House Bi~ll-No.   5392
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,  jf 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, efflcient]  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.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                           )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus a. Rodriguez
House Bill.ilo.   5392
AN ACT
ACCELERATING     THE     DEVELOPMENT    OF    A    NATIONAL     RAILWAY    SYSTEM,
CREATING      FOR     THE      PURPOSE      THE      NATIONAL      RAILWAY     AUTHORITY,
PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES
Be it erlected by the Senate and  House of Representatives of the  Philippines in Congress
assembled:
SECTION 1. Short Ti.I/e. -This Act shall be known as the  "Wafi.ona/ RaJ./ways Act. "
SEC  2.  Dec/arafi.on  of Po/i.ey -  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.
SEe 3- Creation of the National Railway Authority - There .is heresy orealted 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. Funcffons of the WRA. -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;
(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 stations and terminals for freight, goods and cargoes;
(e) Regulate the schedule, frequency, routing and pricing of railway services; and
(f) Call upon any government agency for such assistance as may be necessary in the
discharge of its duties and functions.
SEC 5. Genera/ Povers of the WRA -The NRA will also have the following:


(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  accommodations,  in  any  local  or
convertible    foreign    currency,    from    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.
(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;
ti) To design, construct, maintain, and operate by itself or by delegation to, or through
contractual  arrangement  such  auxiliary  infrastructure  support facilities  such  as,  but
not  limited  to,  parking  structures  above  or  below  ground,  including  the  means  of
access;
(k) To fix rates of railway transportation fees;
(I) 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 system;
(in) To prescribe, fix and regulate the route of railway transport;
(n) To receive donations,  grants- bequests and assistance of all  kinds and to utilize
the same;
(o)  To  exercise  the  right  of  eminent  domain  in  the  name  of  the  Republic  of  the
Philippines  and   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,   organize,   and   maintain   subsidiary   corporations   or  joint
ventures formed  in  accordance with  the  Philippine  Corporation  Code,  to encourage
public and private sector participation in the development of the rail way system;


(q)  To  privatize  any  part  or all  of the  railway  system  or any  subsystem  under the
Authority, in accordance with the law;
(r) To  promulgate such  rules and  regulations as may be  necessary to carry out the
objectives of this Act; and
(s) To perform such other powers as may be necessary to carry out the purposes of
this Act.
SEC  6.  Conduct of Comprehensi.ve  Studi.es  -  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,  Ilocos  Norte;  from  Laoag,  Ilocos  Norte  to  Metro
Manila   passing  through   Cagayan,   lsabela,   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  lloilo City to Roxas City in Panay and a
line from lligan City to Cagayan de Oro City in Mindanao.
SEC 7. Board of Di-rectors. - 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 appointee 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 Funcfi-ons of the Board. - The Board shall have the following powers
and functions:
(a) To formulate policies, plans and programs, projects, rules and regulations to carry
out effectively the 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
personnel   of  the  Authority   in   accordance  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 Regulations;
(d) Establish financial and operations performance targets for management as basis
for evaluating 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.  «anagemenf -  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  programs  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  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.
SEC  10.  Duties and Responsibilities of the President - The Pres.idenuch.lot ExeoutiIve
Officer of the Authority shall have the following duties and responsibilities:
(a) To execute,  administer and  implement the  policies,  programs,  plans,  guidelines,
decisions, rules and regulations issued and adopted by the Board;
(b) To direct and supervise the operations 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 objectives of this Act;
(e)  To   represent  the  Authority  in   all   dealings  with   other  offices,   agencies   and
instrumentalitjes  of  the  Government  and  with  all  persons  and  entities,   public  or
private, domestic or foreign; and
(f)  To  exercise  such  other  powers  and  functions  as  the   Board   may  assign  or
authorize.
SEC  11.  Pub//.a Accounfabi./i.fy.  -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. Meri.I 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.
S_F£__ _1.3.   Prohpbit.i.on.   Aga.i.nst. Issua_nee   o{   Restraining   Orders   and   Preliminary
/n/.uncfi.ons or Pre/i.mi'r]ary A4andetory /n/.uncfi.or]s - 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 jmplementation  of
any  such  contract  or  project,  or  pursuing  any  lawful  activity  necessary  for the  execution,
implementation or operation of such contract or project.


S.EP.  14..  Ab_o_litio_p  _Of  the  Philippine  National  Railways  and  the  Light  Rail  Transit
AL/thor/-fy -- 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  herein  abolished
agencies   in   accordance   with   the   Auditing   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  shall  be  deemed  separated  from  the  service  or  retired  under existing  laws  and
regulations.
SEC  15.  App//.cab/-//-fy of fAe  Corporal/.on 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.  Congress/-ona/ avers/-gAf Commi.flee -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.
SEC  17.  Separabi.//.fy C/aL/se -  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.  Repea//'ng  C/ause.  -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.  Effect/.w-fy  C/ause.  -  This  Act  shall  take  effect  fifteen  (15)  days  following  its
publication in at least two (2) newspapers of general circulation.
Approved,