Republic ofthe Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1349

introduced by Rep. Precious Hipolito Castelo

EXPLANATORY NOTE

Rapid mass transport systems such as the Light Rail Transit (LRT Lines) as well as Metro Rail Transit (MRT Line/s)
have truly met the highest demands and objectives to provide mass transport systems at fairly reasonable fare rates
the comparative quality of their management, operation, and maintenance cannot be underestimated.

However, increasing number of users may have taken its toll on maintenance or operation costs relative tothe user's
fees collected from passengers/commuters/users thus perhaps, exerting pressure on contractors to cal for fare rate
adjustments in order to maintain the quality of service and operation ofthese lines.

There is now a need therefore for a government agency to overseer the administration and operation of these rail
transit systems, both public or private, in Metro Manila and other areas specifically in regard to the collection of fares
and prescribing the reasonable fare rates on the use ofthese facilities/pubicutities.

Thus, under this proposed measure, there shall hereby be created the Metro Rail Transit Regulatory Authority to
streamiine, overseer, and more aggressively manage and operate these valuable government projects called the
LRTs and MRTS to effectively and efficiently provide mass transport systems at an alltime reasonable and affordable
‘costs. Pricing policies shall be in accordance with prevailing best pricing models and practices within the
‘competence of the authority to formulate.

The new Authority is expected to provide positive outcomes through close and cooperative linkages with private
‘sectors with whom certain government contracts or agreements have been forged. This way, the best of both worlds
could be achieved in meeting the highest requirements of mass rapid transport systems, hence this submission.

Immediate passage of this measure is most eamestly sought.



Republic ofthe Philippines
HOUSE OF REPRESENTATIVES

Quezon City
EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _"* " 1349

Introduced by Rep. Precious Hipolito Castelo

AN ACT
CREATING THE METRO RAIL TRANSIT REGULATORY AUTHORITY TO OVERSEER FARE RATES IN PUBLIC
ANDIOR PRIVATE RAIL TRANSIT SYSTEMS AND FOR OTHER PURPOSES

Be it enacted in the Senate and the House of Representatives of the Republic of the Philippines in Congress
assembled:

‘SECTION 1. This Act shall be known as the ‘Metro Rail Transit Regulatory Authority Ac.”

SEC. 2. There is hereby created the Metro Rail Transit Regulatory Authority under the Department of
Transportation and Communication purposively to overseer fare rates in public andlor private rail transit systems in
Metro Manila and other metropolitan areas.

Thereupon its creation, the Authority shall issue rules, regulations, guidelines, and other appropriate
issuances forthe effective implementation ofthe provisions of this Act.

SEC. 3. The Authority as hereby referred to shall take charge ofthe administration and operation of the rail
transit systems specifically in regard to the prescribed fare rates that must be collected from the riding publiclusers of
these facities/public utities with due concer on pubic interest in the case of the Light Rail Transit System (LRT
Lines) and the Metro Rail Transit Corporation (MRT Line!s).

SEC. 4. This Act shall take effect sixty (60) days after its approval and publication in the Official Gazette
and in at least three (3) newspapers of general circulation,

Approved,