SEN&TE 
~~~~~ 
OF THE 
~~~~~~~~~ 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
First Regular Session 
OF THE PHILIPPINES 
Introduced by Senator Flavier 
. ,*.. 
EXPLANATORY NOTE 
The need to revitalize and strengthen our mass transit system is vital to 
the orderly development and continued growth of our country. At present, our 
national roads and highways are not sufficient to serve the needs of the traveling 
public. Neither are they an efficient means of traveling or transporting goods. 
They are congested and are often in disrepair. 
Railways are proven means of travel and transporting goods. Europe, the 
United States and Japan are showcases of the efficiency and reliability of the 
system. 
This bill thus seeks to create a National Railways System to provide and 
maintain an adequate, efficient, inexpensive, convenient public transport system 
responsive to the needs of our country. 


THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
~~~ 
30 p12:03 
OF THE PHILIPPINES 
S E N A T E  
S. No. 
-
4
 
6 '  
Introduced by Senator'Juan Flavier 
AN ACT ACCELERATING THE DEVELOPMENTOF A NATIONAL RAILWAY 
SYSTEM, CREATING FOR THE PURPOSE 
THE NATIONAL RAILWAY 
AUTHORITY, PRESCRIBING ITS POWERS, FUNCTIONS 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 
Metropolitran Manila Area, but may establish branches and agencies elsewhere 
within the countryI 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 andf environmental 
standards; 
(b) 
I 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; 
(d) 
Control and develop, construct, operate and maintain railway 
facilities including parking stations and terminals for freight, goods 
and cargoes; 
Regulate the schedule, frequenLy, 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. 
(c) 
(e) 
(f) 
SEC. 5. General Powers of the NRA. - The NRA will also have the following 
powers: 
(a) 
(b) 
(c) 
(d) 
(e) 
To have continuous succession under its corporate name; 
To sue and be sued; 
To adopt, alter and use a corporate seal; 
To amend and real 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; 
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To enter into any obligation, assign or accept the assignment of, 
and to 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; 
To invest its funds and other assets in such areas iti may deem 
proper in the course of its operations; 
To construct, own, lease, operate and maintain public utilities, 
infrastructure facilities and such auxiliary support service needed to 
develop and operate and maintain a national railways system; 
To design, 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; 
To fix rates of railway transportation fee; 
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; 
To prescribe, fix and regulate the route of railway transport; 
To receive donations, grants, bequests and assistance of all kinds 
and to utilize the same; 
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 
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name of the Government and thereupon all such properties shall be 
entrusted to the Authority as agent of the Government; 
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 railway system; 
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, 
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; 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 
Phi lip pines. 
The Chairman and three (3) members of the Board shall serve for four (4) 
years while the remaining there (3) members shall serve for three (3) years. 
Any member of the Board may be suspended or removed by the President of the 
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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 functions: 
(a) 
To formulate policies, plans and programs, projects, rules and 
regulations to carry out effectively the functions of the Authority; 
To direct the management, operations and administrations of the 
Authority ; 
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; 
(b) 
(c) 
(e) 
To authorize such expenditures as are in the interest of the 
effective and efficient administration and operations of the 
Authority ; 
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(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 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. IO, Duties and Responsibilities of the President. - The President/Chief 
Executive Officer of the Authority shall have the following duties and 
responsibilities: 
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; 
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(e) 
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. 
(9 
SEC. 11. 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 contractor 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. 
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. 
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 funds, records, assets, and property are transferred to ands 
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 reappointed 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 Sewices 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 form 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. 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. 
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SEC. 18, Repealing Clause. - The provisioos 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, 
following its publication in at least two (2) newspapers of general circulation. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
Approved, 
c