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SOURCE: Press and Public Affairs Bureau

House OKs creation of Philippine National Railway Authority
07 March 2018 06:10:50 PM

The House committees on government enterprises, legislative franchise, and transportation in a joint hearing on Wednesday approved a bill seeking to restructure the Philippine National Railway System.

The unnumbered substitute bill provides for the creation of the Philippine National Railway Authority (PNRA) which shall regulate all aspects of the operations of railway corporations, while its board of directors shall set the necessary routes, fares, and standards on safety and security.

It further mandates the establishment of three separate corporations—the Luzon Railway Corporation, Visayas Railway Corporation (VRC), and Mindanao Railway Corporation (MRC)—to operate railways in Luzon, Visayas, and Mindanao. The corporations shall exist for a term of 50 years, and renewable for another 50.

The authorized capital stock of each corporation shall be P30 billion. Twenty percent, or P6 billion, shall be initially paid-up and the balance shall be paid from a continuing annual appropriation of not less than P2 billion.

Moreover, railway operators are required to secure a franchise from Congress. Operators with an existing franchise or concession agreement with any government agency are granted three years to secure a legislative franchise.

The measure also contains penal provisions for acts harmful to the sustainability and safety of trains, tracks, equipment and other assets, including the safety and security of the riding public.

During the deliberations, the committees accepted an amendment to Section 43, which prohibits the issuance of restraining orders and preliminary injunctions.

The section now reads:

“No court in the Philippines shall have the 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 on 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 or system.”

In addition, the committee members agreed that professional experience specific to public and railway transportation shall be required of the PNRA Administrator. This is in addition to qualifications already required in the bill, such as 35 years of age, good moral character, and recognized executive ability and competence in transportation, business administration, management, finance, or law.

The specific professional experience shall also be required from the Deputy Administrators and Operations Manager.

The deliberations were presided by government enterprises committee chairman Rep. Jesus Sacdalan, legislative franchise committee chairman committee Rep. Franz Alvarez, and transportation committee vice-chairman Rep. Edgar Sarmiento. Also present were Reps. Mark Go and Eugene de Vera. (CMB Engracia)