Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. _______ 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT 
PROVIDING FOR DEVELOPMENT AND MODERNIZATION FUND FOR 
THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES (CAAP), TO 
ENSURE UPGRADES TO ITS STANDARDS, SYSTEMS, AND 
PROCEDURES PRESCRIBED FOR CIVIL AVIATION PRACTICES AND 
FOR OTHER PURPOSES 
EXPLANATORY NOTE 
As it is a policy of the State to provide safe and efficient air transport 
and regulatory services, Republic Act 9497 otherwise known as the Civil 
Aviation Authority Act was enacted in 2008, creating the Civil Aviation 
Authority of the Philippines. 
Since its enactment, CAAP has been responsible for implementing 
policies on civil aviation to ensure safe, economical, and efficient air travel. In 
recent years, however, air travel has been among the most challenging in the 
country. Early this year, a 10-hour technical glitch paralyzed the operations 
of Ninoy Aquino International Airport, practically shutting down the 
Philippine airspace.  
The Department of Transportation (DOTr) has reported that to 
modernize the air traffic control system, the government needs more than P13 
billion. This is also supported by the findings of the Philippine Institute for 
Developmental Studies that among the prevailing issues of civil aviation is the 
funding for the operation and maintenance of transport infrastructure is 
usually not included in the budget.1 
1 Philippine Institute for Developmental Studies. Public seminar. April 13, 2023 
October 10, 2023
11:30 am
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This proposed measure seeks to provide additional Development and 
Modernization Fund to CAAP for the continuous upgrade of its standards, 
systems, and procedures prescribed for civil aviation and related functions to 
comply with the International Civil Aviation Organization and other 
international aviation standards. 
Air transport is responsible for a significant portion of the country’s 
gross domestic product and has been the leading facilitator of economic 
activities not only in the transport of goods and travel but also in the creation 
of millions of jobs directly or indirectly related to air transport.  
In view of the foregoing immediate passage of the bill is earnestly 
sought. 
REP. PM VARGAS 
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. _______ 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT 
PROVIDING FOR DEVELOPMENT AND MODERNIZATION FUND FOR 
THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES (CAAP), TO 
ENSURE UPGRADES TO ITS STANDARDS, SYSTEMS, AND 
PROCEDURES PRESCRIBED FOR CIVIL AVIATION PRACTICES AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "CAAP Development 
and Modernization Fund Act." 
SECTION 2. Declaration of Policy - It is hereby declared the policy of the 
State to provide safe and efficient air transport and regulatory services in the 
Philippines by providing for the creation of a civil aviation authority with 
jurisdiction over the restructuring of the civil aviation system, the promotion, 
development and regulation of the technical, operational, safety, and aviation 
security functions under the civil aviation authority. 
SECTION 3. Creation of CAAP Development and Modernization Fund. - 
There is hereby created the CAAP Development and Modernization Fund to be 
used exclusively for the CAAP Development and Modernization Programs. 
The primary objective of the fund is to ensure that CAAP is able to 
upgrade its physical and human resources, and operational techniques 
through the training and acquisition of state-of-the-art instruments, 
equipment and facilities to administer civil aviation in the country. 
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The said fund shall be administered by the Secretary of the Department 
of Transportation (DOTr), in coordination with the CAAP Director-General, in 
accordance with existing government budgeting, accounting and auditing 
rules and regulations. 
 
SECTION 4. Appropriation. - The amount of Five Billion Pesos (Php 
5,000,000,000.00) for the operations of the CAAP shall be chargeable against 
funds for the purpose and other sources recommended by the Department of 
Budget and Management (DBM). Thereafter, the appropriations for the CAAP 
shall be included in the budget proposals under the Department of 
Transportation (DOTr). 
 
The amount needed for the continued implementation of the 
modernization program, shall be included in the annual General 
Appropriations Act (GAA). 
 
 
The above-stated amount may be augmented by grants, bequests, 
contributions, and donations whether from local or foreign sources: Provided, 
That acceptance of grants, bequests, contributions, and donations from 
foreign governments shall be subject to the approval of the President upon 
the recommendation of the Secretaries of the DOTr and the Department of 
Foreign Affairs (DFA). 
 
This special appropriation will be valid for two (2) years from its 
effectivity. 
 
SECTION 4. Quarterly Progress Report to the Office of the President and 
Congress. - DOTr shall submit a quarterly report on the implementation 
status of the CAAP Development Programs to the Office of the President and 
Congress of the Philippines, through the House Committee on Transportation 
Chairperson and Senate Committee on Public Services. 
 
SECTION 5. Period of Implementation. - The development and 
modernization program under this Acts shall be implemented for an initial 
period of two (2) years: Provided, That payments for multi-year contract 
obligations incurred under this Act may extend beyond this period: Provided, 
further. That CAAP shall continuously develop, modernize and update its 
operational capabilities to be aligned with current global civil aviation 
practices and standards. 
 
SECTION 6. Implementing Rules and Regulations (IRR). - Within sixty (60) 
days after the effectivity of this Act, the DOTr, in coordination with CAAP, 
shall formulate the necessary IRR to implement the provisions of this Act. 


 
SECTION 7. Separability Clause. - If any part or provision of this Act shall 
be declared invalid or unconstitutional, the other provisions hereof not 
affected shall continue to be in full force and effect. 
 
SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule, or regulation 
contrary to or inconsistent with the provisions of this Act are hereby repealed, 
modified, or amended accordingly. 
 
SECTION 9. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette or in two (2) newspapers of general 
circulation in the Philippines. 
 
Approved,