EXECUTIVE ORDER NO. 603
EXECUTIVE
ORDER NO. 603 - CREATING A LIGHT RAIL TRANSIT AUTHORITY, VESTING THE
SAME WITH AUTHORITY TO CONSTRUCT AND OPERATE THE LIGHT RAIL TRANSIT
(LRT) PROJECT AND PROVIDING FUNDS THEREFOR
WHEREAS, the economic growth,
stability and security of the Nation require an efficient, adequate,
economical, safe, convenient, and dependable transportation system that
shall truly be responsive to the demands of the populace consistent
with the total scope of metropolitan needs;
WHEREAS, Metropolitan Manila, as the premier metropolis of the country,
requires an efficient mass transportation system which can provide its
people with safe, fast and reliable mobility;
WHEREAS, a Metropolitan Manila transportation, land use and development
planning study was conducted to guide transportation investments and
operations, and such study indicates that a light rail transit system
is recommended, among others, to alleviate the worsening traffic and
transportation situation in Metropolitan Manila, within the context of
a rational land use pattern;
WHEREAS, it is imperative to provide an organizational structure that
will oversee the effective implementation of the light rail transit
project, including the construction and operation thereof;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of powers vested in me by Presidential Decree No. 1416, do
hereby order the creation and organization of a Light Rail Transit
Authority.
ARTICLE
I
DECLARATION OF POLICY AND
CREATION OF THE LIGHT RAIL TRANSIT AUTHORITY
Section 1. Declaration of Policy. — It is hereby
declared to be the policy of the State to promote, encourage, and
protect the mutual intermodal and intramodal complementation,
cooperation, and synchronization of the common carrier services in the
most practicable, expeditious, and organized manner with maximum
safety, utility, service, and cost effectiveness, as goals for both the
public who avail of these facilities and the investors/operators who
provide the transportation services; to foster sound economic
conditions within the transportation industry and among the several
modes and common carriers, in order that a healthy, dynamic, and strong
private sector can meet the transportation requirements of the Nation,
among others, and in the pursuit thereof, the government and the
private sector shall interact effectively by performing functions and
pursuing priorities for which each is best suited and, at the same
time, reinforcing and complementing each other.
Sec. 2. Creation of Authority. — To carry out the
foregoing transportation policy, there is hereby created a corporate
body to be known as the LIGHT RAIL TRANSIT AUTHORITY, hereinafter
called the “AUTHORITY”, which shall be primarily responsible for the
construction, operation, maintenance, and/or lease of light rail
transit systems in the Philippines, giving due regard to the reasonable
requirements of the public transportation system of the country. The
principal office of the Authority shall be in the Metropolitan Manila
Area, but it may establish branches and agencies elsewhere within the
Philippines, as may be necessary for the proper conduct of its business
and the discharge of its functions. The Authority shall be attached to
the Ministry of Transportation and Communication.
The Authority shall conduct its business, according to prudent
commercial principles and shall ensure, as far as possible, that its
revenues for any given year are, at least sufficient to meet its
expenditures. Any excess of revenues over expenditure in any fiscal
year may be applied by the Authority in any way consistent with this
Order, including such provisions for the renewal of capital assets and
the repayment of loans, as the Authority may consider prudent.
Sec. 3. Board of Directors. — The powers and
functions of the Authority shall be vested in and exercised by the
Board of Directors composed of the Minister of Human Settlements as
Chairman; Minister of Transportation and Communications as Vice
Chairman; the Minister of Finance, the Minister of Economic Planning,
the Minister of Public Highways, the Minister of the Budget, the
Chairman of the Board of Transportation, and the Administrator of the
Authority, as ex-officio members; and one (1) representative from the
private sector to be appointed by the President. The appointed director
shall serve for a term of two (2) years.
The officials next in rank to, or such officials duly designated by,
the regular members shall serve as alternate members, except that, in
the absence of the Chairman, then Board shall elect a temporary
presiding officer. The alternate members shall attend meetings of the
Board and committees assigned to them by their principals and receive
the corresponding per diems, whenever their principals are absent or
said positions are vacant.
The Chairman and each Member of the Board shall receive a monthly
commutable representation allowance of ONE THOUSAND (P1,000.00) PESOS
and per diem of TWO HUNDRED (P200.00) PESOS for every meeting of the
Board actually attended: Provided, That the total amount of per diems
which each may receive shall not exceed ONE THOUSAND (P1,000.00) PESOS
a month.
ARTICLE
II
CORPORATE POWERS
Sec. 4. General Powers. — The Authority, through
the Board of Directors, may undertake such action as are expedient for
or conducive to the attainment of the purposes and objectives of the
Authority, or of any purpose reasonably incidental to or consequential
upon any of these purposes. As such, the Authority shall have the
following general powers:
(1)
To have continuous succession under its corporate name, until otherwise
provided by law;
(2) To
prescribe, amend, and/or repeal its by-laws;
(3) To adopt
and use a seal and alter it at its pleasure;
(4) To sue and
be sued;
(5) To
contract any obligation or enter into, assign or accept the assignment
of, and vary or rescind any agreement, contract of obligation necessary
or incidental to the proper management of the Authority;
(6) To borrow
funds from any source, private or public, foreign or domestic, and to
issue bonds and other evidence of indebtedness, the payment of which
shall be guaranteed by the National Government, subject to pertinent
borrowing law;
(7) To
acquire, receive, take and hold by bequest, devise, gift, purchase or
lease, either absolutely or in trust for any of its purposes, from
foreign and domestic sources, any assets, grant or property, real or
personal, subject to such limitations as are provided in existing laws;
to convey or dispose of such assets, grants, or properties, movable and
immovable; and invest and/or reinvest such proceeds and deal with and
expand its assets and income in such a manner as will best promote its
objectives;
(8) To
improve, develop or alter any property held by it;
(9) To carry
on any business, either alone or in partnership with any other person
or persons;
(10) To employ
an agent or contractor or perform such things as the Authority may
perform;
(11) To
exercise the right of eminent domain, whenever the Authority deems it
necessary for the attainment of its objectives;
(12) To
prescribe rules and regulations in the conduct of its general business
as well as to fix and implement the terms and conditions of its related
activities;
(13) To
determine the fares payable by persons travelling on the light rail
system, in consultation with the Board of Transportation;
(14) To
establish, operate, and maintain branches or field offices when
required by the exigencies of its business;
(15) To
determine its organizational structure and the number, positions and
salaries of its personnel, subject to pertinent organization and
compensation law; and
(16) To
exercise such powers and perform such duties as may be necessary to
carry out the business and purposes for which the Authority was
established or which, from time to time, may be declared by the Board
of Directors to be necessary, useful, incidental or auxiliary to
accomplish such purposes; and generally, to exercise all powers of any
Authority under the Corporation Law that are not inconsistent with the
provisions of this Order, or with orders pertaining to government
corporate budgeting, organization, borrowing, or compensation.
Sec. 5. Specific Powers. — The Board shall have
the following specific powers:
(1)
To provide comprehensive policy guidance for the development,
operation, and promotion of a light rail transit system as provided for
in this Order;
(2) To
formulate a comprehensive and practicable plan/program for the early
completion of an LRT system in Metropolitan Manila; to employ the
necessary consultancy services therefor and to organize, and employ
personnel for a Project Management Office that will supervise the
construction of the said Metropolitan Manila LRT system;
(3) To borrow
or otherwise raise money and charge all or part of its properties as
security therefor;
(4) To create
and issue bonds, notes or other securities which may be charged on the
property, undertaking and/or revenue of the Authority of any part
thereof;
(5) To invest
any funds of the Authority available for investment;
(6) To
cooperate, coordinate, and exchange such information, studies, and
reports with, and to seek the cooperation of other agencies and
instrumentalities of the National Government including government-owned
or controlled corporations, as will be most effectively conducive to
the achievement of the purposes of this Order;
(7) To provide
managerial or administrative expertise including the rendering of
professional and training services for the development of the staff and
employees of the Authority;
(8) To issue
orders, not inconsistent with this Order, negotiating the work and
conduct of its personnel;
(9) To
appoint, discipline, and remove personnel of the Authority in
accordance with laws;
(10) To
recommend to the President, through the National Economic and
Development Authority, the establishment of light rail systems, where
feasible, in other parts of the country;
(11) To report
annually to the President of the Philippines on the status of its
operations and finances, not later than three (3) months after the year
end; and
(12) To
perform such acts as are proper and necessary to carry out the purposes
of the Authority.
ARTICLE
III
BORROWING AUTHORITY
Sec. 6. Domestic Indebtedness. — Whenever the
Board deems it necessary for the Authority to incur indebtedness by
contracting loans with domestic financial institutions or to issue
bonds to carry out the purpose for which the Authority has been
organized, it shall, by resolution, so declare and state the purpose
for which the proposed debt is to be incurred and such terms and
conditions as it shall deem appropriate for the accomplishment of the
said purpose; Provided, That in the case of bond issued, the same shall
be subject to the approval of the President of the Philippines, upon
recommendation of the Minister of Finance.
The bonds issued under the authority of this section shall be exempt
from the payment of all taxes by the Republic of the Philippines, or by
any authority, branch, division or political subdivision thereof, which
parts shall be stated upon the face of said bonds.
A sinking fund shall be established by the Authority in such manner
that the total annual contribution thereto, accrued at such rate of
interest as may be determined by the Minister of Finance in
consultation with the Monetary Board, shall be sufficient to redeem at
maturity the bonds issued under this section. The sinking fund shall be
under the custody of the Central Bank of the Philippines, which shall
invest the same, subject to the approval of the Board and the Minister
of Finance in consultation with the Monetary Board: Provided, That the
proceeds thereof shall accrue to the Authority.
The Republic of the Philippines hereby guarantees the payment by the
Authority of both the principal and the interest of the bonds or other
evidences of indebtedness and shall pay such principal and interest, in
case the Authority fails to do so. Provided, That the sums so paid by
the Republic of the Philippines shall be refunded by the Authority; and
Provided, further, That the Authority, to assure such refunding, shall
establish reserves or sinking funds and comply with such other
restrictions and conditions as the Minister of Finance may prescribe
and establish for that purpose.
Sec. 7. Foreign Loans. — The Authority is hereby
authorized to contract loans, credits or indebtedness in any
convertible foreign currency or capital goods, from foreign governments
or any international financial institutions or fund source, or to issue
bonds, the total outstanding amount of which, exclusive of interests,
shall not exceed P300 million or the equivalent thereof in other
currencies, on such terms and conditions as it shall deem appropriate
for the accomplishment of its purposes and to enter into and execute
agreements and other documents specifying such terms and
conditions.
The President of the Philippines, by himself, or through his duly
authorized representative, is hereby authorized to negotiate and
contract with foreign governments or any international financial
institutions or fund sources, in the name and on behalf of the
Authority, for the accomplishment of its purposes.
The President of the Philippines, by himself, or through his duly
authorized representative, is hereby further authorized to guarantee,
absolutely and unconditionally as primary obligor and not as surety
merely, in the name and on behalf of the Republic of the Philippines,
the payment of the loans, credits, indebtedness and bonds issued up to
the amount herein authorized, which shall be over and above the amount
which the President of the Philippines is authorized to guarantee under
Republic Act Numbered Forty-Eight Hundred Sixty, as amended, as well as
the performance of all or any of the obligations undertaken by the
Authority in the territory of the Republic of the Philippines, pursuant
to Loan Agreements entered into with foreign governments or any
international financial institutions or fund sources.
Any loan, credit, indebtedness, contracted by the Authority and the
payment of the principal, interest and other charges thereon, as well
as the importation of machinery, equipment, materials, supplies, and
services paid from the proceeds of any such loan, credit or
indebtedness shall be exempt from all direct and indirect taxes,
customs duties, fees, imposts, other charges and restrictions,
including import restrictions, previously and presently imposed and to
be imposed by the Republic of the Philippines, or any of its agencies
and political subdivisions.
ARTICLE
IV
TAX AND DUTY EXEMPTIONS
Sec. 8. Equipment, Machineries, Spare Parts and
Other Accessories and Materials. — The importation of equipment,
machineries, spare parts, accessories and other materials, including
supplies and services, used directly in the operations of the Light
Rail System, not obtainable locally on favorable terms, out of any
funds of the Authority including, as stated in Sec. 7 above,
proceeds from foreign loans, credits or indebtedness, shall, likewise,
be exempted from all direct and indirect taxes, customs duties, fees,
imposts, tariff duties, compensating taxes, wharfage fees and other
charges and restrictions, the provisions of existing laws to the
contrary notwithstanding.
ARTICLE
V
ORGANIZATION AND MANAGEMENT
Sec. 9. Management. — The management of the
Authority shall be headed by an Administrator, who shall be assisted by
two (2) Deputy Administrators. The LRT Administrator and Deputy
Administrators shall be citizens of the Philippines, at least
thirty-five (35) years old on the date of their appointments, of good
moral character or recognized executive ability and competence, with
adequate training in either transport planning, management and
economics, finance, law, public utility or other transport related
aspects. They shall be appointed by the President.
Sec. 10. Powers and Duties of the Administrator. —
The Administrator shall have the following powers and duties:
(1)
To implement, enforce, and apply the policies, programs, plans,
standards, guidelines, procedures, decisions, rules and regulations
issued, prescribed, or adopted by the Board;
(2) To
undertake studies, investigations, and other activities related to the
operations, on his own initiative or upon instructions of the Board,
and to submit comprehensive reports and appropriate recommendations to
the Board for its information and action;
(3) To
undertake studies for present and future requirements of development of
the LRT project expansion, in consultation with appropriate agencies;
(4) To manage
the affairs of the Authority, subject to the provisions of this Order
and applicable laws, orders, rules and regulations;
(5) With the
approval of the Board, to determine the staffing pattern and the number
of personnel of the Authority and to define their functions and duties;
(6) To
regularly inspect the LRT facilities and operations and recommend
measures to maintain a high standard of safe, fast and reliable
service;
(7) To
establish and maintain, in coordination with the appropriate government
offices and agencies a regular and prompt information system regarding
traffic flows, LRT operations, finance and other related data;
(8) With the
approval of the Board, to delegate such functions and duties to the
Deputy Administrators or other ranking officials of the Authority for
the efficient administration and management thereof;
(9) To perform
such other duties as the Board may assign and such acts as may be
necessary and proper to implement this Order.
Sec. 11. Supplies and Services Other Than
Personnel. — All purchase of supplies or contracts for services, except
for personal services, entered into by the Authority, shall be done
through competitive public bidding: Provided, That bidding shall not be
required when an emergency, as certified by the Administrator, requires
immediate delivery of the supplies or performance of the services, and
the aggregate amount involved in any one purchase of supplies or
procurement of services does not exceed Ten Thousand Pesos, in which
case, such purchase or procurement may be made in the usual course of
business: Provided, further, That the Authority’s emergency purchase of
supplies and services shall not exceed the amount of Fifty Thousand
Pesos for any one month: Provided, finally, That in comparing bids and
in making awards, the Authority shall consider such factors as the cost
and relative quality and adaptability of supplies or services; the
bidder’s financial responsibility, skill, experience, integrity, and
ability to furnish repairs and maintenance services; the time of
delivery or performance offered; and the bidder’s compliance with the
specifications desired.
Sec. 12. Departments of the Authority. — The
Authority shall establish and maintain such departments as it may deem
necessary for the proper and efficient transaction and/or operation of
its business. The powers and duties of the departments shall be
determined by the Board: Provided, That the office of the Chief Legal
Counsel of the Authority, which shall be separate and distinct from and
independent of the Office of the Government Corporate Counsel, shall
advise and represent the Authority in all legal matters, procedures and
actions.
Sec. 13. The Auditor. — The Chairman of the
Commission on Audit shall appoint a representative who shall be the
auditor of the Authority. He shall likewise appoint the necessary
personnel to assist said representative in the performance of his
duties. Subject to the approval of the Board of Directors of the
Authority, the salaries of the Auditor and his staff shall be fixed by
the Chairman of the Commission on Audit. Salaries and other expenses
for the auditor’s office shall be paid by the Authority. The Auditor of
the Authority and personnel under him may be removed only by the
Chairman of the Commission on Audit.
Sec. 14. Authority to Administer Oath. — The
Chairman of the Board, the Administrator, the Deputy Administrators,
and the Chief Legal Counsel of the Authority shall have the power to
administer oaths in connection with the transaction of official
business.
ARTICLE
VI
CAPITALIZATION AND FINANCING
Sec. 15. Capitalization. — The Authority shall
have an authorized capital of FIVE HUNDRED MILLION PESOS
(P500,000,000.00) which shall be fully subscribed by the Republic of
the Philippines and other government institutions, corporations,
instrumentalities, and agencies, whether national or local, within the
framework of their respective charters. The authorized capital shall be
used for the purpose of financing the Authority’s business transactions
and shall be paid as follows:
(1)
The sum of TWO HUNDRED MILLION PESOS (P200,000,000.00) to be taken from
the general fund in the National Treasury out of appropriations
available for the purpose.
(2) The
balance of the authorized capital amounting to THREE HUNDRED MILLION
PESOS (P300,000,000.00) shall be released from the National Treasury
out of appropriations available for the purpose, or subscribed and paid
by government institutions as may be authorized pursuant to this
Section , with the approval of the President.
Sec. 16. Initial Debt. — The Authority shall be
indebted to the Government, or any of its ministries, bureaus, agencies
or offices, in a sum equal to all expenditures, directly or indirectly
advanced or incurred by the Government or any of its ministries,
bureaus, agencies or offices, in relation to the investigation,
planning and/or construction of the light rail transit system. The
Minister of Finance shall, upon prior notice, determine the accuracy
and reasonableness of such advances or indebtedness.
ARTICLE
VII
PENALTIES
Sec. 17. Penalties. — Any person who wilfully or
maliciously gives false or misleading data or information, or conceals
or falsifies a material fact, in any investigation, inquiry or hearing,
or other proceeding held by the Board or the Authority or any one duly
acting in their behalf, shall be dealt with according to the pertinent
provisions of existing penal laws.
ARTICLE
VIII
FINAL PROVISIONS
Sec. 18. Repealing and Separability Clauses. — All
laws, decrees, orders, rules and regulations, policies, programs, or
parts thereof, that are inconsistent with any of the provisions of this
Order, are hereby repealed, amended, or modified accordingly.
Of for any reason, any section or provisions of this Order is declared
to be unconstitutional or invalid, the other sections or provisions
hereof, which are not affected hereby, shall continue in full force and
effect.
Sec. 19. Effectivity. — This Order shall take
effect immediately.
Done in the City of Manila,
this 12th day of July, in the year of Our Lord, nineteen hundred and
eighty.