Tutuban Central Station, August 2007.
Friday, August 31, 2007
Tuesday, August 21, 2007
Google Earth Philippine Railroad Train Depot Collection
LRT 1 Train Depot
LRT 2 Train Depot
MRT 3 Train Depot
PNR Tutuban Train Yard
PNR Caloocan Train Depot
LRT 2 Train Depot
MRT 3 Train Depot
PNR Tutuban Train Yard
PNR Caloocan Train Depot
EXECUTIVE ORDER NO. 603 July 12, 1980
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 1
DECLARATION OF POLICY AND CREATION OF THE LIGHT RAIL TRANSIT AUTHORITY
Sec. 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 2
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 3
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 4
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 Section 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 5
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 6
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 7
PENALTIES
Sec. 17. Penalties. Any person who willfully 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 8
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.
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 1
DECLARATION OF POLICY AND CREATION OF THE LIGHT RAIL TRANSIT AUTHORITY
Sec. 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 2
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 3
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 4
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 Section 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 5
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 6
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 7
PENALTIES
Sec. 17. Penalties. Any person who willfully 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 8
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.
EXECUTIVE ORDER NO. 546 July 23, 1979
CREATING A MINISTRY OF PUBLIC WORKS AND A MINISTRY OF TRANSPORTATION AND COMMUNICATIONS
WHEREAS, the accelerated pace of national development requires the effective, purposeful and unified implementation of public works projects and the effective control and supervision of transportation and communications facilities and services;
WHEREAS, the development, rehabilitation, improvement, construction, maintenance and repairs of ports, flood control and drainage systems, buildings, water supply systems; and other public works facilities involve the utilization of technologies and manpower different from those required for the control and supervision of transportation and communications facilities and services;
WHEREAS, a rational distribution of the functions of government pertaining to public works on one hand and control and supervision of facilities and services related to transportation and communications on the other would enhance the efficiency of government;
WHEREAS, in keeping with the policy of government to effect continuing reforms in the organizational structure to enhance efficiency and effectiveness, it is necessary to entrust in one ministry all functions pertaining to the construction, repair and maintenance of public works facilities and restructure the organization for the control and supervision of transportation and communications facilities and services in the country; and
WHEREAS, under Presidential Decree No. 1416, the President is given continuing authority to reorganize the National Government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, and pursuant to the authority vested in me by Presidential Decree No. 1416, do hereby order and ordain:
A. MINISTRY OF PUBLIC WORKS
Sec. 1. Creation of a Ministry of Public Works. There is hereby created a Ministry of Public Works, hereinafter referred to as the Ministry, which shall assume the public works functions of the Ministry of Public Works, Transportation and Communications and such other functions as may be assigned to it by law.
Sec. 2. Authority and Responsibility. The authority and responsibility for the Ministry shall be vested in the Minister of Public Works who shall be assisted by one career Deputy Minister, unless otherwise determined by the President.
Sec. 3. Functions. The Ministry shall be responsible for the construction, maintenance and repair of portworks, harbor facilities, lighthouses, navigational aids, shore protection works, airport buildings and associated facilities, public buildings and school buildings, monuments and other related structures, as well as undertaking harbor and river dredging works, reclamation of foreshore and swampland areas, water supply, and flood control and drainage works.
Sec. 4. Organization of the Ministry. The Ministry shall be composed of the ministry proper made up of the immediate Office of the Minister, a Planning Service, an Administrative Service, a Financial and Management Service, an Infrastructure Computer Center, a Project Management Information System Service, a Rural Infrastructure Project Office, and a Building Research and Development Staff; four (4) bureaus namely, Bureau of Buildings, Bureau of Ports, Harbors and Reclamation, Bureau of Water Supply, and Bureau of Flood Control and Drainage; and the regional offices.
The Planning Service, the Administrative Service, and the Financial and Management Service shall perform functions conforming with those provided for in appropriate provisions of Part II of the Integrated Reorganization Plan.
The Bureau of Buildings, the Bureau of Ports, Harbors and Reclamation, the Bureau of Water Supply, and the Bureau of Flood Control and Drainage shall correspondingly absorb the applicable functions of the divisions of the Bureau of Public Works which is hereby abolished pursuant to Section 19 of this Executive Order.
The Infrastructure Computer Center, the Building Research and Development Staff, and the Rural Infrastructure Project Office of the Ministry of Public Works, Transportation and Communications are reconstituted in the Ministry with the same functions.
The Ministry shall have regional offices in such places and of such number as may be authorized under Article I, Chapter III Part II of the Integrated Reorganization Plan, as amended.
Sec. 5. Relationship Between the Ministry Proper, the Bureaus, and the Regional Offices. The Office of the Minister shall have direct line supervision over the bureaus and regional offices. The ministry proper shall be responsible for developing the implementing programs for the Ministry.
The Bureaus shall be essentially staff in character and as such, shall exercise only functional supervision over the regional offices.
The regional offices shall constitute the operating arms of the ministry proper with responsibility for directly implementing the plans and programs of the Ministry in accordance with adopted policies, standards and guidelines.
B. MINISTRY OF TRANSPORTATION AND COMMUNICATIONS
Sec. 6. Creation of a Ministry of Transportation and Communications. There is hereby created a Ministry of Transportation and Communications, hereinafter referred to as the Ministry, which shall be the primary policy, planning, programming, coordinating, implementing, regulating and administrative entity of the executive branch of the government in the promotion, development, and regulation of a dependable and coordinated network of transportation and communication systems in pursuance of the following objectives:
a. Promote the development of a dependable and coordinated network of transportation systems;
b. Guide government and private investments in the development of the country's inter-modal transport and communication systems in a most practical, expeditious, and orderly fashion for maximum safety, service, and cost effectiveness;
c. Impose appropriate measures so that technical, economic and other conditions for the continuing economic viability of the transport and communications entities are not jeopardized and do not encourage inefficiencies and distortion of traffic patronage;
d. Provide, extend and operate by itself or through or together with other entities, private or government, local or national, telephone, telegraph, telex and other public telecommunications services throughout the country whenever economic, social and political development activities warrant the provision thereof: Provided, however, That the national economic viability of the entire network or components thereof is maintained at reasonable rates;
e. Develop an integrated nationwide transmission system by itself or through or together with other entities in accordance with national and international telecommunications service standards to meet all telecommunications service requirements including, among others, radio and television broadcast relaying, leased channel services and data transmission;
f. Establish, operate and maintain by itself or through or together with other entities an international switching system for incoming and outgoing international telecommunications services;
g. Encourage the development of a domestic telecommunications industry in coordination with the concerned entities, particularly the manufacture of communications/electronics equipment and components to complement and support, as much as possible, the expansion, development, operation and maintenance of the nationwide telecommunications network; and
h. Provide for a safe, fast, reliable and efficient postal system for the country.
Sec. 7. Authority and Responsibility. Authority and responsibility for the Ministry shall be vested in the Minister of Transportation and Communications who shall be assisted by one career Deputy Minister, unless otherwise determined by the President.
Sec. 8. Functions. The Ministry shall have the following functions:
a. Coordinate and supervise all activities of the Ministry relative to transportation and communications;
b. Formulate and recommend national policies and guidelines for the preparation and implementation of an integrated and comprehensive transportation and communications system at the national, regional and local levels;
c. Establish and administer comprehensive and integrated programs for transportation and communications, and for this purpose, may call on any agency, corporation, or organization, whether government or private, whose development programs include transportation and communications as an integral part to participate and assist in the preparation and implementation of such programs;
d. Regulate, whenever necessary, activities relative to transportation and communications and prescribe and collect fees in the exercise of such power;
e. Assess, review and provide direction to transportation and communications research and development programs of the government in coordination with other institutions concerned; and
f. Perform such other functions as may be necessary to carry into effect the provisions of this Executive Order.
Sec. 9. Organization of the Ministry. The Ministry shall be composed of the ministry proper made up of immediate Office of the Minister, an Administrative Service, a Financial and Management Service and a Planning Service; four (4) bureaus, namely, Bureau of Land Transportation, Bureau of Air Transportation, Bureau of Telecommunications, and Bureau of Posts; and a National Telecommunications Commission.
The Administrative Service, Financial and Management Service, and Planning Service shall perform functions conforming with those provided for in appropriate provisions of Part II of the Integrated Reorganization Plan.
The Board of Transportation created under Article III, Chapter I, Part X of the Integrated Reorganization Plan, as amended, shall be under the administrative supervision of the Ministry and shall continue to exercise the powers and functions entrusted to it by law. The Board shall have a technical staff.
Sec. 10. Bureau of Land Transportation. The Land Transportation Commission is hereby renamed Bureau of Land Transportation and shall continue to perform its regulatory and enforcement functions, including the registration of public utility vehicles and the enforcement of the decisions of the Board of Transportation with regard to public utility vehicles.
The Director of Land Transportation shall be an ex-officio member of the Land Transportation Division of the Board of Transportation.
Sec. 11. Bureau of Air Transportation. The Civil Aeronautics Administration is hereby renamed Bureau of Air Transportation and shall continue to perform its functions relating to the promotion and development of policies, plans, programs and standards for the construction and maintenance of airports and their facilities including buildings and runways. The repair and maintenance of these facilities shall be the responsibility of the Bureau: Provided, however, That the construction of runways and the terminal buildings and related structures shall be done by the Ministry of Public Works or Ministry of Public Highways as the case may be, at the instance of the Bureau.
The Director of Air Transportation shall be an ex-officio member of the Civil Aeronautics Board.
Sec. 12. Bureau of Posts. The Bureau of Posts shall continue to be responsible for providing a safe, fast, reliable and efficient postal service in the country.
Sec. 13. Bureau of Telecommunications. The Bureau of Telecommunications shall continue to be responsible for providing telecommunications facilities, including telephone systems for government offices; providing communications services for purposes of augmenting limited or inadequate existing similar private communication services; extending communications in areas where no such services are available; and assisting the private sector engaged in telecommunications services by providing and maintaining backbone telecommunication networks.
Sec. 14. National Telecommunications Commission. The Board of Communications created under Article III, Chapter I, Part X of the Integrated Reorganization Plan, as amended, and the Telecommunications Control Bureau created under Article IX, Chapter I, Part X of the same Plan, as amended, are integrated into a single entity to be known as the National Telecommunications Commission and hereinafter referred to as the Commission.
Sec. 15. Functions of the Commission. The Commission shall exercise the following functions:
a. Issue Certificate of Public Convenience for the operation of communications utilities and services, radio communications systems, wire or wireless telephone or telegraph systems, radio and television broadcasting system and other similar public utilities;
b. Establish, prescribe and regulate areas of operation of particular operators of public service communications; and determine and prescribe charges or rates pertinent to the operation of such public utility facilities and services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies recognized by the Philippine Government as the proper arbiter of such charges or rates;
c. Grant permits for the use of radio frequencies for wireless telephone and telegraph systems and radio communication systems including amateur radio stations and radio and television broadcasting systems;
d. Sub-allocate series of frequencies of bands allocated by the International Telecommunications Union to the specific services;
e. Establish and prescribe rules, regulations, standards, specifications in all cases related to the issued Certificate of Public Convenience and administer and enforce the same;
f. Coordinate and cooperate with government agencies and other entities concerned with any aspect involving communications with a view to continuously improve the communications service in the country;
g. Promulgate such rules and regulations, as public safety and interest may require, to encourage a larger and more effective use of communications, radio and television broadcasting facilities, and to maintain effective competition among private entities in these activities whenever the Commission finds it reasonably feasible;
h. Supervise and inspect the operation of radio stations and telecommunications facilities;
i. Undertake the examination and licensing of radio operators;
j. Undertake, whenever necessary, the registration of radio transmitters and transceivers; and
k. Perform such other functions as may be prescribed by law.
Sec. 16. Organization of the Commission. The Commission shall be composed of a Commissioner and two Deputy Commissioners, preferably one of whom shall be a lawyer and another an economist. The Commissioner and Deputy Commissioners shall be of unquestioned integrity, proven competence, and recognized as experts in their fields, related, as much as possible, to communications.
The Commission shall determine its organization structure and personnel subject to the approval of the Ministry and other authorities concerned.
The Commission shall be under the supervision and control of the Ministry, except that with respect to its quasi-judicial functions, its decisions shall be appealable in the same manner as the decisions of the Board of Communications had been appealed.
The Commission may have regional offices in places and of such number as may be authorized under Article I, Chapter III, Part II of the Integrated Reorganization Plan, as amended.
Sec. 17. Telecommunication Stations Operated by the Armed Forces of the Philippines. Telecommunication stations owned and operated by the Armed Forces of the Philippines shall not be subject to the provisions of this Executive Order except that all such stations shall use frequencies as may be allowed/assigned by the Commission.
Sec. 18. International Treaties, Conventions and Agreements. International treaties, conventions and agreements on telecommunications to which the Philippine Government is a signatory shall form part of this Executive Order insofar as they are applicable to the Philippines.
C. OTHER PROVISIONS
Sec. 19. Abolished/Transferred Agencies.
a. The ministry proper of the Ministry of Public Works, Transportation and Communications composed of its services, divisions and units is abolished and its functions are correspondingly transferred to the appropriate services, divisions and units of the Ministry of Public Works and/or the Ministry of Transportation and Communications as may be necessary and appropriate.
b. The Bureau of Public Works is abolished and its functions are correspondingly transferred to the appropriate bureaus, divisions, units or regional offices of the Ministry of Public Works: Provided, That the functions of the Water Resources Division of the Bureau of Public Works pertaining to hydrologic surveys and data collections shall be absorbed by the National Water Resources Council.
c. The Bureau of Transportation created under Article VI, Chapter I, Part X of the Integrated Reorganization Plan, as amended but not implemented, is hereby abolished.
d. The Board of Communications and the Telecommunications Control Bureau are abolished and their functions are transferred to the National Telecommunications Commission.
e. The common technical staff of the Specialized Regulatory Boards created under Article III, Chapter I, Part X of the Integrated Reorganization Plan, as amended, is abolished and its functions are transferred as appropriate to the Board of Transportation and the National Telecommunications Commission.
The foregoing transfers of functions shall include applicable funds and appropriations, records, equipment, property, and such personnel as may be necessary.
Sec. 20. Attached Agencies.
(a) The following agencies are attached to the Ministry of Public Works: Communications and Electricity Development Authority, Philippine Ports Authority, Central Luzon-Cagayan Valley Authority, National Irrigation Administration, Metropolitan Waterworks and Sewerage System, Farm Systems Development Corporation, Local Water Utilities Administration, and Metropolitan Manila Flood Control and Drainage Council.
The National Water Resources Council and the Pasig River Development Council shall be under the administrative supervision of the Ministry.
(b) The following agencies are attached to the Ministry of Transportation and Communications: Philippine National Railways, Maritime Industry Authority, Philippine Aerospace Development Corporation, and Metro Manila Transit Corporation.
Sec. 21. The Minister of Public Works and the Minister of Transportation and Communications shall respectively assume as appropriate the positions of Chairman or member of all bodies and agencies previously occupied in an ex-officio capacity by the Minister of Public Works, Transportation and Communications.
In case of conflict, however, as to which Minister shall sit in any particular board or body, the same shall be decided by the President.
Sec. 22. The Minister of Public Works and the Minister of Transportation and Communications shall promulgate the necessary implementing details to carry out the organization of their respective Ministries which shall include the internal organization of units involved and the corresponding initial staffing patterns thereof, as well as such other transitory measures that need to be taken to assure the orderly implementation of this Executive Order, subject to the approval of the Ministry of the Budget in consultation, whenever necessary with the Presidential Commission on Reorganization.
Sec. 23. Repealing Clause. All laws, decrees, charters, executive orders, administrative orders, proclamations, rules and regulations or parts thereof that are in conflict with this Executive Order are hereby repealed or modified accordingly.
Sec. 24. Effectivity. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 23rd day of July, in the year of Our Lord, nineteen hundred and Seventy-Nine.
WHEREAS, the accelerated pace of national development requires the effective, purposeful and unified implementation of public works projects and the effective control and supervision of transportation and communications facilities and services;
WHEREAS, the development, rehabilitation, improvement, construction, maintenance and repairs of ports, flood control and drainage systems, buildings, water supply systems; and other public works facilities involve the utilization of technologies and manpower different from those required for the control and supervision of transportation and communications facilities and services;
WHEREAS, a rational distribution of the functions of government pertaining to public works on one hand and control and supervision of facilities and services related to transportation and communications on the other would enhance the efficiency of government;
WHEREAS, in keeping with the policy of government to effect continuing reforms in the organizational structure to enhance efficiency and effectiveness, it is necessary to entrust in one ministry all functions pertaining to the construction, repair and maintenance of public works facilities and restructure the organization for the control and supervision of transportation and communications facilities and services in the country; and
WHEREAS, under Presidential Decree No. 1416, the President is given continuing authority to reorganize the National Government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, and pursuant to the authority vested in me by Presidential Decree No. 1416, do hereby order and ordain:
A. MINISTRY OF PUBLIC WORKS
Sec. 1. Creation of a Ministry of Public Works. There is hereby created a Ministry of Public Works, hereinafter referred to as the Ministry, which shall assume the public works functions of the Ministry of Public Works, Transportation and Communications and such other functions as may be assigned to it by law.
Sec. 2. Authority and Responsibility. The authority and responsibility for the Ministry shall be vested in the Minister of Public Works who shall be assisted by one career Deputy Minister, unless otherwise determined by the President.
Sec. 3. Functions. The Ministry shall be responsible for the construction, maintenance and repair of portworks, harbor facilities, lighthouses, navigational aids, shore protection works, airport buildings and associated facilities, public buildings and school buildings, monuments and other related structures, as well as undertaking harbor and river dredging works, reclamation of foreshore and swampland areas, water supply, and flood control and drainage works.
Sec. 4. Organization of the Ministry. The Ministry shall be composed of the ministry proper made up of the immediate Office of the Minister, a Planning Service, an Administrative Service, a Financial and Management Service, an Infrastructure Computer Center, a Project Management Information System Service, a Rural Infrastructure Project Office, and a Building Research and Development Staff; four (4) bureaus namely, Bureau of Buildings, Bureau of Ports, Harbors and Reclamation, Bureau of Water Supply, and Bureau of Flood Control and Drainage; and the regional offices.
The Planning Service, the Administrative Service, and the Financial and Management Service shall perform functions conforming with those provided for in appropriate provisions of Part II of the Integrated Reorganization Plan.
The Bureau of Buildings, the Bureau of Ports, Harbors and Reclamation, the Bureau of Water Supply, and the Bureau of Flood Control and Drainage shall correspondingly absorb the applicable functions of the divisions of the Bureau of Public Works which is hereby abolished pursuant to Section 19 of this Executive Order.
The Infrastructure Computer Center, the Building Research and Development Staff, and the Rural Infrastructure Project Office of the Ministry of Public Works, Transportation and Communications are reconstituted in the Ministry with the same functions.
The Ministry shall have regional offices in such places and of such number as may be authorized under Article I, Chapter III Part II of the Integrated Reorganization Plan, as amended.
Sec. 5. Relationship Between the Ministry Proper, the Bureaus, and the Regional Offices. The Office of the Minister shall have direct line supervision over the bureaus and regional offices. The ministry proper shall be responsible for developing the implementing programs for the Ministry.
The Bureaus shall be essentially staff in character and as such, shall exercise only functional supervision over the regional offices.
The regional offices shall constitute the operating arms of the ministry proper with responsibility for directly implementing the plans and programs of the Ministry in accordance with adopted policies, standards and guidelines.
B. MINISTRY OF TRANSPORTATION AND COMMUNICATIONS
Sec. 6. Creation of a Ministry of Transportation and Communications. There is hereby created a Ministry of Transportation and Communications, hereinafter referred to as the Ministry, which shall be the primary policy, planning, programming, coordinating, implementing, regulating and administrative entity of the executive branch of the government in the promotion, development, and regulation of a dependable and coordinated network of transportation and communication systems in pursuance of the following objectives:
a. Promote the development of a dependable and coordinated network of transportation systems;
b. Guide government and private investments in the development of the country's inter-modal transport and communication systems in a most practical, expeditious, and orderly fashion for maximum safety, service, and cost effectiveness;
c. Impose appropriate measures so that technical, economic and other conditions for the continuing economic viability of the transport and communications entities are not jeopardized and do not encourage inefficiencies and distortion of traffic patronage;
d. Provide, extend and operate by itself or through or together with other entities, private or government, local or national, telephone, telegraph, telex and other public telecommunications services throughout the country whenever economic, social and political development activities warrant the provision thereof: Provided, however, That the national economic viability of the entire network or components thereof is maintained at reasonable rates;
e. Develop an integrated nationwide transmission system by itself or through or together with other entities in accordance with national and international telecommunications service standards to meet all telecommunications service requirements including, among others, radio and television broadcast relaying, leased channel services and data transmission;
f. Establish, operate and maintain by itself or through or together with other entities an international switching system for incoming and outgoing international telecommunications services;
g. Encourage the development of a domestic telecommunications industry in coordination with the concerned entities, particularly the manufacture of communications/electronics equipment and components to complement and support, as much as possible, the expansion, development, operation and maintenance of the nationwide telecommunications network; and
h. Provide for a safe, fast, reliable and efficient postal system for the country.
Sec. 7. Authority and Responsibility. Authority and responsibility for the Ministry shall be vested in the Minister of Transportation and Communications who shall be assisted by one career Deputy Minister, unless otherwise determined by the President.
Sec. 8. Functions. The Ministry shall have the following functions:
a. Coordinate and supervise all activities of the Ministry relative to transportation and communications;
b. Formulate and recommend national policies and guidelines for the preparation and implementation of an integrated and comprehensive transportation and communications system at the national, regional and local levels;
c. Establish and administer comprehensive and integrated programs for transportation and communications, and for this purpose, may call on any agency, corporation, or organization, whether government or private, whose development programs include transportation and communications as an integral part to participate and assist in the preparation and implementation of such programs;
d. Regulate, whenever necessary, activities relative to transportation and communications and prescribe and collect fees in the exercise of such power;
e. Assess, review and provide direction to transportation and communications research and development programs of the government in coordination with other institutions concerned; and
f. Perform such other functions as may be necessary to carry into effect the provisions of this Executive Order.
Sec. 9. Organization of the Ministry. The Ministry shall be composed of the ministry proper made up of immediate Office of the Minister, an Administrative Service, a Financial and Management Service and a Planning Service; four (4) bureaus, namely, Bureau of Land Transportation, Bureau of Air Transportation, Bureau of Telecommunications, and Bureau of Posts; and a National Telecommunications Commission.
The Administrative Service, Financial and Management Service, and Planning Service shall perform functions conforming with those provided for in appropriate provisions of Part II of the Integrated Reorganization Plan.
The Board of Transportation created under Article III, Chapter I, Part X of the Integrated Reorganization Plan, as amended, shall be under the administrative supervision of the Ministry and shall continue to exercise the powers and functions entrusted to it by law. The Board shall have a technical staff.
Sec. 10. Bureau of Land Transportation. The Land Transportation Commission is hereby renamed Bureau of Land Transportation and shall continue to perform its regulatory and enforcement functions, including the registration of public utility vehicles and the enforcement of the decisions of the Board of Transportation with regard to public utility vehicles.
The Director of Land Transportation shall be an ex-officio member of the Land Transportation Division of the Board of Transportation.
Sec. 11. Bureau of Air Transportation. The Civil Aeronautics Administration is hereby renamed Bureau of Air Transportation and shall continue to perform its functions relating to the promotion and development of policies, plans, programs and standards for the construction and maintenance of airports and their facilities including buildings and runways. The repair and maintenance of these facilities shall be the responsibility of the Bureau: Provided, however, That the construction of runways and the terminal buildings and related structures shall be done by the Ministry of Public Works or Ministry of Public Highways as the case may be, at the instance of the Bureau.
The Director of Air Transportation shall be an ex-officio member of the Civil Aeronautics Board.
Sec. 12. Bureau of Posts. The Bureau of Posts shall continue to be responsible for providing a safe, fast, reliable and efficient postal service in the country.
Sec. 13. Bureau of Telecommunications. The Bureau of Telecommunications shall continue to be responsible for providing telecommunications facilities, including telephone systems for government offices; providing communications services for purposes of augmenting limited or inadequate existing similar private communication services; extending communications in areas where no such services are available; and assisting the private sector engaged in telecommunications services by providing and maintaining backbone telecommunication networks.
Sec. 14. National Telecommunications Commission. The Board of Communications created under Article III, Chapter I, Part X of the Integrated Reorganization Plan, as amended, and the Telecommunications Control Bureau created under Article IX, Chapter I, Part X of the same Plan, as amended, are integrated into a single entity to be known as the National Telecommunications Commission and hereinafter referred to as the Commission.
Sec. 15. Functions of the Commission. The Commission shall exercise the following functions:
a. Issue Certificate of Public Convenience for the operation of communications utilities and services, radio communications systems, wire or wireless telephone or telegraph systems, radio and television broadcasting system and other similar public utilities;
b. Establish, prescribe and regulate areas of operation of particular operators of public service communications; and determine and prescribe charges or rates pertinent to the operation of such public utility facilities and services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies recognized by the Philippine Government as the proper arbiter of such charges or rates;
c. Grant permits for the use of radio frequencies for wireless telephone and telegraph systems and radio communication systems including amateur radio stations and radio and television broadcasting systems;
d. Sub-allocate series of frequencies of bands allocated by the International Telecommunications Union to the specific services;
e. Establish and prescribe rules, regulations, standards, specifications in all cases related to the issued Certificate of Public Convenience and administer and enforce the same;
f. Coordinate and cooperate with government agencies and other entities concerned with any aspect involving communications with a view to continuously improve the communications service in the country;
g. Promulgate such rules and regulations, as public safety and interest may require, to encourage a larger and more effective use of communications, radio and television broadcasting facilities, and to maintain effective competition among private entities in these activities whenever the Commission finds it reasonably feasible;
h. Supervise and inspect the operation of radio stations and telecommunications facilities;
i. Undertake the examination and licensing of radio operators;
j. Undertake, whenever necessary, the registration of radio transmitters and transceivers; and
k. Perform such other functions as may be prescribed by law.
Sec. 16. Organization of the Commission. The Commission shall be composed of a Commissioner and two Deputy Commissioners, preferably one of whom shall be a lawyer and another an economist. The Commissioner and Deputy Commissioners shall be of unquestioned integrity, proven competence, and recognized as experts in their fields, related, as much as possible, to communications.
The Commission shall determine its organization structure and personnel subject to the approval of the Ministry and other authorities concerned.
The Commission shall be under the supervision and control of the Ministry, except that with respect to its quasi-judicial functions, its decisions shall be appealable in the same manner as the decisions of the Board of Communications had been appealed.
The Commission may have regional offices in places and of such number as may be authorized under Article I, Chapter III, Part II of the Integrated Reorganization Plan, as amended.
Sec. 17. Telecommunication Stations Operated by the Armed Forces of the Philippines. Telecommunication stations owned and operated by the Armed Forces of the Philippines shall not be subject to the provisions of this Executive Order except that all such stations shall use frequencies as may be allowed/assigned by the Commission.
Sec. 18. International Treaties, Conventions and Agreements. International treaties, conventions and agreements on telecommunications to which the Philippine Government is a signatory shall form part of this Executive Order insofar as they are applicable to the Philippines.
C. OTHER PROVISIONS
Sec. 19. Abolished/Transferred Agencies.
a. The ministry proper of the Ministry of Public Works, Transportation and Communications composed of its services, divisions and units is abolished and its functions are correspondingly transferred to the appropriate services, divisions and units of the Ministry of Public Works and/or the Ministry of Transportation and Communications as may be necessary and appropriate.
b. The Bureau of Public Works is abolished and its functions are correspondingly transferred to the appropriate bureaus, divisions, units or regional offices of the Ministry of Public Works: Provided, That the functions of the Water Resources Division of the Bureau of Public Works pertaining to hydrologic surveys and data collections shall be absorbed by the National Water Resources Council.
c. The Bureau of Transportation created under Article VI, Chapter I, Part X of the Integrated Reorganization Plan, as amended but not implemented, is hereby abolished.
d. The Board of Communications and the Telecommunications Control Bureau are abolished and their functions are transferred to the National Telecommunications Commission.
e. The common technical staff of the Specialized Regulatory Boards created under Article III, Chapter I, Part X of the Integrated Reorganization Plan, as amended, is abolished and its functions are transferred as appropriate to the Board of Transportation and the National Telecommunications Commission.
The foregoing transfers of functions shall include applicable funds and appropriations, records, equipment, property, and such personnel as may be necessary.
Sec. 20. Attached Agencies.
(a) The following agencies are attached to the Ministry of Public Works: Communications and Electricity Development Authority, Philippine Ports Authority, Central Luzon-Cagayan Valley Authority, National Irrigation Administration, Metropolitan Waterworks and Sewerage System, Farm Systems Development Corporation, Local Water Utilities Administration, and Metropolitan Manila Flood Control and Drainage Council.
The National Water Resources Council and the Pasig River Development Council shall be under the administrative supervision of the Ministry.
(b) The following agencies are attached to the Ministry of Transportation and Communications: Philippine National Railways, Maritime Industry Authority, Philippine Aerospace Development Corporation, and Metro Manila Transit Corporation.
Sec. 21. The Minister of Public Works and the Minister of Transportation and Communications shall respectively assume as appropriate the positions of Chairman or member of all bodies and agencies previously occupied in an ex-officio capacity by the Minister of Public Works, Transportation and Communications.
In case of conflict, however, as to which Minister shall sit in any particular board or body, the same shall be decided by the President.
Sec. 22. The Minister of Public Works and the Minister of Transportation and Communications shall promulgate the necessary implementing details to carry out the organization of their respective Ministries which shall include the internal organization of units involved and the corresponding initial staffing patterns thereof, as well as such other transitory measures that need to be taken to assure the orderly implementation of this Executive Order, subject to the approval of the Ministry of the Budget in consultation, whenever necessary with the Presidential Commission on Reorganization.
Sec. 23. Repealing Clause. All laws, decrees, charters, executive orders, administrative orders, proclamations, rules and regulations or parts thereof that are in conflict with this Executive Order are hereby repealed or modified accordingly.
Sec. 24. Effectivity. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 23rd day of July, in the year of Our Lord, nineteen hundred and Seventy-Nine.
EXECUTIVE ORDER NO. 125 January 30, 1987
REORGANIZING THE MINISTRY OF TRANSPORTATION AND COMMUNICATIONS DEFINING ITS POWERS AND FUNCTIONS AND FOR OTHER PURPOSES.
RECALLING that the reorganization of the government is mandated expressly in Article II, Section 1 (a), and Article III of the Freedom Constitution;
HAVING IN MIND that pursuant to Executive Order No. 5 (1986), it is directed that necessary and proper changes in the organizational and functional structures of the government, its agencies and instrumentalities, be effected in order to promote efficiency and effectiveness in the delivery of public services;
CONSIDERING that viable and dependable transportation and communications networks are necessary tools for economic recovery;
CONSIDERING further that rapid technological advances in communication facilities require a distinct response to the peculiar problems of this field;
REALIZING that the growing complexity of the transportation sector has necessitated its division into various sub-sectors to facilitate the regulation and promotion of the sector as a whole; and
REALIZING further that the State needs to regulate these networks and promote their continuous upgrading in order to preserve their viability and enhance their dependability;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the sovereign will of the Filipino people and the Freedom Constitution, do hereby order:
Sec. 1. Title. This Executive Order shall otherwise be known as the Reorganization Act of the Ministry of Transportation and Communications.
Sec. 2. Reorganization. The Ministry of Transportation and Communications is hereby reorganized, structurally and functionally, in accordance with the provisions of this Executive Order.
Sec. 3. Declaration of Policy. The State is committed to the maintenance and expansion of viable, efficient and dependable transportation and communications systems as effective instruments for national recovery and economic progress. It shall not complete as a matter of policy with private enterprise and shall operate transportation and communications facilities only in those areas where private initiatives are inadequate or non-existent.
Sec. 4. Mandate. The Ministry shall be the primary policy, planning, programming, coordinating, implementing, regulating and administrative entity of the Executive Branch of the government in the promotion, development and regulation of dependable and coordinated networks of transportation and communication systems as well as in the fast, safe, efficient and reliable postal, transportation and communications services.
To accomplish such mandate, the Ministry shall have the following objectives:
(a) Promote the development of dependable and coordinated networks of transportation and communications systems;
(b) Guide government and private investment in the development of the country's intermodal transportation and communications systems in a most practical, expeditious, and orderly fashion for maximum safety, service, and cost effectiveness;
(c) Impose appropriate measures to that technical, economic and other conditions for the continuing economic viability of the transportation and communications entities are not jeopardized and do not encourage inefficiency and distortion of traffic patronage;
(d) Develop an integrated plan for a nationwide transmission system in accordance with national and international telecommunications service requirements including, among others, radio and television broadcast relaying, leased channel services and data transmission;
(e) Guide government and private investments in the establishment, operation and maintenance of an international switching system for incoming and outgoing telecommunications services;
(f) Encourage the development of a domestic telecommunications industry in coordination with the concerned entities particularly, the manufacture of communications/electronics equipment and components to complete and support, as much as possible, the expansion, development, operation and maintenance of the nationwide telecommunications network;
(g) Provide for a safe, reliable and efficient postal system for the country.
Sec. 5. Powers and Functions. To accomplish its mandate, the Ministry shall have the following powers and functions:
(a) Formulate and recommend national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation and communications systems at the national, regional and local levels;
(b) Establish and administer comprehensive and integrated programs for transportation and communications, and for this purpose, may call on any agency, corporation, or organization, whether public or private, whose development programs include transportation and communications as an integral part thereof, to participate and assist in the preparation and implementation of such programs;
(c) Assess, review and provide direction to transportation and communications research and development programs of the government in coordination with other institutions concerned;
(d) Administer all laws, rules and regulations in the field of transportation and communications;
(e) Coordinate with the Ministry of Public Works and Highways in the design, development, rehabilitation, improvement, construction, maintenance and repair of telecommunications, ports, airports and railways projects and facilities including navigational aids and implement its development works through competitive bidding, negotiated contracts of other methods as the President may authorize;
(f) Establish operate and maintain a nationwide postal system that shall include mail processing, delivery services, and money order services and promote the art of philately;
(g) Sub-allocate series of frequencies of bands allocated by the International Telecommunications Union to the specific services;
(h) Accredit foreign aircraft manufacturer and/or international organizations for aircraft certification in accordance with procedures and standards established by the Bureau of Air Transportation;
(i) Deputize the Philippine Airlines and/or the Airline Pilots Association of the Philippines for licensing of pilots in accordance with rules, procedures and standards established by the Bureau of Air Transportation;
(j) Perform such other powers and functions as may be prescribed by law.
Sec. 6. Authority and Responsibility. The authority and responsibility for the exercise of the mandate of the Ministry and for the discharge of its powers and functions shall be vested in the Minister of Transportation and Communications, hereinafter referred to as the Minister, who shall have supervision and control over the Ministry and shall be appointed by the President.
Sec. 7. Office of the Minister. The Office of the Minister shall consist of the Minister and his immediate staff.
Sec. 8. Deputy Ministers. The Minister shall be assisted by four (4) Deputy Ministers appointed by the President upon the recommendation of the Minister, one to be responsible for Attached Agencies and Corporations, one for Transportation, one for Communications and one for Ministry Regional Offices.
Sec. 9. Assistant Ministers. The Minister shall also be assisted by seven (7) Assistant Ministers appointed by the President upon the recommendation of the Minister, each of whom shall head each of the following:
(a) Administrative and Legal Service;
(b) Finance and Management Service;
(c) Planning and Research Service;
(d) Technical Service;
(e) Luzon Regional Offices;
(f) Visayas Regional Offices;
(g) Mindanao Regional Offices.
Sec. 10. Structural organization. The Ministry, side from the Minister Proper which is comprised of the Offices of the Minister, Deputy and Assistant Ministers, shall be composed of the Bureaus and Ministry Regional Offices.
There shall be four (4) Bureaus, namely: Bureau of Land Transportation, Bureau of Air Transportation, Bureau of Posts, and Bureau of Telecommunications.
The Office of the Minister shall have direct line supervision and control over the Bureaus and Ministry Regional Offices. The Ministry Proper shall be responsible for developing and implementing policies, plans, programs and projects for the Ministry.
The Bureaus shall be essentially staff in character.
Sec. 11. Ministry Regional Offices. The Ministry shall have two (2) Ministry Regional Offices in each of the administrative regions of the country: The Ministry Regional Office for Transportation and the Ministry Regional Office for Communications. The present Regional Offices of the Bureau of Air Transportation and Land Transportation Commission are hereby abolished and their functions are transferred to the respective Ministry Regional Offices for Transportation. A Ministry Regional Office for Transportation shall be headed by a Ministry Regional Director assisted by two (2) Assistant Ministry Regional Directors responsible for air and land affairs, respectively. The present Regional Offices of the Bureau of Posts and Bureau of Telecommunications are hereby abolished and their functions are transferred to respective Ministry Regional Office for Communications. A Ministry Regional Office for Communications shall be headed by a Ministry Regional Director assisted by two (2) Assistant Ministry Regional Directors for telecommunications and postal services, respectively. The abolition of the herein Regional Offices and the transfer of their functions shall be governed by the provisions of Section 19 (b) hereof.
The Ministry Regional Offices shall be under the direct supervision of the Deputy Minister for Regional Offices. The Ministry Regional Offices shall be essentially line in character and shall be responsible for the delivery of all front line Services of the Ministry.
For such purposes, a Ministry Regional Office shall have, within its administrative region, the following functions:
(a) Implement laws, and policies, plans, programs, projects, rules and regulations of the Ministry;
(b) Provide efficient, and effective service to the people;
(c) Coordinate with regional offices of other ministries, offices and agencies;
(d) Coordinate with local government units;
(e) Perform such other functions as may be provided by law.
Sec. 12. Bureau of Air Transportation. The Bureau of Air Transportation, as reorganized herein, shall have the functions of developing, formulating and recommending plans, policies, programs, projects, standards, specifications and guidelines related to air transportation including air space utilization, air traffic control and aeronautics communications and information services, aircraft and air navigational facilities, services, maintenance and operations. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for the inspection and registration of aircrafts;
(b) Establish and prescribe rules and regulations for the issuance of license to qualified airmen;
(c) Establish and prescribe rules and regulations for the enforcement of laws governing air transportation, including the penalties for violations thereof, and for the deputization of appropriate law enforcement agencies in pursuance thereof;
(d) Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air utility facilities and services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine Government as the proper arbiter of such charges or rates;
(e) Administer and operate the Civil Aeronautics Training Center;
(f) Perform such other functions as may be provided by law.
Sec. 13. Bureau of Land Transportation. The Bureau of Land Transportation is hereby created and shall have the functions of developing, formulating and recommending plans, programs, policies, standards, specifications and guidelines pertaining to land transportation. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for routes, zones and/or areas of operations of particular operators of public land services;
(b) Establish and prescribe rules and regulations for the issuance of certificates of public convenience for the operation of public and land transportation utilities and services such as motor vehicles, trimobiles, and railroad lines;
(c) Establish and prescribe rules and regulations for the inspection and registration of public and land transportation facilities such as motor vehicles, trimobiles and railroad lines:
(d) Establish and prescribe rules and regulations for the issuance of license to qualified motor vehicle drivers, trimobile drivers, motor vehicle conductors, train engineers and train conductors;
(e) Establish and prescribe the corresponding rules and regulations for the enforcement of laws governing land transportation, including the penalties for violation thereof, and for the deputization of appropriate law enforcement agencies in pursuance thereof;
(f) Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public and land utility facilities and services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine Government as the proper arbiter of such charges or rates;
(g) Establish and prescribe the rules, regulations, procedure and standards for the accreditation of driving schools;
(h) Perform such other functions as may be provided by law.
Sec. 14. Maritime Industry Authority. The Maritime Industry Authority is hereby retained and shall have the following functions:
(a) Develop and formulate, plans, policies, programs, projects, standards, specifications and guidelines geared toward the promotion and development of the maritime industry, the growth and effective regulation of shipping enterprises, and for the national security objectives of the country;
(b) Establish, prescribe and regulate routes, zones and/or areas of operation of particular operators of public water services;
(c) Issue Certificates of Public Convenience for the operation of domestic and overseas water carriers;
(d) Register vessels as well as issue certificates, licenses or documents necessary or incident thereto;
(e) Undertake the safety regulatory functions pertaining to vessel construction and operation including the determination of manning levels and issuance of certificates of competency to seamen;
(f) Enforce laws, prescribe and enforce rules and regulations, including penalties for violation thereof, governing water transportation and the Philippine Merchant Marine with the aid of other law enforcement agencies;
(g) Undertake the issuance of licenses to qualified seamen and harbor, bay and river pilots;
(h) Determine, fix and/or prescribed charges and/or rates pertinent to the operation of public water transport utilities, facilitate all services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine Government as the proper arbiter if such charges or rates;
(i) Accredit marine surveyors and maritime enterprises engaged in shipbuilding, shiprepair, shipbreaking, domestic and overseas shipping, ship management and agency;
(j) Supervise the Philippine Merchant Marine Academy as reorganized herein in accordance with its charter, the provisions hereof and applicable laws, rules and regulations under the chairmanship of the maritime administrator;
(k) Issue and register the continuous Discharge Book of Pilipino Seamen;
(l) Establish and prescribes rules and regulations, standards and procedures for the efficient and effective discharge of the above functions;
(m) Perform such other functions as may now or hereafter be provided by law.
Sec. 15. Bureau of Telecommunications. The Bureau of Telecommunications, as recognized herein, shall develop, formulate and recommend plans, policies, programs, standards, specifications and guidelines to provide telecommunications facilities, including telecommunications systems for purposes of augmenting limited or inadequate existing private telecommunications service; provide telecommunications services in areas where no such services are available; and assist the private sector engaged in telecommunication services. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for the operation and maintenance of such telecommunications facilities in areas not adequately served by the private sector in order to render such domestic and overseas services that are necessary or proper with due consideration for advances in technology;
(b) Administer and operate the Telecommunications Training Institute;
(c) Perform such other functions as may be provided by law.
Sec. 16. Bureau of Posts. The Bureau of Posts, presently existing, shall have the functions of developing, formulating and recommending plans, policies, programs, standards, specifications and guidelines to provide safe, fast, reliable and efficient postal service in the country. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for the enforcement of laws governing postal services, including the penalties for violation thereof and for the deputization of appropriate law enforcement agencies in pursuance thereof;
(b) Determine, fix, and/or prescribe charges and/or rates for postal services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies of associations recognized by the Philippine Government as the proper arbiter of such charges or rates;
(c) Establish and prescribe rules and regulations for the operation and maintenance of a nationwide postal system that shall include mail processing, delivery services and money order services, and the promotion of philately;
(d) Perform such other functions as may be provided by law.
Sec. 17. Abolition/Transfer/Consolidation.
(a) The Land Transportation Commission is hereby abolished and its staff functions are transferred to the Bureau of Land Transportation as provided in Section 13 herein and its line functions are transferred to the Ministry Regional Offices as provided in Section 11 herein. Such transfer of functions is subject to the provisions of Section 19 (b) hereof.
(b) PNL Leasing Inc. is hereby abolished and its functions are transferred to Philippine National Lines, Inc. subject to the provisions of Section 19 (b) hereof.
(c) The National Aero Manufacturing Inc. and the Philippine Aero Systems, Inc. are hereby abolished in accordance with the provisions of Section 19 (a) hereof.
(d) The Civil Aeronautics Board is hereby transferred from the Ministry as an attached agency in accordance with the provisions of Section 19 (a) hereof.
Sec. 18. Attached Agencies and Corporations.
(a) The following agencies and corporations are attached to the Ministry; the Philippine National Railways, the Maritime Industry Authority, the Philippine National Lines, Philippine Aerospace Development Corporation, the Metro Manila Transit Corporation, the Office of Transport Cooperatives, the Philippine Ports Authority, the Philippine Merchant Marine Academy, the Toll Regulatory Board, the Light Rail Transit Authority, the Transport Training Center, the Civil Aeronautics Board, the National Telecommunications Commissions and the Manila International Airport Authority.
(b) An Airport Security Center is hereby created within the Manila International Airport Authority, to plan, supervise, control, coordinate, integrate and direct intelligence and operational activities of all police and military units, security and safety service units, government monitoring and intelligence units and other security operating units employed by government entities and/or by private agencies in the Manila International Airport. The Center is under the direct supervision and control of the MIAA General Manager. Moreover, the Authority shall be authorized to organize a Manila International Airport Police Force with all the police powers necessary to implement the objectives of the Center.
The exercise of supervision and control by the Airport Security Center does not include the transfer of appropriation, equipment and personnel to the said Authority; PROVIDED, that the Airport Security Center may cause the development of equipment and personnel in such manner it deems necessary in the discharge of its functions.
Sec. 19. Transitory Provisions. In accomplishing the acts, of reorganization herein prescribed, the following transitory provisions shall be implied with, unless otherwise provided elsewhere in this Executive Order.
(a) The transfer of a government unit shall include the functions, appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, and liabilities, if any, of the transferred unit as well as the personnel thereof, as may be necessary, who shall, in a hold over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from government service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Those personnel of the transferred unit whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister or who are not reappointed shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of Section 20 hereof.
(b) The transfer of functions which results in the abolition of the government unit that has exercised them shall include the appropriations, funds, records, equipment, facilities, choses in action, rights, other assets and personnel as may be necessary to the proper discharge of the transferred functions. The abolished unit's remaining appropriations and funds, if any, shall revert to the General Fund and its remaining assets, if any, shall be allocated to such appropriate units as the Minister shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Its liabilities, if any, shall likewise be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Its personnel shall, in a hold-over capacity, continue to perform their duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Its personnel, whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who are not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same
Section 20.
(c) The transfer of functions which does not result in the abolition of the government unit that has exercised them shall include the appropriations, funds, records, equipment, facilities, choses in action, right, other assets and personnel as may be necessary to the proper discharge of the transferred functions. The liabilities, if any, that may have been incurred in connection with the discharge of the transferred functions, shall be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Such personnel shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Personnel, whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
(d) In case of the abolition of a government unit which does not result in the transfer of its functions to another unit, the appropriations and funds of the abolished unit shall revert to the General Fund, while the records, equipment, facilities, choses in action, rights, and other assets, thereof shall be allocated to such appropriate units as the Minister shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. The liabilities of the abolished unit shall be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations, while the personnel thereof, whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
(e) In case of merger or consolidation of government units, the new or surviving unit shall exercise the functions (subject to the reorganization herein prescribed and the laws, rules and regulations pertinent to the exercise of such functions) and shall acquire the appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, liabilities if any, and personnel, as may be necessary, of (1) the units that compose the merger unit or (2) the absorbed unit, as the case may be. Such personnel shall, in a hold over capacity, continue to perform their respective duties responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Any such personnel, whose positions is not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who is not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
(f) In case of termination of a function which does not result in the abolition of the government unit which has performed such function, the appropriations and funds intended to finance the discharge of such function shall revert to the General Fund, while the records, equipment, facilities, choses in action, rights and other assets used in connection with the discharge of such function shall be allocated to the appropriate units as the Minister shall determine or shall otherwise be disposed in accordance with the Governing Auditing Code and other pertinent laws, rules and regulations. The liabilities, if any, that may have been incurred in connection with the discharge of such functions shall likewise be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. The personnel who have performed such function, whose position are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
Sec. 20. New Structure and Pattern. Upon approval of this Executive Order, the officers (the term "officer" as used in this Executive Order is intended to be within the meaning of the term "official as used in the Freedom Constitution) and employees of the Ministry shall, in a hold over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from government service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution.
The new position structure and staffing pattern of the Ministry shall be approved and prescribed by the Minister, for the Ministry, within one hundred twenty (120) days from the approval of this Executive Order and the authorized positions created thereunder shall be filled with regular appointments by him or by the President as the case may be. Those incumbents whose positions are not included therein or who are not reappointed shall be deemed separated from the service. Those separated from the service shall receive the retirement benefits to which they may be entitled under existing laws, rules and regulations. Otherwise, they shall be paid the equivalent of one month basic salary for every year of service, or the equivalent nearest fraction thereof favorable to them on the basis of the highest salary received, but in no case shall such payment exceed the equivalent of 12 months salary.
No court or administrative body shall issue any writ or preliminary injunction or restraining order to enjoin the separation/replacement of any officer or employee effected under this Executive Order.
Sec. 21. Prohibition Against Changes. No change in the reorganization herein prescribed shall be valid except upon prior approval of the President for the purposes of promoting efficiency and effectiveness in the delivery of public services.
Sec. 22. Implementing Authority of Minister. The Minister shall issue such orders, rules, regulations and other issuances as may be necessary to ensure the effective implementation of the provisions of this Executive Order.
Sec. 23. Notice or Consent Requirements. If any reorganizational change herein authorized is of such substance or materiality as to prejudice third persons with rights recognized by law or conduct such that notice to or consent of creditors is required to be made or obtained pursuant to any agreement entered into with any of such creditors, such notice or consent requirement shall be complied with prior to the implementation of such reorganizational change.
Sec. 24. Funding. Funds needed to carry out the provisions of this Executive order shall be taken from funds available in the Ministry.
Sec. 25. Change of Nomenclature. In the event of the adoption of a new Constitution which provides for a presidential form of government, the Ministry shall be called Department of Transportation and Communications and the titles of Minister, Deputy Minister, and Assistant Minister shall be changed to Secretary, Undersecretary and Assistant Secretary, respectively.
Sec. 26. Separability. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying other portions or provisions hereof, as long as such remaining portions or provisions can still subsist and be given effect in their entirety.
Sec. 27. Repealing Clause. Presidential Decree No. 890 and Letters of Instruction Nos. 263 and 371 are hereby repealed. All laws, ordinances, rules, regulations, other issuances or parts thereof, which are inconsistent with this Executive Order, are hereby repealed or modified accordingly.
Sec. 28. Effectivity. This Executive Order shall take effect immediately upon its approval.
APPROVED in the City of Manila, Philippines, this 30th day of January, in the year of Our Lord, nineteen hundred and eighty-seven.
RECALLING that the reorganization of the government is mandated expressly in Article II, Section 1 (a), and Article III of the Freedom Constitution;
HAVING IN MIND that pursuant to Executive Order No. 5 (1986), it is directed that necessary and proper changes in the organizational and functional structures of the government, its agencies and instrumentalities, be effected in order to promote efficiency and effectiveness in the delivery of public services;
CONSIDERING that viable and dependable transportation and communications networks are necessary tools for economic recovery;
CONSIDERING further that rapid technological advances in communication facilities require a distinct response to the peculiar problems of this field;
REALIZING that the growing complexity of the transportation sector has necessitated its division into various sub-sectors to facilitate the regulation and promotion of the sector as a whole; and
REALIZING further that the State needs to regulate these networks and promote their continuous upgrading in order to preserve their viability and enhance their dependability;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the sovereign will of the Filipino people and the Freedom Constitution, do hereby order:
Sec. 1. Title. This Executive Order shall otherwise be known as the Reorganization Act of the Ministry of Transportation and Communications.
Sec. 2. Reorganization. The Ministry of Transportation and Communications is hereby reorganized, structurally and functionally, in accordance with the provisions of this Executive Order.
Sec. 3. Declaration of Policy. The State is committed to the maintenance and expansion of viable, efficient and dependable transportation and communications systems as effective instruments for national recovery and economic progress. It shall not complete as a matter of policy with private enterprise and shall operate transportation and communications facilities only in those areas where private initiatives are inadequate or non-existent.
Sec. 4. Mandate. The Ministry shall be the primary policy, planning, programming, coordinating, implementing, regulating and administrative entity of the Executive Branch of the government in the promotion, development and regulation of dependable and coordinated networks of transportation and communication systems as well as in the fast, safe, efficient and reliable postal, transportation and communications services.
To accomplish such mandate, the Ministry shall have the following objectives:
(a) Promote the development of dependable and coordinated networks of transportation and communications systems;
(b) Guide government and private investment in the development of the country's intermodal transportation and communications systems in a most practical, expeditious, and orderly fashion for maximum safety, service, and cost effectiveness;
(c) Impose appropriate measures to that technical, economic and other conditions for the continuing economic viability of the transportation and communications entities are not jeopardized and do not encourage inefficiency and distortion of traffic patronage;
(d) Develop an integrated plan for a nationwide transmission system in accordance with national and international telecommunications service requirements including, among others, radio and television broadcast relaying, leased channel services and data transmission;
(e) Guide government and private investments in the establishment, operation and maintenance of an international switching system for incoming and outgoing telecommunications services;
(f) Encourage the development of a domestic telecommunications industry in coordination with the concerned entities particularly, the manufacture of communications/electronics equipment and components to complete and support, as much as possible, the expansion, development, operation and maintenance of the nationwide telecommunications network;
(g) Provide for a safe, reliable and efficient postal system for the country.
Sec. 5. Powers and Functions. To accomplish its mandate, the Ministry shall have the following powers and functions:
(a) Formulate and recommend national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation and communications systems at the national, regional and local levels;
(b) Establish and administer comprehensive and integrated programs for transportation and communications, and for this purpose, may call on any agency, corporation, or organization, whether public or private, whose development programs include transportation and communications as an integral part thereof, to participate and assist in the preparation and implementation of such programs;
(c) Assess, review and provide direction to transportation and communications research and development programs of the government in coordination with other institutions concerned;
(d) Administer all laws, rules and regulations in the field of transportation and communications;
(e) Coordinate with the Ministry of Public Works and Highways in the design, development, rehabilitation, improvement, construction, maintenance and repair of telecommunications, ports, airports and railways projects and facilities including navigational aids and implement its development works through competitive bidding, negotiated contracts of other methods as the President may authorize;
(f) Establish operate and maintain a nationwide postal system that shall include mail processing, delivery services, and money order services and promote the art of philately;
(g) Sub-allocate series of frequencies of bands allocated by the International Telecommunications Union to the specific services;
(h) Accredit foreign aircraft manufacturer and/or international organizations for aircraft certification in accordance with procedures and standards established by the Bureau of Air Transportation;
(i) Deputize the Philippine Airlines and/or the Airline Pilots Association of the Philippines for licensing of pilots in accordance with rules, procedures and standards established by the Bureau of Air Transportation;
(j) Perform such other powers and functions as may be prescribed by law.
Sec. 6. Authority and Responsibility. The authority and responsibility for the exercise of the mandate of the Ministry and for the discharge of its powers and functions shall be vested in the Minister of Transportation and Communications, hereinafter referred to as the Minister, who shall have supervision and control over the Ministry and shall be appointed by the President.
Sec. 7. Office of the Minister. The Office of the Minister shall consist of the Minister and his immediate staff.
Sec. 8. Deputy Ministers. The Minister shall be assisted by four (4) Deputy Ministers appointed by the President upon the recommendation of the Minister, one to be responsible for Attached Agencies and Corporations, one for Transportation, one for Communications and one for Ministry Regional Offices.
Sec. 9. Assistant Ministers. The Minister shall also be assisted by seven (7) Assistant Ministers appointed by the President upon the recommendation of the Minister, each of whom shall head each of the following:
(a) Administrative and Legal Service;
(b) Finance and Management Service;
(c) Planning and Research Service;
(d) Technical Service;
(e) Luzon Regional Offices;
(f) Visayas Regional Offices;
(g) Mindanao Regional Offices.
Sec. 10. Structural organization. The Ministry, side from the Minister Proper which is comprised of the Offices of the Minister, Deputy and Assistant Ministers, shall be composed of the Bureaus and Ministry Regional Offices.
There shall be four (4) Bureaus, namely: Bureau of Land Transportation, Bureau of Air Transportation, Bureau of Posts, and Bureau of Telecommunications.
The Office of the Minister shall have direct line supervision and control over the Bureaus and Ministry Regional Offices. The Ministry Proper shall be responsible for developing and implementing policies, plans, programs and projects for the Ministry.
The Bureaus shall be essentially staff in character.
Sec. 11. Ministry Regional Offices. The Ministry shall have two (2) Ministry Regional Offices in each of the administrative regions of the country: The Ministry Regional Office for Transportation and the Ministry Regional Office for Communications. The present Regional Offices of the Bureau of Air Transportation and Land Transportation Commission are hereby abolished and their functions are transferred to the respective Ministry Regional Offices for Transportation. A Ministry Regional Office for Transportation shall be headed by a Ministry Regional Director assisted by two (2) Assistant Ministry Regional Directors responsible for air and land affairs, respectively. The present Regional Offices of the Bureau of Posts and Bureau of Telecommunications are hereby abolished and their functions are transferred to respective Ministry Regional Office for Communications. A Ministry Regional Office for Communications shall be headed by a Ministry Regional Director assisted by two (2) Assistant Ministry Regional Directors for telecommunications and postal services, respectively. The abolition of the herein Regional Offices and the transfer of their functions shall be governed by the provisions of Section 19 (b) hereof.
The Ministry Regional Offices shall be under the direct supervision of the Deputy Minister for Regional Offices. The Ministry Regional Offices shall be essentially line in character and shall be responsible for the delivery of all front line Services of the Ministry.
For such purposes, a Ministry Regional Office shall have, within its administrative region, the following functions:
(a) Implement laws, and policies, plans, programs, projects, rules and regulations of the Ministry;
(b) Provide efficient, and effective service to the people;
(c) Coordinate with regional offices of other ministries, offices and agencies;
(d) Coordinate with local government units;
(e) Perform such other functions as may be provided by law.
Sec. 12. Bureau of Air Transportation. The Bureau of Air Transportation, as reorganized herein, shall have the functions of developing, formulating and recommending plans, policies, programs, projects, standards, specifications and guidelines related to air transportation including air space utilization, air traffic control and aeronautics communications and information services, aircraft and air navigational facilities, services, maintenance and operations. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for the inspection and registration of aircrafts;
(b) Establish and prescribe rules and regulations for the issuance of license to qualified airmen;
(c) Establish and prescribe rules and regulations for the enforcement of laws governing air transportation, including the penalties for violations thereof, and for the deputization of appropriate law enforcement agencies in pursuance thereof;
(d) Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air utility facilities and services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine Government as the proper arbiter of such charges or rates;
(e) Administer and operate the Civil Aeronautics Training Center;
(f) Perform such other functions as may be provided by law.
Sec. 13. Bureau of Land Transportation. The Bureau of Land Transportation is hereby created and shall have the functions of developing, formulating and recommending plans, programs, policies, standards, specifications and guidelines pertaining to land transportation. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for routes, zones and/or areas of operations of particular operators of public land services;
(b) Establish and prescribe rules and regulations for the issuance of certificates of public convenience for the operation of public and land transportation utilities and services such as motor vehicles, trimobiles, and railroad lines;
(c) Establish and prescribe rules and regulations for the inspection and registration of public and land transportation facilities such as motor vehicles, trimobiles and railroad lines:
(d) Establish and prescribe rules and regulations for the issuance of license to qualified motor vehicle drivers, trimobile drivers, motor vehicle conductors, train engineers and train conductors;
(e) Establish and prescribe the corresponding rules and regulations for the enforcement of laws governing land transportation, including the penalties for violation thereof, and for the deputization of appropriate law enforcement agencies in pursuance thereof;
(f) Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public and land utility facilities and services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine Government as the proper arbiter of such charges or rates;
(g) Establish and prescribe the rules, regulations, procedure and standards for the accreditation of driving schools;
(h) Perform such other functions as may be provided by law.
Sec. 14. Maritime Industry Authority. The Maritime Industry Authority is hereby retained and shall have the following functions:
(a) Develop and formulate, plans, policies, programs, projects, standards, specifications and guidelines geared toward the promotion and development of the maritime industry, the growth and effective regulation of shipping enterprises, and for the national security objectives of the country;
(b) Establish, prescribe and regulate routes, zones and/or areas of operation of particular operators of public water services;
(c) Issue Certificates of Public Convenience for the operation of domestic and overseas water carriers;
(d) Register vessels as well as issue certificates, licenses or documents necessary or incident thereto;
(e) Undertake the safety regulatory functions pertaining to vessel construction and operation including the determination of manning levels and issuance of certificates of competency to seamen;
(f) Enforce laws, prescribe and enforce rules and regulations, including penalties for violation thereof, governing water transportation and the Philippine Merchant Marine with the aid of other law enforcement agencies;
(g) Undertake the issuance of licenses to qualified seamen and harbor, bay and river pilots;
(h) Determine, fix and/or prescribed charges and/or rates pertinent to the operation of public water transport utilities, facilitate all services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine Government as the proper arbiter if such charges or rates;
(i) Accredit marine surveyors and maritime enterprises engaged in shipbuilding, shiprepair, shipbreaking, domestic and overseas shipping, ship management and agency;
(j) Supervise the Philippine Merchant Marine Academy as reorganized herein in accordance with its charter, the provisions hereof and applicable laws, rules and regulations under the chairmanship of the maritime administrator;
(k) Issue and register the continuous Discharge Book of Pilipino Seamen;
(l) Establish and prescribes rules and regulations, standards and procedures for the efficient and effective discharge of the above functions;
(m) Perform such other functions as may now or hereafter be provided by law.
Sec. 15. Bureau of Telecommunications. The Bureau of Telecommunications, as recognized herein, shall develop, formulate and recommend plans, policies, programs, standards, specifications and guidelines to provide telecommunications facilities, including telecommunications systems for purposes of augmenting limited or inadequate existing private telecommunications service; provide telecommunications services in areas where no such services are available; and assist the private sector engaged in telecommunication services. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for the operation and maintenance of such telecommunications facilities in areas not adequately served by the private sector in order to render such domestic and overseas services that are necessary or proper with due consideration for advances in technology;
(b) Administer and operate the Telecommunications Training Institute;
(c) Perform such other functions as may be provided by law.
Sec. 16. Bureau of Posts. The Bureau of Posts, presently existing, shall have the functions of developing, formulating and recommending plans, policies, programs, standards, specifications and guidelines to provide safe, fast, reliable and efficient postal service in the country. For such purposes, it shall, with the approval of the Minister:
(a) Establish and prescribe rules and regulations for the enforcement of laws governing postal services, including the penalties for violation thereof and for the deputization of appropriate law enforcement agencies in pursuance thereof;
(b) Determine, fix, and/or prescribe charges and/or rates for postal services except in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies of associations recognized by the Philippine Government as the proper arbiter of such charges or rates;
(c) Establish and prescribe rules and regulations for the operation and maintenance of a nationwide postal system that shall include mail processing, delivery services and money order services, and the promotion of philately;
(d) Perform such other functions as may be provided by law.
Sec. 17. Abolition/Transfer/Consolidation.
(a) The Land Transportation Commission is hereby abolished and its staff functions are transferred to the Bureau of Land Transportation as provided in Section 13 herein and its line functions are transferred to the Ministry Regional Offices as provided in Section 11 herein. Such transfer of functions is subject to the provisions of Section 19 (b) hereof.
(b) PNL Leasing Inc. is hereby abolished and its functions are transferred to Philippine National Lines, Inc. subject to the provisions of Section 19 (b) hereof.
(c) The National Aero Manufacturing Inc. and the Philippine Aero Systems, Inc. are hereby abolished in accordance with the provisions of Section 19 (a) hereof.
(d) The Civil Aeronautics Board is hereby transferred from the Ministry as an attached agency in accordance with the provisions of Section 19 (a) hereof.
Sec. 18. Attached Agencies and Corporations.
(a) The following agencies and corporations are attached to the Ministry; the Philippine National Railways, the Maritime Industry Authority, the Philippine National Lines, Philippine Aerospace Development Corporation, the Metro Manila Transit Corporation, the Office of Transport Cooperatives, the Philippine Ports Authority, the Philippine Merchant Marine Academy, the Toll Regulatory Board, the Light Rail Transit Authority, the Transport Training Center, the Civil Aeronautics Board, the National Telecommunications Commissions and the Manila International Airport Authority.
(b) An Airport Security Center is hereby created within the Manila International Airport Authority, to plan, supervise, control, coordinate, integrate and direct intelligence and operational activities of all police and military units, security and safety service units, government monitoring and intelligence units and other security operating units employed by government entities and/or by private agencies in the Manila International Airport. The Center is under the direct supervision and control of the MIAA General Manager. Moreover, the Authority shall be authorized to organize a Manila International Airport Police Force with all the police powers necessary to implement the objectives of the Center.
The exercise of supervision and control by the Airport Security Center does not include the transfer of appropriation, equipment and personnel to the said Authority; PROVIDED, that the Airport Security Center may cause the development of equipment and personnel in such manner it deems necessary in the discharge of its functions.
Sec. 19. Transitory Provisions. In accomplishing the acts, of reorganization herein prescribed, the following transitory provisions shall be implied with, unless otherwise provided elsewhere in this Executive Order.
(a) The transfer of a government unit shall include the functions, appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, and liabilities, if any, of the transferred unit as well as the personnel thereof, as may be necessary, who shall, in a hold over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from government service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Those personnel of the transferred unit whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister or who are not reappointed shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of Section 20 hereof.
(b) The transfer of functions which results in the abolition of the government unit that has exercised them shall include the appropriations, funds, records, equipment, facilities, choses in action, rights, other assets and personnel as may be necessary to the proper discharge of the transferred functions. The abolished unit's remaining appropriations and funds, if any, shall revert to the General Fund and its remaining assets, if any, shall be allocated to such appropriate units as the Minister shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Its liabilities, if any, shall likewise be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Its personnel shall, in a hold-over capacity, continue to perform their duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Its personnel, whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who are not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same
Section 20.
(c) The transfer of functions which does not result in the abolition of the government unit that has exercised them shall include the appropriations, funds, records, equipment, facilities, choses in action, right, other assets and personnel as may be necessary to the proper discharge of the transferred functions. The liabilities, if any, that may have been incurred in connection with the discharge of the transferred functions, shall be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. Such personnel shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Personnel, whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
(d) In case of the abolition of a government unit which does not result in the transfer of its functions to another unit, the appropriations and funds of the abolished unit shall revert to the General Fund, while the records, equipment, facilities, choses in action, rights, and other assets, thereof shall be allocated to such appropriate units as the Minister shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. The liabilities of the abolished unit shall be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations, while the personnel thereof, whose positions are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
(e) In case of merger or consolidation of government units, the new or surviving unit shall exercise the functions (subject to the reorganization herein prescribed and the laws, rules and regulations pertinent to the exercise of such functions) and shall acquire the appropriations, funds, records, equipment, facilities, choses in action, rights, other assets, liabilities if any, and personnel, as may be necessary, of (1) the units that compose the merger unit or (2) the absorbed unit, as the case may be. Such personnel shall, in a hold over capacity, continue to perform their respective duties responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from the service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Any such personnel, whose positions is not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who is not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
(f) In case of termination of a function which does not result in the abolition of the government unit which has performed such function, the appropriations and funds intended to finance the discharge of such function shall revert to the General Fund, while the records, equipment, facilities, choses in action, rights and other assets used in connection with the discharge of such function shall be allocated to the appropriate units as the Minister shall determine or shall otherwise be disposed in accordance with the Governing Auditing Code and other pertinent laws, rules and regulations. The liabilities, if any, that may have been incurred in connection with the discharge of such functions shall likewise be treated in accordance with the Government Auditing Code and other pertinent laws, rules and regulations. The personnel who have performed such function, whose position are not included in the Ministry's new position structure and staffing pattern approved and prescribed by the Minister under Section 20 hereof or who have not been reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 20.
Sec. 20. New Structure and Pattern. Upon approval of this Executive Order, the officers (the term "officer" as used in this Executive Order is intended to be within the meaning of the term "official as used in the Freedom Constitution) and employees of the Ministry shall, in a hold over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and benefits unless in the meantime they are separated from government service pursuant to Executive Order No. 17 (1986) or Article III of the Freedom Constitution.
The new position structure and staffing pattern of the Ministry shall be approved and prescribed by the Minister, for the Ministry, within one hundred twenty (120) days from the approval of this Executive Order and the authorized positions created thereunder shall be filled with regular appointments by him or by the President as the case may be. Those incumbents whose positions are not included therein or who are not reappointed shall be deemed separated from the service. Those separated from the service shall receive the retirement benefits to which they may be entitled under existing laws, rules and regulations. Otherwise, they shall be paid the equivalent of one month basic salary for every year of service, or the equivalent nearest fraction thereof favorable to them on the basis of the highest salary received, but in no case shall such payment exceed the equivalent of 12 months salary.
No court or administrative body shall issue any writ or preliminary injunction or restraining order to enjoin the separation/replacement of any officer or employee effected under this Executive Order.
Sec. 21. Prohibition Against Changes. No change in the reorganization herein prescribed shall be valid except upon prior approval of the President for the purposes of promoting efficiency and effectiveness in the delivery of public services.
Sec. 22. Implementing Authority of Minister. The Minister shall issue such orders, rules, regulations and other issuances as may be necessary to ensure the effective implementation of the provisions of this Executive Order.
Sec. 23. Notice or Consent Requirements. If any reorganizational change herein authorized is of such substance or materiality as to prejudice third persons with rights recognized by law or conduct such that notice to or consent of creditors is required to be made or obtained pursuant to any agreement entered into with any of such creditors, such notice or consent requirement shall be complied with prior to the implementation of such reorganizational change.
Sec. 24. Funding. Funds needed to carry out the provisions of this Executive order shall be taken from funds available in the Ministry.
Sec. 25. Change of Nomenclature. In the event of the adoption of a new Constitution which provides for a presidential form of government, the Ministry shall be called Department of Transportation and Communications and the titles of Minister, Deputy Minister, and Assistant Minister shall be changed to Secretary, Undersecretary and Assistant Secretary, respectively.
Sec. 26. Separability. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying other portions or provisions hereof, as long as such remaining portions or provisions can still subsist and be given effect in their entirety.
Sec. 27. Repealing Clause. Presidential Decree No. 890 and Letters of Instruction Nos. 263 and 371 are hereby repealed. All laws, ordinances, rules, regulations, other issuances or parts thereof, which are inconsistent with this Executive Order, are hereby repealed or modified accordingly.
Sec. 28. Effectivity. This Executive Order shall take effect immediately upon its approval.
APPROVED in the City of Manila, Philippines, this 30th day of January, in the year of Our Lord, nineteen hundred and eighty-seven.
Friday, August 10, 2007
Google Earth Philippine Railroad Triangle Collection
Caloocan Railroad Triangle, Metro Manila
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Mamatid Railroad Triangle, Cabuyao, Laguna
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Luta Railroad Triangle, Malvar, Batangas
Mamatid Railroad Triangle, Cabuyao, Laguna
San Fernando Railroad Triangle, San Fernando, La Union
Rosario Railroad Triangle, Rosario, La Union
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The Manila Railway Company
Far Eastern Review, September, 1906
pp. 120 – 124
The Manila Railway Company, operating the only steam railway in the Philippines, between Manila and Dagupan, was organized in London in 1888. The concession for this road was secured from the Spanish Government for a term of 99 years dating from April, 1887, and during that period the Government guaranteed the interest, payable from the Philippine Treasury, of 8 per cent, on a capital of $4,964,000, which was subsequently increased to $5,373,700 from the extra cost of works authorized by the Government. The working expenses for the purpose of calculating the guarantee, was based on 50 per cent of the gross earnings. At the expiration of this concession the road was to revert to the State without compensation, and there was no option for the purchase by the Government at any time during the life of the franchise.
The Spanish Government regularly paid the guarantee, every three months up to 1897, but, on the change of sovereignty, the payments were stopped. The company, acting under the best legal advice, took the natural stand that, under international law, the United States assumed the obligations of Spain on the transfer of authority, while the American officials have contested the point.
This is in addition to the claims of the Company for damages to their lines through insurrection, and for revenues while under control of the military amounting to $1,500,000 gold, has been a matter of diplomatic negotiation ever since, and was only settled on the signing of the recent contract for the new lines.
In 1903, the Company secured concessions from the Philippine Commission for the construction of three extensions to the main line aggregating 87 miles, one to Camp Stotsenburg, one to Cabanatuan and the other to Antipolo. The Company as formerly organized had and authorized capital of $1,000,000 gold ordinary and $1,500,000 preference shares, with borrowing powers of $7,575,000. The headquarters are at 43 New Broad St., London, with the following Board of Directors:
C.J. C. Scott, (Chairman), A. von Andre, Admiral Sir C. A. G. Bridge, R. H. Bensen, R. Fleming and J. G. Le Marchant, Secretary, J. Mackenzie.
Two years ago, a controlling interest in the company was secured by Messrs. Speyers and Co., the well-known bankers of New York and London, and through this firm the negotiations with the government were carried out for the construction of the new roads.
The Hon. Cameron Forbes, in an article on the Railroads of the Islands, recently published in the anniversary number of the Daily Bulletin, has the following to say about the negotiations leading up to the new concessions:-
On June 20, 1905, Secretary Taft advertised proposals in Washington asking for bids for the construction of railways, and they were similarly advertised in Manila. The terms, which had been very carefully drawn under good advice, called for very good construction, early completion, and, in general, would have provided the Islands with an admirable system at an early date. There were eleven routes advertised, amounting in all to an aggregate of about 1,200 miles. The probable cost of construction of this number of miles was the extreme limit upon which the Government was authorized to guarantee bonds, as the bill provided that the amount of interest guaranteed could not exceed $1,200,000 a year. At the time these proposals were issued the Government had reason to believe that there would be at least three bids for the whole system.
On December 20, 1905, the bids were opened in Washington in the presence of the Secretary of War and Governor-General Wright. They were three in number, one for the whole island of Luzon, one for three of the Visayan islands, Panay, Negros, and Cebu, and one from a Seattle syndicate for the lines in southern Luzon in the provinces of Albay and Ambos Camarines.
These bids were none of them in accordance with the terms of the proposals, differing in the following respects:
The Speyer syndicate did not ask for a guaranty but made many requests for privileges which were of such a nature that the Government could not possibly be justified in acceding to them as they would have laid it open to the charge of having given away the rights of the people. These included permanent low taxation, permanent high rates without right to regulate, and permanent immunity from competition.
The Seattle syndicate did not deposit any check as guaranty, complying otherwise in every respect with the terms of the proposal.
The second call for bids was issued, to be opened on January 20, 1906. In the second call the following changes were made:
In the first place in regard to bids upon which guaranty was asked the amount of contractor's profit was increased as requested by the Visayan syndicate and the period of time during which surveys and construction could be made lengthened. Other changes of a minor nature were also made.
In regard to unguaranteed lines propositions were requested, no restrictions being placed except that they must comply with the terms of the law.
The Speyers this time offered two propositions, one of them for unguaranteed lines almost entirely as before, but eliminating some of the more objectionable features of their original proposition, and bidding in addition on a guaranteed line from Dagupan to Laoag, making in all some 400 miles of unguaranteed line, much of it short branches from the existing lines, and 160 miles of guaranteed line. Although modified so as to comply with the terms of the law yet the proposition of the Speyers still contained so may features that seemed objectionable that the award was withheld and negotiations entered into with them in the effort to have them so modify their demands as to make a proposition which the Government could be entirely justified in accepting.
After many months of negotiation this has at last been accomplished, Messrs. Speyers & Co. having reached an agreement with the Secretary of War, of the progress of which the Commission were kept cognizant and of which they entirely approve. In the course of these negotiations the plan to construct a guaranteed line from Dagupan to Laoag was abandoned and the result is that all the lines in Luzon are upon one plan, namely, that of unguaranteed construction. On May 25, 1906, the following resolution was passed, formally awarding the concession to the Speyer syndicate and agreeing to pass an Act the terms of which has been agreed upon, word by word, by the parties interested, namely, The Philippine Government, the War Department, and the bankers:
“WHEREAS, the Secretary of War and Vice-Governor Smith have reached an agreement with Messrs Speyer and Company upon the terms of a concession for the construction of 428 miles, more or less, of railroad in the Island of Luzon, the construction and equipment of which they will agree to undertake; and
“WHEREAS, said agreement contained also a provision by which all the railroad lines of the Manila Railway Company, Limited, whether built under the old Spanish grant or under concessions of the Philippine Commission will be transferred to a new company organized under the laws of one of the States of the United States and will be merged with the new system; and
“WHEREAS, said agreement further provides that all claims of the existing railroad against the Insular, provincial, or municipal government of the Philippine Islands and the United States Government will be waived, and the original Spanish grant and concessions by the Philippine Commission for existing railroads will be terminated and merged in the new concession; and
“WHEREAS, it appears to the Commission that it is in the public interest that railroads be constructed in Luzon at the earliest possible date, and that the lines bid for are, on the whole, satisfactory and the terms proposed are such that the public interest will be properly protected if the same be accepted and approved;
“NOW, THEREFORE, BE IT RESOLVED, That the Commission hereby agrees to award to Messrs. Speyer and Company, of New York, a concession, the terms of which are to be the terms contained in the draft of the proposed Act copy of which is hereto attached, which provides for the construction and equipment of 428 miles, more or less, of railway in the Island of Luzon along the routes indicated in the attached draft and upon the terms therein set forth; and
“BE IT RESOLVED FURTHER, That in order that no time may be lost by the said company in making their arrangements to begin their surveys and other plans for early construction the Secretary of War is hereby authorized to give formal notice of such agreement to award; and
“BE IT RESOLVED FURTHER, That the Secretary of War be notified that, upon receipt of the name of the proposed railway company for which the concession is requested, the Commission will pas an Act in accordance with the terms of the accompanying draft, copy of which he now has in Washington.”
The salient points in the Speyer's concession are as follows:
1.They agree to build 428 miles, more or less of railroad throughout the Island of Luzon, including roughly 100 miles in Albay and Ambos Camarines, the line from Manila to Batangas and Lucena with branches, and several branches from the existing line of the Manila and Dagupan Railway, branching to the east and to the west, but principally to the east and including a line from Dagupan to San Fernando de la Union and a branch to the foot of the mountains within a few miles to Baguio.
2.No guaranty is asked on any of this construction.
3.While the rates are to be based on those now enjoyed by the Manila and Dagupan Railway the Government has the power to regulate them at any time.
4.The existing Manila and Dagupan Railway and all its branches give up their franchises, withdraw any claims which they may have against the municipal, provincial, or insular governments or the Government of the United States, and come in under the new charter on exactly the same basis at which the new lines go in.
5.The concession is a perpetual one.
6.There is nothing said in regard to competing lines, the Government being free to grant franchises for such lines at any time.
7.Taxation is one-half of one per cent of the gross earnings for thirty years; 1 ½ per cent for the ensuing fifty years, and thereafter to be fixed by the Government.
8.The company is give twelve months to complete its surveys and thereafter two years in which to complete the first 150 miles and agree to complete 75 miles each year thereafter. This does not compel particularly rapid action.
9.Right of entry of the material for the construction free of duty.
10.Privileges of using right of way 100 feet wide of the public domain, excepting always such part as is laid aside for public uses like parks, streets, etc., and such improved lands as the so-called Friars' Lands, etc., for which payment must be made.
11.Gauge to be three fee six inches and the quality of construction material to be up to first-rate modern standards with due regard to local conditions.
It will be seen that the public are to be amply protected by the above concession. Although the concession is a perpetual one the power of the Government to regulate rates and to grant franchises for competing lines assures the people of the Philippine Islands that industry cannot be choked either by exorbitant rates or by one railroad occupying the fields and preventing any others from coming in. Others can be built whenever it seems advisable to so arrange.
In this enterprise the syndicate has a great advantage in the experience gained by the officers now in in charge of the Manila Railway Company, Limited. Mr. Higgins is manager of this company and deserves a great deal of credit for the condition to which he has brought the property. In spite of light rails, the inexperience of native labor in railroad matters, the recent destruction during the insurrection, and the resultant depression in industrial conditions throughout the Islands he has succeeded in bringing his road-bed up to a very creditable condition and so maintains it. While the railroad is run on what seems to those used to American methods as a slow and cautious plan yet it is to be said to his credit that using wholly native engineers and conductors collissions are almost unknown, and the railroad is run as a profitable enterprise, continually building itself up which is the best criterion of good management. Mr. Higgins' wide experience, thorough training, and known ability are such as to be a guaranty that the work of construction about to be begun will be well and economically done.
pp. 120 – 124
The Manila Railway Company, operating the only steam railway in the Philippines, between Manila and Dagupan, was organized in London in 1888. The concession for this road was secured from the Spanish Government for a term of 99 years dating from April, 1887, and during that period the Government guaranteed the interest, payable from the Philippine Treasury, of 8 per cent, on a capital of $4,964,000, which was subsequently increased to $5,373,700 from the extra cost of works authorized by the Government. The working expenses for the purpose of calculating the guarantee, was based on 50 per cent of the gross earnings. At the expiration of this concession the road was to revert to the State without compensation, and there was no option for the purchase by the Government at any time during the life of the franchise.
The Spanish Government regularly paid the guarantee, every three months up to 1897, but, on the change of sovereignty, the payments were stopped. The company, acting under the best legal advice, took the natural stand that, under international law, the United States assumed the obligations of Spain on the transfer of authority, while the American officials have contested the point.
This is in addition to the claims of the Company for damages to their lines through insurrection, and for revenues while under control of the military amounting to $1,500,000 gold, has been a matter of diplomatic negotiation ever since, and was only settled on the signing of the recent contract for the new lines.
In 1903, the Company secured concessions from the Philippine Commission for the construction of three extensions to the main line aggregating 87 miles, one to Camp Stotsenburg, one to Cabanatuan and the other to Antipolo. The Company as formerly organized had and authorized capital of $1,000,000 gold ordinary and $1,500,000 preference shares, with borrowing powers of $7,575,000. The headquarters are at 43 New Broad St., London, with the following Board of Directors:
C.J. C. Scott, (Chairman), A. von Andre, Admiral Sir C. A. G. Bridge, R. H. Bensen, R. Fleming and J. G. Le Marchant, Secretary, J. Mackenzie.
Two years ago, a controlling interest in the company was secured by Messrs. Speyers and Co., the well-known bankers of New York and London, and through this firm the negotiations with the government were carried out for the construction of the new roads.
The Hon. Cameron Forbes, in an article on the Railroads of the Islands, recently published in the anniversary number of the Daily Bulletin, has the following to say about the negotiations leading up to the new concessions:-
On June 20, 1905, Secretary Taft advertised proposals in Washington asking for bids for the construction of railways, and they were similarly advertised in Manila. The terms, which had been very carefully drawn under good advice, called for very good construction, early completion, and, in general, would have provided the Islands with an admirable system at an early date. There were eleven routes advertised, amounting in all to an aggregate of about 1,200 miles. The probable cost of construction of this number of miles was the extreme limit upon which the Government was authorized to guarantee bonds, as the bill provided that the amount of interest guaranteed could not exceed $1,200,000 a year. At the time these proposals were issued the Government had reason to believe that there would be at least three bids for the whole system.
On December 20, 1905, the bids were opened in Washington in the presence of the Secretary of War and Governor-General Wright. They were three in number, one for the whole island of Luzon, one for three of the Visayan islands, Panay, Negros, and Cebu, and one from a Seattle syndicate for the lines in southern Luzon in the provinces of Albay and Ambos Camarines.
These bids were none of them in accordance with the terms of the proposals, differing in the following respects:
The Speyer syndicate did not ask for a guaranty but made many requests for privileges which were of such a nature that the Government could not possibly be justified in acceding to them as they would have laid it open to the charge of having given away the rights of the people. These included permanent low taxation, permanent high rates without right to regulate, and permanent immunity from competition.
The Seattle syndicate did not deposit any check as guaranty, complying otherwise in every respect with the terms of the proposal.
The second call for bids was issued, to be opened on January 20, 1906. In the second call the following changes were made:
In the first place in regard to bids upon which guaranty was asked the amount of contractor's profit was increased as requested by the Visayan syndicate and the period of time during which surveys and construction could be made lengthened. Other changes of a minor nature were also made.
In regard to unguaranteed lines propositions were requested, no restrictions being placed except that they must comply with the terms of the law.
The Speyers this time offered two propositions, one of them for unguaranteed lines almost entirely as before, but eliminating some of the more objectionable features of their original proposition, and bidding in addition on a guaranteed line from Dagupan to Laoag, making in all some 400 miles of unguaranteed line, much of it short branches from the existing lines, and 160 miles of guaranteed line. Although modified so as to comply with the terms of the law yet the proposition of the Speyers still contained so may features that seemed objectionable that the award was withheld and negotiations entered into with them in the effort to have them so modify their demands as to make a proposition which the Government could be entirely justified in accepting.
After many months of negotiation this has at last been accomplished, Messrs. Speyers & Co. having reached an agreement with the Secretary of War, of the progress of which the Commission were kept cognizant and of which they entirely approve. In the course of these negotiations the plan to construct a guaranteed line from Dagupan to Laoag was abandoned and the result is that all the lines in Luzon are upon one plan, namely, that of unguaranteed construction. On May 25, 1906, the following resolution was passed, formally awarding the concession to the Speyer syndicate and agreeing to pass an Act the terms of which has been agreed upon, word by word, by the parties interested, namely, The Philippine Government, the War Department, and the bankers:
“WHEREAS, the Secretary of War and Vice-Governor Smith have reached an agreement with Messrs Speyer and Company upon the terms of a concession for the construction of 428 miles, more or less, of railroad in the Island of Luzon, the construction and equipment of which they will agree to undertake; and
“WHEREAS, said agreement contained also a provision by which all the railroad lines of the Manila Railway Company, Limited, whether built under the old Spanish grant or under concessions of the Philippine Commission will be transferred to a new company organized under the laws of one of the States of the United States and will be merged with the new system; and
“WHEREAS, said agreement further provides that all claims of the existing railroad against the Insular, provincial, or municipal government of the Philippine Islands and the United States Government will be waived, and the original Spanish grant and concessions by the Philippine Commission for existing railroads will be terminated and merged in the new concession; and
“WHEREAS, it appears to the Commission that it is in the public interest that railroads be constructed in Luzon at the earliest possible date, and that the lines bid for are, on the whole, satisfactory and the terms proposed are such that the public interest will be properly protected if the same be accepted and approved;
“NOW, THEREFORE, BE IT RESOLVED, That the Commission hereby agrees to award to Messrs. Speyer and Company, of New York, a concession, the terms of which are to be the terms contained in the draft of the proposed Act copy of which is hereto attached, which provides for the construction and equipment of 428 miles, more or less, of railway in the Island of Luzon along the routes indicated in the attached draft and upon the terms therein set forth; and
“BE IT RESOLVED FURTHER, That in order that no time may be lost by the said company in making their arrangements to begin their surveys and other plans for early construction the Secretary of War is hereby authorized to give formal notice of such agreement to award; and
“BE IT RESOLVED FURTHER, That the Secretary of War be notified that, upon receipt of the name of the proposed railway company for which the concession is requested, the Commission will pas an Act in accordance with the terms of the accompanying draft, copy of which he now has in Washington.”
The salient points in the Speyer's concession are as follows:
1.They agree to build 428 miles, more or less of railroad throughout the Island of Luzon, including roughly 100 miles in Albay and Ambos Camarines, the line from Manila to Batangas and Lucena with branches, and several branches from the existing line of the Manila and Dagupan Railway, branching to the east and to the west, but principally to the east and including a line from Dagupan to San Fernando de la Union and a branch to the foot of the mountains within a few miles to Baguio.
2.No guaranty is asked on any of this construction.
3.While the rates are to be based on those now enjoyed by the Manila and Dagupan Railway the Government has the power to regulate them at any time.
4.The existing Manila and Dagupan Railway and all its branches give up their franchises, withdraw any claims which they may have against the municipal, provincial, or insular governments or the Government of the United States, and come in under the new charter on exactly the same basis at which the new lines go in.
5.The concession is a perpetual one.
6.There is nothing said in regard to competing lines, the Government being free to grant franchises for such lines at any time.
7.Taxation is one-half of one per cent of the gross earnings for thirty years; 1 ½ per cent for the ensuing fifty years, and thereafter to be fixed by the Government.
8.The company is give twelve months to complete its surveys and thereafter two years in which to complete the first 150 miles and agree to complete 75 miles each year thereafter. This does not compel particularly rapid action.
9.Right of entry of the material for the construction free of duty.
10.Privileges of using right of way 100 feet wide of the public domain, excepting always such part as is laid aside for public uses like parks, streets, etc., and such improved lands as the so-called Friars' Lands, etc., for which payment must be made.
11.Gauge to be three fee six inches and the quality of construction material to be up to first-rate modern standards with due regard to local conditions.
It will be seen that the public are to be amply protected by the above concession. Although the concession is a perpetual one the power of the Government to regulate rates and to grant franchises for competing lines assures the people of the Philippine Islands that industry cannot be choked either by exorbitant rates or by one railroad occupying the fields and preventing any others from coming in. Others can be built whenever it seems advisable to so arrange.
In this enterprise the syndicate has a great advantage in the experience gained by the officers now in in charge of the Manila Railway Company, Limited. Mr. Higgins is manager of this company and deserves a great deal of credit for the condition to which he has brought the property. In spite of light rails, the inexperience of native labor in railroad matters, the recent destruction during the insurrection, and the resultant depression in industrial conditions throughout the Islands he has succeeded in bringing his road-bed up to a very creditable condition and so maintains it. While the railroad is run on what seems to those used to American methods as a slow and cautious plan yet it is to be said to his credit that using wholly native engineers and conductors collissions are almost unknown, and the railroad is run as a profitable enterprise, continually building itself up which is the best criterion of good management. Mr. Higgins' wide experience, thorough training, and known ability are such as to be a guaranty that the work of construction about to be begun will be well and economically done.
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