EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
t,1' „ 
of ii
SENATE 
S.B. No. 
5
*19 Jli 16 P2-4A
RH.CEiV:U H '
INTRODUCED BY: SENA l OR EMMANUEL D. PACQUIAO
AN ACT
CREATING THE MINDANAO RAILWAYS AUTHORITY PRESCRIBING ITS 
POWERS, FUNCTIONS, AND DUTIES, AND PROVIDING FOR THE NECESSARY 
FUNDS FOR ITS OPERATION AND SUSTAINABILITY
EXPLANATORY NOTE
A recently released World Bank study acknowledged Mindanao to have what it takes to 
be among the most dynamic places in the Philippines. Mindanao is the second largest island 
group in the country with a population of 22 million (world’s 10th most populous island) and an 
annual population growth rate of 1.9 percent from 2000 to 2010.
Despite being branded as the food basket of the Philippines, inept conveyance of goods 
and services within the island remains a challenge in expediently accomplishing targets of 
agribusinesses and other economic activities. Poor quality of roads, incomplete road networks 
and wanting of a mass transit system, travel cost and food commodity transfer to Mindanao 
agricultural areas has been a daily struggle for the Mindanaoans.
In this regard, it is an established consensus that this longstanding challenge can be best 
fixed through the creation of Mindanao railways which is deemed as the best means to improve 
connectivity in provinces and major cities of Mindanao thereby efficiently maximizing the 
potentials of the
This bill seeks to enliance intercoimectivity and linkages tlirough passengers and freight 
railway transport development, and further boost trade, commerce and tourism in Mindanao. The 
Mindanao Railways Authority will manage and operate the originally proposed development 
phases of the Mindanao Railways Project or MindaRail, which is to be effected in six stages or 
phases that will eventually cover the whole of Mindanao including the inner cities and towns.
In view of the foregoing, the approval of this bill is earne.^
EMMANUEL n: PACQUIAO


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
h'lfi
V,! 
of I'-* ■
SENATE
S.B. No. 
°  u
r t r 4
*19 JUL 16 P2--44
Uld.
INTRODUCED BY: SENATOR EMMANUEL D. PACQUIAO
AN ACT
CREATING THE MINDANAO RAILWAYS AUTHORITY PRESCRIBING ITS 
POWERS, FUNCTIONS, AND DUTIES, AND PROVIDING FOR THE NECESSARY 
FUNDS FOR ITS OPERATION AND SUSTAINABILITY
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled:
CHAPTER 1
TITLE, POLICY AND OBJECTIVES
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22 
23
SECTION 1. Short Title —This Act shall be known as the “Mindanao Railways Authority 
Act of 2019.”
SEC. 2. Declaration of Policy. -  It is hereby declared the policy of the State to attain 
inclusive growth and reduce poverty through infrastructure development aiming to improve 
the sectoral performance of tourism, agriculture and industries; improve goods and services; 
improve the quality of the environment; and increase resilience to climate change and natural 
disasters, through the establishment of a sustainable transport system that is safe, efficient, 
and competitive.
Further, in order to promote comprehensive rural development and assure the human 
right to travel in Mindanao, the State shall (1) create a national government agency to achieve 
its development goals; and (2) provide appropriations for the construction, operation, 
maintenance and more importantly, the sustainability of the railways system and the 
operative budget of the national government agency to be created under this Act.
SEC. 3. Creation and Objectives. - There shall be created the Mindanao Railways Authority 
(MRA), hereinafter called the Authority, which is the national government agency attached to 
tlie Office of the Philippines, with the following immediate objectives:
a) To provide for the railways system in Mindanao connecting as vast an area as 
deemed feasible in consideration of the Mindanao Railways Project (MRP) as 
mandated under the Philippine National Railways Charter or Republic Act No.4156,


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
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
40
41
42
43
44
45
46
47
48
49
50
and, the MRP Feasibility Study as an undertaking of the National Economic and 
Development Authority (NEDA) as Executing Agency and the Department of 
Transportation and Communication (DOTC) as Implementing Agency and funded 
under the General Appropriations Act of FY 2017;
b) To initiate the provisions of “An Act Facilitating The Acquisition Of Right-Of- 
Way Site or Location For National Government Infrastructure Projeets” or R.A. No. 
10752 upon effectivity of this Act; and
c) To call upon all concerned National Government Agencies and Local Government 
Units to render technical and administrative support for the implementation of the 
provisions of this Act.
CHAI’TER II
NATURE, SPECIFIC AND GENERAL POWERS
SEC. 4. Name and Domicile. - To carry out the foregoing transportation policy, the 
Mindanao Railways Authority, shall be primarily responsible for the construction, operation 
and maintenance of a railways transportation system in Mindanao. It shall have its main 
office in the City of Davao, and shall have such branches and agencies within or outside the 
Philippines as may be necessary for the proper conduct of its business.
SEC. 5. Purposes and Specific Powers. 
following purposes and specific powers:
The Mindanao Railways Authority shall have the
a) To hold the assets of the Philippine National Railways, and to succeed to, or 
acquire, maintain and operate such grants, concessions and franchises as are now held 
and enjoyed by the PNR but limited only to those located in Mindanao among the 
aforementioned;
b) To own or operate railroads, tramways, and other kinds of land transportation, 
vessels and pipelines, for the purpose of transporting, for consideration, passengers, 
mail and property between any points in Mindanao; and
c) As an auxiliary to its main purpose, to own and/or operate powerhouses, hotels, 
restaurants, terminal and warehouses; to manufacture rolling stock, equipment, tools 
and other appliances; and, to construct and operate toll viaducts and toll tunnels, in 
connection with its railroad lines.
SEC. 6. General Powers. - The Authority shall have the following general powers:
a) To have continuous succession under its corporate name, until otherwise provided 
by law;
b) To prescribe, amend, and/or repeal its by-laws;
c) To adopt and use a seal and alter it at its pleasure;
d) To sue and be sued;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
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
40
41
42
43
44
45
46
47
48
49
50
e) To contract any obligation or enter into, assign or accept the assignment of, and 
vary or rescind any agreement, contract or obligation necessary or incidental to the 
proper management of the Authority;
f) To borrow funds from any source, private or public, foreign or domestic, and to 
issue bonds and other evidence of indebtedness, the payment of which shall be 
guaranteed by the National Government, subject to pertinent borrowing laws;
g) To acquire, receive, take and hold by bequest, devise, gift, purchase or lease, either 
absolutely or in trust for any of its purposes, from foreign and domestic sources, any 
assets, grants or property, real or personal, subject to such limitations as are provided 
in existing laws; to convey or dispose such assets, grants, or properties, movable and 
immovable; and invest and/or reinvests such proceeds and deal with and expand its 
assets and income in such a manner as will best promote its objectives;
h) To improve, develop or alter any property held by it;
i) To carry on any business, either alone or in partnership with any other person or 
persons;
j) To employ an agent or contractor or perform such things as the Authority may 
perform;
k) To exercise the right of eminent domain, whenever the Authority deems it 
necessary for the attainment of its objectives;
l) To prescribe rules and regulations in the conduct of its general business as well as 
to fix and implement the terms and condition of its related activities;
m) To determine the fares payable by persons travelling on the rail system, in 
consultation with the Department of Transportation and the NED A;
n) To establish, operate, and maintain branches or field offices when required by the 
exigencies of its business;
o) To determine its organizational structure and the number, positions and salaries of 
its personnel, subject to pertinent organization and compensation law; and
p) To exercise such powers and perform such duties as may be necessary to carry out 
the business and purposes for which the Authority was established or which, from 
time to time, may be declared by the Board of Directors to be necessary, useful, 
incidental or auxiliary to accomplish such purposes; and generally, to exercise all 
powers of any Authority under the Corporation Law that are not inconsistent with the 
provisions of this Act, or with orders pertaining to government corporate budgeting, 
organization, borrowing, or compensation.
CHAPTER III
THE MRA BOARD OF DIRECTORS


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
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
40
41
42
43
44
45
46
47
48
49
50
SEC. 7. The MRA Board of Directors. - To carry out the purposes of this Act, the MRA shall 
be directed and controlled by a Board of Directors. It shall be composed of the following 
members:
a) Secretary of Transportation, as Chairperson;
b) MRA Administrator, as Vice-Chairperson;
c) Secretary of Finance;
d) Secretary of Economic Planning, Director General of the NEDA;
e) Secretary of Public Works and Highways; and
f) Two representatives from the private sector who shall each be selected from the 
members of the Philippine Institute of Civil Engineers (PICE) and the Philippine 
Society of Mechanical Engineers (PSME), to be appointed by the President of the 
Philippines who shall select from three (3) nominees submitted separately by the 
PICE and PSME. They shall serve a non-extendible single term of three (3) years.
The officials next in rank to, or such officials duly designated by, the regular 
members shall serve as alternate members, except that, in the absence of the Chairman, the 
Board shall elect a temporary presiding officer. The alternate members shall attend meetings 
of the Board and committees assigned to them by their principals and receive the 
corresponding per diems, whenever their principals are absent or said positions are vacant.
SEC. 8. Per Diem. - The members of the Board shall not receive any compensation but shall 
be provided with per diem at rates allowed under existing rules and regulations.
SEC. 9. Powers and Duties of the Board of Directors. - The Board of Directors shall have the 
following powers and duties:
a) To prescribe, amend and repeal, with the approval of the Administrator, the by­
laws, rules and regulations governing the manner in which the general business of the 
Authority may be exercised, including provisions for the formation of such 
committee, or committees as the Board of Directors may deem necessary to facilitate 
its business;
b) To appoint and fix the compensation of the Administrator and of the other officers 
of the Authority, with the approval of the President and the Director General of 
NEDA. The Board by a majority vote of all the members, may, for cause, and with 
the approval of the President of the Philippines, suspend and or remove the 
Administrator;
c) To approve the annual and such supplemental budgets of the Authority which may 
be submitted to it by the Administrator from time to time.
SEC. 10. Suspension and Removal of Directors. -  Any member of the Board of Directors 
may be suspended or removed by the President of the Philippines.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
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
40
41
42
43
44
45
46
47
SEC. 11. Prohibited for Board Members. — No chairman or member of the Board of 
Directors shall at the same time serve in the Authority in any capacity whatsoever other than 
as chairman or member thereof, unless otherwise authorized by the President of the 
Philippines or any existing law.
CHAPTER IV
SEC. 12. The Administrator. 
Administrator.
THE ADMINISTRATOR
The management of the Authority shall be vested in the
SEC. 13. Powers and Duties of the Administrator. -  The Administrator shall have the 
following powers and duties:
a) To direct and manage the affairs and business of the Authority on behalf of the Board 
of Directors, and subject to its control and supervision;
b) To sit in all meetings of the Board of Directors, as Vice Chairman, and participate in 
all deliberation, with the right to vote, to preside any meetings for or in the absence of 
Chairman;
c) To submit within sixty days after the close of each fiscal year an annual report, 
through the Board of Directors, to the office of the President of the Philippines and 
the Congress of the Philippines;
d) To appoint and fix the number and salaries, with the approval of the Board of 
Directors, of such subordinate personnel as may be necessary for the proper discharge 
of duties and function of the Authority, and with the approval of the Board of 
Directors, to remove, suspend, or otherwise discipline, any subordinate employee of 
the Authority; and
e) To perform such other duties as may be assigned to him by the Board of Directors 
from time to time.
SEC. 14. Appointment and Promotion. -  In the appointments and promotion of officers and 
employees, merit and efficiency shall serve as basis, and no political test or qualification 
shall be prescribed and considered for such appointments or promotion. Officers and 
employees shall be subject to the Civil Service Crew, rules and regulations.
CHAPTER V
MANDATED APPROPRIATIONS
SEC. 15. Appropriations. To carry out the purposes of this Act, the amount of One Billion 
Pesos (PI,000,000,000.00) is hereby authorized to be appropriated for the initial operation


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
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
40
41
42
43
44
45
46
47
48
of the Mindanao Railways Authority. Therefore, the annual expenditures including Capital 
Outlays of the Authority shall be provided in the General Appropriations Act.
CIlAl’TER VI
TAXES, DUTIES AND CHARGE
SEC. 17. Exemptions from taxes, duties, customs bonds and port charges.- The authority is 
hereby exempt from payments of all national and local taxes upon its capital, franchises, right 
of way, earnings and all other property owned or operated by it and of all railways materials, 
supplies and equipment imported into the Philippines for and by the Authority. This 
exemption shall extend to port charges upon vessel whose entire cargo consists of material 
for the construction equipment of the authority and on other vessels to such contraction or 
equipment may bear to the tonnage of the entire cargo of the vessel; and such exemption shall 
further extend to filling of general importer’s and general documentary bonds and warehouse 
bonds for the operation of its warehouse, whether bonded warehouse or general order store.
SEC. 18. Tax-exempt loans. The project and program loans to be obtained by the national 
government for the purposes of this Act shall be exempt from the payment of all national and 
local taxes.
CHAPTER VII 
AUDIT AND REPORTS
SEC. 19. Audit Personnel and Reports. -  The Authority shall be subject to the Commission 
on Audit (COA) which shall have the power, authority and the duty to examine, audit, and 
settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds 
and property of the Authority.
a) Personnel. -  The Chairman of the COA shall appoint a representative who shall be the 
Auditor of the Authority, and the necessary personnel to assist said representative in 
the performance of such duties. The number of personnel and corresponding salaries 
of the Auditor and the personnel shall be determined by the COA chairman, subject to 
appropriation by the Board of Directors. In the case of disagreement, the matter shall 
be final. Said salaries and all other expenses of maintaining the Auditor’s office shall 
be paid by the Authority.
b) Report. The financial transaction of the Authority shall be audited in accordance with 
law. administrative regulations, and the principles and procedures applicable to the 
commercial corporate transaction. A report of audit for each for each Fiscal year, by 
the representative of the COA chairman, thought the latter, to the Board of Directors 
of the Authority, and Copies thereof shall be furnished the President of the 
Philippines, the secretary of Economic Plaruiing, the Senate president and the Speaker 
of the House of Representatives. The report shall be set forth tlie scope of the Audit 
and shall include a statement and surplus or deficit analysis; statement of income and 
expenses; a statement of sources and application of funds; and such comments and


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
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
40
41
42
43
44
45
46
47
48
49
information as may be necessary, together with such recommendations with respect 
tliereto as may be advisable, including a report of any program, expenditures, or other 
financial transaction or undertaking observed in the course of audit, which in the 
opinion of the Auditor, has been carried out or made authority of Law.
SEC. 20. Legal Department. - The Authority shall have its own legal department, the Chief 
and members of which shall be appointed by the Administrator with the approval of the 
Board of Directors.
SEC. 21. Exemption from the LTFRB Law. - The Authority shall not be subject to the 
authority, supervision and control of the Land Transportation Franchising and Regulatory 
Board (LTFRB), created under Executive Order No. 202, Series of 1987.
SEC. 22. Strikes During National Emergency. - The provisions of law to the contrary 
notwithstanding, in cases of national emergency, or when in the opinion of the President of 
the Philippines, the national security or interest is in imminent danger, employees and 
laborers of the Authority shall not strike for the purposes of securing changes or modification 
in their terms and conditions of employment during said period of emergency; Provided, 
however. That during the implementation of this Act, management and labor should always 
strive to maintain industrial peace by availing of and exhausting all methods of resolving all 
labor disputes to ensure the continuous, effective and successful establishment of the 
Mindanao Railways: Provided, further. That the Authority may enter into collective 
bargaining agreements, one for personnel of supervisory rank and the other for personnel of 
non-supervisory rank regardless of the number of recognized unions which may be or might 
have been organized therein.
SEC. 23. Applicability of the Corporation Law. - The provisions of the Corporation Law 
which are not inconsistent with the provisions of this Act, shall be applicable to the 
Authority.
SEC. 24. Implementing Rules and Regulations.—The Department of Transportation, in 
consultation with concerned government agencies and stakeholders, shall promulgate the 
implementing rules and regulations of this Act, within sixty (60) days from the effectively of 
this Act.
SEC. 25. Congressional Oversight Committee. - A Congressional Oversight Committee, 
hereinafter referred to as the "Committee", is hereby constituted in accordance with the 
provisions of this Act. The Committee shall be composed of the Chairman of the Senate 
Committee on Public Services and Chairman of the House Committee on Transportation 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 Committee shall, among 
others, in aid of legislation:
(a) Monitor and ensure the proper implementation of this Act;
(b) Review the collection performance of the Authority;
(c) Review the proper implementation of the programs of the Authority and the use of its 
collected fund.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22 
23
In furtherance of the hereinabove cited objectives, the Committee is empowered to 
require the Authority to submit all pertinent information including, but not limited to, its 
collection performance data and its annual audited financial statements certified by the 
Commission on Audit.
The Congressional Oversight Committee shall be in existence for a period of five (5) 
years, and thereafter, its oversight functions shall be exercised by the Senate Committee on 
Public Services and tlie House Committee on Transportation acting separately.
SEC. 26. Separability Clause. -  If any portion of this Act is declared unconstitutional or 
invalid, the portions or provisions which are not affected shall continue to be in full force and 
effect.
SEC. 27. Repealing Clause. - All laws, decrees, executive orders and rules and regulation or 
parts thereof which are inconsistent with this Act are hereby repealed or modified 
accordingly.
SEC. 28. Effectivity. -  This Act shall take effect fifteen (15) days following its publication in 
the Official Gazette or in any two (2) newspapers of general circulation.
Approved,