Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.   _________ 
Introduced by  
REPRESENTATIVE PANTALEON D. ALVAREZ 
AN ACT 
RESTRUCTURING THE PHILIPPINE NATIONAL RAILWAY SYSTEM, 
CREATING 
THE 
PHILIPPINE 
RAILWAY 
AUTHORITY, 
THE 
PHILIPPINE RAILWAY CORPORATIONS, APPROPRIATING FUNDS 
THEREFOR AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
The national railway system is essential to the development of a 
country. An efficient, reliable, and convenient railway system provides 
passengers with the necessary mobility and efficiency in their desired travel 
destination. It also facilitates the movement and trade of goods and services. 
Although the Philippines has operating railways – in terms of tracks 
covered in kilometers, the number of working train coaches and the areas 
reached by the railway system – the country falls far behind in contrast to its 
neighbors. Further, the deficiency is made worse by the fact that there is 
regulatory chaos caused by the lack of central authority regulating the 
Philippine railway system. 
The current regulatory framework, or the lack thereof, has not 
addressed the daily problems of the country's train system. To date, Light 
Rail Transit (“LRT”) 1, LRT 2, and Metro Rail Transit (“MRT”) 3 operations 
have not successfully regulated the existing railway systems in ensuring that 
5705
October 26, 2022
2:28 pm


they are efficient, safe, and comfortable modes of transportation. The 
Philippine National Railways (“PNR”) is in a worse situation as it 
desperately needs modernization. 
Further, there are no railway systems in place in Visayas and 
Mindanao similar to the PNR to render the transport of goods, services, and 
people around these areas. Consequently, the absence of functioning 
railways and trains in these country areas has hampered the potential for 
economic growth and development. This Bill seeks to create three separate 
and distinct government owned and controlled corporations that shall 
operate railways in the islands of Luzon, Visayas, and Mindanao to solve 
this problem. 
The undersigned filed an earlier version of this Bill in the 17th Congress 
titled “Philippine National Railway Restructuring Act of 2017” which was then 
docketed as House Bill No. 6593. Said Bill was referred to the Committee on 
Government Enterprises and Privatization and deliberated by the Technical 
Working Group. Said Bill was again refiled in the 18th Congress and was 
docketed as House Bill No. 2437. As it was in the earlier version of the Bill, 
it was again referred to the Committee on Government Enterprises and 
Privatization but did not advance to the Second Reading. 
The version of the Bill that was filed in the 17th Congress and duly 
refiled in the 18th Congress is herein reproduced, refiled once more, and its 
passage is earnestly sought. 
PANTALEON D. ALVAREZ 


Page 1 of 26 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.   ________ 
Introduced by  
REPRESENTATIVE PANTALEON D. ALVAREZ 
AN ACT 
RESTRUCTURING 
THE 
PHILIPPINE 
NATIONAL 
RAILWAY 
SYSTEM, CREATING THE PHILIPPINE RAILWAY AUTHORITY, 
THE PHILIPPINE RAILWAY CORPORATIONS, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:  
ARTICLE I 
GENERAL PROVISIONS 
Section 1.  Title. – This Act shall be known as the “Philippine 
National Railway Restructuring Act.” 
Section 2. Declaration of Policy. – It is the policy of the State to 
utilize railway systems as an instrument for national progress and 
prosperity. Toward this end, it shall establish a nationwide railway 
system that is cost-effective, safe, reliable, efficient, state-of-the-art, 
accessible, sustainable, and compliant with international standards. 
ARTICLE II 
PHILIPPINE NATIONAL RAILWAY DEVELOPMENT AUTHORITY 
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Sec. 3. Creation of the Philippine National Railway Authority. – 
There is hereby created a body corporate to be known as the Philippine 
National Railway Authority (“PNRA”), hereinafter referred to as the 
Authority which shall have the attribute of perpetual succession and shall 
be vested with the powers of a corporation. It shall establish its principal 
office in Metropolitan Manila unless otherwise provided by the 
Authority, and may put up branches as may be necessary. 
Sec. 4. Mandate. – The Authority shall regulate all aspects of the 
operations of the Railway Corporations, presently operating, those 
created under this Act, as well as such other railway corporations which 
may be established in the future. Said mandate of the Authority shall 
apply to railway entities owned and/or operated either by the 
government or by the private sector. 
Sec. 5. Powers of the Authority. –  As a corporate body, the 
Authority 
shall 
have 
the 
following 
powers, 
duties, 
and 
functions: 
(a) To succeed in its corporate name, to sue and be sued in such
corporate name, and to adopt, alter, and use a corporate seal which
shall be judicially noticed;
(b) To adopt, amend, and repeal its By-Laws;
(c) To enter into, make, perform, and carry out contracts of every
class and description which are necessary and incidental to the
realization of its purposes with any person, firm or corporation,
private or public;
(d) To acquire, own, hold, administer, and lease such real and
personal properties as it deems necessary or convenient in
governing its affairs and to encumber, lease, mortgage, sell, alienate
or otherwise dispose of the same except its right-of-way;
(e) To enter into any obligation, assign or accept the assignment of
and rescind any agreement or contract necessary or incidental to the
proper functioning of the Authority;


 
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(f) To prescribe, fix and regulate the scheduled frequency and route 
of railway services; 
 
(g) To privatize any part or all of the railway system or any sub-
system under the supervision and regulation of the Authority, with 
the prior approval of Congress, and to permit the party that 
acquires the system an authority to operate the same subject first to 
the grant of a congressional franchise; 
 
(h) To formulate and adopt a master plan for a modern national 
railway system with ecological and environmental standards; 
 
(i) To order the cessation of operations or any and all activities 
related to the railway system upon the recommendation of the 
concerned railway safety/security officer; 
 
(j) To call upon any government agency or instrumentality for such 
assistance as may be necessary in the discharge of its duties and 
functions; 
 
(k) To promulgate such rules and regulations as may be necessary 
to carry out the objectives of this Act; 
 
(l) To perform such other powers as may be necessary to carry out 
the purpose of this Act. 
 
ARTICLE III 
RAILWAY STANDARDS 
 
Sec. 6. Standards. – In order to sustain the development of the 
railway industry, enhance the operations of railway systems and ensure 
the safety and security of the railway riding public, and protect them 
from any form of natural calamities and man-made disasters, the Board 
shall set the necessary routes, fares, and standards on safety and 
security, and facilities for the easy access by persons with disabilities 
(PWD) and senior citizens, to be observed by the railway operators, be 
they public or private. The fare and standards on safety and security 
must be compliant with international standards and best practices. 
 


 
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Sec. 7. Rules and Regulations. – The Board shall formulate rules 
and regulations on the following: 
 
(a) Uniform standards and specifications with respect to rolling 
stock, track, structural facilities, and other railway equipment 
and apparatus; 
 
(b) Construction, maintenance, repair, and removal of track and 
structural facilities; 
 
(c) Permanent and temporary fencing of right-of-way and 
structural 
     facilities including the appointment of costs in relation thereto; 
 
(d) Track crossing and its usage; 
 
(e) Installation and use of signage, warning signals, barriers,   
     operating signals, and other similar apparatus; 
 
(f) Qualifications of persons operating rolling stock and of persons 
carrying out functions regarding the operation of track and of 
other equipment and matters ancillary to the operation of 
rolling stock; 
 
(g) Materials, equipment, and technology to be used for the 
building   
      and construction of the railway systems; 
 
(h) Tariff, rates, and other fees and charges; 
 
(i) Railway security and safety; and 
 
(j) Imposition of fines and penalties. 
ARTICLE IV 
BOARD OF DIRECTORS 
 
Sec. 8. Board of Directors Composition. – The powers and functions 
of the Authority shall be exercised through a Board of Directors, 
hereinafter referred to as the Board, to be composed of five (5) members: 
the Secretary of the Department of Transportation as the Chairman, the 


 
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three (3) General Managers of the railway corporation, and one (1) 
member from the private sector appointed by the President of the 
Philippines, for a term, or terms, in accordance with Republic Act (RA) 
10149. 
 
Members of the Board shall receive a per diem of not more than ten 
thousand pesos (Php 10,000.00), or as otherwise set by the Department of 
Budget and Management, for every board meeting: Provided, however, 
That the per diem collected per month does not exceed the equivalent four 
(4) meetings.   
 
Sec. 9. Functions, Meetings, Quorum and Reports of the Board. – 
The Board of Directors shall be the policy-making body of the Authority 
and shall perform the following powers and functions: 
 
(a) Determine the organizational structure of the Authority, define 
the duties and responsibilities of all officials and employees and 
adopt a compensation and benefit scheme that shall be subject 
to the approval of the Governance Commission for 
Government-Owned and Controlled Corporations (GCG); 
 
(b) Appoint all officials down to the third level and authorize the 
Administrator of the Authority to appoint all others. 
 
(c) Formulate plans, programs, projects, policies, and rules and 
regulations; 
 
(d) Establish financial and operations targets for management as the 
basis for evaluating and monitoring corporate performance; 
 
(e) Authorize such expenditures for the effective and efficient    
      administration and operations of the Authority; and 
(f) Submit an annual report of the operation of the Authority, 
through the Secretary of the DOTr, to the President of the 
Philippines, Senate President of the Philippines, and Speaker of 
the House of Representatives; 
 
(g) Meetings of the Board – The Board shall meet regularly once 
every month at its principal office. All members of the Board 
must be notified either through electronic or traditional means, 


 
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at least three (3) days before said meeting. The Board may also 
conduct special meetings whenever necessary. 
 
A majority of the members shall constitute a quorum for the 
transaction of corporate business, and every decision of at least a majority 
of the members present, at which there is a quorum, shall be valid as a 
corporate act, except for the election of officers which shall require the 
vote of a majority of all the members of the board. 
 
ARTICLE V 
ADMINISTRATION OF THE AUTHORITY 
 
Sec. 10. The Administrator. – The general conduct of the operations 
and management of the Authority shall be vested in an Administrator 
with the rank and privileges of an Undersecretary who shall serve as 
Chief Executive Officer of the Authority. He shall be primarily 
responsible for carrying out the projects and programs of the Authority 
as well as for the implementation of its policies, rules and regulations, 
including the faithful execution of the decisions of the Board. 
 
Sec. 11. Qualifications. – The Administrator must be a citizen of 
the Philippines, at least thirty-five (35) years of age on the day of his/her 
appointment, of good moral character, and with recognized executive 
ability and competence in the field of transportation, business 
administration, management, finance or law. He shall be appointed by 
the President of the Republic of the Philippines for a term or terms, in 
accordance with RA 10149. 
 
Sec. 12. Duties and Responsibilities of the Administrator. – The 
Administrator of the Authority shall have the following duties and 
responsibilities; 
 
(a) Execute, administer, and implement the policies and measures 
approved by the Board;  
 
(b) Direct and supervise the operations and administration of the 
Authority insofar as regulating the operation of railways; 
 
(c) Direct and supervise the preparation of the agenda for the 
meeting of the Board, and submit for the consideration of the 


 
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Board such measures as he believes necessary to carry out the 
purposes and objectives of the Act; 
 
(d) Represent the Authority in all its transactions with other offices, 
agencies, and instrumentalities of the government and deal 
with any persons and entities, public or private, domestic or 
foreign, on matters related to the mandate of the Authority; 
 
(e) Prepare the annual supplemental budgets of the Authority; and 
 
(f) Exercise such other powers and perform such other duties and 
functions as the Board may assign or authorize. 
 
ARTICLE VI 
RAILWAY CORPORATIONS 
 
Sec. 13. Railway Corporations: Name, Duration, and Domicile. – 
There are hereby created three (3) separate and distinct government 
corporations which shall operate railways in the islands of Luzon, 
Visayas, and Mindanao, to be known respectively as the Luzon Railway 
Corporation (“LRC”), the Visayas Railway Corporation (“VRC”), and the 
Mindanao Railway Corporation (“MRC”). Said Corporations shall exist 
for a term of fifty (50) years, from the date of approval of this Act, 
renewable for another fifty (50) years upon the approval of the President 
of the Philippines. 
 
The LRC shall have its main office in Clark, Pampanga, the VRC in 
Panay Island, and the MRC in Tagum City, Davao, and all shall have such 
branches within their respective areas of jurisdiction as may be necessary 
for the proper conduct of their businesses. 
 
Sec. 14. Powers of the Railway Corporation. – The Railway 
Corporations herein created shall have the following powers: 
 
(a) To exercise the right of eminent domain whenever necessary 
for the attainment of its objectives; 
 
(b) To borrow money and contract loans, credits, or indebtedness 
from domestic or foreign sources for the furtherance of its goals 
and objectives; 


 
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(c) To do all such other things and to transact all such business 
directly or indirectly necessary, incidental or conducive to the 
attainment of the purpose of the corporation; and 
 
(d) To exercise all powers of a corporation under Batas Pambansa 
Blg. 68 otherwise known as the “The Corporation Code of the 
Philippines,” as amended. 
 
(e) To construct, own, lease, operate, and maintain public utilities, 
infrastructure facilities, and such auxiliary support services 
needed to develop and regulate a nationwide railway system; 
 
(f) To design, construct, maintain, and operate by itself through 
contractual arrangements through auxiliary infrastructure 
support facilities such as, but not limited to, parking structures 
above or below the ground, including the means of access; 
 
(g) To own or operate railroad trainways and subways for the 
purpose of transporting, for consideration, passengers, mails 
and property between any point in their respective areas of 
operation through the use of railways; and 
 
(h) As an auxiliary to its main purpose, to own and/or operate 
powerhouses, hotels, restaurants, terminals, warehouses, 
timber concessions, coal mines, iron and other mineral 
properties, and to manufacture rolling stocks, equipments, 
tools, and other appliances; to construct and operate in 
connection with its railroad lines, toll viaducts, toll tunnels, and 
the like. 
 
 
Further, the assets, liabilities, powers, and functions of the public 
railway entities, which are owned by the government, shall, upon 
effectivity of this Act, be transferred and absorbed by the appropriate 
railway corporation, and all such public railway entities shall be deemed 
abolished. 
 
 
Sec. 15. Authorized Capital Stock of the Railway Corporation. – 
The authorized capital stock of each Railway Corporation shall be Thirty 
Billion Pesos (Php 30,000,000,000.00) divided into Fifteen Million (Php 


 
Page 9 of 26 
15,000,000.00) common shares with a par value of Two Thousand Pesos 
(Php 2,000.00) each, which shall be fully subscribed by the National 
Government 
and 
other 
government 
institutions, 
corporations, 
instrumentalities, and agencies, whether national or local, within the 
framework of their respective charters, twenty percent (20%) of which or 
Six Billion Pesos (Php 6,000,000,000.00) shall be initially paid-up and the 
balance shall be paid from a continuing annual appropriation or not less 
than Two Billion Pesos (Php 2,000,000,000.00) and the programming and 
release thereof shall remain in force until the authorized capital 
subscribed by the Government shall have been paid in full. 
 
 
Sec. 16. Board of Directors, Composition, and Appointment. – The 
corporate powers of each Railway Corporation shall be vested in the 
Board composed of seven (7) Directors. The Undersecretary from the 
DOTr shall be the Chairperson and the Secretary of Finance shall be the 
Co-Chair, both acting in their ex-officio capacity. The remaining five (5) 
members shall be appointed by the President for a term, or terms, in 
accordance with RA 10149. 
 
 
Members of the Board shall receive a per diem of not more than ten 
thousand pesos (Php 10,000.00), or as otherwise decided by the DBM, for 
every board meeting: Provided, however, that the per diem collected per 
month 
does 
not 
exceed 
the 
equivalent 
four 
(4) 
meetings.  
 
 
Sec. 17. Qualifications of Appointive Members of the Board. – The 
appointive members of the Board of Directors shall be Filipino Citizens, 
at least thirty-five (35) years of age at the time of their appointments, and 
holders of degrees in the fields of transport planning, engineering, 
economics, management, finance, marketing, law, or related course, with 
a preference for those with master’s degrees in such fields or work 
experience in railway management and operations for at least five (5) 
years. All such officials must be residents of the place where the 
respective corporations they work for hold their primary office for 
business, at least one (1) year prior to their respective appointments. 
Further, they shall be persons of good moral character, competent, and 
experienced in one or more of the following fields: transport planning, 
engineering, economics, management, finance, corporate law, or 
marketing. 
 


 
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Sec. 18. Powers and Duties of the Board of Directors. – The Board 
of Directors shall have the following powers and duties: 
 
(a) To prescribe, amend, or repeal by-laws, rules and regulations, 
or policies governing the manner in which the general business 
of the Railway Corporation may be exercised; 
 
(b) To fix the compensation of the General Manager and Assistant 
General Managers, subject to approval of the Government 
Commission 
on 
Government-Owned 
and 
Controlled 
Corporations (GCG), and to appoint and fix the compensation 
of the other officers of the Corporation; 
 
(c) To approve the annual and/or such annual supplemental 
budgets of the Corporation; 
 
(d) By a two-thirds (2/3) vote of all members, to recommend to the 
President the suspension or removal for cause of the General 
Manager or Assistant General Manager(s); 
 
(e) Upon the recommendation of the General Manager, to approve 
the appointment of all officials to the Corporation from the rank 
of division head and above; 
 
(f) Subject to the provisions of applicable laws and regulations, and 
upon recommendation of the General Manager, to reorganize 
the Railway Corporation, determine its staffing pattern, or 
define the functions and duties of organization units and 
personnel; and 
 
(g) To expropriate, with rightful compensation, in accordance with 
RA 10752, the necessary right of way needed by the Corporation 
to acquire, maintain, and/or expand its track lines. 
 
 
Sec. 19. General Manager of the Railway Corporation. – The 
management and day-to-day operations of each Railway Corporation 
shall be vested in the General Manager who shall be appointed by the 
President of the Republic of the Philippines, upon the recommendation 
of the Board of Directors of said Railway Corporation. The General 
Manager shall possess technical competence in management, preferably 


 
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in railroad transport management, have demonstrated executive ability, 
and be of good moral character. The General Manager shall hold office 
for a term of eight (8) years. 
 
 
Sec. 20. Powers and Duties of the General Manager. – The General 
Manager shall have the following powers and duties: 
 
(a) To direct and manage the affairs and business of the Railway 
Corporation on behalf of the Board of Directors, subject to the 
policies, rules, and regulations established by the latter; 
 
(b) To sit in all meetings of the Board as a resource person, and to 
participate in its deliberations, with no right to vote, and to 
preside in any meeting for or in the absence of the Chairman;  
 
(c) To recommend to the Board short-and-long range plans and 
programs consistent with the overall objectives of the Railway 
Corporation; 
 
(d) To submit and recommend a consolidated annual budget and 
propose capital and other supplemental budgets to the Board; 
 
(e) To appoint officials and employees below the rank of a division 
head and to suspend or otherwise discipline for cause, all 
subordinate officials and employees of the Corporation; 
Provided, however, that in the case of removal for cause, 
approval of the Board shall be necessary; 
 
(f) To recommend to the Board such changes in the organizational 
structure and staffing patterns of the Corporation as may be 
necessary to carry out its functions effectively;  
 
 (g) To submit to the President of the Philippines, the Senate 
President, and the Speaker of the House of Representatives, 
within sixty (60) days after the close of each fiscal year, an annual 
report on the operations of the Railway Corporation or such 
other reports as may be required; and 
 
(h) To perform such other duties as may be assigned to him by the 
Board of Directors from time to time. 


 
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Sec. 21. Exemption from Taxes, Duties, Port Charges or Dues, and 
Customs Bonds. – The Railway Corporations hereby created shall be 
exempt from the payment of all taxes of any kind and nature such as those 
imposed by the municipal, city, provincial, or national government 
including the Value-Added Tax (VAT), upon its capital stock, franchise, 
right of way, earning, and all other property owned operated by it in 
relation to its principal and auxiliary purposes, and all important duties 
on all railway materials, rolling stocks, spare parts, supplies and 
equipment imported in the Philippines for and/or by the Railway 
Corporation: Provided, that this exemption shall extend to wharfage dues, 
storage charges, arrastre, and shipside charges, and special duties on such 
importations, and other port charges upon the carrying vessels whose 
entire cargo consists of materials for the construction of its projects or 
rehabilitation of its lines, facilities, and to such proportion of the 
prescribed port changes on other vessels as the tonnage of the entire cargo 
of the vessel: Provided, that, such exemption shall further extend to the 
filling of general importers and general documentary bonds and 
warehouse bonds for the operation of its warehouses, whether general 
bonded warehouses or general order store. 
 
 
Sec. 22. Audit Personnel and Report. –  
 
(a) Personnel – The Commission on Audit (“COA”) shall appoint 
an Auditor for each of the Railway Corporations, and the 
necessary personnel to assist said representative/s in the 
performance of their respective duties. The number and salaries 
of the Auditor/s and said personnel shall be determined and 
paid by the COA. 
 
(b) Report – The audit report of each fiscal year, by the Auditor of 
the Railway Corporation/s, is assigned to furnish copies thereof 
shall to the President of the Republic of the Philippines, the 
Secretary of Transportation, the Senate President, and the 
Speaker of the House of Representatives. The report shall set 
forth the scope of the audit and shall include a statement of 
assets and liabilities, capital and surplus or deficit; a statement 
and surplus of deficit analysis; statement of income and 
expenses; a statement of sources and application of funds; and 
such comments and information as may be necessary, together 


 
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with such recommendations with respect thereto as may be 
advisable, including a report of any impairment of capital noted 
in the audit. The report shall also show specifically any 
program, expenditures or other financial transaction or 
undertaking observed in the course of the audit, which in the 
opinion of the Auditor, has been carried on or made without 
authority of law. 
 
Sec. 23. Liquidation. – When its term of existence has expired in 
accordance with the provisions of this Act, the Railway Corporation shall 
nevertheless, continue as a body corporate for three (3) years after the 
time of its dissolution for the purpose of prosecuting and defending suits 
by or against it and enabling it gradually to settle and close its affairs, to 
dispose of and convey its properties, but not for the purpose of continuing 
the business for which it was established 
 
ARTICLE VII 
CONSTRUCTION OF RAILWAYS 
 
Sec. 24. Construction of Railways and Highway Crossing Track. – 
Construction of any form and kind of railway track such as track crossing, 
intersections, joints, or connections that unite with any existing railway 
track or structural facilities for purposes of developing a railway shall not 
be allowed without prior approval of the Authority. Construction on, 
across, over or under a highway without prior approval of the Authority 
shall likewise not be allowed. 
 
Sec. 25. Structural Change. – No change or replacement of any 
existing railway structure or methodology shall be allowed without prior 
approval of the Authority. 
 
Sec. 26. Right of Entry and Disturbance fee. – A railway operator or 
his authorized agent, including the Railway Corporation herein created, 
bringing in equipment and materials to a piece of land may gain access to 
such land to construct or maintain a rail system or to repair rolling stock, 
track, or structural facilities of a public railway, subject to the payment of 
a disturbance fee in such amounts as may be determined by the 
Authority. 
 


 
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Sec. 27. Highway Crossing. – When the construction is carried out 
to lay track on, across, over, or under a highway, the person carrying out 
the construction shall allow vehicles using the highway adequate 
passages, and on the completion of the construction restore the highway 
to its acceptable passable condition. 
 
Sec. 28. Crossing Construction. – Subject to the approval of the 
Authority, the owner of a private road may be allowed to construct and 
maintain at his own cost, either an underpass or overpass crossing across 
the private road. However, if the private road was in existence before the 
rail right-of-way was established, the railway owner/operator is 
responsible for the cost of constructing and maintaining the crossing. 
 
Sec. 29. Crossing of Landowners. – Any proponent of a railway 
project shall provide an access road in between lands cut crossed by the 
project when public interest so demands. 
 
Sec. 30. Cost. – When a railway operator is unable to agree with the 
road authority regarding the cost apportionment associated with the 
construction of projects under this article, the parties may resort to 
arbitration. 
 
Sec. 31. Fencing of Railway Track. – The operators of railway 
systems,  when public safety demands, shall provide the necessary fences 
along railway tracks as may be determined by the Authority. 
 
Sec. 32. Drainage. – In the construction of railways, the Authority 
shall ensure that the appropriate and adequate drainage and sanitary 
facilities are provided. No construction of railways shall be allowed by 
the Authority without such facilities. 
 
Sec. 33. Fire Prevention. –  All railway operators shall provide the 
necessary fire-fighting equipment for their railway systems and adopt 
ways and means to protect their systems and commuters from fire or 
damages arising there from. 
 
Sec. 34. Stoppage. – When the construction or work poses danger to 
a person or property, the Safety Officer may immediately order the 
stoppage of the construction or work unless constrained by the Authority. 
 


 
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ARTICLE VIII 
RIGHT-OF-WAY 
 
 
Sec. 35. Right-of-Way. – The Authority, upon consultation with the 
Railway Corporations herein created, 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 shall not be the object of any sale, lease, or other forms of 
disposition. 
 
Sec. 36. 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 92, Article XXVII hereof. 
 
ARTICLE IX 
EXPROPRIATION AND OVERRIDING OBJECTIVE OF 
CONSTRUCTION 
 
Sec. 37. Expropriation. – The Railway Corporations herein created 
may initiate the necessary expropriation proceedings to carry out the 
objectives of this Act. 
 
Sec. 38. Ejection. – Any person or group of persons who enter, 
intrude, occupy, settle, possess, or construct into the railway alignment 
or the right-of-way of any property owned by a railway office, 
government-owned and controlled corporations, or local government 
units (LGUs) shall be considered as nuisance per se and shall be 
summarily ejected from the premises such entry, intrusion, occupation, 
settlement, possession and construction shall be considered as a criminal 
act and therefore punishable under Section 73, Article XXI hereof. 
 
Sec. 39. Suspension. – When the construction or work in a railway 
project is not being carried out in accordance of the approved 
specifications relative to design and product standards, the Safety Officer 
may order the suspension of the construction or work until after 
corrections shall have been made by the contractor or its resumption is 
ordered by the Authority. 
 
Sec. 40.  Prohibition Against Issuance of Restraining Orders and 
Preliminary Injunctions or Preliminary Mandatory Injunctions. – No 


 
Page 16 of 26 
court in the Philippines, except the Supreme Court, shall have jurisdiction 
to issue any restraining order, preliminary injunction, or preliminary 
mandatory injunction in any case, dispute, or controversy involving any 
contract or project being implemented by the Authority, to prohibit any 
person or persons, or entity or government official from proceeding with, 
or continuing the execution or implementation of such contract or project, 
or pursuing any lawful activity necessary for the execution, 
implementation, or operation of such railway project/system. 
 
ARTICLE X 
RAILWAY OPERATIONS 
 
 
Sec. 41. Operations. – The operator of a railway, including the 
Railway Corporations herein created, shall ensure that the track and other 
railway facilities are constructed, operated and maintained in accordance 
with this Act, pertinent rules and regulations implementing the same and 
policies that may be promulgated by the Authority and the Railway 
Regulatory Board and that the rolling stock is maintained and operated 
in accordance with applicable rules and regulations promulgated by the 
Authority and the Regulatory Board. 
 
 
Sec. 42. Suspension and Termination. – Any operator of a public or 
industrial railway, including the Railway Corporations herein created, 
who intends to suspend or terminate its operation shall, within six (6) 
months, prior to the suspension or termination, give notice thereof to the 
Authority and to the public. 
 
ARTICLE XI 
SAFETY AND SECURITY OFFICERS 
 
 
Sec. 43. Safety Officer. – The Railway Corporations shall have 
Safety Officers with the following duties and functions: 
 
(a) Administer and foster faithful compliance with railway safety 
legislations, approvals, and operating rules and regulations; 
 
(b) Ensure safety at all times of rolling stocks, railway tracks, 
signaling and communication systems, and other facilities. 
 


 
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(c) Conduct regularly safety audit of railway system including a 
check on inventory levels of essential spare parts; and 
 
(d) Ensure the safety of the general riding public and of persons 
employed by or acting on behalf of operators of railways; 
 
Sec. 44. Qualifications. – No one shall be appointed as the Safety 
Officer unless he is a graduate of a course related to railway safety and 
passes the examination given by the Professional Regulatory Commission 
for the Purpose. 
 
Sec. 45. Security Officer. – There shall be created positions of 
Security Officers with the following duties and functions: 
(a) Administer and foster faithful compliance with railway security 
legislations, approvals, and operating rules and regulations; 
 
(b) Ensure the security of the general riding public and of persons 
employed by or acting on behalf of operators or railways; and 
 
(c) Ensure the installation of the state-of-the-art surveillance and 
tracking equipment for passengers and cargo. 
 
Sec. 46. Qualifications. – No one shall be appointed as a Security 
Officer unless he is a graduate of a course related to railway security and 
passes the examination given by the Professional Regulatory Commission 
for the purpose.  
 
ARTICLE XII 
MAINTENANCE 
 
 
Sec. 47. Proper Maintenance. – There shall be created a 
Maintenance Group headed by a Maintenance Engineer, in every railway 
line with the following duties and functions: 
 
(a) Ensure the economic lifespan of the system is attained through 
rehabilitation, refurbishment and overhauling; 
 
(b)  Ensure continuous and efficient operation of the system; 
 
(c)  Ensure a continued availability of spare parts in the inventory; 


 
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(d) Ensure the repair and maintenance of the rolling stock, track, or 
structural facilities. 
 
ARTICLE XIII 
COMPLIANCE, ACCIDENTS, AND ADMINISTRATIVE 
PENALTIES 
 
 
Sec. 48. Inspection of Railways. – The Authority shall have a 
Railway Safety or Security Officer who shall carry out inspections of the 
following: 
 
(a) Rolling stocks, tracks, goods, and other facilities; and 
(b) Records, documents, and objects relating to the operations of a 
railway. 
 
 
Sec. 49. Access. – A Railway Safety and Security Officer, in carrying 
out an inspection may do one or more of the following: 
 
(a) Enter any track, structural facility, rolling stock, building, or any 
other property associated with railways; 
 
(b) Make inquiries with any person who is employed by the 
Authority or any person who carries out any duties or functions 
in behalf of the railway operator; and 
 
(c) Perform tests or examinations of anything relative to the 
inspection. 
 
Sec. 50. Production of Documents. – In the course of safety or 
security inspection, the officer conducting the inspection may require the 
production of any documents, records or objects relative thereto. 
 
Any person who is the subject of an inspection shall, when 
requested to do so by a railway Safety or Security Officer, produce for 
inspection, within a reasonable period of time, any record, document, or 
object that relates to the matter under inspection. A railway Safety or 
Security Officer may request copies or take photographs of the record, 
document, or object under inspection and immediately thereafter return 
the same. 


 
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When conducting an inspection of a record, document, or object 
and a railway Safety or Security Officer is of the opinion that he must 
retain possession of the record, document, or object under inspection for 
a longer period of time, he may do so but shall not be longer than three 
(3) days after receipt thereof. 
 
Sec. 51. Directions of Railway Safety Officer. – When a railway 
safety officer carries out an inspection, he may do one or more of the 
following: 
 
(a) Recommend the cessation of the operation of any railway system 
or any activity related thereto when in his expert opinion, there 
are reasonable grounds to believe that the continuing operation 
of the railway system and any related activity, may endanger 
the safety of the riding public and the employees of the railway 
or cause damage to property; 
 
(b) Order the removal of rolling stock or any equipment or any 
person on board, when the railway safety officer is of the 
opinion that the operation or presence of the same poses a 
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; and 
 
(c) Issue orders to stop the over-speeding of a train or when 
violations are being committed related to the speed of the 
rolling stock. 
 
Sec. 52. Accidents. – The railway operator shall keep a record of 
every accident involving a person or by the railway system and shall 
forthwith report to the Authority. 
 
Sec. 53. Investigation. – The Authority shall conduct an 
investigation on accidents provided for in the immediately preceding 
section, and for this purpose, the investigating officer shall have full 
access to the place and attributes of the accident. 
 
Sec. 54. Liability. – The operator and his agent shall be jointly and 
solidarily liable for the fines and penalties provided under this Article. 


 
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ARTICLE XIV 
REVIEW 
 
Sec. 56. Review/Appeal. – Any order issued by a Safety or Security 
Officer may be appealed for review by the affected person to the 
Authority within Fifteen (15) working days from notice thereof whose 
decision shall be final and executory. 
 
 
Sec. 57. Motion for Reconsideration. – Any person affected by an 
order or decision of the Authority may file a motion for reconsideration 
within Fifteen (15) days from receipt thereof. No second motion for 
reconsideration shall be entertained. 
 
ARTICLE XV 
RAILWAY ENERGY PLANT 
 
 
Sec. 58. Power Plant. – In order to ensure a continuous and 
uninterrupted operation of railway systems in the Philippines, the 
Corporations herein created may establish a power plant for any of its rail 
systems: Provided, That, before it can put up a power plant, the Authority 
shall undertake a cost-benefit analysis on this matter in order to 
determine its cost-effectiveness and viability and whether it is going to be 
advantageous to the government. 
 
 
Sec. 59. Waste-to-Energy Plant. – The Authority shall establish, in 
cooperation with LGUs and/or the private sector, waste-to-energy plants 
in strategic areas in the country. 
 
ARTICLE XVI 
TRANSFER OF RAILWAY TECHNOLOGY 
 
 
Sec. 60. Railway Engineering Course. – A four (4)-year 
baccalaureate course in Railway Engineering Management and other 
related courses shall be established in the University of the Philippines 
and/or the Polytechnic University of the Philippines and shall receive 
annual budgetary support which shall be provided in the Annual General 
Appropriations Act. 
 


 
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Sec. 61. Railway Training Center. – A Railway Training Center 
shall be established by the Authority to equip the railway manpower 
resource with the necessary skill and expertise in the development and 
implementation of railway projects and programs, and in the operation 
of railway systems. 
 
 
Sec. 62. Manufacturing of Railway Equipment. – The Authority 
may endeavor to establish the necessary mechanisms for the 
manufacturing of railway equipment to ensure the expansion and 
sustainability of a National Railway System herein envisioned. 
 
ARTICLE XVII 
TRAIN DRIVERS 
 
 
Sec. 63. Train Drivers. – To promote proficiency and to ensure the 
safety of the general railway riding public, all train drivers must be 
physically and mentally fit and pass all the tests and qualifications to be 
prescribed by the Authority. They shall also undergo constant and 
continuing training to improve their level of skills, with annual 
certification examinations to test the same. 
 
 
Sec. 64. Train Driver’s License. – The Railway Training Center shall 
conduct the training for train drivers for a duration that it may determine 
and thereafter issue the necessary Train Driver’s License (TDL) for those 
who will pass the training according to its standards, tests, and 
measurements. 
 
ARTICLE XVIII 
INSURANCE COVERAGE 
 
 
Sec. 65. Rail Systems Insurance Coverage. –  All rail systems shall 
be covered by insurance from natural and man-made disasters by the 
Government Service Insurance Systems (GSIS). In the event the 
management and/or operation of the railway system or any part thereof 
with a private entity, the insurance shall be covered by an insurance 
corporation that attained the lowest, most responsive bid after a 
competitive bidding process, taking into consideration the provisions of 
this Article. 
 


 
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Sec. 66. Passenger’s Insurance Coverage. – Each and every rail 
passenger shall be covered by accident insurance by the rail operators, 
government or private, in the amount of Two Hundred Thousand Pesos 
(Php 200,000.00) in case of death and not more than One Hundred 
Thousand Pesos (Php 100,000.00) in case of injury exclusive of medical 
and hospitalization expense, and these amounts shall be adjusted once 
every five (5) years based on inflation as determined by the National 
Economic Development Authority (“NEDA”). 
 
ARTICLE XIX 
ACCOUNTABILITY 
 
 
Sec. 67. Accountability. – To ensure public accountability, the 
Authority shall be subject to the audit of the Commission on Audit (COA) 
and shall comply with all the generally accepted accounting and auditing 
rules and regulations and those which the Commission may promulgate 
from time to time pursuant to its constitutional mandate. 
 
ARTICLE XX 
LEGISLATIVE FRANCHISE 
 
 
Sec. 68. Legislative Franchise. – All railway operators are required 
to secure a franchise from the Congress of the Philippines. Entities 
already operating with an existing franchise shall have one (1) year 
during which it must renew the same. 
 
 
Any entity from the private sector may own, construct, maintain, 
and operate a railway system, Provided, that it shall be a holder of the 
appropriate legislative franchise prior to the construction, maintenance, 
and/or operation of a railway system, and Provided, further, that such 
railway system shall not conflict with that already being operated, 
managed and maintained by the Railway Corporations herein created. 
 
 
Sec. 69. Violation of Legislative Franchise. – Any person holding a 
legislative franchise that commits a violation of said franchise shall be 
subject to the review of the Congress of the Philippines, which may 
amend, modify, revoke, or cancel its franchise, whichever is applicable 
and without prejudice to the other punishable acts and imposable 
penalties under this Article if any. 
ARTICLE XXI 


 
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PENALTIES 
 
 
Sec. 70. Intrusion. – The entry, intrusion, occupation, settlement, 
possession, and construction on the properties described in Section 43, 
Article XI hereof shall be considered a crime against property and 
punishable by imprisonment ranging from six (6) months and one (1) day 
to two (2) years and or fined in an amount not lower than Ten Thousand 
Pesos (Php 10,000.00) as may be determined by the court. 
 
 
Sec. 71. Obstruction. –  Any person who obstructs or impedes the 
construction, operation, repair, maintenance, and removal of any track, 
rolling stock, or railway facilities shall be criminally liable with 
punishment by imprisonment ranging from two (2) years and one (1) day 
to three (3) years. 
 
 
Sec. 72. Theft of Railway Property. – Any person who is found to 
have stolen any part of a track or rolling stock shall be punished by 
imprisonment of six (6) years and one (1) day to twelve (12) years and a 
fine of One Million Pesos (Php 1,000,000.00) Pesos, or both at the direction 
of the Court. 
 
 
Sec. 73. Administrative Penalties. –  The Authority may impose a 
fine or penalty or both, against the operator and/or its agents who 
commit any or all of the following acts of violations: 
 
(a) Exceeding the authorized speed limit of his rolling stock shall be 
punished with: (1) a fine of One Hundred Thousand Pesos (Php 
100,000.00) for the first offense; (2) a fine of Three Hundred 
Thousand Pesos (Php 300,000.00) for the second offense; and (3) 
a fine of Five Hundred Thousand Pesos (Php 500,000.00) for the 
third offense; 
 
(b) Failure to properly maintain the system resulting in service 
interruption shall be fined: (1) One Hundred Thousand Pesos 
(Php 100,000.00) to Two Hundred Thousand Pesos (Php 
200,000.00) for the first offense; (2) Two Hundred Thousand 
Pesos (Php 200,000.00) to Three Hundred Thousand Pesos (Php 
300,000.00) for the second offense; and (3) Three Hundred 
Thousand Pesos (Php 300,000.00) to Five Hundred Thousand 
Pesos (Php 500,000.00) for the third offense; 


 
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(c) Failure to secure Annual Passengers Insurance Coverage shall 
be fined Ten Million Pesos (Php 10,000,000.00); 
 
(d) Failure to operate shall be fined One Million Pesos (Php 
1,000,000.00) for every day of non-operation, and cancellation of 
its franchise or authority after thirty (30) days of non-operation, 
except when caused by force majeure or fortuitous event; 
 
(e) Failure to comply with safety and security regulations resulting 
in injury or loss of life and damage to property shall be fined 
One Hundred Thousand Pesos (Php 100,000.00) for injury and 
Five Hundred Thousand Pesos (Php 500,000.00) for every loss 
of human life; 
 
(f) Failure to maintain adequate spare parts inventory shall be fined 
with an amount equivalent to the cost of the required spare 
parts; 
 
(g) Failure to maintain a maintenance and accident record shall be 
fined: (1) One Hundred Thousand Pesos (Php 100,000.00) for the 
first offense; (2) Two Hundred Thousand Pesos (Php 200,000.00) 
for the second offense; and (3) Three Hundred Thousand Pesos 
(Php 300,000.00); 
 
(h) Failure to comply with regulations on cleanliness and sanitation 
shall be fined: (1) One Hundred Thousand Pesos (Php 
100,000.00) for the first offense; (2) Two Hundred Thousand 
Pesos (Php 200,000.00) for the second offense; and (3) Three 
Hundred Thousand Pesos (Php 300,000.00) for the third offense; 
and 
 
(i) Failure to comply with orders, decisions, and similar issuances 
of the Authority shall be fined One Hundred Thousand Pesos 
(Php 100,000.00) for every day of non-compliance. 
 
ARTICLE XXII 
CONSOLIDATION OF EXISTING RAIL 
OFFICES AND AGENCIES 
 


 
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Sec. 74. Consolidation. – Upon the effectivity of this Act, the 
Philippine National Railways (PNR), the Light Rail Transit Authority 
(LRTA), the Panay Railways, Incorporated, the North Luzon Railway 
Corporation (NORTHRAIL), and all other rail offices and agencies shall 
be deemed abolished and their functions, projects, assets and liabilities 
shall be assumed, absorbed and transferred to the appropriate Railway 
Corporation, as the case may be. The Railway Corporations herein 
created shall be given a transition period of six (6) months to one (1) year 
to carry out this provision of this Act. 
 
 
Sec. 75. – The assets and liabilities of the EDSA Light Rail Transit of 
the Department of Transportation in so far as its existing Build-Lease 
Transfer Contract with the Metro Rail Transit Corporation (MRTC) are 
likewise deemed transferred to, and assumed by, the Luzon Railway 
Corporation. 
 
 
Sec. 76. Valuation. – The assets of the existing railway offices and 
agencies mentioned in Section 100 hereof shall be valued by the 
Commission on Audit, and their respective liabilities determined by the 
Commission on Audit and Department of Finance. 
 
Sec. 77. Personnel. – All affected Officers and Personnel who are 
qualified to receive retirement benefits under RA 1616 and RA 660 shall 
be entitled to an additional one (1) month salary for every year of service. 
Any Officers or Personnel may avail of the same benefits as provided by 
the immediately preceding paragraph; provided that they voluntarily 
separate or retire from the service. Provided, further, that they are 
qualified to receive retirement benefits under RA 1616 and RA 660. 
 
Affected Officers and Personnel shall be all Officers and Employees 
who are involuntarily removed or separated from the service due to the 
abolition of their respective agencies by this Act. 
 
ARTICLE XXIII 
CONGRESSIONAL OVERSIGHT COMMITTEE 
 
Sec. 78. Congressional Oversight Committee. – A Congressional 
Oversight Committee is hereby created composed of the Chairpersons of 
the Committee on Public Services of the Senate and the Committee on 
Transportation of the House of the Representatives as Chairpersons and 


 
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four (4) members from each House as Members, to be designated by the 
Senate President and the Speaker of the House of Representatives, 
respectively. The Oversight Committee, shall among others, monitor and 
ensure the effective implementation of this Act. 
 
ARTICLE XXIV 
SEPARABILITY AND REPEALING CLAUSES 
 
 
Sec. 79. Separability Clause. - If any of the provisions of this Act is 
declared invalid, the provisions thereof not affected by such declaration 
shall remain in force and effect. 
 
 
Sec. 80. Repealing Clause. – All laws, executive orders, issuances, 
decrees, rules and regulations inconsistent with or contrary to the 
provisions of this Act are deemed amended, modified or repealed 
accordingly. 
 
ARTICLE XV 
EFFECTIVITY 
 
 
Sec. 81. Effectivity. – This Act shall take effect fifteen (15) days 
following its publication in at least two (2) newspaper or general 
circulation. 
 
 
Approved,