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WHEREAS, the Government recognizes the importance of modern and efficient rail systems for providing fast and reliable means of urban and long distance transportation;

WHEREAS, there is a need to improve the financial viability and demonstrate efficient performance in the areas of railway systems management, operations, maintenance, upgrading and expansion of services;

WHEREAS, various studies have advocated the need for institutional and organizational restructuring of the rail sector and the consolidation of rail regulatory authority under a defined structure;

WHEREAS, pursuant to Executive Order No. 125 dated 30 January 1987 (Reorganizing the Ministry of Transportation and Communications) the Department of Transportation and Communications (DOTC) shall be the primary policy, planning, programming, coordinating, implementing, regulating and administrative entity of the government in the promotion, development and regulation of dependable and coordinated networks of transportation and communications systems;

WHEREAS, under Section 77 of the General Provisions of Republic Act No. 8745 or FY 1999 General Appropriations Act, the President may direct changes in the organization and key positions in any department, bureau or agency;

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order the following:

SECTION 1. Policy on Rail Sector Modernization and Development . — It shall be the policy of the government to pursue an accelerated program for the upgrading, modernization and development of rail transportation services to provide a convenient, efficient and affordable means of mass transport for both urban as well as long distance passenger and freight applications.

Such a program shall be undertaken with maximum private sector participation and public-private partnership schemes, and should seek to achieve the integration of heavy rail systems with the existing and planned light rail systems. The rail systems should connect to other transport systems at intermodal stations, as well as seaports and airports.

SECTION 2. Role of DOTC . — The DOTC, as the main transport planning and regulatory agency of the government, shall take primary responsibility to prepare plans, secure legislation and implement measures to carry out the restructuring of the rail sector and to encourage and maximize private sector initiatives and participation.

In support of this role, the DOTC shall have overall supervision over PNR, LRTA and the planning, coordination, and implementation of all rail-based transportation systems, programs and projects.

The DOTC shall report to the President any development which could hamper the government's program for the upgrading, modernization and development of rail transportation services.

Since it is essential to railway development to clear rail rights-of-way of obstructions and encroachments, the DOTC is also given authority and overall supervision over the relocation of informal dwellers by PNR and LRTA from their rail rights-of-way, in close coordination with the Presidential Commission on Mass Housing and local government units.

All activities towards these ends shall be under the responsibility and supervision of the Secretary of DOTC through the Undersecretary for Railways. For this purpose, the Undersecretary for Railways shall be provided with the necessary administrative and technical support.

SECTION 3. Technical Support and Coordinating Mechanism. — All government departments, agencies, GOCCs and local government units which are involved in rail-related projects are directed to coordinate their rail-related activities with the DOTC and to provide all the support and cooperation which it might require in the performance of its responsibilities.

SECTION 4. Repealing Clause . — All issuances, orders, rules and regulations or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 5.  Effectivity . — This Executive Order takes effect immediately.

Adopted: 11 Nov. 1999

By the President:

(SGD.) RONALDO B. ZAMORA
           Executive Secretary