Creation and Attachment of the Light Rail Transit Authority (LRTA)
- LRTA created as a corporate body responsible for construction, operation, maintenance, or lease of light rail transit systems.
- Principal office in Metropolitan Manila; may have branches elsewhere.
- Attached to Ministry of Transportation and Communication.
- Operates on prudent commercial principles, aiming to cover expenditures and reinvest surpluses.
Board of Directors
- Composed of various government ministers, the LRTA Administrator, a presidential appointee from the private sector, and alternates.
- Powers and functions vested in the Board.
- Members receive monthly allowances and per diems for meetings.
General Corporate Powers of the Authority
- Has perpetual succession.
- May amend by-laws and use a corporate seal.
- May sue and be sued.
- May contract obligations, borrow funds (with government guarantee), acquire and dispose of assets.
- May improve properties and engage in business partnerships.
- May employ agents or contractors.
- Can exercise eminent domain for objectives.
- Prescribes rules and fixes fares in consultation with the Board of Transportation.
- Determines organizational structure, staffing, and compensation.
- Exercises powers consistent with corporation law and government policies.
Specific Powers of the Board
- Provide policy guidance and formulation of plans for LRT development.
- Employ consultancy and organize Project Management Office.
- Borrow funds and create securities.
- Invest funds.
- Coordinate with government agencies and GOCs.
- Provide training and managerial services.
- Issue orders, appoint, discipline, and remove personnel.
- Recommend expansion of LRT systems around the country.
- Submit annual reports to the President.
Borrowing Authority - Domestic Indebtedness
- Board can authorize loans with domestic institutions and issue bonds.
- Bonds are tax-exempt and guaranteed by the government.
- Sinking fund maintained with Central Bank for bond redemption.
- Government pays principal/interest if Authority defaults but Authority must refund.
Borrowing Authority - Foreign Loans
- Authorized to contract loans or issue bonds up to $300 million equivalent.
- President authorized to negotiate and guarantee these loans.
- Proceeds and importations under these loans are exempt from taxes, duties, restrictions.
Tax and Duty Exemptions
- Importation of equipment, machinery, spare parts, accessories, materials, supplies, and services for LRT operations, not locally obtainable, exempt from all taxes and duties.
Organization and Management
- Managed by Administrator assisted by two Deputies, all must be Filipino citizens, qualified and appointed by the President.
- Administrator powers include enforcement of Board policies, operational studies, personnel administration, facility inspection, coordination for information systems, and delegation of duties.
- Purchases and contracts (except personal services) by public bidding with emergency exceptions.
- Authority maintains necessary departments; Chief Legal Counsel advises on legal matters.
- Auditor appointed by Commission on Audit represents and audits the Authority.
- Certain officials empowered to administer oaths.
Capitalization and Financing
- Authorized capital of ₱500 million subscribed by government and agencies.
- Initial payment of ₱200 million from National Treasury; balance by appropriations or subscriptions with Presidential approval.
- Authority indebted to government for expenditures in LRT planning and construction, with finance ministry overseeing accuracy.
Penalties
- Willful provision of false or misleading information or concealment in Authority investigations or proceedings subject to penal laws.
Repealing, Separability, and Effectivity
- Conflicting laws or parts repealed, amended, or modified.
- Invalidity of any provision does not affect others.
- Order takes effect immediately upon signing.