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THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
I .  1 
. 
! ? “  
S E N A T E  
~~ 
Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTRADA 
EXPLANATORY NOTE 
The railway system signaled the dawn of modern civilization, as we know it. 
With the creation of this mass public transport system - still significant incidentally 
despite development of other public transport systems today as a result of breakthroughs 
in transport technologies - certain social and economic activities have become possible, 
paving the way for increased and enhanced interaction of the people across the land 
whether for business, social and practical purposes. 
Unfortunately, our national railway system seems to have taken a back seat, not 
been fully utilized, if not maximized, and neglected despite its importance in the 
country’ s socio-economic development initiatives. 
To begin with, the current mandate given to the Philippine National Railway and 
Light Transit Authority is insufficient in terms of empowering the agency with the 
needed powers and functions to truly modernize our railway system, which in sum, 
cripples our public transport initiatives and hinders whatever infrastructure programs that 
need to be significantly implemented. 
The proposed measure aims to address this concern. Through the establishment of 
a new agency, called the “National Railway Authority,” replete with appropriate powers 
and functions and provided for with adequate funds, the measure shall finally be able to 
promote, accelerate and develop an integrated national railway system that will in turn 
provide and maintain an adequate, efficient, inexpensive, convenient and reliable public 
transport system responsive to the various needs of the people. 
Hence, immediate passage. of this proposed measure is earnestly sought. 
LUISA “LOI” P. ~ E R C I T O  
ESTRADA 
Senator 


THIRTEENTH CONGRESS OF THE 
1 
First 
Republic of the 
Regular Session 
Philippines 
Y 
SENATE 
Introduced by SENAT0.R LUISA "LOP P. EJERCITO ESTRADA 
AN ACT 
ACCELERATING THE DEVELOPMENT OF A NATIONAL RAILWAY SYSTEM, 
CREATING FOR THE PURPOSE THE NATIONAL RAILWAY AUTHORITY, 
PRESCRIBING ITS POWERS, FUNCT IONS AND DUTIES 
Be it enacted, by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the "National Railways Act". 
SEC. 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 needs of the citizenry for the socio-economic development of 
the country. 
SEC. 3. Creation of the National Railway Authority. - There is hereby created a 
corporate body to be known as the National Railway Authority, hereinafter referred to as 
the "Authority". It shall have its principal office in the Metropolitan Manila Area, but 
may establish branches and agencies elsewhere within the country, as may be necessary 
for the proper conduct of its business and discharge of its functions. It shall be under the 
direct control and supervision of the Office of the President. 
SEC. 4. Functions of the NRA. - The Authority shall have the following 
functions: 
(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: 


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; 
Control and develop, construct, operate and maintain railway facilities 
including parking stations and terminals for freight, goods and cargoes; 
Regulate the schedule, frequency, routing and pricing of railway services; 
and 
Call upon any government agency for such assistance as may be necessary 
in the discharge of its duties and functions. 
SEC. 5. General Powers of the NRA. - The NRA will also have the following 
To have continuous succession under its corporate name; 
To sue and be sued; 
To adopt, alter and use a corporate seal; 
To amend, and repeal its By-Laws; 
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; 
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; 
To contract loans, indebtedness, and credit accommodations, in any local 
or convertible foreign currency, from any international financial 
institutions, foreign government entities, and local or foreign private 
commercial banks or similar institutions under terms and conditions 


prescribed by law, rules and regulations, and to issue commercial papers 
and bonds in connection therewith. 
(11) 
To invest its fhids 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; 
6) 
To design, constriict, iiiaiiitain, 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; 
(1) 
To regulate rates of fees, such as but not limited to, parking fees, porterage 
fees and such other fees levied in relation with the use of the railway 
s ys tern; 
(m) To prescribe, fix and regulate the route of railway transport; 
(11) 
To receive donations, grants- bequests 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 file acquisition of real estate by excess condemnation or 
escheat proceedings, including appurtenant properties. The title thereto 
shall be registered in the name of the Goveminent and thereupon all such 
properties shall be entrusted to the Authority as agent of the Government; 
(p) 
To form, establish, organize, and maintain subsidiary corporations or joint 
ventures foi-med in accordance with the Philippine Corporation Code, to 
encourage public and private sector participation in the development of the 
rai 1 way s y stein ; 


To privatize any part or all of the railway system or any subsystem under 
the Authority, in accordance with the law; 
To promulgate such rules and regulations as may be necessary to carry out 
the objectives of this Act; and 
To perform such other powers as may be necessary to carry out the 
purposes of this Act. 
SEC. 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 lines extending from San Fernando, La Union to Laoag, llocos Norte; from 
Laoag, Ilocos Norte to Metro Manila passing through Cagayan, Isabela, Nueva Vizcaya, 
Nueva Ecija, and Bulacan; southline 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 Oro City in 
Mindanao. 
SEC. 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 three (3) members of the Board shall serve for four (4) years 
while the remaining three (3) members shall serve for three (3) years. Any member of the 
Board may be suspended or removed by the President of the Philippines at any time for 
cause. In the event of a vacancy in the Board, the appointees shall serve the unexpired 
term of the predecessor. 
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. 


SEC. 8. Powers and Functions of the Board. - The Board shall have the 
following powers and fhctions: 
(a) 
To forniulate policies, plans and programs, projects, rules and regulations 
to carry out effectively tlie fUnctions of the Authority; 
(b) 
To direct the management, operations and administration of the Authority; 
(c) 
To create offices or positions necessary for the efficient operation of the 
Authority; to appoint and fix the remuneration and other emoluments of 
subordinate officers and persomiel of the Authority in accordance with the 
Revised Compensation and Position Classification System, and to remove 
or otlieiwise discipline such officers/employees for cause in accordance 
with Civil Service Rules and Regulations.; 
(d) 
Establisli financial and operations performance targets for management as 
basis for evaluatjng and monitoring corporate performance; 
(e) 
To authorize such expenditures as are in the interest of the effective and 
efficient administration and operations of the Authority; 
(f) 
To exercise such other powers as may be necessary to accomplish the 
purposes for which the Authority was organized. 
SEC. 9. Management. - The general conduct of the operations and management 
of the Authority shall be vested in a President who shall serve as the Chief Executive 
Officer primarily responsible for carrying out the program of the Authority and the 
policies of the Board. 
The President/Chief Executive Officer must be natural-born citizen, at least 
thirty-five (35) years of age on tlie day of the appointment, of good moral character and 
with recognized executive ability and competence in tlie 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. 
SEC. 10. Duties and Responsibilities of the President. - The President/Chief 
Executive Officer of the of the Authority shall have the following duties and 
responsibilities: 


(0 
SEC 
To execute, administer and implement the policies, programs, plans, 
guidelines, decisions, rules and regulations issued and adopted by the 
Board; 
To direct and supervise the operations and administration of the NRA; 
To determine, with the approval of the Board, the staffing pattern and the 
number of personnel of the NRA; 
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 
objectives of this Act; 
To represent the Authority in all dealings with other offices, agencies and 
instrumentalities of the Government and with all persons and entities, 
public or private, domestic or foreign; and 
To exercise such other powers and functions as the Board may assign or 
authorize. 
1 I. Public Accountability. - To ensure public accountability, the Authority 
shall be subject to the audit of the Commission on Audit (COA) and shall comply with all 
the generally accepted accounting and auditing rules and regulations and those which it 
may hereafter promulgate in pursuance of its Constitutional Mandate. 
SEC. 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 of all its personnel 
including temporary workers shall be governed by such merit system. 
SEC. 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 any contract or project 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, or pursuing any lawful 
activity necessary for the execution, implementation or operation of such contract or 
project. 
SEC. 14. Abolition of the Philippine National Railways 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 fhds, 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 herein abolished agencies in accordance with the Auditing code and 
other pertinent laws, rules and regulations. 
The existing qualified personnel of me 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 shall be deemed separated from the service or retired under 
existing laws and regulations. 
SEC. 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. 
SEC. 16. Congressional Oversight Committee. - A Congressional Oversight 
Committee is hereby created, composed of the Chairpersons of the Committee on Public 
Services and the Committee on Government Corporations of the Senate and the 
Chairpersons 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, to 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. 
z 
SEC. 17. Separability Clause. - 
If any of the provisions of this Act is declared 
invalid, the provisions thereof not affected by such declaration shall remain in force and 
effect. 


SEC. 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, rules and regulations or parts thereof inconsistent with any of the 
provisions of this Act are hereby repealed, amended or modified accordingly. 
SEC. 19. Effectivity Clause. - This Act shall take effect fifteen (15) days 
following its publication in at least two (2) newspapers of general circulation. 
Approved, 
c:\precy\iiational railway system505 1