REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5396

House Bill No.

Introduced by Pangasinan Fifth District Representative
HON. RAMON V. GUICO III

EXPLANATORY NOTE

The recent LRT 2 debacle is only one among a series of rail incidents and mishaps of a rapidly
deteriorating railway system. The 9-month suspension of LRT 2 operations from Santolan to Anonas
Station had brought much chagrin to the daily Filipino commuter and has exacerbated the already
dismal traffic conditions in Metro Manila. And, as if the damage done had not been severe enough, the
LRTA revealed that they do not have a disaster recovery plan prepared to immediately address the
problem, which most probably explains the ridiculous 9-month long suspension.

In matters of public transportation, this level of service response and delivery is unacceptable. A
sliver of gap in railway management and safety practices could mean tragedy for too many people.
Moreover, considering that rail transportation is one of the government's main squeeze to address
Metro Manila’s traffic woes, a largely disparate, incoherent, and uncoordinated railway system
certainly would not be of any help. Following best practices from multiple countries, we find that a
dedicated agency for railroad administration is as necessary as investing heavily on rail equipment and
infrastructure.

‘As such, the establishment of the Philippine National Railroad Administration (PNRA) is
proposed. The PNRA shall be the foremost authority in rail management in the country and shall be
given the power to formulate and implement a National Rail Plan, including the evaluation and
integration of existing rail policies, programs, and projects unto the said plan in order to achieve its
goal of providing for the country a reliable, safe, and effective rail transport service. It is also tasked to
execute regulatory and inspection functions in five areas of rail safety disciplines, namely: hazardous
materials; motive power and equipment; operating practices; signal and train control; and track. This is
to prevent any future train incidents from happening or, should the worst come, be able to mitigate the
impact of any such incidents.

It is said that failure is the seed of growth. If so, we have had more than our fair share of failures
in improving and maintaining the Philippine railway system and the only thing that is left is for us to
lea and grow from our erring ways. Let the PNRA be the budding attempt to pursue long-term
growth.

In view of the foregoing, immediate passage of this bill is earnestly sought.

Rep. Ramon V. Guicp IIT


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill Ne 5396

Introduced by Pangasinan Fifth District Representative
HON. RAMON V. GUICO II

AN ACT
ESTABLISHING THE PHILIPPINE NATIONAL RAILROAD ADMINISTRATION
DEFINING ITS POWERS, FUNCTIONS, AND RESPONSIBILITIES, APPROPRIATIN®
FUNDS THEREFOR, AND FOR OTHER PURPOSES

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 “Railroad Administration Act.”

SEC. 2. Declaration of Policy.—It is hereby declared the policy of the State to promote the
fective and efficient management of the country’s railroad network to ensure rail safety, reliable rail
service delivery, innovation in rail practices and technologies, and integrated rail planning for the
whole country.

SEC. 3. Establishing the National Railroad Administration.—There shall be established under
the Department of Transportation (DOTr) a Philippine National Railroad Administration (PNRA) the
purpose of which is to promulgate and enforce rail safety regulations and policies; conduct railroad
assistance programs; undertake research and development initiatives with an end goal of improving
railroad safety and national rail transportation policy; and consolidate government support of rail
transportation activities.

SEC. 4. Powers and Functions.—To carry out the purposes of this Act, the Administration,
through its Board hereinafter constituted, is hereby vested with the following powers:

a. To formulate and adopt a National Rail Plan to develop a long-term rail plan
consistent with the rail needs of the country as determined by the Secretary in order
to promote an integrated, cohesive, efficient, and optimized national rail system for
the movement of goods and people;

b. To evaluate the existing rail policies, programs, and projects of all agencies and
instrumentalities having to do with rail industry development and to integrate and
coordinate the various facets of such activities with the view of attaining efficiency
and effectiveness in the implementation of the National Rail Plan;

c. To execute regulatory and inspection responsibilities for five (5) rail safety
disciplines focusing on compliance and enforcement in:


1. Hazardous materials
2. Motive power and equipment
3. Operating Practices

4. Signal and Train Control

5. Track

|. To collaborate with other agencies and rail stakeholders to develop comprehensive

strategies for maintaining current rail services and infrastructure, strategically
expanding and improving the national rail network to accommodate growing travel
and freight demand, and providing leadership in national and regional system
planning and development;

. To ensure safe, efficient, and reliable movement of people and goods by rail through

basic and applied research, and development of innovations and solutions;
To develop safety improvements and encourage expansion and upgrade of passenger
and freight rail infrastructure services through competitive and dedicated grant
programs;

. To receive and administer funds provided by law; to draw, with the approval of the

Secretary, funds from existing appropriations as may be necessary in support of its
program, and to accept donations, grants, gifts and assistance of all kinds from
international and local private foundations, associations or entities, and to administer
the same in accordance with the instructions or directions of the donor or, in default
thereof, in the manner it may in its direction determine;

. To borrow the necessary funds from local and international financing institutions,

and to issue bonds and other instruments of indebtedness, subject to existing rules
and regulations of the Bangko Sentral ng Pilipinas, for the purpose of financing
programs and projects deemed vital and necessary for the early attainment of its
goals and objectives;

To formulate and recommend for adoption by other agencies and instrumentalities,
such programs and projects as are necessary to accelerate rail industry development;
To enter into, make and execute contracts of any kind as may be necessary or
incidental to the attainment of its purposes and, generally, to exercise all the powers
necessary to achieve the purposes and objectives for which it is organized.

SEC. 5. Governing Board.—The Administration shall be governed by a Board of five (5)
members, who shall meet as often as necessary, composed of:

. Undersecretary for Railways as Chairman;

. Undersecretary, Philippine Railway Institute as Vice Chairman;

DOST Undersecretary for Science and Technological Services; and

|. Two (2) representatives at-large of the private sector, to be appointed by the
President, who shall have recognized competence in the many facets of the
rail justry and be leaders of the industry acknowledged by both the
government and private sector members of the rail development community.

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SEC. 6. Administrator of the PNRA.—The management of the Administration shall be vested
in an administrator, to be appointed by the Board, who shall have the following powers and duties:


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a. To direct and manage the affairs and business of the administration, in accordance
with policies and plans enunciated by the Board;

b. To recommend and, upon approval of the Board, to establish and maintain an
organization with specific functions and responsibilities for each operating unit;

c. To appoint and fix the number, with the approval of the Board, of such officials and
employees of the Administration as may be necessary for the proper discharge of its
functions and responsibilities, and with the approval likewise of the Board, to
remove, suspend, and otherwise discipline, for just cause, any subordinate personnel
thereof;

d. To prepare and submit thirty days after the close of each fiscal year an annual report
to the President, and such periodic reports of activities as may be required from time
to time; and

e. To perform such other duties as may be designated to him by the Board from time to
time.

SEC. 7. Appropriations.— To carry out the purposes of this Act an initial fund of one billion
Pesos (P1,000,000,000) is hereby appropriated out of any funds in the National Treasury not otherwise
appropriated. Thereafter, the expenses of the PNRA, for the purposes above-described, shall be
provided for in the annual General Appropriation Act.

SEC. 8. Repealing Clause.—All laws, decrees, executive orders or parts thereof inconsistent
with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 9. Separability Clause.—If any part or provision of this Act is declared invalid or
unconstitutional, the other parts not otherwise affected shall remain in full effect and force.

SEC. 10. Effectivity.—This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or at least two newspapers of general circulation.

Approved,