Creation of the Light Rail Transit Authority

Establishes the LRT Authority as a corporate body responsible for constructing, operating, maintaining, and leasing Light Rail Transit systems in the Philippines.
Principal office located in Metropolitan Manila with authority to establish branches nationwide.
Attached to the Ministry of Transportation and Communication.
Operates under prudent commercial principles ensuring revenues cover expenditures.

Composed of key ministers (Human Settlements, Transportation and Communications, Finance, Economic Planning, Public Highways, Budget), the Chairman of the Board of Transportation, the Authority Administrator (ex officio), and one private sector representative appointed by the President.
The private sector representative serves a two-year term.
Alternates from the respective offices may attend meetings in the absence of regular members.
Board members receive monthly allowances and per diems capped at specified amounts.

Continuous corporate succession and use of corporate name and seal.
Authority to sue and be sued, contract obligations, borrow funds, issue bonds guaranteed by the government.
Acquire and dispose of assets, improve or develop property.
Engage in business alone or in partnership.
Employ agents or contractors.
Exercise eminent domain as necessary.
Prescribe rules, fix fares in consultation with the Board of Transportation.
Establish branches, determine organizational structure, and exercise all lawful corporate powers consistent with this Order.

Domestic Loans: Board may incur obligations through loans or bonds, subject to Presidential and Finance Minister approval.
Bonds are tax-exempt; a sinking fund administered by the Central Bank is established for redemption.
The Republic guarantees payment, with refunding obligations for the Authority.
Foreign Loans: Authority may contract foreign loans up to $300 million or equivalent.
President authorized to negotiate and contract foreign loans and provide government guarantees.
Loans and payments, including importation of materials, are exempt from taxes and import restrictions.

Importation of equipment, machinery, spare parts, accessories, supplies, and services directly used in LRT operations are exempt from all taxes, duties, fees, and restrictions.

Management headed by an Administrator assisted by two Deputy Administrators.
Appointees must be Filipino citizens aged 35 or older with recognized competence in relevant fields.
Administrator implements Board policies, manages Authority affairs, conducts studies, inspects LRT operations, maintains information systems, and may delegate duties.

Supplies and services except personal services procured through competitive bidding.
Exceptions for emergencies with financial limits and certification required.
Evaluation considers cost, quality, bidder’s capability, delivery schedule, and compliance with specifications.

Authority to establish necessary departments for efficient operations.
Separate Office of Chief Legal Counsel advises and represents the Authority independently from the Government Corporate Counsel.

Auditor appointed by the Commission on Audit Chairman.
Salaries fixed by Commission Chair subject to Board approval, paid by the Authority.
Auditor and staff removal only by Commission Chair.

Chairman, Administrator, Deputies, and Chief Legal Counsel empowered to administer oaths regarding official business.

Authorized capital of P500 million fully subscribed by the government and its agencies.
Initial P200 million from National Treasury general fund; remaining P300 million from appropriations or subscriptions with Presidential approval.

Authority indebted to the government equivalent to expenditures related to investigation, planning, or construction of LRT.
Minister of Finance to verify accuracy and reasonableness of advances.

Willful or malicious submission of false or misleading information or concealment of material facts in Authority proceedings punishable under existing penal laws.