Law Summary

Introduction

Presidential Decree No. 860, issued on December 25, 1975, amends Presidential Decree No. 492, which originally created the Manila Transit Corporation. This amendment aims to facilitate the rationalization and integration of public transportation services in Metro Manila.

Title Amendment

• Legal Provision: The title of Presidential Decree No. 492 is amended to "Creating the Metro Manila Transit Corporation, Appropriating Funds Therefor and for Other Purposes."
• Key Changes:
  • All references to the "Manila Transit Corporation" in the decree are changed to "Metro Manila Transit Corporation."

Creation and Purpose

• Legal Principle: Establishment of the Metro Manila Transit Corporation (MMTC).
• Key Definitions:
  • Body Corporate: MMTC is recognized as a corporate entity with its principal place of business in Metropolitan Manila.
• Objectives:
  • To implement state policy for the rationalization and integration of public transport services.

Management and Operations

• Legal Principle: Management structure of MMTC.
• Key Changes:
  • Board of Directors Composition: Consists of six ex-officio members, including:
    • General Manager of the Metropolitan Manila Commission (Chairman)
    • Secretary of Public Works, Transportation and Communications (Vice-Chairman)
    • Other secretaries (Defense, Industry, Finance, Public Highways)
    • One presidential appointee serving a two-year term.
• Requirements:
  • Ex-officio members can designate alternates who have the same benefits as the principal members.

Public Transport Management

• Legal Principle: Authority to manage public transport systems.
• Key Changes:
  • MMTC may operate beyond Metropolitan Manila with presidential authorization.
  • Exemptions from taxes for loans and imports related to its operations.

Procurement Procedures

• Legal Principle: Competitive public bidding for supplies and services.
• Key Requirements:
  • All purchases, except personal services, must undergo competitive bidding.
  • Emergency purchases, not exceeding PHP 10,000, can bypass bidding; total emergency purchases in a month cannot exceed PHP 50,000.
• Considerations for Bidding:
  • Factors include cost, quality, bidder’s experience, delivery time, and compliance with specifications.

Exemption from Regulatory Oversight

• Legal Principle: Regulatory independence.
• Key Provision:
  • MMTC is exempt from the authority of the Board of Transportation or similar regulatory bodies.

Repealing Clause

• Legal Provision: Conflicting laws or regulations.
• Details:
  • Any existing laws, decrees, or regulations conflicting with this decree are repealed or modified.

Effectivity

• Legal Principle: Immediate implementation.
• Details:
  • The Decree is effective immediately upon its issuance.

Key Takeaways

• The Metro Manila Transit Corporation is established to improve public transportation in Metro Manila, with significant management and operational changes.
• The decree emphasizes tax exemptions for the corporation and provides a streamlined procurement process.
• MMTC operates independently of existing regulatory bodies, enhancing its ability to manage public transport efficiently.
• Immediate effectivity ensures prompt implementation of the decree’s provisions.