FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

044

House Bill No._
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 earestly
sought.

RUFUS B. ROD! EZ

“Ws

MAXIMO B. RODRIGUEZ, JR


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

1044

House Bill No._

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 enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Short 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;

(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;

(4) 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

(® 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;
(b) To sue and be sued;

(©) 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;


() 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;

() 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;

()) 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;

(m) 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;

(0) 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;

(1) To promulgate such rules and regulations as may be necessary to
carry out the objectives of this Act; and

(8) 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, llocos 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 lligan 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 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 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;

(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;

(€) 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
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
President/Chief Executive 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;

(©) 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;

() 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

(f) To exercise such other powers and functions as the Board may
assign or authorize.

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, shail 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 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. 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.

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.