Title
Creation of Rail Project Offices in DOTC
Law
Executive Order No. 536
Decision Date
May 25, 2006
Executive Order No. 536 establishes the Cebu Railway Project Office and the Mindanao Railway Project Office, tasked with developing plans, securing funding, and implementing railway projects in Cebu and Mindanao, respectively, under the Department of Transportation and Communications in the Philippines.

Policy and intended transport development

  • The Executive Order directs vigorous development of the Cebu Light Rail Transport System to address Cebu’s traffic situation.
  • The Executive Order directs vigorous development of the Mindanao Railway System to boost agri-business in Mindanao and provide faster, cheaper, reliable, and convenient mass transportation.
  • The Executive Order ties its rail initiatives to the administration’s broader agenda to develop transport infrastructure and create jobs through infrastructure and investments.

Scope: offices, areas, and railway projects

  • The CRPO and the MRPO are created as DOTC units that pursue the development and implementation of railway projects.
  • The CRPO covers Cebu City and Metro Cebu.
  • The MRPO covers Mindanao.
  • The offices pursue railway projects including planning, engineering studies, procurement, implementation, and public consultation.

Core functions for Cebu and Mindanao

  • The CRPO and the MRPO must review and consolidate plans relating to their respective railway systems.
  • The offices must develop a master plan for their respective railways in coordination with other concerned agencies.
  • Each office must formulate or cause the formulation of engineering studies as part of master planning.
  • Each office must undertake implementation of plans and programs and, for that purpose, enter into contracts for procurement, construction, and installation subject to existing laws and regulations.
  • Each office must arrange for funding from any source—private or government, foreign or domestic—including Official Development Assistance from bilateral and multilateral agencies, subject to applicable laws and regulations.
  • Each office must coordinate with local and foreign consultants to avail of expertise in railway operation.
  • Each office must conduct consultation meetings and public hearings with stakeholders, including members of the local community, industry, local government units, non-governmental organizations, and peopleas, organizations.
  • Each office must explore best funding schemes for its railway project, including Build-Operate-Transfer, Build-Own-Operate, Counter-Trade, and other similar arrangements, aiming for the best budgetary cost on the part of the government.
  • Each office must perform other necessary activities that help push for immediate implementation of the respective projects.

Project Directors: appointment and authority

  • For each office, a Project Director must be appointed by the President to carry out day-to-day operations of the CRPO and the MRPO.
  • The Project Director must submit to the DOTC Secretary the policies and measures necessary to carry out the Executive Order’s purposes.
  • The Project Director must prepare the office’s budget for approval by the DOTC Secretary.
  • The Project Director must execute and administer plans, policies, and measures approved by the DOTC Secretary.
  • The Project Director must direct or supervise operations and internal administration, including delegating powers and duties to other officers, subject to rules and regulations approved by the DOTC.
  • Subject to DOTC Secretary guidelines and policies, the Project Director must appoint employees of the office and dismiss or discipline for cause in accordance with standard guidelines for personnel, subject to the Civil Service Law.
  • The Project Director must represent the Project Office in dealings with other government offices and agencies and with all persons and entities, public or private.
  • The Project Director must prepare an annual report of the Project Office activities on or before the end of the first quarter after the fiscal year completed, and submit a copy to the DOTC Secretary, with copies furnished to the President of the Philippines and the Congress of the Philippines.
  • The Project Director must exercise other powers and duties proper or necessary to carry out the Executive Order’s purposes as vested by the DOTC.

Funding and accounting requirements

  • Funds needed to finance CRPO and MRPO activities for the initial year must be provided from DOTC funds, subject to the usual accounting and auditing rules and regulations.
  • Funding requirements for the CRPO and MRPO operations for ensuing years must be included in the succeeding General Appropriations Act.

Effectivity, separability, and repeal

  • Any portion of Executive Order No. 536 declared unconstitutional must not nullify other portions or provisions if the remaining parts can still subsist and be given effect (Separability Clause).
  • All executive orders, rules, regulations, other issuances, or parts thereof that are inconsistent with the Executive Order are revoked, repealed, and/or modified accordingly (Repealing Clause).
  • Executive Order No. 536 takes effect fifteen (15) days after its publication in at least one (1) national paper of general circulation (Effectivity).

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