PLACING THE PHILIPPINE NATIONAL RAILWAYS (PNR), LIGHT RAIL TRANSIT AUTHORITY (LRTA) AND ALL OTHER RAILWAY AND MASS TRANSIT PROJECTS UNDER THE OVERALL SUPERVISION OF THE DEPARTME…

WHEREAS, the Government recognizes the importance of modern and
efficient rail systems for providing fast and reliable means of urban
and long distance transportation;

WHEREAS, there is a need to improve the financial viability and
demonstrate efficient performance in the areas of railway systems
management, operations, maintenance, upgrading and expansion of
services;

WHEREAS, various studies have advocated the need for institutional
and organizational restructuring of the rail sector and the
consolidation of rail regulatory authority under a defined structure;

WHEREAS, pursuant to Executive Order No. 125 dated 30 January 1987
(Reorganizing the Ministry of Transportation and Communications) the
Department of Transportation and Communications (DOTC) shall be the
primary policy, planning, programming, coordinating, implementing,
regulating and administrative entity of the government in the promotion,
development and regulation of dependable and coordinated networks of
transportation and communications systems;

WHEREAS, under Section 77 of the General Provisions of Republic Act
No. 8745 or FY 1999 General Appropriations Act, the President may direct
changes in the organization and key positions in any department, bureau
or agency;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic
of the Philippines, by virtue of the powers vested in me by law, do
hereby order the following:

SECTION 1. Policy on Rail Sector Modernization and Development
. — It shall be the policy of the government to pursue an accelerated
program for the upgrading, modernization and development of rail
transportation services to provide a convenient, efficient and
affordable means of mass transport for both urban as well as long
distance passenger and freight applications.

Such a program shall be undertaken with maximum private sector
participation and public-private partnership schemes, and should seek to
achieve the integration of heavy rail systems with the existing and
planned light rail systems. The rail systems should connect to other
transport systems at intermodal stations, as well as seaports and
airports.

SECTION 2. Role of DOTC . — The DOTC, as the
main transport planning and regulatory agency of the government, shall
take primary responsibility to prepare plans, secure legislation and
implement measures to carry out the restructuring of the rail sector and
to encourage and maximize private sector initiatives and participation.

In support of this role, the DOTC shall have overall supervision over
PNR, LRTA and the planning, coordination, and implementation of all
rail-based transportation systems, programs and projects.

The DOTC shall report to the President any development which could
hamper the government’s program for the upgrading, modernization and
development of rail transportation services.

Since it is essential to railway development to clear rail
rights-of-way of obstructions and encroachments, the DOTC is also given
authority and overall supervision over the relocation of informal
dwellers by PNR and LRTA from their rail rights-of-way, in close
coordination with the Presidential Commission on Mass Housing and local
government units.

All activities towards these ends shall be under the responsibility
and supervision of the Secretary of DOTC through the Undersecretary for
Railways. For this purpose, the Undersecretary for Railways shall be
provided with the necessary administrative and technical support.

SECTION 3. Technical Support and Coordinating Mechanism.
— All government departments, agencies, GOCCs and local government
units which are involved in rail-related projects are directed to
coordinate their rail-related activities with the DOTC and to provide
all the support and cooperation which it might require in the
performance of its responsibilities.

SECTION 4. Repealing Clause . — All
issuances, orders, rules and regulations or parts thereof which are
inconsistent with the provisions of this Executive Order are hereby
repealed or modified accordingly.

SECTION 5.  Effectivity . — This Executive Order takes effect immediately.

Adopted: 11 Nov. 1999

By the President:

(SGD.) RONALDO B. ZAMORA
           Executive Secretary