• 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 2028 
Introduced by SENATOR EDGARDO J. ANGARA 
• 
EXPLANATORY NOTE 
"" 
",' 
The establishment of a national railway system is the solution to the congestion 
and pollution of the metropolitan areas and the traffic problem in the major urban centers 
a1\ over the country. It will provide cheaper, faster, safer and reliable mass transport 
system; facilitate the movement of people, goods and services; decongest the metropolis; 
depollute the metropolitan areas: 
enhance agricultural productivity; encourage 
investments and accelerate industrialization; enhance tourism in the countryside; promote 
inter-regional trade and commerce; decentralize development to the rural areas; reduce 
national dependence on oil imports; reduce the importation of vehicles; reduce the cost of 
road maintenance; facilitate the collection and transportation of garbage; and generate job 
oppOltunities. 
In order for the entire Filipino people to reap the foregoing benefits that they have 
been denied of, and in order to promote the railway industry in the Philippines, which 
will accelerate national progress and prosperity and ensure our country's global 
competitiveness, there is a need, more than ever, to vigorously pursue and, as 
immediately as possible, the establishment of a nationwide railway system that should be 
constructed simultaneously in Luzon, Visayas and Mindanao. Actually, and without fear 
of contradiction, the railways triggered the economic prosperity and stability of Europe, 
United States of America, Russia, China, India, Australia, Japan, and just recently, South 
Korea, Malaysia and Singapore. 
. 
The bill seeks, among others, the creation of a Railway Authority that will unify 
and standardize the development and operations of railways in the Philippines; creation 
of Railway Regulatory Board that will set fare, safety and security standards; transfer of 
Railway Technology thru the establishment of Railway Academy, Railway Training 
Center, Railway Refurbishing Shop and the Railway Equipment Manufacturing Plant; 
creation of a Railway Trust Fund that is dedicated to finance railway projects; and the 
exemption froIn taxation of railway properties. 
The enactment of a National Railway Act has been over-due long before the food 
and fuel crisis that many countries of the whole world now suffer. The Act will ensure an 
efficient and effective mass transport system nationwide that will facilitate the movement 
of people, goods and services around the country. 
1 
! 
" 


As the Filipino people as a nation, aspire for economic power and self-sufficiency 
it! all fields of human endeavors, the establishment of a National Railway System has 
therefore becomes absolutely necessary. 
2 
u/~ 
EDGARDO J. ANGARA 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 2028 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT 
INSTITUTIONALIZING A NATIONAL RAILWAY SYSTEM IN THE 
PHILIPPINES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House 0/ Representatives in Congress 
assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Philippine National Railway Act 
2 
0/2010." 
3 
4 
SEC. 2. Declaration 0/ Principles and Policies. 
5 
6 
a. The State shall promote the railway industry as an instrument for national progress and 
7 
prosperity. 
8 
9 
b. The State shall establish a nationwide railway system that is cost effective, reliable, 
10 
efficient, state-of-the-art, accessible, sustainable and compliant with international 
11 
standards. 
12 
13 
c. The State shall promote the cooperation between the government and the private sector 
14 
including the local government units in the development, implementation and operation 
15 
of railway systems; 
16 
17 
d.The State shall assure the safety and security of the railway riding public. 
18 
• 
19 
SEC. 3. Purposes. - This Act shall have the following purposes: 
20 
21 
22 
23 
24 
25 
1. To provide cheaper, faster, safer, and reliable mass transport system 
2. To facilitate the movement of people, goods and services 
3. To decongest the metropolis 
1 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
4. To de-pollute the metropolitan areas 
5. To enhance agricultural productivity 
6. To encourage investments and accelerate industrialization 
7. To enhance tourism in the countryside 
8. To promote inter-regional trade and commerce 
9. To decentralize development to the rural areas 
10. To reduce national dependence on oil imports 
11. To reduce the importation of vehicles 
12. To reduce the cost of road maintenance 
13. To facilitate the collection and transportation of garbage 
14. To generate job opportunities 
ARTICLE II 
DEFINITION OF TERMS 
28 
SEC. 4. Definitions. - As used in this Act: 
29 
30 
a) Railway - shall mean an undertaking that is operated for the purpose of more of them 
31 
transporting people, goods and services or anyone or by means of rolling stock 
32 
operated on track 
33 
34 
b) Subway- shall mean underground railway. 
35 
36 
c) At-Grade Railway - shall mean a railway system that runs on street level. 
37 
2 


, 
I 
d) Elevated Railway - shall mean a railway system that mns on tracks on elevated 
2 
viaducts. 
3 
4 
e) Regional (Provincial) Railway - shall mean a railway system that moves passenger 
5 
and freight in long-distances. 
6 
7 
f) Amusement Railway - shall mean a non-common carner railway system that is 
8 
operated wholly or in part within the confines of an amusement, historical park or 
9 
similar site. 
10 
11 
g) Industrial Railway - shall mean a non-common carrier railway system that transport 
12 
goods that are manufactured, refined or otherwise produced, processed or handled by 
13 
the person who operates the railway or on whose behalf the railway is operated, and is 
14 
operated wholly or in part within the confines of the industrial site on which goods 
15 
are manufactured, refined or otherwise produced, processed or handled, and is not 
16 
operated for the purposes of transporting goods for a tool or a fee. 
17 
18 
h) Public Railway - shall mean a common carrier railway system that is operated for 
19 
purposes of transporting people, goods and services or anyone or more of them for a 
20 
toll or fee. 
21 
22 
i) MOllorail Trallsit System - shall mean a special type of rail system that uses a single 
23 
rail to support and guide a passages vehicle. 
24 
25 
j) Light-Rail Trallsit System - shall mean an electric railway system where the cars 
26 
operate as single unit or as short train of two or three cars. 
27 
28 
k) Urball Rail Trallsit System - shall mean a rail system that is a street railway, 
• 
29 
tramway, light transit railway or similar system, the purpose of which is to transport 
30 
the general public within an urban area. 
31 
32 
1) Commuter Rail System - shall mean a rail transit that use traditional freight railroad 
33 
technology, including diesel or electric locomotives, to operate trains for passenger 
34 
servIce. 
35 
36 
111) Metro Rail Trallsit System - shall mean a heavy rail system that is also commonly 
37 
referred (0 as rail rapid transit. Heavy-rail system typically consists of large four-axle 
38 
rail vehicles operating in trains oftwo to ten cars. 
3 


.. 
1 
2 
n) Rail Rapid-Transit System - shall mean a rail system that operate on tracks reserved 
3 
solely for the rail cars. 
4 
5 
0) Automated Guided Transit - shall mean a fully automated transit systems, which 
6 
operate without crew. 
7 
8 
p) Streetcars - shall mean a tramway or trolley that are electrically powered vehicles 
9 
that nm on steel tracks embedded within city streets. 
10 
11 
q) High Speed Train - shall mean a railway technology that operates at the speed of 220 
12 
kph and above. 
13 
14 
r) Maglev- shall mean a train utilizing propulsion technology. 
15 
16 
s) Rolling Stock - shall mean any locomotive or railway car that operates on track and 
17 
any other vehicle that by design or by the way it is equipped is capable of being 
18 
operated on track. 
19 
20 
t) Track - shall mean a railway track or any land or Right-of-way on which the railway 
21 
track is located and any signal and apparatus used relative to the operation of the 
22 
railway track. 
23 
24 
u) Station - shall mean loading and unloading area for rail commuters. 
25 
26 
v) Structural Facilities - shall mean railway bridges, tunnels, overpasses, underpasses, 
27 
culverts, crossings, and similar structures. 
28 
29 
w) Authority - shall mean the Philippine National Railway Authority. 
30 
31 
x) Board - shall refer to the Board of Directors of the Authority. 
32 
33 
y) Regulatory Board - shall refer to the Railway Regulatory Board. 
34 
35 
z) Approval- shall mean an approval granted under this Act and includes an amendment 
36 
to the approval. 
37 
4 


aa) Secretary - shall mean the ministerlhead of the Department of Transportation and 
2 
Communications. 
3 
4 
bbl National Railway Administrator - shall mean a person appointed as Chief Operating 
5 
Officer of the Philippine National Railway Authority. 
6 
7 
ee) Railway Operator - shall mean a natural person or a juridical person who IS 
8 
authorized to own, operate and maintain a railway system. 
9 
10 
dd) Railway Safety Officer - shall mean a person designated as a railway safety officer 
II 
and includes any person authorized by the Authority to perform the duties or 
12 
functions on behalf of or in place of a railway safety officer. 
13 
14 
ee) Railway Security Officer- shall mean a person directly responsible in securing not 
15 
only the life of each and every commuter and the employees of the Authority and its 
16 
subsidiaries but also in securing railway structure and facilities. 
17 
18 
[I) Affected Person - shall mean: 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
(i) 
(ii) 
(iii) 
(iv) 
(v) 
a person who has submitted to the Authority a proposal to build, 
operate and maintain a railway system, or license to operate; 
a person who has been granted or denied approval by the Authority; 
a person to whom an order or direction has been given or whom an 
order or decision has been issued by the Authority; 
a person whose property or the use or any interest thereof is affected 
by any expropriation proceedings to carry out railway project; 
Any person whom the Board, in its discretion, accepts as an affected 
32 
person. 
33 
34 
gg) Private Road - Shall mean a road that is not a highway, or a road that is not owned or 
35 
otherwise under the direction, control and management of the Authority or any 
36 
instrumentality of the government. 
37 
38 
hh) Services - shall mean one or more of the following: 
5 


2 
3 
4 
5 
6 
7 
8 
(i) 
the operation of rolling stock; 
(ii) 
the operation of track; 
(iii) 
the transportation of people, goods and services 
9 
ARTICLE III 
10 
STRUCTURE OF THE· NATIONAL RAILWAY INDUSTRY 
II 
12 
SEC. 5. The National Railway Industry. - The National Railway Industry has two (2) 
13 
components, such as (a) The Public Domain and (b) The Private Domain. The Public 
14 
Domain consists of: 1) The Philippine National Railway Authority and 2) The Railway 
15 
Regulatory Board. The Private Domain encompasses ownership, maintenance and 
16 
operation ofrailway systems. 
17 
18 
SEC. 6. Sovereign Duty. - Specifically the duty of the government in the public domain 
19 
on the railway industry is to construct, own, maintain and operate railway systems 
20 
including the supervision of both public and private railway systems. 
21 
22 
23 
ARTICLE IV 
24 
PHILIPPINE NATIONAL RAILWAY AUTHORITY 
25 
26 
SEC. 7. Philippine National Railway Authority. - The Philippine National Railway 
27 
Authority is hereby created with a Board of Directors composed of the Secretary of 
28 
Transportation and Communications as Chairman, the Director General of the National 
29 
Economic Development Authority as Vice Chairman, and the Secretaries of the 
30 
Departments of Public Works and Highways, Finance, Budget and Management, 
31 
Agriculture, Environment and Natural Resources, Interior and Local Governments and 
32 
the Chailman 0 f the Metro Manila Development Authority, including the National 
33 
Railway Administrator and the President of the Philippine Chamber of Commerce & 
34 
Industry, as members. 
35 
36 
The Chairman and the Members of the Board may designate their respective alternates to 
37 
the Board from among their own officials with the rank of undersecretaries. 
38 
6 


I 
SEC. 8. Mandate. - The Authority is mandated to establish a nationwide railway system 
2 
covering the islands of Luzon, Visayas and Mindanao including Metro Manila and the 
3 
other metropolitan areas in the Philippines as the Authority may determine. 
4 
5 
SEC. 9. Powers, Duties and Functions. - As corporate body, the Authority shall have the 
6 
following powers, duties and functions: 
7 
8 
(a) To have continuous succession under its corporate name; 
9 
10 
(b) To sue and be sued; 
II 
12 
(c) To adopt, alter and use a corporate seal; 
13 
14 
(d) To amend, and repeal its By-laws; 
IS 
16 
(e) To acquire, own, hold, administer and lease such real or personal property as it 
17 
deems necessary or convenient in governing its business affairs and to lease, 
18 
mortgage, sell, alienate or otherwise dispose of any such real or personal property 
19 
held by it except its Right - of - Way; 
20 
21 
(f) To enter into any obligationl assign or accept the assignment of and rescind any 
22 
agreement or contract necessary or incidental to the proper functioning of the 
23 
Authority. 
24 
25 
(g) To contract loan, indebtedness and credit accommodation, in any local or 
26 
conveliible foreign CUlTency from nay international financial institution, foreign 
27 
government entities and local or foreign private commercial banks or similar 
28 
institutions under such terms and conditions pursuant to law, rules and 
29 
regulations, and to issue commercial papers and bonds in connection therewith; 
30 
31 
(h) To construct, own lease, operate and maintain public utilities, infrastructure 
32 
facilities and such auxiliary support services needed to develop, operate and 
33 
maintain a nationwide railway system; 
34 
35 
(i) To design, construct, maintain and operate by itself or by delegation to, or through 
36 
contractual arrangement such auxiliary infrastructure support facilities as, but not 
37 
limited to, parking structures above or below the ground, including the means of 
38 
access; 
7 


1 
2 
U) To prescribe, fix and regulate the scheduled, frequency and route of railway 
3 
servICes; 
4 
5 
(k) To fix the agency estimate of the cost of railway proj ect; 
6 
7 
(I) To receive donations, grants, bequest and assistance of all kinds and to utilize the 
8 
same; 
9 
10 
(m) To establish, organize and maintain subsidiary corporations as operators of 
II 
railway systems or establish a joint ventures formed in accordance with the 
12 
Philippine Corporation Code; 
13 
14 
(n) To privatize any part or all of the railway system or any subsystem under the 
15 
Authority, and the party that acquires the system is automatically granted an 
16 
Authority to operate the same; 
17 
18 
(0) To formulate and adopt a master plan for a national railway system with 
19 
ecological and environmental standards; 
20 
21 
(p) To develop, construct, operat!'l, maintain and control railway facilities including 
22 
parking stations and terminals for freight, goods and cargoes; 
23 
24 
(q) To consider and approve variation orders of not more than 10% of the cost of 
25 
railway project .and without prejudice of the prevailing inflation rate; 
26 
27 
(r) To order the cessation of operations or any activities related to the railway system 
28 
upon the recommendation ofthe concerned railway safety/ security officer; 
29 
30 
(s) To call upon any government agency for such assistance as maybe necessary in 
31 
the discharge of its duties and functions; 
32 
33 
(t) To promulgate such rules and regulations as may be necessary to carry out the 
34 
objectives of this Act; 
35 
36 
(u) To be member of International Railway Organizations; and 
37 
8 


I 
(v) Perform such other powers as may be necessary to carry out the purpose of this 
2 
Act. 
3 
4 
SEC. 10. Board of Directors. The powers of the Authority shall be vested in a Board of 
5 
Directors, as such, it shall: 
6 
7 
(a) Formulate policies, rules and regulations, plans and projects, and programs; 
8 
9 
(b) Direct the management, operations and administration ofthe Authority; 
10 
11 
(c) Establish financial and operations targets for management as the basis for 
12 
evaluating and monitoring corporate performance; 
13 
14 
(d) Authorize such expenditures for the effective and efficient administration and 
IS 
operations of the Authority; 
16 
17 
(e) Create Project Managemen\ offices or positions necessary for the efficient 
18 
operations of the Authority and fix the remuneration and other emoluments of 
19 
subordinate officers and personnel of the Authority, subject to the approval of the 
20 
Department of Budget and Management (DBM); and 
21 
22 
(I) Exercise such other powers as may be necessary to accomplish the purposes for 
23 
which the Authority was organized. 
24 
25 
SEC. 11. Per diems and Allowances. The Chairman of the Board shall receive a per 
26 
diem in the amount of Five Thousand Pesos (P5, 000. 00) per meeting and a monthly 
27 
allowance of Twenty Thousand Pesos (P20, 000. 00). Each of the members of the Board 
28 
shall receive a per diem in the amount of Three Thousand Pesos (P3, 000. 00) each per 
29 
meeting and a monthly allowance of Fifteen Thousand Pesos (PIS, 000. 00). 
30 
3 I 
SEC. 12. Secretary to the Board. - There shall be Secretary to the Board who must be, 
32 
preferably, a member of the Integrat~d Bar of the Philippines. 
33 
34 
35 
36 
37 
ARTICLE V 
ADMINISTRATION OF THE AUTHORITY 
9 


1 
SEC. 13. Administration.- The general conduct of the operations and management of the 
2 
Authority shall be vested in the National Railway Administrator with rank and privileges 
• 
3 
of undersecretary who shall serve as Chief Executive Officer of the Authority and 
4 
Member of the Board. He shall be primarily responsible in carrying out the projects and 
5 
programs of the Authority as well as in the implementation of its policies, rules and 
6 
regulations, including the faithful execution of the decisions of the Board. 
7 
8 
SEC. 14. Qualificafiions. - The National Railway Administrator must be natural-born 
9 
citizen of the Philippines, at least thirty-five (35) years of age on the day of his/her 
10 
appointment, of good moral character and with recognized executive ability and 
II 
competence in the field of transportation, business administration, management, finance 
12 
or law. He shall be appointed by the President of the Republic of the Philippines for a 
13 
term of seven (7) years, renewable for another term only and can only be removed from 
14 
the service for cause as provided under existing laws. 
15 
16 
SEC. IS. Deputies. - The National Railway Administrator shall have four (4) deputies for 
17 
Metro Manila, Luzon, Visayas and Mindanao, all of whom shall likewise be appointed by 
18 
the President of the Republic of the Philippines for a term of seven (7) years, renewable 
19 
for another term only. The deputies shall have the same qualifications with that of the 
20 
Administrator. These officials with the rank and privileges of Assistant Secretary can 
21 
only be relpoved from the service for cause as provided under existing laws. 
22 
23 
SEC. 16. Duties and Responsibilities of the National Railway Administrator. - The 
24 
Administrator of the Authority shall have the following duties and functions; 
25 
(a) Determine, subject to the approval of the Board and the concurrence of the 
26 
Department of Budget and Management, the staffing pattern and the number of 
27 
personnel of the Authority; 
28 
29 
(b) Appoint all the staff and personnel of the Authority; 
30 
31 
(c) Execute, administer and implement the policies, programs, plans, and regulations 
32 
issued and adopted by the Board of Directors; 
33 
34 
(d) Direct and supervise the operations and administration of Authority; 
35 
36 
( e) Direct and supervise the operations of all public railways; 
37 
10 


1 
(f) Direct and supervise the preparation of the agenda for the meeting of the Board, 
2 
and to submit for the consideration of the Board such measures as he/she believes 
3 
necessary to carry out the purposes and objectives ofthe Act; 
4 
5 
(g) Represent the Authority in all its transactions with other offices, agencies and 
6 
instrumentalities of the government and to deal with any persons and entities, 
7 
public or private, domestic or foreign, on matters related to the mandate of the 
8 
Authority; 
9 
10 
(h) Exercise such other powers and perform such other duties and function as the 
11 
Board may assign or authorize; 
12 
13 
(i) Remove or discipline officials/employees for cause and in accordance with the 
14 
Civil Service laws, rules and regulations; and 
15 
16 
U) Grant fringe benefits and other forms of incentives to deserving and performing 
17 
officials/employees when finances of the Authority so warrant. 
18 
19 
SEC. 17. Legal Counsel. - The Authority shall appoint a Legal Counsel who must be 
20 
member of the Integrated Bar of the Philippines; have at least five (5) years experience in 
21 
the procedure of law, and must be at least thirty five (35) years of age at the time of 
22 
his/her appointment. 
23 
24 
SEC. 18. Merit System. - All officials and employees of the Authority shall be selected 
25 
and appointed based on the comprehensive and progressive merit system to be 
26 
established by the Authority immediately upon its organization and in accordance with 
27 
Civil Service law, rules and regulations. The hiring, promotion, transfer and dismissal of 
28 
all the personnel of the Authority shall be governed by applicable existing civil service 
29 
laws, rules and regulations. 
30 
31 
32 
ARTICLE VI 
33 
CONSOLIDATION OF EXISTING RAIL OFFICES AND AGENCIES 
34 
35 
SEC. 19. Consolidation. - Upon the approval of this Act, the Philippine National 
36 
Railways (PNR), the Light Rail Transit Authority (LRTA), the Panay Railways, 
37 
Incorporated and the North Luzon Railway Corporation (NORTHRAIL) including all 
38 
other rail offices and agencIes shall be deemed consolidated/absorbed and 
11 


1 
consistently/abolished and its projects, assets and liabilities transferred to and assumed by 
2 
the Philippine National Railway Authority. 
3 
4 
SEC. 20. The assets and liabilities of the EDSA Light Rail Transit of the Department of 
5 
Transportation and Communications in so far as its existing Build-Lease Transfer 
6 
Contract with the Metro Rail Transit Corporation (MRTC) are likewise deemed 
7 
transferred to and assumed by the Authority. 
8 
9 
SEC. 21. Valuation - The assets of the existing railway offices and agencies mentioned 
lOin Section I hereof shall be valued by the Commission on Audit, and their respective 
II 
liabilities determined by the Commission on Audit and Department of Finance. 
12 
13 
SEC. 22. The plantilla personnel of the existing rail offices and agencies holding either 
14 
permanent or contractual positions maybe absorbed by the Authority or retire from the 
15 
service, subj ect to existing laws, rules and regulations and the guidelines that the 
16 
Department of Budget and Management may issue for the purpose. 
17 
18 
19 
20 
21 
ARTICLE VII 
RAILWAY REGULATORY BOARD 
22 
SEC. 23. Composition of the Regulatory Board. - A Regulatory Board is hereby created 
23 
composed of the Secretary of Transportation and Communications as Chairman, 
24 
Secretary of Public Works and Highways as Vice-chairman, Secretaries of Department of 
25 
Labor and Employment, Finance, Budget and Management, Trade and Industry and the 
26 
Head of the Office of Transportation Security. The National Railway Administrator shall 
27 
sit in the Board as ex-officio member. 
28 
29 
SEC. 24. Standards. - In order to sustain the development of the railway industry, 
30 
enhance the operations of railway systems and ensure the safety/security of the railway 
31 
riding public, and protect them from any form of natural calamities and man-made 
32 
disasters, the Regulatory Board shall set the necessary fare, safety and security standards 
33 
to be observed by all the railway operators, public or private. 
34 
35 
SEC. 25. Compliant with International Standards. - The fare, safety and security 
36 
standards that the Regulatory Board shall formulate must be compliant with international 
37 
standards. 
38 
12 


I 
SEC. 26. Rules and Regulations. - Railway Regulatory Board shall fonnulate rules and 
2 
regulations on the following: 
3 
4 
(a) Standards and specifications with respect to rolling stock, track and structural 
5 
facilities and other railway equipments and apparatus. 
6 
7 
(b) Construction, maintenance, repair and removal of track and structural facilities; 
8 
9 
(c) Permanent and temporary fencing of Right-of-way and structural facilities 
10 
including the apportionment of costs in relation thereto. 
11 
12 
(d) Track crossing and its usages; 
13 
14 
(e) Installation and use of signage, warning signals, barriers, operating signals and 
15 
other similar apparatus; 
16 
17 
(f) Qualifications of persons operating rolling stock and of persons carrying out 
18 
[unctions regarding the operation of track and of other equipment and matters 
19 
ancillary to the operation of rolling stock; 
20 
21 
(g) Materials, equipment and technology to be used for the building and construction 
22 
ofthe railway systems; 
23 
24 
(h) Tariff, rates and other fees and charges; 
25 
26 
(i) Formulate rules and regulations relative to railway security and safety; and 
27 
28 
U) Formulate rules and regulations relative to the imposition of fines and penalties. 
29 
30 
(k) Exercise such powers and perform such duties and functions in behalf of its 
31 
creation. 
32 
33 
SEC. 27. Per diems and Allowances. - The Chairman of the Board shall receive per diem 
34 
in the amount of Three Thousand Pesos (P3, 000. 00) per meeting and a monthly 
35 
allowance of Fifteen Thousand Pesos (PIS, 000. 00). Each of the members of the Board 
36 
shall receive a per diem in the amolmt of Two Thousand Five Hundred Pesos (P2, 500. 
37 
00) each per meeting and a monthly allowance of Twelve Thousand Pesos (P12, 000. 00). 
38 
13 


1 
SEC. 28. Secretary to the Board. - There shall be Secretary to the Board who must be, 
2 
preferably, a member of the Integrated Bar of the Philippines, preferably. 
3 
4 
5 
ARTICLE VIII 
6 
ADMINISTRATION OF THE REGULATORY BOARD 
7 
8 
SEC. 29. Administration. - The Management and Operations of the Regulatory Board 
9 
shall be vested in an Executive Director with the same rank and privileges of Assistant 
10 
Secretary. He shall be appointed by the President of the Republic of the Philippines for a 
11 
tenn of Seven (7) years and renewable for another tenn only. 
12 
SEC. 30. Qualifications. - The Executive Director must be natural born citizen of the 
13 
Philippines, at least Thirty (30) years of age on the day of his/her appointment, and of 
14 
'good moral character. He must either be a lawyer or duly licensed civil/electronic 
15 
engineer. He can only be removed froin the service for cause pursuant to law. 
16 
17 
SEC. 31. Deputies. - The Executive Director shall have Three (3) deputies for fare, safety 
18 
and security and shall have the same qualifications with that of the Executive Director. 
19 
Each of them shall be appointed by the President for the same term of office and can only 
20 
be removed for cause pursuant to law. 
21 
22 
SEC. 32. Staff and Personnel. - The Executive Director Shall be assisted with such staff 
23 
and personnel that the Board shall deterrnine, subject to the approval of the Department 
24 
of Budget and Management. 
25 
26 
SEC. 33. Salaries and Compensation. - The Executive Director and his deputies 
27 
including his staff and personnel shall receive salaries and other emoluments as 
28 
prescribed under existing laws, rules and regulations. 
29 
30 
SEC. 34. Appointment. - The staff and personnel of the Regulatory Board shall be 
31 
appointed by the Executive Director subject to the confinnation of the Board. 
32 
33 
34 
35 
36 
ARTICLE IX 
COMMON CARRIER 
37 
SEC. 35. Public Railways as Common Carrier. - As common carrier, a railway operator 
38 
shall provide all the necessary equipment and facilities for the safety, security, comf9rt 
14 


I 
and convenience of the general riding public in accordance with international standards 
2 
and best practices. 
3 
4 
SEC. 36. Limitation of Liability. - The liability of a railway operator shall not be limited 
5 
to the liability and responsibility of a shipper under existing laws, rules and regulations. 
6 
7 
SEC. 37. Transfer of Authority to Operate. - No authority to operate a railway system 
8 
shall be transferred or conveyed without the approval of the Philippine National Railway 
9 
Authority. 
10 
11 
12 
13 
14 
ARTICLE X 
HIERARCHY OF RAILWAYS 
15 
Sec. 38. Classification. - The railway system of the Philippines shall be classified 
16 
according to technology and level of ridership such as Tramways; Mono Rail; Light Rail; 
17 
Metro Rail; Heavy Rail; Sky Rail; Subway and Maglev. 
18 
19 
20 
ARTICLE XI 
21 
CONSTR~CTIONOFRAILWAYS 
22 
23 
SEC. 39. Construction of Railways. - No person shall construct any form and kind of 
24 
railway track such as track crossing, intersections, joints, or connections that unites with 
25 
any existing railway track or structural facilities Industrial, Amusement, Public or Private 
26 
on any land, for purposes of developing a railway without prior approval of the 
27 
Authority. 
28 
29 
SEC. 40. Construction of Highway Crossing Track. - No person shall construct on, 
30 
across, over or under a highway without prior approval ofthe Authority. 
31 
32 
SEC. 41. Structural Change. - No .person shall change or replace any existing railway 
33 
structure or methodology in the replacement without prior approval of the Authority. 
34 
35 
SEC. 42. Right of Entry and Disturbance Fee. - A railway operator or his authorized 
36 
agent bringing in equipment and materials to a piece of land, may gain access to such 
37 
land to construct or maintain a rail system or to repair a rolling stock, track or structural 
15 


facilities of a public railway, subject to the payment of disturbance fee in such amount as 
2 
may be determined by the Authority. 
3 
4 
SEC. 43. Highway Crossing. - When the constmction is carried out to lay track on, 
5 
across, over or under a highway, the person carrying out the constmction shall allow 
6 
vehicles using the highway adequate passages, and on the completion of the constmction 
7 
restore the highway to its acceptable passable condition. 
8 
9 
SEC. 44. Crossing Construction. - Subject to the approval of the Philippine National 
10 
Railway Authority, the owner of a private road may be allowed in writing to constmct 
I I 
and maintain at his own cost either an underpass or overpass crossing across the right-of-
12 
way that already existed prior to the constmction of his private road. However, if the 
13 
private road was in existence before the rail right of way was established the railway 
14 
owner/operator is responsible for the cost of constmcting and maintaining the crossing. 
15 
16 
SEC. 45. Crossing of Landowners. - Any proponent of a railway project shall provide 
17 
access road in between lands cut cro~sed by the project when public interest so demands. 
18 
19 
SEC. 46. Cost - When the railway operator is unable to agree with the road authority as 
20 
to the cost apportionment associated with the constmction of projects under this article, 
21 
the parties inay resort to arbitration. 
22 
23 
SEC. 47. Fencing of Railway Track. - The operators of railway systems when public 
24 
safety demands as may be determined by the Authority shaH provide the necessary fences 
25 
along railway tracks. 
26 
27 
SEC. 48. Drainage. - In the establishment of the railway system, there shall be provided 
28 
appropriate and adequate drainage and sanitary facilities that Authority shaH refuse of 
29 
any railway project and with concerned government offices and agencies. 
30 
31 
SEC. 49. Fire Prevention. - All railway operators shall provide their railway systems all 
32 
the necessary equipment and adopt ways and means to protect their systems and 
33 
commuters from fire or damages arising therefrom. 
34 
35 
SEC. 50. Stoppage. - When the constmction or work poses danger to person or property, 
36 
the Safety Officer may immediately order the stoppage of the constmction or work unless 
37 
constraint by the Authority. 
38 
16 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
II 
12 
13 
14 
15 
16 
17 
ARTICLE XII 
• 
RIGHT - OF- WAY 
SEC. 51. Right - of - Way. - The Authority shall identify and establish within three (3) 
years after the approval of this Act, the alignment of a National Railway System, and 
once established and the right - of - way is acquired, the same cannot be the object of 
sale, lease or othelwise. 
SEC. 52. Intrusion into the Right - of-Way. - Any intrusion into the right - of - way by 
any person shall be punishable by imprisonment as provided under Section I, Article 
XXIX hereof. 
ARTICLE XIII 
INTEGRATION OF TRANSPORT SYSTEMS 
18 
Sec. 53. Illtegratioll of Rail Systems. - The Authority shall integrate all the existing 
19 
railway systems for purposes of interfacing, seamless operation and unified ticketing 
20 
system. 
21 
22 
Sec. 54. Illtegration with other Trallsport Systems. - The Authority shall integrate 
23 
whenever feasible the railway transport with maritime, civil aviation and road transports. 
24 
25 
26 
ARTICLE XIV 
27 
EXPROPRIATION AND OVER- RIDING OBJECTIVE OF CONSTRUCTION. 
28 
29 
SEC. 55. Expropriation. - In the implementation of any railway projects and the 
30 
operations of railway systems, Authority may initiate on its own behalf or in behalf of 
31 
any duly authorized Railway Operator the necessary expropriation proceedings. 
32 
33 
SEC. 56. Ejectioll. - Any person or group of persons who enter, intrude, occupy, settle, 
34 
possess, construct into the railway alignment or Right-of - Way or any property owned by 
35 
any railway office or agency shall be considered as nuisance per se and shall be 
36 
summarily ejected the premises. Such entry intrusion, occupation, settlement, possession 
37 
and construction shall be considered as criminal act and therefore punishable under 
38 
Section 1, Article XXI hereof. 
17 


2 
SEC. 57. Suspension. - When the construction or work is not being carried out in 
. 3 
accordance of the approved specifications-relative to design and product standards, the 
4 
Safety Officer may order the suspension of the construction or work until after 
5 
corrections shall have been made by the contractor or its resumption is ordered by the 
6 
Authority. 
7 
8 
SEC. 58. Prohibition Against Issuance of Restraining Orders and Preliminary 
9 
Injunctions or Preliminary Mandatory Injunctions. - No court in the Philippines, except 
10 
the Supreme Court, shall have the jurisdiction to issue any restraining order, preliminary 
11 
injunction, or preliminary mandatory injunction in any case, dispute, or controversy 
12 
involving any contract or project being implemented by the Authority, to prohibit any 
13 
person or persons, or entity or government official from proceeding with, or continuing 
• 
14 
the execution or implementation of such contract or project, or pursuing any lawful 
15 
activity necessary for the execution, implementation or operation of such railway 
16 
proj ectlsystem. 
17 
18 
19 
20 
21 
ARTICLE XV 
RAILWAY OPERATIONS 
22 
SEC. 59. Operations. - The operator of a railway shall ensure that the track and other 
23 
railway facilities are constructed, operated and maintained in accordance with this act and 
24 
the pertinent rules and regulations implementing the same and those policies that may be 
25 
promulgated by the Authority and the Railway Regulatory Board and that the rolling 
26 
stock is maintained and operated in accordance with applicable rules and regulations 
27 
promulgated by the Philippine National Railway Authority and the Railway Regulatory 
28 
Board. 
29 
30 
SEC. 60. Suspension and Termination. - Any operator of a public or industrial railway 
31 
who intends to suspend or terminate its operation shall, within six months, prior to the 
32 
suspension or termination, give notice thereof to the Authority and to the public. 
33 
34 
35 
36 
37 
ARTICLE XVI 
SAFETY AND SECURITY 
18 


1 
SEC. 61. Safety Officer. - There shall be created positions of Safety officers with the 
2 
following duties and functions: 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
(i) 
(ii) 
Administer and foster faithful compliance with railway safety legislations, 
approvals and operating rules and regulations; 
Ensure the safety at all times of rolling stocks, railway tracks, signaling 
and communication systems and other facilities. 
(iii) 
Conduct regularly safety audit of railway system including a check on 
inventory levels of essential spare parts; and 
(iv) 
Ensure the safety of the general riding public and of persons employed by 
14 
or acting on behalf of operators of railways; 
15 
16 
SEC. 62. Qualifications. - Only persons who graduated from a course related to safety 
17 
shall be appointed Safety Officer and shall pass the examination given by the Railway 
18 
Regulatory Board for the purpose. 
19 
20 
SEC. 63. Security Officer. - There shall be created positions of Security Officers with the 
21 
following duties and functions: 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
(i) 
(ii) 
Administer and foster faithful compliance with railway security 
legislations, approvals and operating rules and regulations; 
Ensure the security of the general riding public and of persons employed 
by or acting on behalf of operators of railways; 
(iii) 
Ensure the installation of the state of the art surveillance and tracking 
equipment for passengers and cargo. 
32 
SEC. 64. Qualifications. - Only persons who graduated from a course related to security 
33 
shall be appointed Security Officer and shall pass the examination given by the Railway 
34 
Regulatory Board for the purpose. 
35 
36 
37 
38 
ARTICLE XVII 
MAINTENANCE 
19 


1 
2 
SEC. 65. Proper Maintenance. - There shall be created a Maintenance Group in every 
3 
railway line with the following duties and functions. 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
(i) 
Ensure that the economic lifespan of the system IS attained through 
rehabilitation, refurbishment and overhauling; 
(ii) 
Ensure continuous and efficient operation of the system; 
(iii) 
Ensure a continued avttilability of spare parts in the inventory; 
(iv) 
Ensure the repair and maintenance of the rolling stock, track or structural 
facilities. 
15 
The maintenance group lead by a Maintenance Engineer shall be composed of 
16 
Engineers from different fields of specialization. 
17 
18 
19 
ARTICLE XVIII 
20 
COMPLIANCE, ACCIDENTS AND ADMINISTRATIVE PENALTIES 
21 
22 
SEC. 66. Inspection of Railways. - A railway safety/security officer may carry out 
23 
inspections of the following: 
24 
25 
26 
27 
28 
29 
(i) 
(ii) 
Rolling stock, track, goods and other facilities; 
Record, document, object or thing that relates to the operations of a 
railway; 
30 
SEC. 67. Access. - A railway safety officer, in carrying out an inspection may do one or 
31 
more of the following: 
32 
33 
34 
35 
36 
37 
38 
(i) 
(ii) 
Enter any track, structural facility, rolling stock, building or any other 
property associated with railways; 
Make inquiries with 'any person who is employed by or who carries out 
any duties or functions for or in behalf of the railway operator; and. 
20 


I 
(iii) 
Perform or caused to be performed tests or examinations of anything 
2 
relative to the inspection. 
3 
4 
SEC. 68. Production of Documents. - In the course of safety/security inspection the 
5 
officer conducting the inspection may require the production of any documents, record or 
6 
thing relative thereto. 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
(i) 
( ii) 
Any person who is the subject to an inspection shall, when requested to do 
so by a railway safety/security officer, produce for inspection within 
reasonable period of time any record, document, object or thing that 
relates to the matter under inspection. 
A railway safety/security officer may request copies or take photographs 
of the record, document, object or thing under inspection and immediately 
thereafter return the same. 
(iii) 
When conducting an inspection of a record, document, object or thing, a 
railway safety/security officer is of the opinion that he must retain 
possession of the record, document, object or thing for a longer period of 
time, he may do so within reasonable time but not longer than three days 
after receipt thereof. • 
23 
SEC. 69. Directions of Railway Safety Officer. -When a railway safety officer carries 
24 
out an inspection, he may do one or more of the following: 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
(i) 
(ii) 
Recommend the cessation of the operation of any railway system or any 
activity related thereto when in his opinion he has reasonable grounds to 
believe that he has to do so. However, when there is a compelling reason, 
he may order the suspension of the operations unless restrained by 
competent authority. 
Order the removal of rolling stock or any equipment from the service or 
any person on board, when the railway safety officer is of the opinion that 
the operation of the same poses danger to the safety of the public or 
persons employed by or acting on behalf of the operator unless restrained 
by the National Railway Authority; 
21 


I 
2 
3 
(iii) 
Issue directions to stop over-speeding of the train or when violations are 
being committed related to the speed of the rolling stock. 
4 
SEC. 70. Accidents. - The railway operator shall keep a record of every accident 
5 
involving person or the railway system and shall forthwith report to the Anthority. 
6 
7 
SEC. 71. Investigation. - The Philippine National Railway Authority shall conduct an 
8 
investigation on accidents provided for in the immediate preceding section, and for this 
9 
purpose the investigating officer shall have full access to the place and attributes of 
10 
accident. 
11 
12 
SEC. 72. Liability. - The operator and his agent shall be jointly and solidarily liable for 
13 
the fines and penalties provided under this article. 
14 
15 
SEC. 73. Execlltion. - When the operator andlor his agent fails to pay the administrative 
16 
penalty in accordance with this article, the Authority shall take all the necessary legal 
17 
actions to compel the payment of the administrative legal penalties and fines against the 
18 
operator and his agent. 
19 
20 
21 
22 
23 
ARTICLE XIX 
REVIEW 
24 
SEC. 74. Review/Appeal. - Any order issued by the Safety ISecurity Officer maybe 
25 
appealed for review by the affected person to the Authority within Fifteen (15) working 
26 
days from notice thereof whose decision shall be final and executory. 
27 
28 
SEC. 75. Motion for Reconsideration. - Any person affected by the order or decision of 
29 
the Authority may file a motion for reconsideration within Fifteen (15) days from receipt 
30 
of the notice thereof. No second motion for reconsideration shall be entertained. 
31 
32 
33 
ARTICLE XX 
34 
PARTICIPATION OF THE LOCAL GOVERNMENT UNITS AND THE PRIVATE 
35 
SECTOR IN RAILWAY DEVELOPMENT 
36 
22 


I 
SEC. 76. Local Government Units (LGUs). - A Local Government Unit or group of 
2 
Local Government Units may own, construct, maintain and operate a railway system in 
3 
accordance with International Standards and subject to the approval of the Authority. 
4 
5 
SEC. 77. Private Sector. - Any person, natural or juridical, may own, construct, maintain 
6 
and operate a railway system in accordance with International Standards and subject to 
7 
the approval of the Authority. 
8 
9 
SEC. 78. Private-Public Partnership. - The Authority or any Local Government Unit 
10 
may jointly own, construct, maintain and operate a railway system with the Private Sector 
11 
in accordance with the Corporation Law and other applicable laws. 
12 
13 
14 
ARTICLE XXI 
15 
RAIL WAY ENERGY PLANT 
16 
17 
SEC. 79. Power Plant. - In order to, ensure a continuous and uninterrupted operation of 
18 
the railway systems in the Philippines, the Authority may establish its power plant for 
19 
any of its rail systems when on its own judgment it is more economical and advantageous 
20 
on the part ofthe government. 
21 
22 
SEC. 80. Waste - to - Energy Plant - The Authority shall establish in cooperation with the 
23 
Local Government Units and the Private sector waste-to-energy plant in strategic areas in 
24 
the country. 
25 
26 
27 
ARTICLE XXII 
28 
TRANSFER OF RAILWAY TECHNOLOGY 
29 
30 
SEC. 81. Railway Engineering Course. - The Philippine Railway Academy established 
31 
in the POlytechnic University of the Philippines (PUP) shall offer a 5-year baccalaureate 
32 
course on Railway Engineering Manflgement and other Railway related courses and shall 
33 
receive an annual budgetary support which shall be provided in the Annual General 
34 
Appropriations Act. 
35 
36 
SEC. 82. Assistance for Other State Colleges and Universities. - The Authority when its 
37 
finance pennit shall extend assistance to other State Colleges and Universities offering 
38 
similar Railway Engineering courses until after the necessary budgetary support for the 
23 


• 
1 
concerned institutions shall have considered in their respective annual budget from the 
2 
national government. 
3 
4 
SEC. 83. Railway Training Center. - A Railway Training Center is hereby established to 
5 
equip the railway manpower resource with the necessary skills and expertise in the 
6 
development and implementation of railway projects and programs, and in the operation 
7 
of railway systems. The budgetary support for the Railway Training Center shall be 
8 
provided in the General Appropriations Act. 
9 
10 
SEC. 84. Manufacturing of Railway Equipment. - The Authority shall endeavor (0 
11 
establish the necessary mechanism for the manufacturing of railway equipment to ensure 
12 
the expansion and sustainability of a National Railway System herein envisioned. 
13 
14 
15 
ARTICLE XXIII 
16 
TRAIN DRIVERS 
17 
18 
SEC. 85. Train Drivers. - To promote proficiency and to ensure the safety of the general 
19 
railway riding public, all train drivers must posses certain educational attainment and 
20 
undergo training to attain certain level of skills, and must he physically and mentally fit 
21 
owing to the delicate characters oftheir job. 
22 
23 
SEC. 86. Train Driver's License. - The Railway Training Center shall conduct the 
24 
training for train drivers for a duration that it may determine and thereafter issue the 
25 
necessary Train Driver's License (TDL) for those who will pass the training according to 
26 
its tests and measurements. 
27 
28 
29 
ARTICLE XXIV 
30 
CAPITALIZATION AND TRUST FUND 
31 
32 
SEC. 87. Capitalization. - The Philippine National Authority shall have a capitalization 
33 
of Five Hundred Billion (P500, 000,000,000.00) divided into shares at One Thousand 
34 
Pesos per share (PI, 000. 00) This capitalization may consist ofthe assets of the existing. 
35 
railway offices and agencies that the Authority shall absorb under this Act, including the 
36 
amount of One Hundred Billion Pesos which shall be provided in the General 
37 
Appropriations Act for a period of Five (5) years starting on the year following the 
38 
passage of this Act. 
24 


1 
2 
SEC. 88. Establishment of the Railway Trust Fund. - A Railway Trust Fund is hereby 
3 
established that is dedicated to finance only railway projects and the operations of 
4 
railway systems. 
5 
6 
SEC. 89. Sources. - The Railway Trust Fund consists of 3% increase in the real property 
7 
tax, 2% share ofthe sin taxes and 5% share of the road user's tax. 
8 
9 
SEC. 90. Fund Administrator. - The Trust Fund shall be administered by any recognized 
10 
government depository bank and can only be spent and withdrawn by 213 vote of the 
11 
members of the Board of Directors of the Authority for the purposes for which it is 
12 
created. 
13 
14 
ARTICLE XXV 
15 
16 
EXEMPTION FROM REAL PROPERTY TAX 
17 
18 
SEC. 91. Exemption from Real Property Tax. - All rail properties in the form of land, 
19 
right - of - way, depot, stations, tracks, office buildings, and terminals are exempted from 
20 
the payment of real property tax and those which have already been due to the 
21 
government shall be deemed condoned entirely. 
22 
23 
SEC. 92. Exemption from Income Tax. - The incomes of the Authority that are derived 
24 
from the operations of its railway systems is exempted from the payment of income tax. 
25 
26 
SEC. 93. Exemption from the Payment of Customs, Duties and Charges. - Any 
27 
importation of goods and/or equipment for the building of railway systems and for the 
28 
maintenance and operation of railw~y systems is free from payment of customs, duties, 
29 
and other forms of fees and charges. 
30 
31 
32 
33 
34 
ARTICLE XXVI 
. REVENUES 
35 
SEC. 94. Rail Revenues. - The rail revenues shall consist of all incomes derived from the 
36 
ridership, freight and trackage fees. 
37 
25 


I 
SEC. 95. Non-Rail Revenues. - The non-rail revenues shall consist of all incomes 
2 
generated from commercial, advertisement and real estate development programs. 
3 
4 
5 
ARTICLE XXVII 
6 
INSURANCE COVERAGE 
7 
8 
SEC. 96. Railsystems Insurance Coverage. - All rail systems shall be covered by 
9 
insurance from natural and man-made disaster either by the Govermnent Service 
10 
Insurance System (GSIS) or by a self-insurance system in the form of a Common Trust 
II 
Fund that the Authority may establish for the purpose for all the public railway operators. 
12 
13 
SEC. 97. Passenger's Insurance Coverage. - Each and every rail passenger shall be 
14 
covered by accident insurance by the rail operators, government or private, in the amount 
IS 
of One Hundred Thousand Pesos (PIOO, 000.00) in case of death, not more than Fifty 
16 
Thousand Pesos (P50,000.00) in case of an injury exclusive of medical and 
17 
hospitalization expense, and Seventy Five Thousand Pesos (P75,000.00) in case of 
18 
incapacity exclusive of medical and hospitalization expense. 
19 
20 
SEC. 98. Premiums. - After five (5) years from the date of the establishment of the 
21 
Common Trust Fund and every three (3) years thereafter, a portion of the trust fund may 
22 
be used for rail projects and programs by 2/3 vote of the members of the Board of 
23 
Directors of the Philippine National Railway Authority. 
24 
25 
SEC. 99. Fund Administrator. - The Common Trust Fund authorized under this article 
26 
may be administered by a group of financial experts when in judgment of the Board the 
27 
need for it arises, otherwise, the Authority shall administer and manage such fund. 
28 
29 
30 
ARTICLE XXVIII 
31 
ACCOUNTABILITY 
32 
33 
SEC. 100. Accountability- - To ensure public accountability, the Authority shall be 
34 
subject to the audit of the Commission on Audit (COA) and shall comply with all the 
35 
generally accepted accounting and auditing rules and regulations and those which the 
36 
commission may promulgate from time to time pursuant to its constitutional mandate. 
37 
26 


• 
I 
SEC. 101. Transparency. - The Authority and its subsidiaries shall be transparent in all 
2 
its affairs and financial transactions. 
3 
4 
5 
6 
7 
ARTICLE XXIX 
PUNISHABLE ACTS AND ADMINISTRATIVE PENALTIES 
8 
SEC. 102. Intrusion. - The entry, intrusion, occupation, settlement, possession and 
9 
construction on the properties described in the section 2, Article XII hereof shall be 
10 
considered a crime against property ahd punishable by imprisonment ranging from six (6) 
II 
months and one (1) day to two (2) years and or fined in an amount not lower than Ten 
12 
Thousand (P I 0, 000. 00) as maybe determined by the court. 
13 
14 
SEC. 103. Obstructions. - Any person who obstructs or impedes the construction, 
IS 
operation, repair, maintenance and removal of any track, rolling stock or railway facilities 
16 
shall be criminally liable and the punishment by imprisonment ranging from two (2) 
17 
years and one (I) day to three (3) years. 
18 
19 
SEC. 104. Theft of Railway Property. - Any person who is found to have stolen any part 
20 
of a track or rolling stock shall be punished by imprisonment of 1) Twelve (12) days and 
21 
Six (6) months to Fifteen (15) years and One (1) day and a fine of One Hundred 
22 
Thousand (PI00, 000. 00) Pesos or both at the direction of the Court. 
23 
24 
SEC. 105. Administrative Penalties. - The Authority may impose a fine or penalty or 
25 
both against the operator and/or its agents who committed any or all of the following acts 
26 
of violations. 
27 
28 
a) Exceeding the authorized speed limit of his rolling stock shall be punished 
29 
with 1) First Offense - Fine of One Hundred Thousand Pesos; 2) Second 
30 
Offense - Fine of Three Hundred Thousand Pesos; 3) Fine of Five Hundred 
31 
Thousand Pesos; 
32 
33 
b) Failure to properly maintain the system resulting to Service Interruption shall 
34 
be fined 1) First Offense - Fifty to One Hundred Thousand Pesos; 2) Second 
35 
Offense - One Hundred to Two Hundred Thousand Pesos; 3) Third Offense -
• 
36 
Two Hundred to Three Hundred Thousand Pesos; and 
37 
27 


• 
, 
1 
c) Failure to secure Annual Passengers Insurance Coverage shall be fined Ten 
2 
Million Pesos. 
3 
4 
d) Failure to operate - shall be fined with One Million Pesos for every day of 
5 
non-operation, and cancellation of its Franchise or Authority after 30days of 
6 
non operation, except when caused by force maj eure or fortuitous event. 
7 
8 
e) Failure to Comply with Safety and Security Regulations resulting to injury or 
9 
loss of life and damage to property shall be fined with Fifty Thousand Pesos 
10 
for injury and Three Hundred Thousand for every loss of human life. 
11 
12 
f) Failure to maintain adequate spare parts inventory shall be fined with an 
13 
amount equivalent to the cost of the required spare parts. 
14 
15 
g) Failure to maintain a maintenance and accident record shall be fined with shall 
16 
be fined with 1) First Offense - One Hundred Thousand Pesos; 2) Second 
17 
Offense - Two Hundred Thousand Pesos; 3) Third Offense - Three Hundred 
18 
Thousand Pesos. 
19 
20 
h) Failure to Comply with regulations on cleanliness and sanitation shall be fined 
21 
with 1) First Offense - dne Hundred Thousand Pesos; 2) Second Offense -
22 
Two Hundred Thousand Pesos; 3) Third Offense - Three Htmdred Thousand 
23 
Pesos; and 
24 
25 
26 
27 
28 
29 
i) Failure to comply with and execute orders, decisions and similar issuances of 
the Philippine National Railway Authority shall be fined with One Hundred 
Thousand Pesos for every day of non compliance. 
30 
ARTICLE XXX 
31 
BUDGETARY SUPPORT 
32 
33 
SEC, 106. Initial Funding Support - The Amount of Five Hundred Million (P500, 000, 
34 
000. 00) Pesos and Fifty Million (PSO, 000, 000. 00) Pesos for the Authority and the· 
35 
Railway Regulatory Board, respectively, is hereby appropriated out of the unprogrammed 
36 
fund in the 2009 General Appropriation of these two (2) bodies. 
37 
28 


.. 
1 
SEC. 107. Annual Budgetary Support - The annual budgetary requirements of the 
2 
Authority and the Railway Regulatory Board and other railway institution created n the 
3 
Act shall be provided in the Annual General Appropriations Act. 
4 
5 
6 
ARTICLE XXXI 
7 
APPLICABILITY OF THIS ACT 
8 
9 
SEC. lOS. Application of this Act. - This act applies to the development and 
10 
implementation of Railway Projects and the operations of railway systems, both Public 
11 
and Private, in the Philippines. 
12 
13 
14 
ARTICLE XXXII 
15 
APPLICABILITY OF EXISTING LAWS AND REGULATIONS 
16 
17 
SEC. 109. Applicability. - In so far as they are not inconsistent with this Act, the 
18 
provision of the Corporation Law and Republic Act 6957 otherwise known as "An Act 
19 
Authorizing the Financing, Construction, Operations and Maintenance ofInfrastructure 
20 
Projects by the Private Sector and for other purposes" shall be applicable to the operation 
21 
of the National Railway Authority. 
22 
23 
24 
ARTICLE XXXIII 
25 
CONGRESSIONAL OVERSIGHT COMMITTEE 
26 
27 
SEC. 110. Congressional Oversight Committee. - A Congressional Oversight Committee 
28 
is hereby created, composed of the Chairpersons of the Committee on Public Services of 
29 
the Senate and the Committee on Transportations and Communications of the House of 
30 
the Representatives and four (4) additional members from each Houses, to be designated 
31 
by the Senate President and the Speaker of the House of Representatives, respectively. 
32 
The Oversight Committee, shall among others, monitor and ensure the effective 
33 
implementation of this Act. 
34 
3S 
36 
37 
38 
ARTICLE XXXIV 
SEPARABILITY AND REPEALING CLAUSES 
29 


1 
SEC. 111. Separability Clause. - If any of the provisions of this Act is declared invalid, 
2 
the provisions thereof not affected by such declaration shall remain in force and effect. 
3 
4 
SEC. 112. Repealing Clause. - The provisions of Republic Act No. 1156, as amended. 
5 
Executive Order No. 603, as amended are hereby repealed. All other laws, decrees, 
6 
orders, proclamations, rules and regl1lations or parts thereof, inconsistent with any of the 
7 
provisions of this Act are hereby repealed, amended 'or modified accordingly. 
8 
9 
10 
11 
12 
ARTICLE XXXV 
EFFECTIVITY 
13 
SEC. 113. Effectivity Clause. - This Act shall take effect fifteen (15) days following its 
14 
publication in at least two (2) newspapers of general circulation. 
15 
16 
Approved, 
30