n
NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE
S.B.NO. 951
•22 RUG-1 §0 '•46
Introduced by SEN. WIN GATCHALIAN
AN ACT
EXPANDING THE POWERS OF LOCAL GOVERNMENT UNITS TO PROVIDE 
LOCAL MASS PUBLIC TRANSPORTATION SYSTEMS, AMENDING FOR THIS 
PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE 
"LOCAL GOVERNMENT CODE OF 1991", AND rOR OTHER PURPOSES
EXPLANATORY NOTE
The Japan International Cooperation Agency (JICA) Follow Up Survey on the 
Roadmap for Transport Infrastructure Development for the Greater Capital Region in 
2017 estimates that the Philippines stand to lose P5.4 billion to traffic daily by 2035 if 
no interventions are made in the National Capital Region (NCR), JICA had previously 
estimated that the Philippines loses P3.5 billion daily due to traffic congestion.1
Given these dire transportation figures, NCR cities, however, have the means 
to invest in its infrastructure projects that can ease traffic congestion in the region. 
An actual manifestation of this capability by NCR cities is what Makati City 
implemented through its Makati Intra-City Subway project, the first of its kind in the 
country. It is being built at no cost to the city through a Public-Private Partnership 
agreement and set for completion in 2025, projected to operate 18 hours a day 
carrying 700,000 passengers daily. The subway project likewise is anticipated to
1 CNN Philippines, "PH traffic may worsen, to cost P5.4 billion daily - JICA," 
https://www.cnnphilippines.eom/news/2018/09/19/JICA-study-traffic-5-billion.html


decrease around 270,000 veh'cles on the road by 2048, mitigating Makati's carbon 
dioxide emissions by 2.3 million metric tons, and is targeted to create 10,000 jobs for 
city residents.2
This initiative is aligned with the United Nations Sustainable Development Goal 
(SDG) 11 which sets to make cities and human settlements inclusive, safe, resilient 
and sustainable by 2030, through access to safe, affordable, accessible and 
sustainable transport systems for all, improving road safety, notably by expanding 
public transport.3 Investing in transportation infrastructure by cities, especially outside 
of the NCR, to attain SDG 11 can be more achievable if there is a corresponding 
adjustment to the current policy support framewor^ provided for by the Local 
Government Code (LGC) of 1991.
Thus, this bill empowers LGUs to create sustainable state-of-the-art mass public 
transportation systems within the concept of livable smart cities, through various 
financial facilities and arrangements involving both private and public entities, even 
without sovereign guaranty, in the same manner as the innovation undertaken by 
Makati City. Moreover, this bill likewise calls for the interconnectivity and integration 
of existing and proposed national and local intermodal transportation systems, as well 
as the creation of a framework for inter-LGUs coordination in the implementation cf 
multi-LGU infrastructure transportation projects.
In view of the foregoing, the passage of this bill is ^ ly sought.
2 Business Mirror, "Makati mayor: Subway project expected to be completed by 2025," 
https://businessmirror.com.ph/2022/05/18/makati-mayor-subway-project-expected-to-be-completed- 
by-2025/
3 United Nations, "Sustainable Development Goals 2030," 
https://www.un.org/development/desa/disabilities/envision2030-goalll.html


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. B. No.
SENATE
951
of tl!f fepcrrtwt
•s m-\ m-M
R^VEBIY:
Introduced by SEN. WIN GATCHALIAN
AN ACT
EXPANDING THE POWERS OF LOCAL GOVERNMENT UNITS TO 
PROVIDE LOCAL MASS PUBLIC TRANSPORTATION SYSTEMS, 
AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991",
AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "LGU 
Transportation Act."
SEC. 2. Section 17 of Republic Act No. 7160, otherwise known as the 
"Local Government Code of 1991", is hereby amended, inserting a new 
subsection (k), as follows:
"SEC. 17. Basic Services and Facilities. - 
(a) XXX
(K) ALL LOCAL GOVERNMENT UNITS SHALL 
ENDEAVOR TO PROVIDE SAFE, AFFORDABLE, 
ACCESSIBLE AND SUSTAINABLE MASS PUBLIC 
TRANSPORTATION SYSTEMS, SUCH AS MODERN


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RAIL-BASED SYSTEMS, PERSONAL RAPID TRANSIT 
SYSTEMS, MONORAILS, RAILV^AYS, SUBWAYS, 
CABLE CARS, TRAMS, BUS RAPID TRANSITS, AND 
OTHER MEANS OF TRANSPORTATION CONSISTENT 
WITH THE CONCEPT OF LIVABLE AND 
SUSTAINABLE SMART CITIES, THROUGH LOANS, 
GRANTS, CAPITAL INVESTMENTS, PARTNERSHIPS, 
AND JOINT VENTURES WITH BOTH PRIVATE AND 
PUBLIC INSTITUTIONS OR ENTITIES, WHETHER 
DOMESTIC OR INTERNATIONAL, WITHOUT 
SOVEREIGN GUARANTY, FOR THE 
CONCEPTUALIZATION, 
ESTABLISHMENT,
OPERATION, AND MAINTENANCE OF MODERN AND 
STATE-OF-THE-ART MASS TRANSPORTATION 
SYSTEMS: PROVIDED, THAT, INTFRCONNECTIVITY 
AND INTEGRATION WITH EXISTING AND 
PROPOSED 
NATIONAL 
INTERMODAL
TRANSPORTATION SYSTEMS AS WELL AS THOSE OF 
OTHER LOCAL GOVERNMENT UNITS SHALL BF 
CONSIDERED, AND CONSULTATIONS WITH 
RELEVANT 
NATIONAL 
GOVERNMENT
TRANSPORTATION AND PLANNING AGENCIES 
SHALL BE CONDUCTED.
"LOCAL GOVERNMENT UNITS MAY, THROUGH 
APPROPRIATE ORDINANCES, CONSOLIDATE OR 
COORDINATE THEIR EFFORTS, SERVICES, AND 
RESOURCES IN THE IMPLEMENTATION OF 
PROJECTS UNDER THE PROGRAM TO ENSURE THE 
ENHANCEMENT OF OPERATIONAL EFFICIENCY, 
EFFECTIVE UTILIZATION OF PUBLIC RESOURCES, 
REALIZATION OF PROJECT OUTCOMES, AND


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STRENGTHENING OF MECHANISMS FOR INTER­
LOCAL COOPERATION. IN SUPPORT OF SUCH 
UNDERTAKING, THE LGUS CONCERNED MAY 
CONTRIBUTE FUNDS, REAL ESTATE, EQUIPMENT,
AND OTHER KINDS OF PROPERTY, AND APPOINT 
OR ASSIGN PERSONNEL UNDER SUCH TERMS AND 
CONDITIONS AS MAY BE AGREED UPON BY THE 
PARTICIPATING LGUS, THROUGH A MEMORANDUM 
OF AGREEMENT."
"Costs may also be charged for the delivery of basic 
services or facilities enumerated in this Section."
SEC. 3. Implementing Rules and Regulations- Within sixty (60) days from 
the effectivity of this Act, the Department of the Intenor and Local Government, 
in consultation with the Department of Budget and Management, the 
Department of Transportation, the Department of Public Works and Highways, 
Department of Finance, the National Economic and Development Authority, 
League of Provinces, League of Cities, League of Municipalities, Liga ng mga 
Barangay and other government agencies concerned, shall jointly promulgate 
the implementing rules and regulations to effectively implement the provisions 
of this Act.
SEC. 4. Separability Clause. - If any provision of this Act is declared 
invalid or unconstitutional, the provisions not affected thereby shall remain in 
full force and effect.
SEC. 5. Repealing Clause. - All laws, presidential decrees, executive 
orders, presidential proclamations, rules and regulations or parts thereof 
contrary to or inconsistent with this Act are hereby repealed or modified 
accordingly.


SEC. 6. Effectivity. -This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation in the 
Philippines.
Approved,