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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

2245

HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

There is a need for a long-term transportation road map considering the increasing
Population, high urbanization rate and requirements for the country’s economic
growth in urban, rural and far-flung areas of the country. The people deserve to feel
safe from preventable accidents and far from road traffic deaths as mobility around
the country is rapidly increasing

Globally, infrastructure spending on transportation systems is prioritized, especially
as mega cities around the world continue to grow. Governments are encouraged to
manage the strain on ineffective transport systems, now more than ever. There is a
better focus on connectivity and sustainable transport networks.

Developed countries such as Japan, Canada and the United States have put
planning and development of transportation systems and infrastructure under one
ministry or department for optimum coordination of policy formulation and program
implementation. This has led to greater efficiency in the use of resources and
effective planning and implementation of transportation projects which ultimately
benefit the commuting public.

This bill, therefore, seeks to mandate the formulation of a 30-year National
Transportation Strategy for the Philippines (NTSP) through the following:


ts

a. Prescribing the principles for the efficient and effective coordination of
transportation and public works projects in support of the Build, Build,
Build program of the Duterte Administration, noting the need to
strengthen LGU capacities in transportation planning and
management beyond the present collaborative arrangement between
DOTR and LGUs;

b. Declaring the policies for formulating the Master Plans in support of
the National Transportation Strategy for the Philippines to 2050.

c. As needed, merging national government agencies with the
Department of Transportation (DOTr) as the sole authority for
transportation planning in the country.

The National Transportation Strategy will provide a framework for enhancing the
country’s transportation system. As policymakers and regulators, the government is
tasked to ensure public safety and security. Merging the concerned national
agencies, as the bill proposes, will refocus their priorities and align mandates and
responsibilities. This bill seeks to address the main transport challenges the country
is facing and provide for a safe, efficient, and environmentally sustainable system to
ensure an improved quality of life for the Filipino people.

In view of the foregoing, passage of this bill is earnestly requested.

LUIS RA) IND “| Y” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

224s
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
ESTABLISHING THE POLICIES FOR THE FORMULATION OF THE NATIONAL
TRANSPORTATION STRATEGY FOR THE PHILIPPINES TO 2050, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled.

CHAPTER |
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the "National Transportation
Act of 2019”.

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the state to
provide a people-oriented national transport system to ensure the safety and quality
of life of the Filipino people. It shall provide the country with secure transportation

‘systems that are globally competitive, compliant with international standards, and
responsive to the changing times.

Towards this end, the state shall:

a) Ensure improved quality of life of the Filipino people by recognizing the key
role of transportation and public works in national development, through a
people-oriented national transport system that is safe, convenient, intelligent,


b)

°)

d)

e)

9

)

secure, reliable, efficient, integrated, intermodal, affordable, cost-effective,
and environmentally sustainable in moving people, goods and services;

Classify the entire transportation and public works system as critical
infrastructure essential to the functioning of Philippine society, the nation’s
economy and the people's security and health;

Formulate a National Transportation Strategy for the Philippines to 2050,
hereinafter referred to as the NTSP, to provide an overarching vision and
policy for the transportation system and transport infrastructure in the
Philippines covering all modes of transportation including land and rail, civil
aviation, maritime and waterways;

Institute a National Land Use, Maritime and Waterways Policy which shall
‘support the NTSP;

Ensure efficient and effective coordination, communication, collaboration and
cooperation among national government agencies (NGAs), local government
units (LGUs), and stakeholders in developing the functionality of domestic and
international connections of country's transportation and public works system
through harmonization of polices, plans and programs for the sector
consistent with international and sub-regional standards and commitments
such as the Association of Southeast Asian Nations (ASEAN) integration,
Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area
(BIMP-EAGA), International Maritime Organization (IMO), International Civil
Aviation Organization (ICAO);

Review the Local Government Code especially in regard to transportation
standards and policies which shall be set by the DOTr while the LGUs shall
implement and enforce such standards and policies for their respective
transport programs.

Promote a shift towards a safe, cost-effective, efficient, non-congestive, non-
pollutive, and healthful locomotion and seamless and inclusive transportation


system for the benefit of all citizens, the economy and society in consonance
with signed international agreements such as Aichi Statement of 2005, United
Nations Economic Commission for Europe (UNECE) Agreement, United
Nations Framework Convention on Climate Change (UNFCCC) Agreement of
1992, UNECE World Forum for Harmonization of Vehicle Regulations (WP
29) and Bangkok Declaration for 2020.

h)

Streamline the bureaucracy by merging the policy coordination, planning and
implementation of transportation and infrastructure projects of various
agencies under the Department of Transportation for greater efficiency in the
use of resources and effective planning and implementation of transport
projects which will ultimately benefit the commuting public;

i) Undertake other legislative measures in support of this Act.

CHAPTER II
BASIC POLICIES ON TRANSPORTATION AND INFRASTRUCTURE

SECTION 3. National Transportation Strategy for the Philippines to 2050. - The
NTSP shall set forth the following:

a) Vision and direction of the entire transportation system, taking into
consideration all types of transport users, vehicles, modes,
infrastructures and services;

b) Strategies towards an integrated and inclusive transportation
system and infrastructure planning and management shall include,
but not limited to, the following:

i, Determination of a Transportation System Management and
Accountability Framework;


ii. Formulation of development strategies according to mode of
transportation and for each region with the aid of scenario-
building tools; and

il, Delineation of regulatory and licensing functions at the national
and local levels.

c) Policies to promote modal shift to sustainable and efficient transport
modes;

d) A Strategic Communication Plan in support of the NTSP.
) Periodic review and updating of the NTSP;

f) Other guidelines necessary for the comprehensive and systematic
implementation of national transportation policies.

The NTSP shall be consistent with international standards, the National
Security Strategy and other long-term plans formulated by the national government
covering the 30-year period mandated by this Act.

The NTSP shall be supported by detailed comprehensive National
Transportation Master Plans. The DOTr shall lead the formulation of three 10-year
Master Plans, or any number of Master Plans that may be determined to effectively
implement the NTSP. Any existing National Transport Policy Framework and
National Transportation Master Plan formulated by the DOTr or other national
government agencies must be reviewed by the DOTr for compliance with the
provisions of this Act.

SECTION 4. Transportation Planning Principles. - The aforementioned Master

Plans shall adopt and abide by, but not limited to, the following transportation
planning principles:

a) Institutionalized Continued Capacity Building. —- Institutionalize

training in terms of consolidating gains made in previous capacity


b)

ic)

dq)

building programs, sustaining efforts at constantly identifying and
targeting trainees, and developing more specialized trainings beyond
collaborative arrangements with LGUs.

Transit-Oriented Development. -- Prioritize strategies to avoid
unnecessary travel through transit-oriented development (TOD)
which refers to mixed-use residential and employment areas
designed to maximize the efficient use of land through high levels of
access to public transport. A transit oriented development has a
walking and cycle-friendly core with a public transport station
surrounded by relatively high-density residential development,
employment or a range of mixed uses.

Transportation System Management (TSM) and Travel Demand
Management System (TDM). — Adopt TSM and TDM as the basis of
the National Transportation and Public Works Road Map. TSM
focuses on non-facility, low-capital cost and short-range
improvement strategies which consider the fact that urban
transportation problems cannot not be solved solely through
infrastructure investments. TDM refers to influencing traveler
behavior for the purpose of reducing or redistributing travel demand.
Its primary purpose is to reduce the number of vehicles using
highway facilities while providing a wide variety of mobility options
for those who wish to travel

Highly urbanized LGUs shall utilize TSM and TDM to integrate
transportation in their land use plans. Traffic engineering solutions
and the use of intelligent transport systems (ITS) utilizing artificial
intelligence (Al) and Internet of Things (loT), among other
technologies, shall also be adopted.

Integrated Approach in Land-Maritime-Waterways _ Use,
Infrastructure and Transportation Planning. - An integrated approach
to land use decisions, economic development, and environmental


conservation and transportation investments should be used to
achieve a balanced transportation system considering the
archipelagic nature of the country. This shall be contained in the
National Transportation Roadmap and in the Master Plans.

In the preparation and updating of their land use plans, all local
government units (LGUs) shall explore the important relationship
among land use, transportation infrastructure investments and
transportation systems to meet the National Transportation
Roadmap Vision consistent with a National Land Use, Maritime and
Waterways Policy. The DOTr shall provide technical assistance to
key stakeholders and LGUs in the completion of these integrated
land use and transportation plans, upon the request of the LGUs and
subject to availability of resources.

The DOTr shall set transportation standards and policies while the
LGUs shall implement and enforce such standards and policies for
their respective transport programs. To ensure clear delineation of
authorities, accountabilities, and responsibilities between the DOTr
and the LGUs, the Local Government Code shall be reviewed and
amended accordingly.

SECTION 5. Transportation Planning Policies. -The Master Plans shall contain,
but not limited to, the following polices:

a) Convenience of the Public. — Public convenience shall be a
paramount consideration in transport planning, including ensuring
punctuality in accordance with set departure and arrival times,
improving speed by shortening the time required to reach a
destination, ensuring comfort, facilitating connections between
transportation services or upgrading the functionality of connecting
transportation services by other means and streamlining
transportation services.


b) Support to Tourism and Other Economic Sectors. — Provide the
necessary means of transportation to tourists for the smooth flow of
tourist traffic and revitalize local economies by supporting and
stimulating tourism, trade, industry and agriculture through inter-city,
inter-municipality, inter-provincial, inter-regional and _ inter-island
transportation and public works networks. Alternative routes for
trucks shall be planned, provided and constructed as needed. A
national maritime, port and waterways policy must be formulated to
address traffic congestion concerns.

¢)

Research and Technology. — Undertake scientific research on
transportation and public works-related concerns and trends to
inform policy and decision-making. Develop, disseminate and adopt
modem technology for greater efficiency, safety and security of
transportation and public works systems and networks.

d)

Resource Generation, Allocation and Cost-Sharing. — (i) Identify,
review and address the strategic resource needs of the transport
sector for the short-, medium- and long-term; (ii) assess the failure or
success factors and deficiencies or efficiencies of the previous fiscal
allocation or cost-sharing; (iii) identify the available supply of
transportation resources; and (iv) update the list of modern
equipment and technology for transportation.

Inventory and Use of National Government Resources. — The
resources of the National Government shall be devoted mainly to
transport infrastructure and facilities, including inter-island bridges,
classified as “national” based on their functional and strategic
importance to the country, and as defined in existing laws,
regulations and issuances.

) Transportation Data Management. - The DTPW shall act as the
central node/repository for all transport-related data. It shall be the


8)

lead agency in collaboration with other related agencies, institutions,
academe in the development of national travel demand model —
forecasting passenger and cargo traffic and consolidation of accident
statistics. In support of this, LGUs shall undertake comprehensive
gathering of any and all data concerning the transportation sector.
The data shall include demography of riding population, rate of
growth of public and private vehicles, accidents and mortality,
perception of the people about the existing and desired future
transportation system.

Role of Local Government Units. - Consistent with the principle of
local autonomy under the Local Government Code, LGUs shall
exercise primary responsibility for the financing, construction,
rehabilitation, and maintenance of provincial, city, municipal, and
barangay transport facilities, unless such facilities are included in
Convergence Programs.

LGUs shall primarily be responsible for the settlement activities,
which include the development of resettlement sites, provision of
adequate basic services and community facilities, in anticipation of
informal settlers that have to be removed from the right-of-way
(ROW) site or location of future infrastructure projects, with
assistance from the national government agencies. Where
resettlement comprises a significant component of a proposed
project, the civil works component shall not be bidded out until the
affected households have been adequately resettled.

LGUs, in formulating their local transportation plans, shall be
assisted by the DTPW and must strictly adhere to their existing Land
Use Plans consistent with provincial and regional plans, and the
national land use policy/framework. Transport-related business and
stakeholders shall be consulted by the LGUs.


h)

The Local Development Council (LDC) as the central planning body
of the LGUs designated by the Local Government Code shall
synchronize plans with respect to any and all local transportation
plans.

Program and Project Selection. - Transport-related agencies and
LGUs shall annually assess and prepare periodic plans, programs
and projects in support of the each 10-year Master Plan. Planning
and project selection shall be based on, but not limited to, the
following considerations: (i) alignment with regional and national
plans; (ii) compliance with international commitments; (iii) evidence-
based studies and relevant transport data and indicators; (iv)
emerging technologies; (v) technical and operational feasibility; (vi)
economic feasibility over the life cycle; (vii) environmental
soundness; and (viii) public need and social acceptability.

Cost Recovery and Subsidies. - Fares, fees and charges for
transportation services shall be cost-based and shall recover, at the
minimum, the operational and maintenance costs, net of eligible
subsidies. Subsidies including incentives and other government
undertakings, which are justified and allowed under existing laws,
rules and regulations, shall be direct, specific and transparent. This
may include, without limitation, transport infrastructure which are
proven to have significant economic benefits to society, thus may be
eligible for targeted and transparent subsidies under the
government's social policies.

Regulation of Passenger Transport Services. - Routes and areas of
operation across all modes of transportation shall be determined and
modified by the appropriate regulatory bodies based on established
criteria and network analysis considering travel demand and route
capacities, as well as the application of technical, economic and
safety standards issues by the DTPW, and upon prior consultation

u


k

and coordination with the LGUs, relevant agencies, and other
stakeholders. Passenger transport services shall include bicycles,
kalesas, electronic and human-powered rickshaws, tricycles, and
similar types of transportation.

Transportation of Elderly, PWDs, Pregnant Women, Parents with
Young Children. - Gender, persons with disability (PWD) and
elderly considerations must be put in the mainstream by minimizing
barriers to access so that the transport system is available to as.
many persons who wish to use it, while providing tailored
infrastructure, services and support for persons who find it difficult to
use the transport system. The structure and features of vehicles,
railway vehicles, marine vessels, aircraft, passenger facilities, roads,
and parking lots must be improved to provide smooth transportation
for elderly persons, persons with disabilities, pregnant women,
infants who are accompanied by adults and others whose daily lives
or social lives are restricted due to physical limitations.

Safety and Security Measures. - Ensure safety and security of
commuters, goods and services through the implementation, but not
limited to, of the following measures:

(i) Ensure that transportation and public works projects shall meet
required standards for safety and security, structural integrity and
performance, and quality/level of service.

(i) Tighten regulatory contro! pertaining to safety, environmental
quality and level of service through strict implementation of motor
vehicle inspection prior to registration and effective enforcement
system.

(iii) Institutionalize an embedded risk management system that
allows for preventive maintenance and targeting, measuring and
monitoring of outcomes of the system.

12


(iv) Prescribe standards for entry, seating and exit of passengers,
including the use of seatbelts and other safety paraphernalia
inside transportation terminals and vehicles across all modes of
transportation.

(v) Establish a national coordination center for reporting transport
accidents and incidents and analyzing safety data, and formulate
policies to improve safety.

(vi)All concerned national government agencies, and local
government units shall clearly define, regularly upgrade and
update their respective standards on safety level of service and
inter-modal connectivity, in keeping with applicable international
‘standards and practices, and shall strictly implement and enforce
the same. Coherence of such standards should be ensured at all
times.

(vii) On top of the criminal and civil liabilities arising from road
accidents, the government may impose penalties and fines on
economic and social disruptions resulting from the traffic
congestion around the area of the accident.

(vill The existing systems and networks of the national authorities
responsible for the different aspects of surveillance, such as
border control, safety and security, fisheries control, customs,
environment or defense, should be integrated so that data and
information are shared and not collected separately. An
integrated surveillance system and network in other transport
sectors is crucial for a coordinated national approach to security.

m) Sustainable and Environment-Friendly National Transportation and
Public Works System. — The national transportation and public works
‘system shall be environmentally sound which means reducing the

13


environmental burden caused by traffic across all modes of
transportation through the following policies:

(i) Reduce the annual growth rate of energy consumption and
associated GHG emissions from the transport sector in urban
areas of the country

(ii) Mainstream environmentally sustainable transport (EST), which
involves, but not limited to, the promotion of transportation
‘systems of low carbon intensity and shift towards the use of
more sustainable transport modes.

(iii) Prevent air, marine and noise pollution, including the
introduction of progressively lower fuel consumption targets for
new vehicles according to the environmental requirements of the
DENR;

(iv) Use of Environmentally Sustainable and Inclusive Technologies
and Approaches such as the use of clean and energy-efficient

transport technology/fuels.

Role of Transport-Related Businesses and Traffic Facilities
Administrators and Operators. - Administrators and operators of
transport-related businesses shall endeavor to conduct their
business appropriately and abide by policies on transportation
implemented by national government agencies and LGUs. They
shall endeavor to provide correct and appropriate information
relevant to their business to the government and the public, including
the formulation and implementation of a traffic education program.

°)

Capacity-Building and Training for Transport-Related Businesses
and Traffic Facilities Administrators and Operators. -- Establish and

increase capacity-building programs from basic to advanced levels


P)

in all aspects of transport planning, investment decision-making,
operations, and enforcement at the provincial- and city-levels. Such
capacity-building and training for transport-related businesses and
traffic facilities administrators and operators must be geared towards
compliance with international standards. Capacity-building and
training may be driven by the development and extension of local
training and accreditation centers for transportation management
based in local universities around the country, and can be supported
by the national government. These local transport centers of
excellence can also provide support to LGUs that may lack staff to
perform any transport-related functions. Administrative structures
should be continuously developed to respond effectively to the
challenges of a changing operating environment.

Disaster Risk Reduction and Management for Natural and
Anthropogenic Hazards Affecting Transportation and Public Works
Systems and Networks. - Adopt critical infrastructure resilience or
the ability to prepare for and adapt to changing conditions and
withstand and recover from disruptions. This is to ensure the
reduction of effects of climate change on economic business and
activities; minimal disturbance on flow of traffic during and after
disasters and attain some degree of seamless movement of people
and commodities; coordinated evacuation procedures; easy
recovery, reconstruction and rehabilitation after disasters and
smooth return to normalcy; efficient debris management after
disasters for humanitarian logistics; and minimal loss of lives and
property.

The DOTr in coordination with relevant government agencies, LGUs
and stakeholders, shall conduct a transport resiliency analysis on
existing infrastructure, starting with areas that are most vulnerable to
the impact of climate-change and disasters based on available geo
hazard maps and studies.


The DOTr, in cooperation with all stakeholders, shall formulate a
detailed Disaster Risk Reduction and Crisis Management Plan for
the Transportation Sector, including for each sub-sector. Each
transport service provider shall submit its own Disaster Risk
Reduction and Crisis Management Plan to the DOTr for review and
approval. The Plan shall include a Public Transportation Emergency
Relief Program to help LGUs and public transportation systems pay
for protecting, repairing, and/or replacing equipment and facilities
that were damaged by natural and anthropogenic hazards.

C)

Role of the Public. The public shall abide by all traffic rules and
regulations across all modes of transportation, provide inputs to
planning, feedback on safety and security, and suggestions for
improving convenience and related concerns which are likely to
affect or have an impact on their quality of life.

CHAPTER III
MERGING RELEVANT NATIONAL GOVERNMENT AGENCIES WITH THE DOTr

SECTION 6. Plan for Merging Relevant National Government Agencies with the
DOTr. — There is a need to rationalize the structure and functions of the different
transportation agencies and harmonize all transportation plans, policies, programs,
and projects of various government corporations and agencies. The Department of
Transportation (DOTr), with the support of the National Economic Development
Authority (NEDA), and in consultation with the concerned national government
agencies, shall formulate a 5- to 10-year plan for merging relevant national
government agencies with the Department of Transportation within two years from
the signing of this Act, in accordance with existing civil service rules,

SECTION 7. Transfer of Powers and Functions. — The powers and functions of
the national government agencies that will be merged with the DOTr shall be
transferred to the DOTr or to the new Department that will be created as a result of
the merger. The transfer of powers and functions shall include all applicable funds
and appropriations, records, equipment, property, contracts, liabilities and personnel

16


as may be necessary in accordance with pertinent laws, rules, and regulations.
Provided, That the officers and employees of the concerned national government
agencies and the DOTr shall continue in a holdover capacity until such time as the
new officials and employees of the new Department shall have been duly appointed
pursuant to the provisions of this Act.

CHAPTER IV
FINAL PROVISIONS

SECTION 8. Implementing Rules and Regulations. — Unless otherwise expressly
provided in this Act, the DOTr and DPWH, in consultation with other appropriate
agencies and stakeholders, shall formulate, issue and promulgate the necessary
implementing rules and regulations within sixty (60) days from the effectivity of this
Act. The implementing rules and regulations shall cover, but not limited to, the
following:

a) Penal provisions for the deliberate undue delay of the implementation of
government projects, non-compliance of service providers with the
provisions of construction, operation and maintenance contracts and the
inclusion of penal provisions in such contracts;

b)

Guidelines for merging the national government agencies with the DOTr;
and
°)

Submission of periodic reports such as Annual Report, mid-Master Plan
Report and End-of-Master Plan Report to the Joint Congressional
Oversight Committee.

SECTION 9. Transition Phase. — The DOTr and DPWH shall, upon prior
consultation with other government agencies and stakeholders, determine the
appropriate period for the transition phase to allow for merger of said Departments
consistent with the objectives of this Act.


SECTION 10. Appropriations. The respective regular budgets of the DOTr and
DPWH shall constitute the budget of the new Department of Transportation and
Public Works.

SECTION 11. Joint Congressional Oversight Committee. — There is hereby
created a Joint Congressional Oversight Committee to monitor the implementation of
this Act. The committee shall be composed of three (3) senators and three (3)
representatives to be appointed by the Senate President and the Speaker of the
House of Representatives, respectively. The oversight committee shall be jointly
chaired by the Chairpersons of the Senate Committee on Public Services, Senate
Committee on Public Works, the House Committee on Transportation and the House
Committee on Public Works and Highways: Provided, That the Minority in both the
Senate and the House of Representatives shall be equitably represented therein.
Provided, further, That the Oversight Committee shall exist for a period of 35 years
from the effectivity of this Act.

The mandate given to the Joint Congressional Oversight Committee under
this Act shall be without prejudice to the performance of the duties and functions by
the respective existing oversight committees of the Senate and the House of
Representatives.

SECTION 12. Construction and Interpretation. — Any doubt in the interpretation
of any provision in this Act shall be interpreted in favor of the interest of the general
public particularly to ensure access to an integrated, convenient, safe and secure
transportation and public works system.

SECTION 13. Separability Clause. — If for any reason, any chapter, section or
provision of this Act shall be declared unconstitutional, illegal, or invalid, such parts
not affected thereby shall remain in full force and effect.


SECTION 14. Repealing Clause. — All laws, decrees, executive orders,
proclamations and administrative regulations, or parts thereof inconsistent herewith
are hereby repealed or modified accordingly.

SECTION 15. Effectivity Clause. — This Act shall take effect fifteen (15) days after

its publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,