Question & AnswerQ&A (EXECUTIVE ORDER NO. 603)
The primary purpose is to create the Light Rail Transit Authority responsible for the construction, operation, and maintenance of the Light Rail Transit (LRT) system in the Philippines, particularly in Metropolitan Manila, to provide an efficient, safe, and dependable transportation system.
The policy is to promote, encourage, and protect the mutual intermodal and intramodal cooperation of common carrier services to ensure maximum safety, utility, service, and cost-effectiveness for the public and investors.
The Authority has powers including continuous succession, prescribing bylaws, suing and being sued, contracting obligations, borrowing funds, acquiring and disposing properties, exercising eminent domain, setting fares, and generally exercising all powers under the Corporation Law consistent with this Order.
The Board is composed of the Minister of Human Settlements as Chairman; Minister of Transportation and Communications as Vice Chairman; Ministers of Finance, Economic Planning, Public Highways, the Budget; the Chairman of the Board of Transportation; the Administrator of the Authority; and one private sector representative appointed by the President.
The Authority may incur indebtedness or issue bonds with the President's approval (on the Minister of Finance's recommendation), and such bonds are tax-exempt. A sinking fund must be established to redeem bonds at maturity, guaranteed by the Republic of the Philippines.
The Authority can contract foreign loans, credits, or indebtedness not exceeding $300 million or its equivalent in other currencies, with terms it deems appropriate to fulfill its purposes.
The importation of equipment, machinery, spare parts, accessories, materials, supplies, and services used directly in LRT operations are exempt from all direct and indirect taxes, customs duties, fees, import restrictions, and other charges.
The Administrator is appointed by the President, must be a Filipino citizen, at least 35 years old, of good moral character or recognized executive ability and competence, with training in transport-related aspects.
Any person who willfully or maliciously gives false or misleading information or conceals/falsifies material facts in investigations or proceedings by the Authority shall be dealt with under existing penal laws.
The Authority has an authorized capital of 500 million pesos, fully subscribed by the Republic of the Philippines and other government entities, with at least 200 million pesos taken from the National Treasury and the remaining 300 million from appropriations or subscriptions with the President's approval.