AMENDING THE TITLE AND CERTAIN SECTIONS OF PRESIDENTIAL DECREE NUMBERED FOUR HUNDRED NINETY TWO, ENTITLED "CREATING THE MANILA TRANSIT CORPORATION, APPROPRIATING THE FUNDS THEREFOR AND FOR OTHER PURPOSES."

• Number: Presidential Decree No. 860
• Sections: 10

Preamble

WHEREAS, under Presidential Decree Numbered Four Hundred

Ninety Two dated June 27, 1974, it has been declared to be the policy of

the State to rationalize and integrate public transportation services;

and

WHEREAS, with the integration of the four (4) cities and

thirteen (13) municipalities of Metro Manila, it becomes necessary to

amend certain section of Presidential Decree Numbered Four Hundred

Ninety Two in order to expedite the rationalization and integration of

public transportation services in Metropolitan Manila;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of

the Philippines, by virtue of the powers vested in me by the

Constitution, do hereby decree and order:

Section 1

SECTION 1. The title of Presidential Decree Numbered Four

Hundred Ninety Two is hereby amended to read as follows:

"CREATING THE METRO MANILA TRANSIT CORPORATION,

APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES."

All succeeding sections making reference to the Manila Transit

Corporation are hereby amended so as to read Metro Manila Transit

Corporation.

Section 2

SEC. 2. Section 2 of the same Presidential

Decree is hereby amended to read as follows:

"SECTION 2. Metro Manila Transit Corporation Creation

and Purpose. To implement state policy and pursue the objectives set

forth in the preceding section, there is hereby created a body

corporate to be known as the Metro Manila Transit Corporation which

shall have its principal place of business in Metropolitan Manila. It

may establish such branches and agencies within the Philippines as may

be necessary for the proper conduct of its business."

Section 3

SEC. 3. Section 3(g) and (1), fourth paragraph, of the same

Decree are hereby amended to read as follows:

"SECTION 3(g) x x x. To manage and operate a public

transport system or public services within Metropolitan Manila in

accordance with the above-stated policy objectives: Provided,

That whenever authorized by the President of the Philippines, it may

extend its area of operation anywhere in the Philippines: And,

provided further, That such authority is not necessary when the

extension of its operation outside Metropolitan Manila is for the

purpose of protecting its business interests."

"SECTION 3(i) x x x. The loans, credits and indebtedness

contracted under this subsection and the payment of the principal,

interest and other charges thereon, as well as the importation of

machineries, equipment, materials, supply and services, by the

Corporation, paid from the proceeds of any loan, credit or indebtedness

incurred under this act, or from its own funds, shall also be exempt

from all direct and indirect taxes, fees, imposts and other charges and

restrictions, including import restrictions previously and presently

imposed, and to be imposed by the Republic of the Philippines, or any of

its agencies and political subdivisions."

Section 4

SEC. 4. Section 5 of the same Decree is hereby amended to

read as follows:

"SECTION 5. Board of Directors. The Corporation

shall be governed and its activities shall be directed, controlled and

managed by a Board of Directors that shall be composed of six (6)

ex-officio members, namely: the General Manager or Governor of the

Metropolitan Manila Commission who shall act as Chairman, the Secretary

of Public Works, Transportation and Communications (or the successor

Department with respect to Transportation) who shall act as

Vice-Chairman, the Secretary of National Defense, the Secretary of

Industry, the Secretary of Finance, the Secretary of Public Highways,

and one (1) other member to be appointed by the President of the

Philippines. The appointive director shall serve for a term of two (2)

years. "The ex-officio members of the Board shall designate any

official in their office who shall serve as alternate members. They

shall attend the meetings of the Board whenever their principals are

absent or the said positions are vacant and shall receive the same

benefits and privileges as their principals."

Section 5

SEC. 5. The same Decree is hereby amended by inserting

between Sections 6 and 7 thereof a new section, to be known as Section

6-A, which shall read as follows:

"SECTION 6-A. Supplies and Services other than

Personnel. All purchase of supplies or contracts for services,

except for personal services, entered into by the Corporation, shall be

done through competitive public bidding: Provided, That bidding

shall not be required when an emergency, as certified by the corporation

President and General Manager, requires immediate delivery of the

supplies or performance of the services, and the aggregate amount

involved in any one purchase of supplies or procurement of services does

not exceed ten thousand pesos, in which case, such purchase or

procurement may be made in the usual course of business: Provided,

further, That the Corporation's emergency purchase of supplies and

services shall not exceed the amount of fifty thousand pesos for any one

month: Provided finally, That in comparing bids and in making

awards, the Corporation shall consider such factors as the cost and

relative quality and adaptability of supplies or services; the bidder's

financial responsibility, skill, experience, integrity, and ability to

furnish repairs and maintenance services; the time of delivery or

performance offered; and the bidder's compliance with the specifications

desired."

Section 6

SEC. 6. The aforementioned Decree is further amended by

inserting between Sections 8 and 9 thereof a new section, to be known as

Section 7

SEC 7. Repealing Clause. The provisions of existing

laws, decrees, executive orders and regulations, or parts thereof, in

conflict with the provisions of this Decree are hereby repealed or

modified accordingly.

Section 8

SEC. 8. Effectivity. This Decree shall take

effect immediately.

Done in the City of Manila, this 25th day of December, in the

year of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

JACOBO C. CLAVE

Presidential Executive Assistant

Section 8-A

Section 8-A, which shall read as follows:

"SECTION 8-A. Exemption from the Public Service Act.

The Metro Manila Transit Corporation shall not be subject to the

authority, supervision, control and jurisdiction of the Board of

Transportation or any similar regulatory body."