TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
25 JLIL-9 P3 54
SENATE 
Senate Bill No. 293
I'll1':
Introduced by Senator Juan Miguel F. Zubiri
AN ACT
CREATING THE MINDANAO RAILWAYS AUTHORITY (MRA), PRESCRIBING ITS 
POWERS, FUNCTIONS AND DUTIES, AMENDING FOR THE PURPOSE REPUBLIC ACT 
NO. 4156 ENTITLED "AN ACT CREATING THE PHILIPPINE NATIONAL RAILWAYS, 
PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES, AND PROVIDING FOR THE 
NECESSARY FUNDS FOR ITS OPERATION" AS AMENDED BY R. A. NO. 6366, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
This Bill seeks to implement the Mindanao Railways Project through the creation of a 
national government agency attached to the Department of Transportation. This agency is to 
be distinct and separate from the Philippine National Railways whose scope and coverage, as 
provided in Republic Act No. 4156, is proposed to be amended.
The Philippines, overall, is currently ranked as one of the countries with an Emerging 
Economy. However, the internal development of the archipelago has yet to be closely and 
critically assessed. The Philippines still needs to meet the distinct needs of different regions that 
lag behind the country's overall economic outlook in terms of infrastructural development, 
integration, and access to fundamental services.
Mindanao is a resource-rich geographical region of around 97,630 square kilometers. 
However, this is an area that greatly suffers from a lack of focused inputs of public investments. 
This region that is comprised of mainly rural areas and a few urban and urbanizing areas are 
physically hard to access from one point to another, which loses the benefits of market and 
public services integration existing in other geographic regions like Central Luzon and Mega 
Manila.
The Constitution mandates in Section 21, Art. II Declaration of Principles and State 
Policies that the State shall promote comprehensive rural development. The Constitution also 
guarantees the basic human right to travel. In fact. Republic Act No. 4156 had set aside funds 
for the implementation of the Mindanao Railways Project, highlighting that these mandates are 
still present in the economic plans of the country.
In 2017, the National Economic and Development Authority (NEDA) has initiated a 
Feasibility Study, crucial for the implementation of this Act. The Terms of Reference of the NEDA 
for the MRP declares, as follows:


"The proposed railway transport service will play a major role towards 
improvement of Mindanao's intra island accessibility, linkages and seamless 
multimodal transport networks. The island is strategically located and has potential 
as a major transshipment point and center of trade in the Brunei Darussalam- 
Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) region.
Enhanced interconnectivity and linkages through passenger and freight 
railway transport development will further boost tourism, trade and commerce in 
the island; bring opportunities for the acceleration of local area development; and 
expansion of local markets for more efficient movement of goods and people to 
promote productivity and trade competitiveness."
Not diminishing the importance of the economic and material benefits that the railway 
system will bring about, the most compelling reason for it is the upliftment of the living conditions 
of more than 26 million Mindanaoan. A well-planned economic development scheme will realize 
the peace, stability, and security of the people living in Mindanao. The development of the 
necessary infrastructures will give the development scheme the impetus needed. This can be 
realized through the enactment of the Mindanao Railways Project to be established and managed 
by its own Mindanao Railways Authority.
The Authority to be established shall be covered by measures that strictly ensure 
transparency and public accountability. This body will be under the lens of the Commission on 
Audit and undergo the monitoring tools of the NEDA such as Value Engineering and Value 
Analysis. Likewise, the funding provisions shall be guided by the laws that govern the borrowing 
power of the President, at the same time it mandates the Department of Budget and 
Management to ensure that funding requirements overcome the hurdles as generally expected 
for critical infrastructure programs and projects.
The Mindanao Railways Project will be among many critical infrastructures that will 
impress upon the broader community that our archipelago is one that is integrated physically, 
thus Filipinos have a high chance of being a truly united country.
In view of the foregoing, approval of this Bill is earnestly sought.
N MIGUEL F. ZUBIRI


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
25 JUL-9 P3S5
Senate Bill No.
293
I'!:: I
Introduced by Senator Juan Miguel F. Zubiri
AN ACT
CREATING THE MINDANAO RAILWAYS AUTHORITY (MRA), PRESCRIBING ITS 
POWERS, FUNCTIONS AND DUTIES, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NO. 4156 ENTITLED "AN ACT CREATING THE PHILIPPINE NATIONAL 
RAILWAYS, PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES, AND 
PROVIDING FOR THE NECESSARY FUNDS FOR ITS OPERATION" AS AMENDED 
BY R. A. NO. 6366, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
CHAPTER I
2 
TITLE, POLICY AN D OBJ ECTIVES
3 
SECTION 1. Short Title. --This Act shall be known as the "Mindanao Railways
4 
Development Act of 2019".
5 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
6 
attain inclusive growth and reduce poverty through infrastructure development aiming to
7 
improve the sectoral performance of tourism, agriculture and industries; improve goods
8 
and services; improve the quality of the environment; and increase resilience to climate
9 
change and natural disasters, through the establishment of a sustainable transport
10 
system that is safe, efficient, and competitive.
11 
Further, in order to promote comprehensive rural development and assure the
12 
human right to travel in Mindanao, the State shall (1) create a national government
13 
agency to achieve its development goals; and (2) provide appropriations for the


1 
construction, operation and maintenance of the railways system and the operative budget
2 
of the national government agency to be created under this Act.
3 
SEC. 3. Creation and Objectives. - There shall be created the Mindanao
4 
Railways Authority, hereinafter called the Authority, which is a national government
5 
agency attached to the Department of Transportation, with the following immediate
6 
objectives:
7 
a) To provide for the railways system in Mindanao connecting as vast an area as
8 
deemed feasible in consideration of the Mindanao Railways Project (MRP) as mandated
9 
under the Philippine National Railways Charter or Republic Act No. 4156, and, the MRP
10 
Feasibility Study as an undertaking of the National Economic and Development Authority
11 
(NEDA) as Executing Agency and the Department of Transportation (DOTr) as
12 
Implementing Agency and funded under the General Appropriations Act;
13 
b) To initiate the provisions of An Act Facilitating The Acquisition Of Right-Of-Way
14 
Site Or Location For National Government Infrastructure Projects or R. A. No. 10752 upon
15 
effectivity of this Act; and
16 
c) To call upon all concerned National Government Agencies and Local Government
17 
Units to render technical and administrative support for the implementation of the
18 
provisions of this Act.
19 
CHAPTER II
20 
NATURE, SPECIFIC AND GENERAL POWERS
21 
SEC. 4. Name and Domicile. —To carry out the foregoing transportation policy,
22 
the Mindanao Railways Authority, shall be primarily responsible for the construction,
23 
operation and maintenance of a railways transportation system in Mindanao. It shall have
24 
its main office in the City of Davao, and shall have such branches and agencies within or
25 
outside the Philippines as may be necessary for the proper conduct of its business.
26 
SEC. 5. Purposes and Specific Powers.-^he Mindanao Railways Authority
27 
shall have the following purposes and specific powers:


1 
a) To hold the assets of the Philippine National Railways, and to succeed to, or
2 
acquire, maintain and operate such grants, concessions and franchises as are now held
3 
and enjoyed by the PNR but limited only to those located in Mindanao among the
4 
aforementioned;
5 
b) To own or operate railroads, tramways, and other kinds of land transportation,
6 
vessels and pipelines, for the purpose of transporting, for consideration, passengers,
7 
goods, mail and property between any points in Mindanao; and
8 
c) As an auxiliary to its main purpose, to own and/or operate powerhouses, hotels,
9 
restaurants, terminals and warehouses; to manufacture rolling stock, equipment, tools
10 
and other appliances; and, to construct and operate toll viaducts and toll tunnels, in
11 
connection with its railroad lines.
12 
SEC. 6. Genera! Powers.-^hQ Authority shall have the following general
13 
powers:
14 
a) To have continuous succession under its corporate name, until otherwise
15 
provided by law;
16 
b) prescribe, amend, and/or repeal its by-laws;
17 
c) To adopt and use a seal and alter it at its pleasure;
18 
d) To sue and be sued;
19 
e) To contract any obligation or enter into, assign or accept the assignment of,
20 
and vary or rescind any agreement, contract or obligation necessary or incidental to the
21 
proper management of the Authority;
22 
f) To borrow funds from any source, private or public, foreign or domestic, and to
23 
issue bonds and other evidence of indebtedness, the payment of which shall be
24 
guaranteed by the National Government, subject to pertinent borrowing laws;
25 
g) To acquire, receive, take and hold by bequest, devise, gift, purchase or lease,
26 
either absolutely or in trust for any of its purposes, from foreign and domestic sources,
27 
any assets, grant or property, real or personal, subject to such limitations as are provided


1 
in existing laws; to convey or dispose of such assets, grants, or properties, movable and
2 
immovable; and invest and/or reinvest such proceeds and deal with and expand its assets
3 
and income in such a manner as will best promote its objectives;
4 
h) To improve, develop or alter any property held by it;
5 
i) To carry on any business, either alone or in partnership with any other person
6 
or persons;
7 
j) To employ an agent or contractor or perform such things as the Authority may
8 
perform;
9 
k) To exercise the right of eminent domain, whenever the Authority deems it
10 
necessary for the attainment of its objectives;
11 
I) To prescribe rules and regulations in the conduct of its general business as well
12 
as to fix and implement the terms and conditions of its related activities;
13 
m) To determine the fares payable by persons travelling on the rail system, in
14 
consultation with the Department of Transportation and the NEDA;
15 
n) To establish, operate, and maintain branches or field offices when required by
16 
the exigencies of its business;
17 
o) To determine its organizational structure and the number, positions and salaries
18 
of its personnel, subject to pertinent organization and compensation law; and
19 
P) To exercise such powers and perform such duties as may be necessary to carry
20 
out the business and purposes for which the Authority was established or which, from
21 
time to time, may be declared by the Board of Directors to be necessary, useful, incidental
22 
or auxiliary to accomplish such purposes; and generally, to exercise all powers of any
23 
Authority under the Corporation Code that are not inconsistent with the provisions of this
24 
Act, or with orders pertaining to government corporate budgeting, organization,
25 
borrowing, or compensation.


CHAPTER III
2 
THE MRA BOARD OF DIRECTORS
3 
Sec. 7. The MRA Board of Directors. -To carry out the purposes of this Act,
4 
the MRA shall be directed and controlled by a Board of Directors. It shall be composed of
5 
the following members:
6 
a) Secretary of Transportation, as Chairperson;
7 
b) MRA Administrator, as Vice-Chairperson;
8 
c) Secretary of Finance;
9 
d) Secretary of Economic Planning, Director General of the NEDA;
10 
e) Secretary of Public Works and Highways; and
11 
f) Two representatives from the private sector who shall each be selected from
12 
the members of the Philippine Institute of Civil Engineers (PICE) and the Philippine Society
13 
of Mechanical Engineers (PSME), to be appointed by the President of the Philippines who
14 
shall select from three (3) nominees submitted separately by the PICE and PSME. They
15 
shall serve a non-extendible single term of three (3) years.
16 
The government representatives in the Board may designate their respective
17 
permanent alternates who shall be officials next-in-rank to them and their acts shall be
18 
considered the acts of their principals. In the absence of the Chairman, the Board shall
19 
elect a temporary presiding officer.
20 
SEC. 8. Per Diem. - The members of the Board shall not receive any
21 
compensation but shall be provided with per diermt rates allowed under existing rules
22 
and regulations.
SEC. 9. Powers and Duties of the Board of Directors. —The Board of
23
24
25
26 
27
Directors shall have the following powers and duties:
a) To prescribe, amend and repeal, with the recommendation 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


1 
committee, or committees as the Board of Directors may deem necessary to facilitate its
2 
business;
3 
b) To appoint and fix the compensation of the Administrator and of the other
4 
officers of the Authority, with the approval of the President. The Board by a majority vote
5 
of all the members, may, for cause, and with the approval of the President of the 
Philippines, suspend and or remove the Administrator; and
c) To approve the annual and such supplemental budgets of the Authority which
8 
may be submitted to it by the Administrator from time to time.
9 
SEC. 10. Suspension and Removal of Directors. --Any member of the Board
10 
of Directors may be suspended or removed by the President of the Philippines.
11 
SEC. 11- Prohibition for Board Members. - No chairman or member of the
12 
Board of Directors shall at the same time serve in the Authority in any capacity
13 
whatsoever other than as Chairman or member thereof, unless otherwise authorized by
14 
the President of the Philippines or any existing law.
15 
CHAPTER IV
16 
THE ADMINISTRATOR
17 
SEC. 12. The Administrator. - The management of the Authority shall be
18 
vested in the Administrator.
19 
SEC. 13. Powers and Duties of the Administrator. -The Administrator shall
20 
have the following powers and duties:
21 
a) To direct and manage the affairs and business of the Authority on behalf of the
22 
Board of Directors, and subject to its control and supervision;
23 
b)To sit in all meetings of the Board of Directors, as Vice-Chairman, and participate
24 
in its deliberation, with the right to vote, and to preside in meetings for or in the absence
25 
of the Chairman;


1 
c) To submit within sixty days after the close of each fiscal year an annual report,
2 
through the Board of Directors, to the Office of the President of the Philippines and the
3 
Congress of the Philippines;
4 
d) To appoint and fix the number and salaries, with the approval of the Board of
5 
Directors, of such subordinate personnel as may be necessary for the proper discharge
6 
of the duties and functions of the Authority, and with the approval of the Board of
7 
Directors, to remove, suspend, or otherwise discipline, for cause, any subordinate
8 
employee of the Authority; and
9 
e) To perform such other duties as may be assigned to him by the Board of
10 
Directors from time to time.
11 
SEC. 14. Appointment and Promotion. - In the appointment and promotion
12 
of officers and employees, merit and efficiency shall serve as basis, and no political test
13 
or qualification shall be prescribed and considered for such appointments or promotions.
14 
Said officers and employees shall be subject to the Civil Service Law, rules and
15 
regulations.
16 
CHAPTER V
17 
MANDATED APPROPRIATIONS
18 
SEC. 15. Appropriation To carry out the purposes of this Act, the amount of
19 
One billion pesos (P1,000,000,000) is hereby authorized to be appropriated for the initial
20 
operation of the Mindanao Railways Authority. Thereafter, the annual expenditures
21 
including capital outlays of the Authority shall be provided in the General Appropriations
22 
Act.
23 
CHAPTER VI
24 
TAXES, DUTIES AND CHARGES
25 
SEC. 17. Exemption from Taxesf Duties, Customs Bonds and Port
26 
Charges.—The Authority is hereby exempt from payment of all national and local taxes
27 
upon its capital, franchises, rights of way, earnings, and all other property owned or


1 
operated by it and of all duties on all railways materials, supplies and equipment imported
2 
into the Philippines for and by the Authority. This exemption shall extend to port charges
3 
upon vessels whose entire cargo consists of materials for the construction or equipment
4 
of the Authority, and, on other vessels to such proportion of the prescribed port charges
5 
as the tonnage of materials for such constructions or equipment may bear to the tonnage
6 
of the entire cargo of the vessel; and such exemption shall further extend to the filing of
7 
general importer's and general documentary bonds and warehouse bonds for the
8 
operation of its warehouses, whether general bonded warehouses or general order store.
9 
SEC. 18. Tax-exempt Loans. --The project and program loans to be obtained
10 
by the National Government for the purposes of this Act shall be exempt from the
11 
payment of all national and local taxes.
12 
CHAPTER VII
13 
AUDIT AND REPORTS
14 
SEC. 19. Audit Personnel and Reports. -The Authority shall be subject to the
15 
Commission on Audit (COA) which shall have the power, authority, and duty to examine,
16 
audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures
17 
or uses of funds and property of the Authority.
18 
a) Personnel. - The Chairman of the COA shall appoint a representative who shall
19 
be the Auditor of the Authority, and the necessary personnel to assist said representative
20 
in the performance of such duties. The number and salaries of the Auditor and said
21 
personnel shall be determined by the the COA Chairman, subject to appropriation by the
22 
Board of Directors. In case of disagreement, the matter shall be submitted to the
23 
President of the Philippines whose decision shall be final. Said salaries and all other
24 
expenses of maintaining the Auditor's office shall be paid by the Authority.
25 
b) Report. - The financial transactions of the Authority shall be audited in
26 
accordance with law, administrative regulations, and the principles and procedures
27 
applicable to commercial corporate transactions. A report of audit for each fiscal year, by


1 
the representative of the COA Chairman, through the latter, to the Board of Directors of
2 
the Authority, and copies thereof shall be furnished the President of the Philippines, the
3 
Secretary of Economic Planning, the Senate President and the Speaker of the House of
4 
Representatives. The report shall set forth the scope of the audit and shall include a
5 
statement of assets and liabilities, capital and surplus or deficit; a statement and surplus
6 
or deficit analysis; statement of income and expenses; a statement of sources and
7 
application of funds; and such comments and information as may be necessary, together
8 
with such recommendations with respect thereto as may be advisable, including a report
9 
of any impairment of capital noted in the audit. The report shall also show specifically
10 
any program, expenditures, or other financial transaction or undertaking observed in the
11 
course of audit, which in the opinion of the Auditor, has been carried out or made without
12 
authority of law.
13 
SEC. 20. Legal Department — The Authority shall have its own legal
14 
department, the chief and members of which shall be appointed by the Administrator
15 
with the approval of the Board of Directors.
16 
SEC. 21. Exemption from the LTFRBLaw. --The Authority shall not be subject
17 
to the authority, supervision and control of the Land Transportation Franchising and
18 
Regulatory Board (LTFRB), created under Executive Order No. 202, Series of 1987.
19 
SEC. 22. Strikes During National Emergency. -The provisions of law to the
20 
contrary notwithstanding, in cases of national emergency, or when in the opinion of the
21 
President of the Philippines, the national security or interest is in imminent danger,
22 
employees and laborers of the Authority shall not strike for the purpose of securing
23 
changes or modification in their terms and conditions of employment during said period
24 
of emergency: Provided, however, That during the implementation of this Act,
25 
management and labor should always strive to maintain industrial peace by availing of
26 
and exhausting all methods of resolving all labor disputes to ensure the continuous,
27 
effective and successful establishment of the Mindano Railways: Provided, further. That
9


1 
the Authority may enter into collective negotiation agreements, one for personnel of
2 
supervisory rank and the other for personnel of non-supervisory rank regardless of the
3 
number of recognized unions which may be or might have been organized therein.
4 
SEC. 19. Applicability of the Revised Corporation Code. - The provisions of
5 
the Corporation Code which are not inconsistent with the provisions of this Act, shall be
6 
applicable to the Authority.
7 
SEC. 21. Implementing Rules and Regulations. -The Department of
8 
Transportation, in consultation with concerned government agencies and stakeholders,
9 
shall promulgate the implementing rules and regulations of this Act, within sixty (60) days
10 
from the effectivity of this Act.
11 
SEC. 22. Congressional Oversight Committee. - There is hereby created a
12 
Congressional Oversight Committee on Railways to be composed of five (5) members
13 
from the Senate, which shall include the chairperson of the Senate Committee on Public
14 
Services, and, five (5) members from the House of Representatives, which shall include
15 
the Chairperson of the House Committee on Transportation. The Congressional Oversight
16 
Committee on Railways shall be jointly chaired by the Chairperson of the Senate
17 
Committee on Public Services and the Chairperson of the House Committee on
18 
Transportation. The Congressional Oversight Committee on Railways shall exercise
19 
oversight on the implementation of this Act.
20 
SEC. 23. Separability Clause. - If any portion of this Act is declared
21 
unconstitutional or invalid, the portions or provisions which are not affected shall continue
22 
to be in full force and effect.
23 
SEC. 24. Repealing Clause. — All laws, decrees, executive orders and rules and
24 
regulations or parts thereof which are inconsistent with this Act are hereby repealed or
25 
modified accordingly.
10


1 
SEC. 25. Effectivity. — This Act shall take effect fifteen (15) days after its
2 
complete publication in at least two (2) newspapers of general circulation and the Official
3 
Gazette.
4 
Approved,
5
11