Draft version as of 16 July 2018

1 IMPLEMENTING RULES AND REGULATIONS OF THE

2 NATIONAL TRANSPORT POLICY
3
4
5 RULE I – GENERAL PROVISIONS
6
7 Section 1. Short Title and Purpose
8 This Implementing Rules and Regulations, hereinafter referred to as the “IRR”, is
9 promulgated pursuant to Section 11 of NEDA Board Resolution No. 5 (s. 2017),
10 entitled: “Approving the National Transport Policy”, for the purpose of prescribing the
11 rules and regulations that shall set the direction of and parameters for the integrated
12 development and regulation of the transport sector in the Philippines.
13
14 Section 2. Declaration of Policy
15 To ensure improved quality of life of the Filipino people, the State envisions a people-
16 oriented national transport system that is safe, secure, reliable, efficient, integrated,
17 intermodal, affordable, cost-effective, and environmentally sustainable. Consistent
18 with the Transport Vision, the provisions of this IRR are intended to guide the
19 Government at the National and Local Levels, in ensuring effective and efficient inter-
20 government coordination, local government participation and stakeholders
21 collaboration in developing the country’s transport system through harmonization of
22 policies, plans and programs for the sector.
23
24 Section 3. Scope and Coverage of the IRR
25 This IRR shall apply to all elements of the transportation system and all of its sub-
26 sectors, including passengers, operators, service providers, investors, and transport-
27 related agencies and instrumentalities of Government as well as those that involved
28 in the movement of people and goods and in the provision of transport infrastructure,
29 facilities and services.
30
31 The IRR shall be observed by and used as guidance in transport development,
32 management, operations, and use, particularly in the following areas:
33
34 3.1 Effecting good governance in the transport sector towards:
35
36 3.1.1 Streamlining and simplification of transport regulations;
37
38 3.1.2 Rationalizing transport agency functions through the following: i)
39 administrative reforms in the short-term; ii) creation of respective
40 independent regulatory bodies for the railway, civil aviation, and maritime
41 transport, among others, in the long-term;
42
43 3.1.3 Aligning policies with government priorities, strategies and programs;
44
45 3.1.4 Ensuring that development, management, operation, and use of transport
46 infrastructure, facilities, and services adhere to safety standards, as well
47 as adopting applicable international best practices; and,
48
49 3.1.5 Compliance with the country’s international and sub-regional
50 commitments (e.g. ASEAN integration, Brunei Darussalam-Indonesia-
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51 Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA),

52 International Maritime Organization (IMO), International Civil Aviation
53 Organization (ICAO), etc.);
54
55 3.2 Ensuring seamless connectivity among various transport modes (e.g., roads,
56 airports, seaports, railways, urban and non-motorized forms of transport), in
57 support of an intermodal logistics network system, and other transport
58 infrastructure such as parking buildings and multimodal terminals (e.g., park and
59 fly/sail/ride);
60
61 3.3 Promoting green, low-carbon, and people-oriented transport systems that
62 prioritizes public health and well-being;
63
64 3.4 Facilitating creation and supporting the development of “new” economic growth
65 centers outside of the country’s key cities towards inclusive growth through
66 access improvement and support to tourism, agro-industry, trade and logistics,
67 and other economic sectors; and,
68
69 3.5 Promoting transport infrastructure investments.
70
71 Section 4. List of Acronyms/Definitions
72 For purposes of this IRR, the following terms/words and phrases shall mean or be
73 understood as follows:
74 4.1 Ancillary Services – refers to complementary of facilities and services which
75 provide necessary support to operations.
76 4.2 ASEAN – refers to the Association of Southeast Asian Nations.
77 4.3 CAAP – refers to the Civil Aviation Authority of the Philippines.
78 4.4 Convergence Program – refers to the complementation of the
79 initiatives/programs/activities of two or more agencies within a defined area under
80 a common intervention strategy to maximize socioeconomic gains.
81 4.5 Cross-subsidy – refers to the subsidy granted in whole or in part to an
82 independent operation sourced from the earnings of another operation.
83 4.6 CSC – refers to the Civil Service Commission.
84 4.7 DA – refers to the Department of Agriculture.
85 4.8 DBM – refers to the Department of Budget and Management.
86 4.9 DepEd – refers to the Department of Education.
87 4.10 DENR – refers to the Department of Environment and Natural Resources.
88 4.11 DILG – refers to the Department of the Interior and Local Government.
89 4.12 DOE – refers to the Department of Energy.
90 4.13 DOF – refers to the Department of Finance.
91 4.14 DOST – refers to the Department of Science and Technology.
92 4.15 DOT – refers to the Department of Tourism.
93 4.16 DOTr – refers to the Department of Transportation.
94 4.17 DPWH – refers to the Department of Public Works and Highways.
95 4.18 DTI – refers to the Department of Trade and Industry.
96 4.19 EIRR – Economic Internal Rate of Return. Refers to the discount rate which
97 equates the present values of the project’s economic cost with the present values
98 of its economic benefits.
99 4.20 FMRs – refers to farm-to-market roads.
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100 4.21 GCG – refers to the Governance Commission for Government-Owned and/or
101 Controlled Corporations (GOCCs)
102 4.22 IATCTP – Inter-Agency Technical Committee on Transport Planning. Refers to
103 the technical-level planning arm of the NEDA Board Committee on Infrastructure
104 (INFRACOM) created by virtue of Memorandum Order (MO) No. 473, as
105 amended by MO No. 25, s. 2011, to serve as a platform for transport agency
106 coordination to ensure comprehensive and integrated plans and programs and
107 to resolve transport-related issues.
108 4.23 ICC – refers to the NEDA Board Investment Coordination Committee.
109 4.24 INFRACOM – NEDA Board Committee on Infrastructure. Refers to the inter-
110 agency committee created by virtue of Executive Order (EO) No. 230 to assist
111 the NEDA Board on matters concerning infrastructure development and
112 coordinate the activities of agencies and policies, programs and projects
113 concerning infrastructure development consistent with national development
114 objectives and priorities.
115 4.25 Intermodal – refers to movement of passengers or freight from one transport
116 mode to another, taking place at a single terminal specifically designed for such
117 purpose.
118 4.26 LGUs – Local Government Units. Refers to the provincial, city and municipal
119 governments, as defined in the Local Government Code.
120 4.27 LCC - Life Cycle Cost. Refers to the analysis looks beyond the initial construction
121 and considers operations, maintenance, and major rehabilitation needs during
122 the projected life of the facility.
123 4.28 LTFRB – refers to the Land Transport Franchising and Regulatory Board.
124 4.29 LTO – refers to the Land Transportation Office.
125 4.30 MARINA – refers to the Maritime Industry Authority.
126 4.31 Market Failure – refers to the mismatch of supply and demand and/or occurrence
127 of side effects and extra costs to the society that is not reflected in the price of
128 the services. A market failure may exist when the supply or use of goods and
129 services by the market is not efficient in the sense that the price mechanism fails
130 to match demand and supply, and/or the provision of services generate costs to
131 the society that cannot be internalized in the price.
132 4.32 MMDA – refers to the Metropolitan Manila Development Authority.
133 4.33 NEDA – refers to the National Economic and Development Authority.
134 4.34 NCTS – refers to the National Center for Transportation Studies of the University
135 of the Philippines.
136 4.35 NSS – National Spatial Strategy. Refers to the national spatial framework
137 formulated to guide the policies on urban development, infrastructure
138 development, disaster mitigation, and environmental resource protection and
139 conservation on the basis of the country’s desired spatial structure based on
140 trends in population, economic activities, and services.
141 4.36 NPV – Net Present Value. Refers to the difference between the present values
142 of project benefits and project costs.
143 4.37 PCG – refers to the Philippine Coast Guard.
144 4.38 PDP – refers to the Philippine Development Plan
145 4.39 PIP – refers to the Public Investment Program.
146 4.40 PPA – refers to the Philippine Ports Authority.
147 4.41 PPP – refers to Public-Private Partnership whereby a private party enters into a
148 contractual agreement with the government under Republic Act No. 6957, as
149 amended by Republic Act No. 7718 (BOT Law), or a joint venture (JV) with the
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150 government pursuant to the JV Guidelines issued by NEDA or by the respective

151 LGUs, as applicable.
152 4.42 PTSMP – refers to the Philippine Transportation System Master Plan.
153 4.43 Public Interest – refers to the welfare or well-being of the general public, the
154 promotion and protection of which are the ultimate ends of Government. The
155 economic costs of hazards to health, properties and environment are not usually
156 internalized in market prices and therefore, market forces are unable to foster
157 discipline on hazard-causing entities. Government should therefore strictly
158 regulate these matters of public welfare.
159 4.44 RORO – refers to the Roll-on/Roll-off.
160 4.45 TIA – refers to the Traffic Impact Assessment.
161 4.46 TDM – refers to the Transport Demand Management.
162 4.47 TOD – Transit-Oriented Development. Refers to the high-density, mixed-use
163 development around a transit station or within a transit corridor.
164 4.48 TRIP – refers to the Three-Year Rolling Infrastructure Program.
165 4.49 Transport-related agencies – refers to agencies and instrumentalities of
166 government involved in the movement of people and goods in the planning,
167 provision, and regulation of transportation infrastructure, facilities, and services.
168 4.50 VGF – refers to Viability Gap Funding whereby the Government extends a grant
169 to PPP project yielding favorable economic and social returns so that the project
170 can charge affordable tariffs to the public while producing a satisfactory financial
171 return for the private investor.
172
173
174 RULE II – RESOURCE GENERATION, ALLOCATION AND COST-SHARING
175
176 Section 5. Review of Transportation Needs
177 The NEDA Board - Committee on Infrastructure (INFRACOM), through its transport
178 planning arm, the Inter-Agency Technical Committee on Transport Planning
179 (IATCTP), shall, consistent with the Government's planning cycle, periodically identify,
180 review, and address the strategic resource needs of the transport sector for the short-
181 , medium- and long-term, including the assessment of the failure or success factors
182 and deficiencies or efficiencies of the previous fiscal allocation or cost-sharing.
183 Specifically, they shall:
184
185 5.1 Assess and evaluate the strategic function of the transport sector with regard to
186 attaining the national goals of economic growth, poverty reduction, trade
187 competitiveness and social equity, and adjust the fiscal allocation of the transport
188 sector over the period of concern on the basis of the results thereof;
189
190 5.2 Aid in the allocation of resources to the transport modes in accordance with the
191 comparative advantages, and with due regard to the viability of the proposed
192 plans, programs, projects, or measures for each concerned transport mode;
193
194 5.3 Identify policies and measures which can facilitate and improve the execution of
195 infrastructure projects; and,
196
197 5.4 Ensure that preservation of existing assets is accorded with appropriate
198 attention, with provision for strategic preservation mechanism, and that new
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199 investments are adequately supported by regular allocation for maintenance and
200 for asset preservation based on life-cycle cost (LCC) analyses.
201
202 Section 6. Use of National Government Resources
203 Unless otherwise defined under the “Convergence Programs”, the resources of the
204 National Government shall be devoted mainly to facilities classified as “national”
205 unless otherwise defined under the Convergence Programs. The following transport
206 infrastructure facilities shall be classified as “national”, based on their functional and
207 strategic importance to the country, and as defined in existing laws, regulations, and
208 issuances:
209
210 6.1 Roads classified as “national primary”, “national secondary”, “national tertiary”
211 and “expressways” as may be defined by DPWH;
212 6.2 Airports and seaports that serve as international and regional gateways;
213 6.3 Transport infrastructure aimed at spurring economic growth in priority areas
214 identified as emerging growth corridors/centers in the National Spatial Strategy
215 (NSS);
216 6.4 Transport infrastructure that serves as linkage between major economic sectors
217 of the country (e.g., agriculture, industry, trade, tourism), or covering a major
218 sphere of influence of two (2) or more regions;
219 6.5 Facilities providing increased access to basic social and other development
220 services in conflict-affected and underdeveloped areas;
221 6.6 Other facilities as maybe declared nationally significant for purposes identified
222 after diligent and conscientious study and deliberations by the appropriate body.
223
224 Section 7. Responsibility of LGUs
225 7.1 Consistent with the principle of local autonomy under the Local Government
226 Code, LGUs shall exercise primary responsibility for the financing, construction,
227 rehabilitation, and maintenance of Provincial, City, Municipal, and Barangay
228 transport facilities, unless such facilities are included in Convergence Programs.
229
230 7.2 LGUs shall be primarily responsible for the resettlement activities, which includes
231 the development of resettlement sites, provision of adequate basic services and
232 community facilities, in anticipation of informal settlers that have to be removed
233 from the right-of-way (ROW) site or location of future infrastructure projects, with
234 assistance from the national government agencies. Where resettlement
235 comprises a significant component of a proposed project, the civil works
236 component shall not be bidded out until the affected households have been
237 adequately resettled.
238
239 Section 8. Collaboration and Resource Sharing Between the National and Local
240 Government
241 8.1 The DOTr and DPWH, in coordination with the DOF and DBM, shall set aside
242 resources for local transport initiatives, including but not limited to the
243 construction, improvement and rehabilitation of intermodal transportation such as
244 airports, seaports, farm-to-market roads (FMRs), road-to-RORO terminals, social
245 ports and agriculture-related airports and ports including their access roads, as
246 well as road connectivity to tourism, trade and industry and other local roads, to
247 the extent allowed by existing laws, rules and regulations.
248
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249 8.2 Consistent with Republic Act (RA) No. 10752 and its IRR, the national
250 government shall ensure timely implementation of projects by providing the
251 necessary and adequate funding that will allow the concerned implementing
252 agencies and LGUs to expeditiously acquire the required ROW site or location
253 for infrastructure projects.
254
255 8.3 To enhance the feasibility of implementing transport infrastructures, particularly
256 rail and other urban mass transit systems, the LGUs shall, to the extent possible
257 and doable, provide support to the national government, which may include share
258 in the project cost including ROW, assistance to the resettlement of affected
259 families, and accompanying real estate taxes imposed within the project
260 influence area.
261
262 Section 9. Technical and Economic Criteria for Resource Allocation
263 In the allocation of resources to transport agencies, NEDA and DBM, in consultation
264 with transport-related agencies, shall continue to establish standardized, transparent,
265 and objective criteria, which reflect and provide on the most effective and efficient use
266 of resources to meet transport needs, e.g., in PIP and TRIP formulation.
267
268 Section 10. Private Sector Participation
269 10.1 To enhance private sector participation (PSP) in transport investments, Public-
270 Private Partnerships (PPP) and privatization of public transport operations shall
271 be considered to augment Government resources, harness private sector
272 comparative advantage, gain technology transfers and operational efficiencies,
273 and assign the respective roles and responsibilities to the party best able to
274 control, positively influence, manage or mitigate risk occurrences and
275 consequences. The pursuit of PPP for transport projects shall be in accordance
276 with applicable laws, rules, and regulations.
277
278 10.2 The planning and implementation of PPP projects shall be guided by the
279 following:
280
281 a. The plans, programs, and projects of each transport-related agency shall
282 include those proposed for PSP or PPP implementation;
283
284 b. Projects which are necessary for public service, economically feasible, and
285 show potentials for direct cost recovery and revenue generation (i.e.
286 commercially viable), but may not attract private financing because private
287 investment cannot be fully recovered from revenues at rates that users will
288 be able or willing to pay, shall be given priority in the allocation of
289 Government VGF through PPP schemes;
290

291 c. In the allocation of risks between the parties in a PPP contract, agencies
292 and LGUs shall refer to the Investment Coordination Committee (ICC)-
293 approved Generic Preferred Risk Allocation Matrix, or amendments
294 thereof; and,
295
296 d. The Government shall set the direction and technical, safety, and
297 environmental regulations for PPP and privatization.
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298
299
300 RULE III – PROGRAM AND PROJECT SELECTION
301
302 Section 11. Agency Planning and Program Preparation
303 Based on the provisions of this IRR and consistent with their existing mandates and
304 governing laws, transport-related agencies and LGUs, shall annually assess and
305 prepare their strategic short-, medium-, and long-term plans, programs and projects.
306
307 Section 12. Programs and Projects Assessment
308 The process for planning and project selection of transport agencies and LGUs shall
309 be based on the following criteria:
310
311 12.1 Alignment with National and Regional Development Goals and Priorities.
312 All transport plans, programs, and projects shall be fully aligned with the national
313 and regional development goals and priorities reflected in the Philippine
314 Development Plan (PDP) and its accompanying investment programming
315 documents, e.g., PIP, TRIP.
316
317 12.2 Compliance with International Commitments. As provided for in Section 3.2.5
318 above.
319
320 12.3 Alignment with Existing Master Plans and Studies. Transport projects and
321 initiatives shall be responsive to the recommended strategies and action plans
322 of the master plans and studies adopted by the Government.
323
324 12.4 Supported by Studies Involving a Network Perspective. Proposed programs
325 and projects shall be evidence-based. Feasibility studies should consider, among
326 others, the effects of and the effects on other transport modes, sectoral
327 development, and spatial strategies of nearby areas/regions. The planning and
328 programming exercises of the respective implementing agencies shall be guided
329 and supported by relevant transport data and indicators. Knowledge-,
330 information-, and resource-sharing, including the use of Information and
331 Communications Technology (ICT)-based systems shall be promoted.
332
333 12.5 Technical and Operational Feasibility. Projects shall meet required standards
334 for safety and security, structural integrity and performance, and quality/level of
335 service. These shall be supported, as far as practicable, by appropriate detailed
336 designs, including value engineering/value analysis (VE/VA), to be undertaken
337 to determine the most cost-efficient and cost-effective solutions to deliver
338 intended outcomes.
339
340 All transport program and projects shall have adequate institutional and
341 management arrangements, for the effective operation, maintenance, and use
342 thereof over the economic life. These arrangements should be able to sustain
343 the performance and service levels of the projects as designed.
344
345 12.6 Economic Feasibility over the Life Cycle. All projects shall show a positive
346 economic net present value (NPV), or a positive economic net present value over
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347 capital cost (NPV/C), or an Economic Internal Rate of Return (EIRR) that is at
348 least equal to the ICC-prescribed social discount rate.
349
350 12.7 Environmental Soundness. Projects shall conform to appropriate
351 environmental requirements based on the standards of the DENR, with
352 assessment of the direct and indirect impacts of the project to the biophysical
353 and human environment. Such impacts should be addressed by appropriate
354 protection and mitigation/adaptation/enhancement measures.
355
356 12.8 Use of Environmentally Sustainable and Inclusive Technologies and
357 Approaches. The use of clean and energy-efficient transport technology/fuels
358 such as biofuels, natural gas, Liquefied Petroleum Gas (LPG), hybrid, electric
359 and Euro IV or higher compliant vehicles, will be promoted. The continuous
360 adoption of technologically responsive and appropriate standards for vehicle
361 emissions will be pursued.
362
363 Inclusive mobility and accessibility shall be achieved through non-motorized
364 means incorporated in the design and implementation of transport projects. Such
365 should include transit-oriented development (TOD), prioritization of pedestrians,
366 and provision of support facilities that mainstream gender considerations. Green
367 ways network, through elevated walkways, covered walkways, sidewalks, bike
368 lanes, and bicycle sharing services, should likewise be included.
369
370 12.9 Responsiveness to Disaster Risk Reduction (DRR) and Climate Change
371 Mitigation/Adaptation Strategies. Projects shall include resiliency and
372 redundancy measures in transport networks in relation to both natural and
373 human-induced disasters. Resilience shall be integrated into the design,
374 construction, operation and management of transport facilities. Key transport
375 infrastructures such as ports and airports shall be available even during times of
376 disaster, which becomes more crucial in response, rescue and relief operations,
377 notably in the context of humanitarian logistics.
378
379 12.10 Public Need and Social Acceptability. To ensure successful implementation,
380 and thus public acceptance and use of proposed transport infrastructure, facility,
381 and/or service, all programs and projects must be formulated based on public
382 need. Social acceptance must be sought through the active involvement of
383 stakeholders, especially women, children, the elderly, physically challenged and
384 displaced persons. Programs and projects must conform to applicable Gender
385 and Development (GAD) Guidelines.
386
387 Section 13. Formulation of the Philippine Transportation System Master Plan
388 13.1 The “Philippine Transportation System Master Plan” (PTSMP), shall be
389 formulated, adopted, and periodically assessed and updated to guide the rational
390 development of intermodal/multimodal transport network in the country through
391 coordinated planning and operation of projects and programs as an integrated
392 network of intermodal sub-systems.
393
394 13.2 The PTSMP shall guide the implementing agencies and LGUs in their respective
395 planning and programming exercises. Likewise, stakeholders in other productive
396 sectors, (e.g., implementing agencies, private sector, etc.), are enjoined to make
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397 reference to the PTSMP in preparing their respective sector development plans
398 and programs.
399
400 13.3 Future plans and projects shall consider the list of priority transport infrastructure
401 projects identified in the PTSMP with corresponding timing and resource
402 requirements (investment, operations and maintenance costs), needed to be
403 implemented within the short-, medium-, and long-term plan period.
404
405 Section 14. Establishment of a Database System for Transport Agencies
406 14.1 An open database system shall be established and maintained for all government
407 agencies, data repositories, research institutions, and members of the academe,
408 particularly those that are involved in the collection and management of transport-
409 related data.
410
411 14.2 Pursuant to RA No. 10844, and Executive Order (EO) No. 2, (s. 2016), transport-
412 related agencies shall have information officers responsible for the preparation
413 of a data management plan and the establishment and maintenance of a
414 database system using a standard format.
415
416 14.3 DOTr shall act as the central node/repository for all transport-related data. For
417 the efficient collection, management and dissemination of such data, all related
418 database systems shall be linked to this central repository.
419
420 14.4 DOTr shall be the lead agency, together with other concerned agencies and
421 stakeholders, in the development of a national travel demand model for use in
422 forecasting passenger and cargo traffic, as well as the consolidation of transport
423 accident statistics. The DOTr shall also work with other agencies to influence
424 policies such as that of the communications portfolio, to effect positive travel
425 demand management. The DOTr shall likewise cooperate with concerned
426 agencies in terms of research and development for the sector.
427
428
429 RULE IV – COST RECOVERY AND SUBSIDIES
430
431 Section 15. Economic Measures for Cost Management
432 15.1 Fees (i.e., fares and freight transport cost) in the transport sector shall, as far as
433 practicable, be determined following the principle of compensation expressed in
434 such term as “users pay”.
435
436 15.2 Fares and fees/charges for transportation services shall be cost-based and shall
437 recover, at the minimum, the operational and maintenance costs, net of eligible
438 subsidies.
439

440 15.3 DOTr shall, over time, publish transparent pricing and subsidization/discount
441 guidelines and criteria for adoption by the respective regulatory bodies.
442
443 15.4 Subsidies, including incentives and other Government undertakings, when so
444 justified and allowed under existing laws, rules and regulations, shall be direct,
445 specific and transparent. This may include, without limitation, transport
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446 infrastructure which are proven to have significant economic benefits to the
447 society, thus may be eligible for targeted and transparent subsidies under the
448 Government's social policies.
449
450 15.5 Where appropriate, the Government shall avoid cross-subsidies in transport
451 infrastructure projects to promote operations/service efficiency.
452
453 15.6 It shall be the general policy of the Government to refrain from giving grants
454 whether matured, committed, or contingent in bidding of transport infrastructure
455 to ensure that the Government shall not be unnecessarily exposed to more risks
456 such as unequal sovereign guaranties.
457
458 Section 16. Fees for the Use of Navigational Aids
459 Fees shall be levied against all vessels and aircrafts that call on Philippine maritime
460 ports and airports, as well as those passing through the Flight Information Region
461 (FIR) of the Philippine airspace, to allow Government to recover the costs for
462 providing, operating and maintaining navigational aids. The fees shall be reviewed and
463 adjusted periodically by the appropriate regulatory bodies, e.g., CAAP, PPA, MARINA,
464 as mandated by their respective charters to generate sufficient revenues in order to
465 sustain adequate level of service in terms of efficiency, safety and security in
466 compliance with applicable international standards.
467
468
469 RULE V – REGULATION OF PASSENGER TRANSPORT SERVICES
470
471 Section 17. Routes and Areas of Operation
472 17.1 Routes and areas of operation shall be determined and modified by the
473 appropriate regulatory bodies, upon prior consultation and coordination with the
474 LGUs and other stakeholders concerned, based on established criteria and
475 network analysis considering travel demand and route capacities, as well as the
476 application of technical, economic and safety standards issued by the DOTr; and
477 upon prior consultation and coordination with the LGUs, relevant agencies, and
478 other stakeholders.
479
480 17.2 The evaluation and assessment of capacity for emerging or developmental
481 routes shall be measured in terms of potential demand.
482
483 Section 18. Economic Regulation of Road Transport Services
484 The appropriate regulatory body shall periodically evaluate, assess, and measure the
485 capacity of a route or the area of operation. It shall determine and declare the extent
486 of public transport needs based on this route capacity measurement. On the basis
487 thereof, the same shall modify and, if warranted, open the route or area of operation
488 for franchised entry of the most qualified operator/entity through a competitive
489 selection or bidding process. No preferential rights shall be recognized in favor of a
490 prior operator beyond what is provided in existing issuances upon the effectivity of this
491 IRR. In any event, all conditions for the valid invocation of such preferential rights shall
492 be strictly enforced and regulatory bodies shall ensure, through the appropriate
493 regulations, that the needs of the riding public in such route and area of operation are
494 adequately served.
495
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496 Section 19. Fare/Rate Setting for Public Land Transport Services
497 19.1 Fares for public land transport services shall, subject to relevant laws, rules and
498 regulations, be determined and set or adjusted by the appropriate regulatory
499 body taking into account capital, operating, and maintenance costs, and
500 reasonable return to the operator, as well as the convenience and ability of the
501 riding public, with due regard to prevailing economic circumstances.
502
503 19.2 In cases where contractual arrangements allow operators to set their fares and
504 rates, and externalities adversely affecting public interest would occur, the
505 regulatory body may, upon due process, intervene and set a range within which
506 fare/rate adjustments may be made, or implement such measures as may be
507 required by the circumstances with due regard to the interests of the passengers,
508 and the operators.
509
510 19.3 The regulatory body shall require operators to set up a uniform system of
511 accounts, which shall be one of the bases for establishing stable, transparent and
512 predictable fares and fees/charges.
513
514 Section 20. Fare/Rate Liberalization and Monitoring of Airlines and Shipping
515 Operations
516 20.1 To encourage new or existing operators and investors to make new or additional
517 investments in the domestic airline and shipping industries, domestic operators
518 shall continue to establish their own fare rate system, pursuant to existing laws,
519 rules and regulations, provided that public interest is served by fostering genuine
520 competition.
521
522 20.2 The appropriate regulatory body shall monitor all domestic airline and shipping
523 operations and if warranted, exercise regulatory intervention whenever it is
524 established that public interest would be protected and safeguarded, subject to
525 relevant laws, rules and regulations.
526
527 20.3 Should there be market failure or externalities that adversely affect the public
528 interest, the regulatory body may, upon due process, intervene and set the fare
529 or a fare range within which adjustments may be made, or implement such
530 measures as may be required by the circumstances with due regard to the
531 interests of the passengers, shippers, and the operators.
532
533 Section 21. Fees and Charges Collection System
534 To complement seamless travel for passenger convenience and operational
535 efficiency, an efficient IT-based toll fees and charges collection system shall be
536 established over time for all public transport modes. Likewise, there shall be a common
537 structuring and implementation arrangement in setting up the automatic fare collection
538 system in all public transport services.
539
540 Section 22. Safety, Security, and Service Standards
541 22.1 The DPWH and DOTr, together with all concerned sectoral offices and attached
542 agencies, shall regularly upgrade and update their respective standards on
543 safety, level of service, and inter-modal connectivity, in keeping with applicable
544 international standards and practices, and shall strictly implement and enforce
545 the same. Coherence of such standards should be ensured at all times.
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546
547 22.2 Implementing Agencies are required to define the Level of Service/Performance
548 Standards in their respective "Operating Guidelines" for transport facilities and
549 services.
550
551 22.3 To ensure road safety, vehicle operators shall adhere to the maximum gross
552 weight and dimension of motor vehicles, unladen or with load, permissible on
553 public highways. Any person driving a motor vehicle on a public highway shall
554 strictly observe the prescribed speed limit, with due regard to the vehicle’s gross
555 weight and the traffic conditions on the highway. No person operating any vehicle
556 shall allow more passenger or more freight or cargo in his vehicle than its
557 registered carrying capacity.
558
559 22.4 On top of the criminal and civil liabilities arising from road accidents, the
560 Government may impose penalties and fines on economic and social disruptions
561 resulting from the traffic congestion around the area of the accident.
562
563
564 RULE VI – TRANSPORTATION MANAGEMENT IN URBAN AND REGIONAL
565 AREAS
566
567 Section 23. Integration of Land Use and Transport Planning
568 23.1 All government agencies and LGUs involved in the movement of people and
569 goods, and in the provision of transportation infrastructure, facilities, and services
570 shall adopt an integrated approach to land use and urban transport planning, in
571 order to have more effective management of growth in urban areas and ensure
572 that the capacity of transport facilities can accommodate the demand for
573 movement of passengers and goods to, from, and within the centers of socio-
574 economic activities.
575
576 23.2 LGU’s in coordination with DOTr and other national agencies concerned with
577 transportation development, may implement strategies focusing on accessibility,
578 connectivity, transit-oriented development, improvement of public transport
579 facilities, and mixed-use development to minimize vehicle trips and other related
580 measures.
581
582 Section 24. Defining a Hierarchy of Public Transportation in Urban Areas
583 24.1 Public mass transportation in urban areas shall be given priority over private
584 transportation in the use of road space to ensure accessibility, convenience,
585 reliability, safety, security, and fare competitiveness.
586
587 24.2 DOTr shall be guided by a hierarchy of urban public transport services in
588 assigning appropriate modes to various routes or areas of operation, with
589 consideration on the land use patterns of the urban areas, economic viability,
590 complementarity, among others. For this purpose, such hierarchy shall be set as
591 follows, from the public transport system of highest capacity:
592
593 a. Interurban Railway System;
594 b. Intra-urban Railway System;
595 c. Bus Rapid Transit System;
 Draft version as of 16 July 2018

596 d. Point-to-Point (P2P) Bus Services;

597 e. Other Commercial Bus Services;
598 f. Public Utility Vehicles;
599 g. Tricycles
600
601 24.3 The DOTr may require LGUs to submit their Comprehensive Land Use Plans
602 (CLUPs) and share their respective transport and traffic management plans with
603 corresponding historical and current traffic flow data.
604
605 Section 25. Cost-Effective Mobility Management Measures
606 25.1 In addressing problems of traffic congestion, priority shall be given to cost-
607 effective mobility management measures over more expensive infrastructure
608 facilities. However, road projects shall be considered where there is a clear need
609 for an additional infrastructure facility to establish a road hierarchical system
610 and/or to address road network deficiencies such as major traffic bottlenecks and
611 missing links.
612
613 25.2 In metropolitan areas where the transport capacity expansion is no longer
614 sufficient to address widening supply and demand gap, transport demand
615 management (TDM) schemes such as traffic and parking restrictions, shall be
616 implemented and traffic engineering solutions such as the use of intelligent
617 transport systems (ITS) in the traffic system logistic components and in the
618 operation and management of transport projects shall be adopted. Local
619 development of ITS and similar technologies by the academe through various
620 initiatives of DOST and DOE shall be supported and, where feasible, shall be
621 utilized by the Government.
622
623 25.3 The DOTr, DPWH, DILG, MMDA, LGUs and counterpart institutions in other
624 urban areas, whenever appropriate, must formulate the guidelines in the planning
625 and design of TDM measures, from and within the concerned metropolis, taking
626 into account the harmonization of restrictions across several jurisdictions in the
627 transport network, in order to avoid discontinuity in the movement of people and
628 goods.
629
630 25.4 LGUs and concerned government agencies shall require traffic impact
631 assessment (TIA) studies for new and significant land use and transport
632 developments in urban areas.
633
634 25.5 To prevent road bottlenecks or reduce their occurrences in major thoroughfares
635 of highly urbanized areas and to facilitate better transport management in the
636 said areas, all buildings or structures as well as accessory facilities along major
637 road segments shall conform to the standards set under the National Building
638 Code of the Philippines and its IRR. Such building specifications to be complied
639 in relation to the road right-of-way (RROW) includes, but is not limited to, allowed
640 building projection over public streets, building height limits, and minimum off-
641 road parking sites required.
642
643 25.6 Repair and maintenance of all transport infrastructure including public utilities
644 such as water lines, sewer lines and power lines that are laid out in public
645 thoroughfares shall be well planned, properly coordinated and completed at the
 Draft version as of 16 July 2018

646 shortest possible time with the least disturbance and inconvenience to the public
647 sector and not to cause major and long-term disruption to the transport network
648 systems.
649
650 Section 26. Traffic Education
651 26.1 Trainings/seminars on traffic rules and regulations and the corresponding testing
652 and examination shall be strictly administered for new applicants of driver’s
653 license while a retraining may be required for renewal of license based on a
654 penalty point system, in accordance with existing laws, regulations and
655 issuances.
656
657 26.2 The DOTr, LTO, LTFRB, MMDA, DepEd, and TESDA shall jointly develop a
658 standardized program module for driver’s education including traffic rules and
659 regulations, as well as driver and pedestrian etiquette which may be incorporated
660 as a mandatory subject in the K-12 curriculum. The program module shall also
661 be used in existing training institutes for re-educating erring motorists
662 (apprehended for traffic offenses) as well as for training traffic enforcers from
663 various LGUs nationwide prior to deployment.
664
665 26.3 Active participation of civil societies and civic organizations shall be encouraged
666 and social awareness will be pursued in order to promote and practice measures
667 related to traffic education.
668
669 Section 27. Institutional Arrangements in Transport Planning and Traffic
670 Management Structure in Cities
671 Each city is encouraged to establish a transport planning and traffic management unit
672 with the following functions:
673
674 27.1 Provide the transportation sector inputs in the preparation of the City’s
675 Comprehensive Development Plan, CLUP and other relevant plans;
676 27.2 Coordinate with the DOTr, LTFRB, LTO, PPA, MARINA, PCG, CAAP, other
677 LGUs, and the public transport operators in all aspects of public transport network
678 development, as may be necessary; and,
679 27.3 Discharge functions mandated by the Local Government Code in the areas of
680 transport planning, traffic engineering, and management.
681
682 Section 28. Integration of Traffic Ordinances
683 28.1 All traffic rules, regulations, ordinances and issuances in each respective
684 metropolitan area shall be harmonized into a comprehensive regulatory
685 framework for land-based traffic.
686
687 28.2 A unified number coding and single ticketing system for the imposition and
688 collection of fees and penalties for all kinds of traffic violations for motorists and
689 pedestrians shall be administered.
690
691 Section 29. Development of Ports Outside Metro Manila
692 As one of the strategies to decongest the roads of Metro Manila, utilization,
693 modernization, and capacity expansion of ports outside of Metro Manila shall be
694 promoted. Shipment of cargo shall gradually be shifted to ports outside of Metro
695 Manila, (e.g., Batangas, Subic Ports, etc.), to optimize the investments in the ports
 Draft version as of 16 July 2018

696 and port access, especially toll roads and railways. Locators and shippers shall be
697 enticed to use these ports through the provision of adequate ancillary services.
698
699 Section 30. Truck Ban in Urban Roads
700 Recognizing that carriage of goods is the life-blood of urban economy, any proposal
701 to restrict the movements of trucks in urban areas to ease traffic and reduce traffic
702 accidents must take into account economic impacts. The DOTr and DILG shall extend
703 assistance to LGUs in reviewing such proposals and in formulating corresponding
704 strategic action/implementation plan.
705
706
707 RULE VII–SUPPORT TO OTHER ECONOMIC SECTORS
708
709 Section 31. Establishment of Seamless, Intermodal Transport Logistics Network
710 31.1 The DOTr shall, in coordination with the appropriate agencies of Government and
711 the private sector, establish a seamless and demand responsive, intermodal
712 transport logistics network to ensure efficient logistics and supply chains and an
713 unimpeded flow of people and goods, disaster response equipment, relief goods,
714 and basic commodities in times of emergencies.
715
716 31.2 Pursuant to the relevant provisions of the Local Government Code, passenger
717 and goods carried into, out of, or passing through such system shall not be
718 burdened by transport procedures and costs. The DILG, in coordination with the
719 DOTr and DPWH, shall pursue measures to eliminate any arbitrary charges/toll-
720 like fees levied by LGUs on goods and people passing through their jurisdictions.
721
722 Section 32. Tourism, Trade and Agro-Industry Convergence Programs
723 32.1 Transport agencies shall strengthen convergence in support of agriculture,
724 industry, trade, and tourism development by ensuring that these economic
725 sectors are provided with adequate transport infrastructure support and services
726 through the implementation of Convergence Programs.
727
728 32.2 Convergence Programs for the tourism sector shall also consider airport and
729 seaport/RORO terminal development, parking facilities to encourage park and
730 fly/sail/ride modalities, common-user bus terminals as interface for light rail and
731 road transport services, and farm tourism-related transport projects.
732
733 32.3 The DPWH and DTI shall jointly pursue the identification, implementation, of
734 industry-developing infrastructure projects in priority economic and
735 manufacturing zones. The DTI shall identify the priority industries to be provided
736 with road access infrastructures.
737
738 32.4 In developing the system, its use for the transport of disaster response
739 equipment, relief goods and basic commodities during times of emergencies
740 resulting from natural calamities and other disasters shall also be considered.
741
742 Section 33. Establishment of Single Transport Document and Single Access
743 Point and One-Stop Shop
744 For cargo shipments, the DOTr, working with the DTI, DOF, Bureau of Customs
745 (BOC), and other appropriate Government agencies, in the establishment of the
 Draft version as of 16 July 2018

746 following systems and procedures to ensure transparent and expeditious processing
747 of cargo shipments:
748
749 33.1 Single Transport Document for customs, immigrations, quarantine, safety,
750 environmental protection, and security purposes that can be used in all transport
751 modes, thereby facilitating multimodal freight transport and enhancing the
752 framework offered by multimodal waybills or manifests.
753
754 33.2 Single Access Point (One-Stop Shop) shall be established for administrative
755 processes and procedures in all modes to simplify and decentralize exchanges
756 of freight-related information and substantially reduce the cost of regulatory
757 requirements, especially when using Information and Communication
758 Technologies (ICT).
759
760 Section 34. Standardizing Handling Characteristics of Intermodal Loading Units
761 To facilitate transhipment between modes and reflect technological developments,
762 national standards for intermodal loading units shall be introduced. Transaction costs
763 in handling operations between modes shall be reduced by standardizing certain
764 handling characteristics of intermodal loading units.
765
766 Section 35. Developing Interfaces between Long Distance Deliveries and Short
767 Distance Distribution
768 35.1 As transport logistics involve distribution in urban areas, efficient interfaces
769 between truck deliveries over longer distances and distribution to the final
770 destination over short distances shall be developed with full consideration of land
771 use and transport network plans, environmental impacts, and schematic traffic
772 engineering/management system plans.
773
774 35.2 Where warranted by the logistics chain characteristics, consolidation/ distribution
775 centers, such as truck terminal and rail-served inland container depots (ICDs)
776 shall be established outside of urban and metropolitan areas, with provision for
777 the necessary transport access and mode interchange cargo handling facilities,
778 in order to facilitate the interface between long distance deliveries and short
779 distance distribution in urban areas.
780
781
782 RULE VIII – GOVERNANCE AND INSTITUTIONS
783
784 Section 36. Transparency and Accountability Initiatives
785 Transport-related agencies shall encourage and support transparency and
786 accountability initiatives to effectively engage the private sector and civil society in
787 connection with the implementation of transport projects. To promote objectivity in
788 Government processes, computerized/information technology (IT)-based procedures
789 and measures shall be instituted.
790
791 Section 37. Technical Assistance to LGUs
792 The DOTr and DPWH shall extend assistance to LGUs to enhance their capacities
793 and capabilities in the areas of transport planning, program/project implementation
794 and monitoring, traffic engineering and management, and transport and land use
 Draft version as of 16 July 2018

795 integration. Such assistance shall be time-bound essentially founded on joint financial
796 initiatives and shall be defined by the concerned parties at the outset.
797
798 Section 38. Separation of Conflicting, Overlapping and Redundant Functions of
799 Transport Agencies
800 38.1 All transport-related agencies shall forthwith initiate action to reorganize
801 transportation agencies under them or attached thereto to separate regulatory
802 and operating functions, and eliminate overlapping, conflicting, or redundant
803 functions. Appropriate restructuring, re-alignment, or re-assignment of functions
804 that may be administratively modified, shall immediately be undertaken.
805
806 38.2 Pending legislation of the necessary institutional reforms to right size the
807 operation and reorganize the administrative and functional structure of the
808 different agencies or instrumentalities of the National Government, all transport-
809 related agencies shall continue to work closely in ensuring the efficient and
810 harmonized formulation and implementation of policies, programs, and projects
811 for the transport sector.
812
813 38.3 Appropriate measures for legislative action, such as the creation of respective
814 independent regulatory bodies for the railway, civil aviation, and maritime
815 transport sector shall be pursued. Actions/activities undertaken in relation thereto
816 shall be reported to the IATCTP and INFRACOM.
817
818 38.4 To enhance safety and security across the transport sector, it shall be the policy
819 to separate safety/security regulations and responsibilities from the economic/
820 social regulations and responsibilities across the transport agencies as soon as
821 practicable. An independent body that will investigate transport accidents and
822 provide transport safety recommendations where necessary, shall be created.
823
824 38.5 Appropriate separation and/or retirement remuneration/benefits shall be provided
825 to all the affected personnel whether hired on a permanent, temporary or
826 contractual basis and with appointment attested by the CSC due to the
827 restructuring/reorganization of concerned agencies.
828
829 Section 39. Coordination of All Transport Agencies and Metropolitan LGUs
830 39.1 The DOTr, in the exercise of its mandate to prepare and formulate plans,
831 programs and projects for the national transportation system, shall collaborate
832 with DPWH for the planning of road and bridge infrastructure. Likewise, the DOTr
833 together with other transport agencies shall ensure that all transport modes are
834 integrated and intermodal. All coordination activities are to be undertaken in
835 accordance with the respective mandates of the agencies concerned.
836
837 39.2 LGUs in metropolitan areas with no formal organization similar to Metro Manila,
838 may consolidate or coordinate their efforts, services, and resources for urban
839 transportation concerns or requirements that transcend individual administrative
840 boundaries, through agreements authorized under appropriate ordinances.
841
842 Section 40. Strengthening Institutional Capacity and Capability
 Draft version as of 16 July 2018

843 40.1 The DOTr will continuously develop its capacity in planning and project
844 implementation, and operation of transportation systems must endeavor to set
845 up a research and policy making arm to develop transport infrastructure.
846
847 40.2 The DOTr shall provide the general and overall policy direction for transportation,
848 its supervised and attached agencies/GOCCs shall provide the corresponding
849 rules and regulations to implement such policies.
850
851 40.3 Consistent with the objective of improving the public mass transport systems
852 such as rail, the Government shall undertake the necessary steps in establishing
853 a Philippine Railway Institute which will serve as a training center for employees
854 of public railways as well as for individuals desiring to acquire the technical skills
855 and expertise related to the rail sector. The PRI will also serve as a center for
856 capacity development for public railway operation, regulator for private railway
857 training centers and research arm for the development of the railways in the
858 country. In the interim, DOTr, in partnership with NCTS and other educational
859 institutions with existing programs related to railways, shall formulate the training
860 programs or courses for railway planning, design, operations and management.
861
862
863 RULE IX – FINAL PROVISIONS
864
865 Section 41. Amendments
866 The INFRACOM, through the IATCTP, may, as the need arises, formulate and
867 prescribe amendments to the IRR, consistent with the letter and spirit of the
868 Resolution. No amendments to these IRR may be adopted and prescribed by the
869 Committee without due public consultation/hearing and publication.
870
871 Section 42. Transitory Clause
872 All valid and existing contracts entered into by the Government prior to the effectivity
873 of this IRR shall not be impaired and shall be upheld.
874
875 Section 43. Separability Clause
876 Any portion or provisions of this IRR that may be declared unconstitutional or invalid
877 shall not have the effect of nullifying other portions or provisions hereof as long as
878 such remaining portions or provisions can still subsist and be given effect in their
879 entirety.
880
881 Section 44. Repealing Clause
882 All orders, memoranda, circulars and other issuances or parts thereof, which are
883 inconsistent with this IRR, are hereby repealed or modified accordingly.
884
885 Section 45. Effectivity
886 This IRR shall take effect fifteen (15) days after its publication in the Official Gazette
887 and in a newspaper of general circulation.
888
889 UNANIMOUSLY APPROVED.
890
891 __________2018, City of Manila, Philippines.
892
 Draft version as of 16 July 2018

ERNESTO M. PERNIA MARK A. VILLAR

Secretary of Socio-Economic Planning Secretary of Public Works and Highways
Chairman, INFRACOM Co-Chairman, INFRACOM

LEONCIO B. EVASCO, JR. SALVADOR C. MEDIALDEA

Cabinet Secretary Executive Secretary

CARLOS G. DOMINGUEZ, III BENJAMIN E. DIOKNO

Secretary of Finance Secretary of Budget and Management

ARTHUR P.TUGADE BERNADETTE ROMULO-PUYAT

Secretary of Transportation Secretary of Tourism

ALFONSO G. CUSI ELISEO M. RIO, JR.

Secretary of Energy OIC-Secretary of Information
and Communications Technology

EMMANUEL F. PIÑOL RAMON M. LOPEZ

Secretary of Agriculture Secretary of Trade and Industry
893