EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

~ Introduced by Representative Rufus B. Rodri

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 modemize 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 concer. 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 earnestly sought.

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EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

"Introduced by Representative Rufus B. Rodriguez _
1861

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 - \t 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;

(d) 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

(f) 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:


(a) To have continuous succession under its corporate name;
(b) To sue and be sued;

(c) 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;

(i) 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;

(1) 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, 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 through Bulan,
Sorsogon; a Libmanan-Daet line, a railway line from lloilo 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;

(e) 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;

(c) 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;

(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

(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, shall 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,