Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" CONGRESS
____ Regular Session

House Bill No. 3716

Introduced by Congressman AURELIO “DONG” GONZALES, JR.

EXPLANATORY NOTE

While recent surveys and reports show that the Philippine economy steadily grows, it is
ironic to know that the nation continues to lose billions of pesos daily as a result of the
worsening traffic and congestion crisis, especially in Greater Metro Manila. Without the
implementation of effective and adequate solutions to ease the crisis, several factors, such as
the fuel costs. value of time lost due to delay, vehicle operating costs. health impact and
greenhouse gas emissions, contribute to the rapid rise of the costs of traffic. There is more fuel
expenditure, additional pollution, delays in the movement of goods. decreased turnover and the
aggravation of poverty

The crisis has also caused the disruption of the normal Filipino family life. With the
horrendous daily traffic situation, the working individual is stuck in traffic instead of being at
the office to start work. A family man spends his time on a traffic jam on the road, instead of
being at home to spend quality time with his spouse and children, ‘Too much productivity and
quality hours are being wasted.

While the traffic problem has been around for more than a decade already, the past
administration's underspending on infrastructures and road works, aggravated by today’s
presence of more vehicles on the road, a bigger population, and the increase in the number of
people migrating 0 Metro Manila and urbanized cities and areas, has caused the traffic and
congestion crisis in the National Capital Region and other urbanized cities to worsen at an
alarming pace, ‘This problem has now assumed the nature and magnitude of a national
emergeney which necessitates the urgent need to grant special powers to the President of the
Philippines. Without these powers granted immediately, time will not be on our side and our
country can never recover from the crisis

While some sectors are skeptical about the idea of granting special or emergency
powers to the President, it should be pointed out that this grant of powers is only for a limited
period and subject (0 certain conditions and limitations, More so, this will not be the first time

4


that the Commander-in-Chief would be having such powers. Then president, Fidel V Ramos,
was granted emergency powers to effectively address electricity and water shortages during his,
term.

Thus, there is a need for this bill to address the traffic and congestion crisis in the
Philippines, which is now in the magnitude of a national emergency.

g” Gonzales, Jr.


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

H.NO. 3716

Introduced by Rep. AURELIO "DONG" D. GONZAL

AN ACT
GRANTING THE PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES SPECIAL
POWERS TO ADDRESS THE TRAFFIC AND CONGESTION CRISIS IN THE
COUNTRY,

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 Traff
2016"

cand Congestion Crisis Act of

SECTION 2. Declaration of Existence of Traffic and Congestion Crisis, ~ ‘The waftic and
congestion crisis in Greater Metro Manila and other highly urbanized
country have assumed the nature and magnitude of a national emerge:
volume of motor vehicles plying inadequate roads and highways

ies and areas in the
. With the increasing,
10 the metropolis and in other
growing cities, increasing air passenger traffic beyond the capacity of the country's existing
terminals, and heavy congestion of ports, Philippine transportation infrastructure has been unable
to keep up with the demands of rising economy and growing population, These result in severe

disruption of the normal Filipino family life and in billion-peso losses in terms of overall
productivity, health risks and social costs.

Thus, the ex

ence of a traffic and congestion ci
and other

is in Greater Metro Manila, other highly
as in the country is hereby declared.

urbanized citi



SECTION 3. Declaration of Policy. It is hereby declared a State policy to adopt adequate and
effective measures that will immediately address the crisis brought about by land, air, and sea
traffic congestion and mass transportation shortage in Greater Manila, other highly urbanized
cities, and other areas around the country

Consistent with the Constitutional mandate to promote the general welfare and social justice in
all phase of national development, the State shall promote a shift towards safe, secure, efficient,
viable, competitive, dependable, integrated, environmentally sustainable, people-oriented,
seamless, and inclusive transportation system for the benefit of all citizens, the economy, and
society.

‘Toward this end, the State shall adopt a strong system of accountability and transpareney in the
pursuit of its objectives, as well as rationalize and strengthen existing institutions and adopt
i

esponsive measures to address the traffic and congestion crisis, The State shall also properly
plan infrastructure projects that will respond to this paradigm shift in the transportation system,
increase mobility options of the general public, and promote the uses of alternative modes of
transportation to address the crisis and increase economic productivity and tourism appeal

The extraordinary remedy of granting emergency powers to the president or Executive Branch is
for the purpose of addressing this national emergency and is limited to the period specified in
this Act. In line with this, the State shall, after the period of the emergency, adopt short-term,
mid-term, and long-term development plans for the efficient and cheaper transport of people and
delivery of goods and services. as well as a comprehensive long-term national transport policy.
in order to sustain the significant gains and to meaningfully reduce the risk of a traffic and
congestion crisis from happening again in the future.

SECTION 4. Definition of Terms. - For purposes of this Act, the following terms shall mean:

a,"Emergeney Power" - ‘The authority granted by Congress to the President under
Section

(2), Article VI of the 1987 Philippine Constitution, to exercise, for a
limited period and subject to such restriction as the former may preseribe, powers
necessary and proper to carry out a declared poli

y

b, "Traffic and Congestion €
based, the

isis" - The current traffic situation, both land and air-
ature of which constitutes a national emergency

©, "Greater Metro Manila" - The National Capital Region (NCR) of the Philippines and the
provinces of Rizal, Bulacan, Cavite, Laguna, and Batang

d. "Other Highly Urbanized Cities" - Identified cities in the Philippines, such as but not
limited to Metro Cebu and Metro Davao, which are on the threshold of full urbanization


and motorization, with the carrying capacities of the road network in urban centers,
notably at the city centers or Central Business Districts (CBDs), on the verge of being
unable to cope with the increasing volume of vehicles;

"Other Areas" or Areas" - Other areas which, while not being part of Greater Metro Manila
and Other Highly Urbanized Cities, are also experiencing a high level of traffic congestion
or where such congestion is imminent

£. "Procuring Entity" - Any branch, department, office, agency, or instrumentally of the
government procuring goods, infrastructure, and consulting s
Projects as hereinafter defined.

vices for Transportation

"Transportation Project" - A project involving the construction, repair, rehabilitation,
improvement, operation, or maintenance of any public transportation facility to ensure the
safety and convenience of the commuting public, including all projects aimed at reducing
traffic congestion in Greater Metro Manila and Other Highly Urbanized Cities and Areas.

Powers to the President/Executive Branch. - ‘The President is
ed to exercise all powers necessary and proper to carry out the above-declared
State policy. As such, the President, along the heads of the department and agencies under the

SECTION 5. Grant of Emergenc)
hereby authori

Executive Branch involved in transportation and traffic management projects and issues, i
hereby granted Emergency Powers to urgently utilize all necessary government resources,
exercise police power, and employ executive actions and measures to ensure the traffic and
congestion crisis, unhampered by existing laws, agreements, regulations, court orders, and
procedures that may cause delay in addressing the crisis.

SECTION 6. Creation, Reorganization and Abolition of Offices. ‘The President may reorganize
and rationalizes the existing structure of the Department of ‘Transportation (DOTS), Land
‘Transportation Office (LTO), Land Transportation Franchising and Regulatory Board (L.TFRB),
Civil Aviation Authority of the Philippines (CAP), Civil Aeronautics Board (CAB), Metro
Manila Development Authority (MMDA), the Highway Patrol Group of the Philippine National
Police. and all other agencii

s in the transportation sector

To this end, the President may abolish, merge, split, or create agencies, offices and positions;
realign funds for the purpose, adopt a rationalization plan, transfer functions, equipment,
properties, records and personnel; institute drastic cost-cutting measur
related actions necessary to carry out the declared State policy

ensure the effective implementation of the programs purs

nd take such other
As far as practicable, and to
vant to this Act, the reorganization and
x (6) months

nationalization of these departments and agencies must be implemented within s
from the passage of this Act.


SECTION 7. Formulation of the Decongestion and Transportation Network Reform Plan. - The
Executive Branch shall adopt a comprehensive, integrated and sustainable Decongestion and
Transportation Network Reform Plan (hereinafier the "Plan").

The Plan shall provide shall provide a roadmap and list of projects for the national and local
intermodal transport system aimed at decongesting Greater Metro Manila and Other Highly
Urbanized Cities and Areas, with the end in view of spurring development in all region in the
country, providing sufficient transport infrastructure and linkages, and ensuring transport safety
and security

SECTION 8. Appointment of a Traffic Crisis Manager. - The §
designated as the Traffic Crisis Manager, As suc!
and control, as well as oversee the implementation of the plan.

retary of the DOTr is hereby
he shall exercise overall traffic management

CTION 9. Single Authority over Traffic Management, - For the duration of the emergeney
powers herein granted, all the powers, authority, and functions over land traffic management of
the Metro Manila Development Authority (MMDA) under section 3 (b). Section 5 (e) and (f) and
other related provisions of Republic Act No. 7924, Local Government Units under Sec 447 (4)
(vi) and Sec 458 (5) (v) of the Local Government Code of 1991, Land Transportation Office
(LTO), Land Transportation Franchising and Regulatory Board (LTFRB), Philippine National
Police (PNP), Toll Regulatory Board (TRB) and the Philippine Ports Authority (PPA); the
powers, authority and functions over air route and airway facilities air traffic service and ai
navigation of the Civil Aviation Authority of the Philippines (CAAP), Civil Aeronautics Board
(CAB), Manila International Airport Authority (MIAA) and other agencies and instrumentalities
involved in air transportation; and the powers, authority and functions over seaports of the
Philippine Ports Authority (PPA) shall be vested in the Traffie Crisis Manager

SECTION 10. Powers of the Traffic Crisis Manger, - The Traffic Crisis Manager shall have the
following powers:

A, Land-based transportation

The Trafic Crisis Manager may modify, amend, or expand the functions of the MMDA, LTO,
LTFRB, PNP, and TRB, as well as override the permits and licenses issued by the said agencies,
the traffic ordinances of affected Local Government Units, and other relevant rules and
procedures,

He/She may also implement such measures as exigencies may require, including, but not limited
to, the following:


a, Integration of different transportation modes to the public transport infrastructure
network;

b. Takeover and operation of public transport systems and infrastructur

-

intermodal terminal:

Rationalization of public transport rout and rail alignments:

d. Transfer

and relocation of transport terminals;

¢, Modernization of common carriers and standardization of pres fications for

them;

cribed spe

Adoption of regulatory policies on vehicle ownership and parking:
g. Issuance and revocation of driver's licens

h. Construction of structures or implementation of roadworks that improve traffic flow:

i. Rapid response to road safety and traffic-blocking accidents and incidents:

j- Implementation of the number coding scheme and other traffic volume reduction schemes;

k. Opening up of private roads, whether or not with the imposition of toll fees, as additional
access points for motorists;

1, Implementation of staggered work hours in government offices: and

B. Rail Transportation and Toll Roads,

The Traffic Crisis Manger may override the LRTA, PNR, TRB, and other pertinent government
agencies or instrumentalities, with respect to regulations, permits, and licenses issued by them, as
well as other relevant rules and procedures, and implement such other measures as exigencies
may require. These include, but are not limited to, the following:

a. The Traffic Crisis Manger and the LRTA shall have the authority to procure rail
system spare parts which are of limited availability (due to being Original
Equipment Manufacturer [OEM] parts, limited supply chain, or the numbers or
volumes that exceed the relevant rail system's inventory requirements for one year,

as may be determined by the Traffic Crisis Manager of the LRTA. The type of


spare parts covered by this authority and the number or volume thereof that may be

procured shall, in any case, be consistent with international best practices; and

The Traffic Crisis Manger, through the LRTA or PNR, or his/her authorized
representative shall have the authority to acquire any land or proper
of developing future rail. projects,
maximize value

for the purpose
in order to minimize cost of acqui
aplure opportunities for government

sition, and

©. Air-based Transportation

The Traffic Crisi
rules

Manger m ay override regulations, permits, and licens:
and procedures.

is Well as rele

He/She may also implement such measures as exigencies may require, includin
to, the following:

, but not limited

a. Comprehensive evaluation of the airports, current airspace, runaway, and terminal
capacities, air traffic and surface operation, and runaway access points

b. Optimization of existing airports and transfer to alternative airports:
¢. Development of new airports;

d. Augmentation of the air and land-side facilities;

Relocation of general aviation activities;

Grant exemption from travel tax and excise tax on aviation fuel for Clark
International Airport and other airports to increase utilization thereof; and

g. Hastening of ground servicing of aircrafts and adjustment of passenger loading
times.

D, Seaports


The Traffic Crisis Manager may modify, amend, or expand the functions of Philippine Ports
Authority (PPA) and Maritime Industry Authority (MARINA), and override their permits and
licenses, as well as relevant rules and procedures,

He/She may also implement such measures as exigencies may require, including, but not limited
to, the following:

a, Expansion of the capacity of the Port of Manila to received cargo;

b, Shifting of international container traffic to Batangas and Subic ports;

Staffing of Batangas and Subic ports with sufficient Bureau of Customs (BOC)
and PPA personnel;

d. Provision of cargo handling equipment, berth capacity, and container yard capacity
that are commensurate to the volume of cargo and transaction targeted tobe diverted

from the Port of Manila;

Construction of a new and large deep-sea port outside Metro Manila to be
identified under the Plan; and

Adoption of a rationali

tion plan for future port development and investment
programs for ports in the National Capital Region, Central Luzon, and Southern
Tagalog Region.

SECTION 11. Power of Eminent Domain. - All concerned government agencies shall
coordinate and jointly work with the Traffic Crisis Manager for the immediate resolution of
congestion and other issues on transport and traffic infrastructure. ‘This shalt include the exercise
of the power of eminent domain for right-of-way acquisitions neces:
projects or publie convenience

ary for infrastructure

‘The definition of "national government projects" under Republic Act No. 10752 shall be deemed
to include projects for the resettlement of informal settlers or other persons or families affected
by any national government infrastructure project implemented pursuant to Republic Act No.
6957, as amended by Republic Act No. 7718;

SECTION 12. Special Modes of Procurement for Transportation Projects, ~ The Trafic Crisis
Manager, is hereby authorized to adopt the following modes or procurement for goods,
structure, and consulting services for Transportation Pr

jects aimed at the reduction of
traffic congestion in Greater Metro Manila and Other Highly Urbanized Cities and Areas:



a. Direct Contracting, which involves directly requesting a contractor, supplier ot
consultant, who meets the financial, technical and legal qualifications set by the
Procuring Entity, to submit a price quotation or a pro-forma invoice together
with the contractual terms and condition

b, Repeat Order, which involves a direct procurement of goods from a previous
supplier whenever there is a need to replenish goods as needed and determined
by the procuring Entity; and

Direct Negotiation of Contract
pr

. which involves direct negotiation with a
sject proponent who complies with all the pre-qualification requirements as

set forth under R.A. No. 7718 otherwise known as the Build-Operate-Transfer
Law.
Exemption shall be granted from all taxes and fees due on the transfer of assets, whether

nominally or beneficially, from the government to a private sector concessionaire of a rail
PPP project, and from the private sector concessionaire back to the government at the end
of the concession period: Provided. That this exemption shall only apply to rail PPP
projects signed and executed after the affectivity of this Act.

SECTION 13. Prohibition on the Issuance of Temporary Restraining Orders and
Preliminary Injunctions. — In the implementation of the Act, no court, except the Supreme
Court may issue any temporary retraining order or preliminary injunction against the
government or any of its subdivisions, official or any person or entity, hether public or
private, acting under the government direction, to restrain, prohibit or compel the following
acts:

a. Acquisition, clearance, and development of the right-of-way site or location of any
transportation project identified by the Traffic Crisis Manager;

b, Procurement of transportation projects, including infrastructure projects, goods, and
consulting servie

Commencement, prosecution, execution, implementation, operation of any
tion project;

transport

and

d. ‘Termination or rescission of any Transportation Project

Undertaking or authorization of any other lawful activity necessary for any
Transportation Project.



SECTION 14. Right 10 information, ~ Upon perfection of each contraet entered into by the
Government pursuant of Section 12 hereof, the terms and conditions of the same, with the
name and qualification of the contractor, together with the description, the budgeta
estimates involved and other salient features
this purpose.

hall be published in a website created for

SECTION 15. Duration of powers. ~ The authority granted fo the Executive Branch under
the Act shall be valid’ and effective for a period of three (3) years from the effectivity
hereof, unless sooner withdrawn by a joint resolution of Congre

without prejudice
rights and benefits that may have been vested and liabilities that may have been incurred in
the meantime.

SECTION 16. Oversight Commiticey. ~ There is hereby created an Oversight Committee
ch House of Congress, which shall monitor the implementation of this Act and the
exercise of the powers herein granted, Each Committee shall be composed of five (5)
members, to be designated by the Senate President, in the case of the Senate, and the
Speaker, in the case of the House of Representatives.

in ea

The Oversight Committees shall periodically submit reports, evaluations, and
recommendations to the Senate and the House of Representatives.

SECTION 17. Report to Congress. ~ The Executive Branch shall submit a quarterly report
to Congress on the implementation of this Act.

ECTION 18. Private Legal Assistance and Indemnification, — The Traffic Crisi
Manager and his subordinates may, at costs to the government, engage the legal servic
the pri
with the lawful exercises of their functions and duties hereunder, and shall be indemnified

of

vate lawyers whenever criminal or civil cases are filed against them in connection

for all other costs and exercise of their functions and duties hereunder, and shall be
indemnified for all other costs and expenses incurred in connection with such cases.

SECTION 19. Funding. ~The amount needed for the implementation of this Act shall be
sourced from the following

a. ‘The Motor Vehicle Users Charge Fund under RA 8794;

b. ‘Ten per centum of the Philippine Amusement and Gaming Corporation annual
aggregate gross earnings; and


©. Current fiscal year’s appropriation of the agencies involved in the implementation
of this Act.

SECTION 20, Transitory Provision, ~ As far as practicable, the provisions of this act shall
apply to all procurements, which have already commenced but with no Notice of Award
yet issued,

SECTION 21. Separability Clause ~ In the event that any provision of this Act is declared
unconstitutional, invalid, or illegal, the constitutionality, validity, or legality of the
remainder of the provisions of this Act shall not be affected thereby.

SECTION 22. Repealing Clause. ~ All laws, presidential decrees, letters of instructions,

executive orders, rules, regulations, and other issuances or parts thereof which are contrary
to or inconsistent with the provisions of ~ this Act are hereby revoked, repealed, amended

or modified a

cordingly

SECTION 23. Fffectivity - This Act shall take effect fifteen (15) days following the
completion of its publication in two (2) newspapers of general circulation

Cog. Xurofio Rope D. Gonzales, Jr.