Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRES

First Regular Session

90

HOUSE BILL.

Introduced by Representative Edgar Mary S. Sarmiento

EXPLANATORY NOTE

This bill seeks to mandate the Executive Department, with the leadership of the Department of
Transportation, to create a roadmap for the infrastructure development of various transportation
sectors for ten (10) years.

The country’s transportation problem has been an impediment in the growth of its economy.
Moreover, it gravely affects the daily lives of the people because of the inconvenience that it
causes. It is clear that there is a dire need to improve the current state of our transportation
infrastructure. The bill aims to do so through the implementation of a comprehensive program
which will be formulated by the relevant agencies of the government. Once identified, the
projects to be funded cannot be changed anymore. The bill ensures that the projects will continue
despite the changes in our government.

In view thereof, approval of this bill is earnestly sought.

EDGAR mye S. SARMIENTO
Representattve, 1*' DiNyict Samar


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.__98

Introduced by Representative Edgar Mary S. Sarmiento

AN ACT PROVIDING FOR THE MODERNIZATION OF THE PHILIPPINE
TRANSPORTATION INFRASTRUCTURE, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES.

Be in 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 “Philippine Transportation
Infrastructure Modernization Act”

SECTION 2. Declaration of Policy. ~ It is hereby declared the policy of the State to implement an
infrastructure modernization program for the transportation industry across the country with the
end view of developing an efficient and reliable transportation system.

SECTION 3. Components of the Transportation Infrastructure Modernization Program. — The
Transportation Infrastructure Modernization Program shall con:

st of the following components,

a. Infrastructure Development Upgrading ~ The objectives of this component are:

1. Upgrading and continuing development of transportation infrastructure including, but
not limited to, buildings, terminals, runways, ports, stations, railways, roads, and other
support facilities such as facilities for the benefit of the passengers

2. Development, procurement, and management of information and communications
technology systems and automated systems

3. Real estate acquisition, tithing, and management

b. Equipment Upgrading and Acquisition Planning — The objectives of this component are
upgrading and procurement planning and continuous acquisition of modern equipment that
shall be used by the transportation management.


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SECTION 4. Submission of the Transportation Infrastructure Modernization Program. ~ Within
ninety (90) days from the effectivity of this Act, the Secretary of the Department of Transportation,
in consultation with the National Economic Development Authority, Department of Public Works
and Highways, Department of Budget and Management, and the other sectoral agencies listed
below, is mandated to submit the Transportation Infrastructure Modernization Program containing
specific plans for the aviation, railway, maritime and land transportation sectors, to the
Congressional Oversight Committee, created under this Act, for its consideration. The following
agencies shall also be consulted in creating the Transportation Infrastructure Modernization
Program with respect to their sector:

a. Land Transportation Sector — Land Transportation Franchising and Regulatory Board

b. Railway Sector ~ Philippine National Railways, Light Rail Transit Authority, and North
Luzon Railways Corporation

¢. Maritime Sector — Philippine Ports Authority, Maritime Industry Authority, and Cebu Ports
Authority

d. Aviation Sector ~ Civil Aviation Authority of the Philippines, Manila International Airport
Authority, Clark International Airport Corporation, Civil Aeronautics Board, Mactan-Cebu
International Airport Authority, and Philippine Aerospace Development Corporation

The Transportation Infrastructure Modernization Program shall indicate the following:

a. A conerete development roadmap for the aviation, railway, ma
transportation sectors in the country for the next ten (10) years;

b. The modernization projects and activities under the program to be undertaken and the
particular component and corresponding objective to which such projects and activities
relate to;

¢. The priorities, schedules, and phases of implementation of modernization projects and
activities;

d. The estimated average cost of each modemization project or activity to be undertaken

ime and land

The projects to be funded under the Transportation Infrastructure Modernization Program, once
final, may not be changed.

SECTION 5. Procurement System. ~ In addition to the provisions of existing laws, rules and
regulations governing the acquisition of real estate, buildings, facilities and equipment, the DOTr

and other appropriate government entities, shall strengthen its procurement system and procedures
taking into consideration the following:

a. The Secretary of DOTr, pursuant to the Transportation Infrastructure Modernization
Program Projects and Appropriations approved by Congress may, subject to the approval
of the President and consistent with the provisions of existing laws and regulations.
including those of the Commission on Audit’s and under such terms and conditions most
favorable to the government, enter into multi-year contracts and other contractual
arrangements.

b. For multi-year contracts and other contractual arrangements, lease, lease-purchase
agreements and similar agreements, Congress shall, upon issuance of a multi-year



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obligation authority by the Department of Budget and Management and certification by the
President, make the corresponding appropriation for the ensuing fiscal year; Provided, that
the Department of Budget and Management shall issue the implementing guidelines to
ensure consistency with the Transportation Infrastructure Modernization Program and
existing guidelines in the contracting of multi-year projects. It shall only appropriate such
funds as may be necessary to pay any unpaid amount where the funds appropriated for the
current fiscal year are not sufficient or available to meet such payment in full or in part.

c. The Secretary of DOTr shall submit to the Congressional Oversight Committee created
under this Act, the Secretary of Finance and the Secretary of Budget and Management,
copies of these multi-year contracts and other agreements to enable Congress to appropriate
funds. The funds appropriate for the Transportation Infrastructure Modernization Program
under this Act shall be treated by the Secretary of the DOTr as a distinct and separate
budget item from the regular appropriations of the agency

SECTION 6. Prioritization of Transportation Projects and Activities. - Within ninety (90) days
from the effectivity of this Act, the DOTr shall submit to Congress, for its consideration, approval
and funding, the schedule of priority projects and activities, as well as the yearly estimated average
cost, by phases, to serve as the basis for appropriate executive and legislative actions to enable
immediate implementation until full realization. This schedule may include infrastructure and
equipment acquisition and modernization of various airports, ports, government-owned or
operated land and railway terminals

SECTION 7. Appropriation for the Transportation Infrastructure Modernization Program. ~ The
amount necessary for the implementation of this Act shall be treated as a distinct and separate

budget item from the regular appropriation of the Department of Transportation, its sectoral and
attached agencies

SECTION 8. Period of Implementation — The Transportation Infrastructure Modernization
Program shall be implemented over a period of ten (10) years. The payment for the amortization
of outstanding multi-year contract obligations incurred under this Act may extend beyond such
period.

SECTION 9. Congressional Oversight Committee. — There is hereby created a Congressional
Oversight Committee to monitor and oversee the implementation of the provisions of this Act. The
committee shall be composed of six (6) members from the senate and six (6) members from the
House of Representatives with the Chairperson of the Committee on Transportation of both Houses.
as Joint Chairpersons. The five (5) other members from each Chamber shall be designated by the
Senate President and the Speaker of the House of Representatives, respectively

‘The Minority shall have at least two (2) representatives from both Chambers.

SECTION 10. Annual Reports — Not later than the end of the first quarter of every year of
implementation, the Secretary of Transportation shall.

a. Submit to the President and Congress an annual report on the status of the Transportation
Infrastructure Modernization Act Trust Fund:


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b. Submit to the President and Congress, an annual report containing the progress of the

implementation of the Transportation Infrastructure Modernization Program under this
Act.

SECTION 11. Penalties ~ Failure of the appropriate government officials to implement the
Provisions under this Act shall subject them to existing administrative and penal sanctions.

SECTION 12. Review ~ Within five (5) years after the effectivity of this Act, the Congressional
Oversight shall conduct a review or systematic evaluation of the accomplishments and impact of
the Transportation Infrastructure Modemization Program, as well as the performance and
organizational structure of the implementing agencies, for purposes of determining remedial
legislations.

SECTION 13. Implementing Rules and Regulations. — The Secretary of Transportation, in
coordination with the Secretary of Budget and Management, shall promulgate the necessary rules
and regulations within one hundred (180) days from the approval of this Act for its effective
implementation,

SECTION 14. Repealing Clause. ~ All other existing laws, rules and regulations inconsistent with
this Act are hereby repealed or modified accordingly

SECTION 15. Separability Clause. ~ If any part or section of this Act is declared unconstitutional
such declaration shall not affect the other parts or sections of this Act.

SECTION 16. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after its publication
in two (2) newspapers of general circulation or in the Official Gazette.

Approved.