FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
S. B. No. 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to establish the National Railway Authority which shall 
rationalize government programs to accelerate the development of the national railway 
system in the country. 
The efficient and reliable system to facilitate movement of goods, services and 
people is essential for the growth of commerce and industry in the country. It is also 
important in providing timely services that would have to be sourced from urban 
centers such as Metro Manila. The Philippine National Railways (PNR) owns and 
operates a railway network measuring 491 km running along the Main Line South from 
Manila to the province of Albay. There used to be a Main North Line running from 
Manila to La Union but is no longer operational. 
The PNR is a government-owned and controlled corporation that has been 
running on a deficit and heavily depends on government subsidies to sustain its 
operations. The World Bank estimates its total loss as of 2003 at US$12.2 million and 
"with total revenues barely meeting personnel expenses". The Bank cites reason why 
this is so, among others: the lack of rolling stock, insufficient capacity, poor ridership, 
inefficient ticketing system and rundown stations. 
Accelerating the development of the Philippine railway system will greatly 
contribute in the thrust towards socio-economic development. However, the current 
policy and institutional capacity of the governing bodies related to the railway system 
development in the country needs to be revitalized. 
This bilI addresses the need to rationalize the functions of policy, planning and 
regulation and restructure the operations and delivery of train services. The bill 
provides for the creation of the National Railway Authority which shall, among others, 
formulate and pursue comprehensive railway development plan, promote active 
participation and private sector investments, regulate construction, operation and 
maintenance of railway facilities. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
LOREN LEGARDA 
Senator 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
SENATE 
S.B. NO 
Introduced By Senator Loren Legarda 
AN ACT 
ACCELARATING THE DEVELOPMENT OF A NATIONAL RAILWAY 
SYSTEM, CREATING FOR THE PURPOSE THE NATIONAL RAILWAY 
AUTHORITY, PRESCRIBING ITS POWERS, FUNCTION AND DUTIES AND 
FOR OTHER PURPOSES 
Be it enacted by the senate and the house of representative of the Philippines in Congress 
assembled: 
SECTION 1. Title - This act shall be known as the "National Railways Act of 
2007". 
SECTION 2. Declaration of Policy - It is hereby declared the policy of the state 
to promote, accelerate and develop an integrated national railway system to provide 
and maintain an adequate, efficient, inexpensive, convenient and reliable public 
transport system responsive to the requirements for the socio-economic development of 
the country. 
SECTION 3. Creation of the National Railway Authority - There is hereby 
created a corporate body to be known as the National Railway Authority, here in after 
referred to as the "Authority". It shall have its principal office in the Metropolitan 
Manila Area, but may establish such branches and agencies in the other local 
government units in the country, as may be necessary for the proper conduct of its 
business and discharge of its function. It shall be under the direct control and 
supervision of the office of the President. 
SECTION 4. Function of the NRA - The Authority shall have the following 
function: 
A) Formulate and adopt a comprehensive development plan for a national railway 
system with ecological and environmental standards; 
B) Promote and encourage the active participation of the private sector, both local 
and international, in the development and implementation of a comprehensive 
development plan; 
, 
C) Implement or cause the implementation of the national railway plan, policies and 
programs according to a schedule of priorities consistent with the needs and 
available resources; 
D) Control and develop, construct operate and maintain railway facilities including 
parking station and terminals for freight, goods and cargoes; 
E) Regulate and schedule, frequency, routing and pricing of railway services; 


F) Call upon any government agency for such assistance as may be necessary in the 
discharge of its duties and functions. 
SECTRION 5. General Powers of the NRA - The NRA will have the following 
powers; 
A) To have continuous succession under its corporate name; 
B) To sue and be sued; 
C) To adopt, alter and use a corporate seal; 
D) To amend, and repeal its by-laws; 
E) To acquire, own, hold, administer, and lease such real or personal property as 
it deems necessary or convenient in the transaction of its business and to 
lease, mortgage, sell, alienate or otherwise dispose of any such real or 
personal property held by it; 
F) To enter into any obligation, assign or accept the assignment of, and rescind 
any agreement or contract necessary or incidental to the proper functioning of 
the Authority; 
G) To contract loans, indebtedness, and credit accommodation, in any local or 
convertible foreign currency, from any international financial institutions, 
foreign government entities, and local and foreign private commercial banks 
or similar institution under terms and conditions prescribed by law, rules and 
regulations, and to issue commercial papers and bonds in connection 
therewith; 
H) To invest its funds and other assets in such areas it may deem proper in the 
course of its operations; 
I) To construct, own, lease, operate and maintain public utilities, infrastructure 
facilities and such auxiliary support services needed to develop and operate 
and maintain a national railway system; 
J) To design, and construct, maintain and operate by itself or by delegation to, 
or through contractual arrangement such auxiliary infrastructure support 
facilities as, but not limited to, parking structures above or below ground, 
including the means of access; 
K) To fix rates of railway transportation fee; 
L) To regulate rate of fees, such as but not limited to, parking fees, porterage 
M) To prescribe, fix and regulate the route of railway transport; 
N) To receive donations; grants, requests and assistance of all kinds and to 
utilize the same. 
0) To exercise the right of eminent domain in the name of the Republic of the 
Philippines and in the acquisition of real estate by excess condemnation or 
escheat proceedings; including appurtenant properties. The title thereto shall 
be registered in the name of the Government and thereupon all such 
properties shall be entrusted to the Authority as agent of the Government; 
P) To form, establish, organized and maintain subsidiary corporations or joint 
venture formed in accordance with the Philippine Corporation Code, to 
encourage public and private sector participation in the development of the 
railway system; 
Q) To promulgate such rules and regulations as may be necessary to carry out 
the objectives of this Act; 
R) To perform such other powers as may be necessary to carry out the purposes 
of this Act. 
fees and such other fees levied in relation with the use of the railway system; 


SECTION 6. Conduct of Comprehensive Studies - The Authority, in 
coordination with such other government agencies as may be necessary, shall 
undertake comprehensive studies for the rehabilitation and/or construction of, but not 
limited to, such railway Iines extending to San Fernando, La Union to Laoag, Ilocos 
Norte to Metro Manila passing through Cagayan , Isabela , Nueva Viscaya, Nueva 
Ecija, and Bulacan; south line rail extension from Comun, Camalig , Albay to 
Matnog, Sorsogon through Bulan , Sorsogon; a Libmanan-Daet line,a railway line 
from Iloilo City to Roxas City in Panay, and a line from Iligan City to Cagayan de 
OroCity in Mindanao. 
SECTION 7. Board of Directors - The powers of the Authority shall be vested 
in and exercised by a Board of Directors, hereinafter referred to as the "Board", which 
shall be composed of seven (7) members to be appointed by the President of the 
Philippines. 
The Chairman and the three (3) members of the Board shall serve for four (4) 
years while the remaining three (3) members shall serve three (3) years. Any member of 
the Board may be suspended or removed by the President at any time for cause. In the 
event of a vacancy in the Board, the appointees shall serve the unexpired term of the 
predecessor. 
d 
No member of the Board shall be appointed unless he is a natural born citizen of 
the Philippines, at least thirty-five (35) years of age, of good moral character, competent 
And experienced in one or more of the following fields, transport planning, 
engineering, economics management, finance, corporate and transportation law, and 
marketing. 
The Chairman of the Board shall be designated by the President from among the 
members of the Board. 
SECTION 8. Powers and Functions of the Board - The Board shall have the 
following powers and functions; 
A) To formulate policies, plans and programs, projects, rules and regulations to 
8) To direct the management, operations and administration of the Authority; 
C) To create offices or position necessary for the efficient operation of the 
Authority; to appoint and fix the remuneration and other emoluments of 
subordinate officers and personnel of the Authority in azcordance with the 
Revised Compensation and Position Classification System, and to remove or 
otherwise discipline such officers/employees for cause in accordance with 
Civil Service Rules and Regulation; 
D) Establish financial and operation performance targets for management as 
basis for evaluating and monitoring corporate performance; 
E) To authorize such expenditure as are in the interest of the effective and 
efficient administration and operation of the Authority; 
F) To exercise such other powers as may be necessary to accomplish the 
purposes for which the Authority was organized. 
carry out effectively the function of the Authority; 
SECTION 9. Management - The general conduct of the operation and 
management of the Authority shall be vested in a President who shall serve as the Chief 
Executive Officer primarily for carrying out of the program of the Authority and the 
policies of the Board. 


The President/Chief Executive Officer must be naturaI-bop citizen, at least 
thirty five (35) years of age on the day of the appointment, of good moral 
character and with recognized executive ability and competence in the field of 
transportation, business administration, management, finance or law. She /He 
shall be appointed by the President of the Republic of the Philippines and shall 
serve for a term of six (6) years. 
SECTION 10. Duties and Responsibilities of the President - The 
President/Chief Executive Officers of the Authority shall have the following duties and 
responsibilities; 
A) To execute, administer and implement the policies, programs, plans, 
guidelines, rules and regulations issued and adopted by the Board; 
B) To direct and supervise the operation and administration of the,NRA; 
C) To determine, with the approval of the Board, the staffing pattern and the 
number of personnel of the NRA; 
D) To direct and supervise the preparation of the agenda for the meeting of 
the Board, and to submit for the consideration of the Board such policies 
and measures as he believes necessary to carry out,the purposes and 
objective of this Act; 
E) To represent the Authority in all dealing with other offices, agencies and 
instrumentalities of the Government and with all the persons and entities, 
public or private, domestic or foreign; 
F) To exercise such other powers and function as the Board may assign or 
authorize. 
SECTION 11. Public Accountability - To ensure public accountability, the 
Authority shall be subject to the Audit of Commission on Audit (COA) and shall 
comply with all the generally accepted accounting and auditing rules and regulations 
and those which it may hereafter promuIgate in pursuance of its Constitutional 
Mandate. 
SECTION 12. Merit System - All officials and employees of the Authority shall 
be selected and appointed on the basis of merit and fitness in accordance with the 
comprehensive and progressive merit system to be established by the Authority 
immediately upon its organization in accordance with Civil Service law, rules and 
regulations. The recruitment, transfer, promotion, and dismissal gf all its personnel 
including temporary workers shall be governed by such merit system. 
SECTION 13. Prohibition 
Against 
Issuance of Restraining Orders and 
Preliminary Injunctions or Preliminary Mandatory Injunctions - No court in the 
Philippines, except the Supreme Court, shall have the jurisdiction to issue any 
restraining order, preliminary injunction, or preliminary mandatory injunctions in any 
case, dispute, or controversy involving the NRA, to prohibit any person or persons, 
entity or government official from proceeding with, or continuing the execution or 
implementation of any such contract or project, any lawful activity necessary for the 
execution, implementation or operation of such contract or project. 
SECTION 14. Abolition of the Philippine National Railway and the Light Rail 
Transit Authority - The Philippine National Railway and the Light Rail Transit 
Authority are hereby abolished. Their powers and functions, balance of appropriations 
and all applicable funds, records, assets, and property are transferred to and absorbed 


by the Authority. The Authority shall succeed to all rights and assume all contracts and 
liabilities of the abolished agencies in accordance with the Auditihg code and other 
pertinent laws, rules and regulations. 
The existing qualified personnel of the Philippine National Railways and Light 
Rail Transit Authority covered by Civil Service law, rules and regulations shall be 
absorbed by the Authority. Those incumbents whose positions are not included therein 
or who are not re-appointed be deemed separated from the service or retired under 
existing laws and regulations. 
SECTION 15. Applicability of the Corporation Law - Insofar as they are not 
inconsistent with this Act, the provisions of the Corporation Law shall be applicable to 
the operations of the Authority. 
SECTION 16. Congressional Oversight Committee - A Congressional 
Oversight Committee is hereby created, composed of the Chairperson of the Committee 
on Public Services and the Committee on Government Corporations of the Senate and 
the Chairperson of the Committee on Transportation and Communications and the 
Committee on Government Enterprises and Privatization of 
the House of 
Representatives and four (4) additional members from each House, fb be designated by 
the Senate President and the Speaker of the House of Representatives, respectively. The 
oversight Committee shall, among others, monitor and ensure the effective 
implementation of this Act. 
SECTION 17. SeparabiIity Clause - If any of the provisions of this Act is 
declared invalid, the provisions threof not affected by such declaration shall femain in 
force and effect. 
SECTION 18. Repealing Clause - The provisions of Republic Act No. 4156, as 
amended, Republic Act No.6366, Presidential Decree No. 741, Executive Order No. 603 
and Executive Order No. 210, are hereby repealed. All other laws, decrees, orders, 
proclamations, rule and regulations or parts threof inconsistent with any of the 
provisions of this Act are hereby repealed, amended or modified accordingly. 
SECTION 19. Effectivity Clause - This Act shall take effect fifteen (15) days 
following its publication in at least two (2) newspapers of general circulation. 
APPROVED,