Question & AnswerQ&A (EXECUTIVE ORDER NO. 603)
The LRTA is primarily responsible for the construction, operation, maintenance, and/or lease of light rail transit systems in the Philippines to provide an efficient mass transportation system, especially in Metropolitan Manila.
The Light Rail Transit Authority is attached to the Ministry of Transportation and Communications.
The Board of Directors is 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; the Administrator of the Authority as ex-officio members; and one representative from the private sector appointed by the President.
The Authority may have continuous corporate succession, prescribe by-laws, use a seal, sue and be sued, enter into contracts, borrow funds, acquire and dispose property, carry on business, employ agents, exercise eminent domain, fix fares, determine organizational structure and personnel, issue rules and regulations, and perform other necessary powers not inconsistent with this Order.
The Board provides policy guidance, formulates plans for LRT development, raises funds, issues bonds, cooperates with government agencies, manages personnel, recommends LRT systems in other areas, reports to the President annually, and performs acts necessary to carry out the Authority's purpose.
The Authority may incur domestic loans or issue bonds subject to Board resolution and, in case of bonds, with the President's approval. Bonds are tax-exempt and backed by a sinking fund under the Central Bank, with the Republic of the Philippines guaranteeing payment in case of default by the Authority.
The Authority may contract foreign loans or issue bonds up to a maximum outstanding amount of $300 million or equivalent, with the President authorized to negotiate and guarantee these loans on behalf of the Republic of the Philippines.
Importation of equipment, machinery, spare parts, accessories, materials, supplies, and services directly used in LRT operations, including those funded by foreign loans, are exempt from all direct and indirect taxes, customs duties, fees, imposts, and other charges.
The Authority is managed by an Administrator assisted by two Deputy Administrators. They must be natural-born Filipinos, at least 35 years old, of good moral character or recognized competence with adequate training in relevant fields. They are appointed by the President.
Any person who wilfully or maliciously provides false or misleading data, or conceals or falsifies material facts in proceedings before the Board or Authority, shall be liable under existing penal laws.