad and transportation
system shall be exempt from all import duties on all railway materials, rolling stocks, spare parts, supplies
and equipment imported in the Philippines for andlor by the Philippine National Railways in order to reduce
the cost of maintaining and improving train service and operations for the benefit of the public.

Sec. 4. Separability Clause. — If any provision of this Act or application thereof to any person ot
circumstance is held to be void, or unconstitutional, any other provision not affected thereby shall remain in
full force and effect.

Sec. 5. Repealing Clause. All laws or parts thereof, which are inconsistent with the provisions of this Act
are hereby repealed or modified accordingly, except Republic Act 10149, otherwise known as the “GOCC
Govemance Act of 2011.”

Sec. 6. Effectivity. This Act shall take effect upon approval.

Approved