THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
Introduced by Senator Franklin M. Drilon 
EXPLANATORY NOTE 
The country can truly expect the development and dispersal of domestic 
and international trade and tourism that the administration demands through this 
bill which proposes the creation of the Iloilo International Airport Authority. 
Under the bill, the Authority will principally designate a specific area in the 
Province of Iloilo as the site of the Iloilo International Airport. The airport shall 
be a regular airport of entry for aircrafts arriving in the Philippines from any 
place outside thereof. 
The authority shall also undertake the economical, 
efficient and effective control, management and supervision of the Iloilo 
International Airport and such other airports as may be established in the 
Province of Iloilo. 
The objective of providing internationally acceptable standards of airport 
operations and services can be best achieved by a separate office specifically 
tasked to do the job. 
The Province of Iloilo, being the country's gateway to the Panay Islands, 
is not only a center of tourism but also of local and international business and 
commerce outside Luzon. 
Wherefore, immediate passage of this bill is urgently sought. 


I 
I /  , 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
1 
S. No. 
Introduced by Senator Franklin M. Drilon 
AN ACT 
CREATING THE ILOILO INTERNATIONAL AIRPORT AUTHORITY, 
PRESCRIBING ITS STRUCTURE, POWERS AND FUNCTIONS 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
Section I. Title, - This Act shall be known as the "Charter of the Iloilo 
International Airport Authority". 
Section 2. Creation of the Iloilo International Airport Authority. 
- There is hereby established a body corporate to be known as the Iloillo 
International Airport Authority which shall be attached to the Department of 
Transportation and Communications. 
The principal office of the Authority shall be located at the Iloilo 
International Airport, Province of Iloilo. 
The Authority may have such branches, agencies or subsidiaries as it may 
deem proper and necessary. 
Section 3. Primary Purposes and Objectives -The Authority shall 
principally designate a specific area in the Province of Iloilo but outside the City 
of Iloilo as the site of the Iloilo International Airport. The Airport shall be a 
regular airport of entry for aircrafts arriving in the Philippines from any place 
outside thereof. 
The Authority shall undertake economical, efficient and effective control, 
management and supervision of the Iloilo International Airport and such other 
airports as may be established in the Province of Iloilo. In addition, it shall have 
the following objectives: 
a. To encourage, promote and develop international and domestic air 
traffic in the Western Visayas region as a means of making the region 
a center of international trade and tourism, and accelerating the 
development of the means of transportation and communications in 
the country; and 


b. To upgrade the services and facilities of the airport and to formulate 
internationally acceptable standards of the airport accommodation and 
service. 
Section 4. Functions, Powers and Duties, - The Authority shall have 
the following functions, powers and duties: 
a. To formulate a comprehensive and integrated development policy and 
program for the airport and to implement, review and update such 
policy and program periodically; 
b. To control, supervise, construct, maintain, operate and provide such 
facilities or services as shall be necessary for the efficient functioning 
of the airport; 
c. To promulgate rules and regulations governing the planning, 
development, maintenance, operation and improvement of the airport, 
and to control and supervise the construction of any structure or the 
rendition of any service within the Airport; 
d. To exercise all the powers of a corporation under the Corporate Code 
of the Philippines, insofar as those powers are not inconsistent with 
the provisions of this Act; 
e. To acquire, purchase, own, administer, lease, mortgage, sell or 
otherwise dispose of any land, building, airport facility, or property of 
whatever kind and nature, whether movable or immovable, or any 
interest therein: 
Provided, That any asset important to national 
security shall not be subject to alienation or mortgage by the Authority 
nor to transfer to any entity other than the National Government; 
f. To exercise the power of eminent domain in the pursuit of its purposes 
and objectives; 
g. To levy and collect dues, charges, fees or assessments for the use of 
airport premises, works, appliances, facilities or concessions, or for any 
service provided by the Authority; 
h. To retain and appropriate dues, fees, and charges collected by the 
Authority relative to the use of airport premises for such measures as 
may be necessary to make the Authority more effective and efficient in 
the discharge of its assigned tasks; 
i. To invest its idle funds, as it may deem proper, in government 
securities and other evidences of indebtedness; and 
j. To provide services, whether on its own or otherwise, within the 
airport and the approaches thereof as may be necessary or in 
connection with the maintenance and operation of the airport and its 
facilities. 
. 
Section 5. Poke Authority. - The Authority shall have the power to 
exercise such police authority as may be necessary within its premises or areas 
of operation to carry out its functions and attain its purposes and objectives: 


Provided, That the Authority may request the assistance of law enforcement 
agencies, including request for deputization as may be required. Such police 
authority shall be exercised in connection with the following, among others: 
a. Maintenance of security to passengers, cargoes, aircraft, airport 
equipment, 
structures, 
facilities, 
personnel, 
funds 
and 
documents; 
b. Regulating the entry to, exit from and movement within the 
airport; 
c. Maintenance of peace and order within the premises of the 
Authority; 
d. Regulation and supervision of private security agencies 
e. Enforcement of rules and regulations promulgated by the 
operating in the airport; 
Authority pursuant to law; and 
f. In case of emergencies or imminent danger involving national 
security within the airport premises, the Philippine Air Force 
Security Command shall take charge. 
Section 6. 
Board of Directors, - The corporate powers of the 
Authority shall be exercised by and vested in a Board of eleven (11) members, 
which shall be composed of a Chairman, a Vice-chairman and nine (9) members. 
The Secretary of Transportation and Communications and the General Manager 
of the Authority shall be the ex-officio Chairman and Vice-chairman of the Board, 
respectively. The Assistant Secretary of the Air Transportation Office and the 
Secretaries of the following executive departments or any Undersecretary or 
Assistant Secretary designated by the respective Secretaries shall be the ex- 
officii0 members, to wit: the Department of Finance, the Department of Justice 
and the Department of Tourism. In addition, four (4) members recommended 
by the governor of the Province of Iloilo shall be appointed by the President of 
the Philippines for a term of four (4) years from the private sector. The governor 
of the Province of Iloilo or his duly authorized representative shall be the ninth 
member. 
. 
The Board shall promulgate its rules relative to meetings, quorum 
requirements and compensation or allowances of the members of the Board. 
Section 7. 
Functionq, Powers and Duties of the Board, - In 
addition to the powers vested in the Board under the other sections of this Act, 
the Board shall have the following functions, powers and duties: 
a. To define and approve the programs, plans, policies, procedures and 
guidelines of the Authority for the construction, development and 
operation of the airport; 
b. To appoint the General Manager of the Authority who shall be the 
chief executive officer of the Authority; 


C. 
d. 
e. 
f. 
To approve the Authority's organizational and administrative structure, 
staffing pattern, operating and capital expenditures, and financial 
budgets, upon recommendation of the General Manager, subject to the 
existing laws, rules and regulations; 
To approve salary ranges, benefits and other terms and conditions of 
service for all officers and employees of the Authority, upon 
recommendation of the General Manager, which shall, as far as 
possible, be competitive with those offered in the private sector, 
subject to existing laws, rules and regulations; 
To fix the rate dues, charges, fees or assessments for the use of 
airport premises, works, appliances, facilities, concessions, services 
and other fees and charges related to the activities of the airport, upon 
recommendation of the General Manager; and 
Generally, to exercise all the functions and powers necessary or 
incidental to attain the purposes and objectives of this Act. 
Section 8. Functions, >Powers and Duties of the General Manager. 
-The General Manager shall be directly responsible to the Board and shall have 
the following functions, powers and duties: 
a. 
b. 
C. 
d. 
e. 
f. 
9. 
To direct and supervise the day-to-day management, operation and 
administration of the airport; 
To implement and enforce decisions, orders, rules and regulations 
issued, prescribed or adopted by the Board; 
To undertake researches, studies, investigations and other activities 
related to the present operations and future improvement of the 
airport, and to submit comprehensive reports and appropriate 
, 
recommendation to the Board for proper action; 
To appoint, transfer, suspend, remove or otherwise discipline any 
subordinate officer or employee of the Authority, subject to the 
approval of the Board and in accordance with the existing rules and 
regulations of the Civil Service Commission; 
Within the limits of the authority delegated to him by the Board, to 
execute contracts, incur obligations, acquire and dispose of assets and 
deliver documents on behalf of the Authority; 
To grant permits or concessions to do business within the airport in 
accordance with such rules and regulations to be promulgated by the 
Authority for the purpose; and 
To perform such other duties as the Board may delegate or assign, 
and such acts as may be necessary and proper to implement this Act.. 
Section 9. Capitad - The Authority shall have an authorized capital 
stock equal to and consisting of: 


a. 
b. 
C. 
The value of fixed assets (including airport facilities, runways and 
equipment) and such other properties, movable and immovable, to be 
acquired; 
The value of such real estate to be owned and/or administered by the 
airport; and 
Government contribution in such amount as may be deemed an 
appropriate initial balance. Such initial amount, as approved by the 
President of the Philippines, which shall be more or less equivalent to 
six (6) months working capital requirement of the Authority, is hereby 
authorized to be appropriated in the General Appropriations Act of the 
year following its enactment into law. 
Thereafter, the government contribution to the capital of the Authority 
shall be provided for in the General Appropriations Act. 
Section IO. Auditu~ -The Commission on Audit (COA) shall appoint a 
representative who shall be the auditor of the Authority, together with the 
necessary personnel to assist said representative in the performance of his 
duties. The number and salaries of the auditor and said personnel shall be 
determined by the Chairman of the COA, subject to the rules and regulations of 
said commission. 
The auditor shall, as soon as possible, but not later than three (3) months 
after the accounts have been submitted for audit, send an annual report to the 
Board. The auditor may also submit such periodic or special reports as the 
Board m'ay deem necessary. 
Section 11, Annua/ Report - The Board shall submit to the President 
of 
the 
Philippines through 
the 
Department of 
Transportation 
and 
Communications and to both House of Congress of the Philippines, together with 
the audit report on the relevant accounts, an annual report generally dealing 
with the activities and operations of the Authority. 
. 
Section 12. App/icabi/ity of Civil Service Laws, -The Authority and 
its officials and employees shall be subject to the Civil Service Law and its rules 
and regulations. 
Section 13. Borrowing Power. -The Authority may, in accordance 
with Section 21, Article XI1 of the Constitution and other existing laws, rules and 
regulations on local and foreign borrowing, raise funds, either from local or 
international sources, by way of loans, credit or securities, and other borrowing 
instruments with the power to create pledges, mortgages and other voluntary 
liens or encumbrances on any of its assets or properties, subject to the prior 
approval of the President of the Philippines. 
All loans contracted by the Authority under this section, together with all 
interests and other sums payable in respect thereof, shall constitute a charge 
upon all the revenues and assets of the Authority and shall rank equally with one 
another, but shall have priority over any other claim or charge on the revenue 
and assets of the Authority: Provided, That this provision shall not be construed 
as a prohibition or restriction on the power of the Authority to create pledges, 
. 


mortgages and other voluntary liens or encumbrances on any asset or property 
of the Authority. 
The payment of the loans or other indebtedness of the Authority may be 
guaranteed by the National Government subject to the approval of the President 
of the Philippines. 
Section 14. Tax Exemptions, - The Authority shall be exempt from 
realty taxes imposed by the National Government or any of its political 
subdivisions, agencies and instrumentalities: Provided, That no tax exemption 
herein granted shall extend to any subsidiary which may be organized by the 
Authority. 
Section 15. Abolition of the Mandurriao Airport as a Division in 
the Air Transportation Office. - The Mandurriao Airport, as a division under 
the Air Transportation Office, is hereby abolished. The Airport General Manager 
of the Mandurriao Airport shall continue in office and shall perform all powers 
and functions of the Authority until such time as the General Manager is 
appointed for the smooth transfer of responsibility from the abolished entity to 
the Authority, as well as the employees whose services are terminated shall, if 
not eligible for retirement, be given gratuities equivalent to one (I) month salary 
for every year of continuous satisfactory service on the basis of the highest 
salary received in addition. 
Section 16. Transfer of Existing Facilities and Intangible Assets. 
- All existing public airport facilities, runways, lands, buildings and other 
properties, movable or immovable, belonging to or presently administered by the 
Mandurriao Airport, and all assets, powers, rights, interest and privileges relating 
to airport works or air operations, including all equipment which are necessary 
for the operation of air navigation, aerodome control towers, crash, fire and 
rescue facilities are hereby transferred to the Authority: Provided, however, That 
the operational control of all equipment necessary for the operation of radio aids 
to air navigation, airways communication, the approach control office, and the 
area control center shall be retained by the Air Transportation Office. 
No 
equipment, however, shall be removed by the Air Transportation Office from 
Mandurriao without the concurrence of the Authority. The Authority may assist 
in the maintenance of the Air Transportation Office equipment. 
Section 17. Projects in Progress, - All ongoing projects relating to the 
construction of airport facilities and supply of equipment shall be administered 
and undertaken by the Authority. 
Section 18. Transfer of Liabilities and Debts, - Upon the transfer to 
and acceptance by the Authority of the existing physical facilities, intangible 
assets and completed projects referred to in the preceding sections, all debts, 
liabilities and obligations of government agencies or entities concerned in respect 
of such physical facilities, tangible assets and completed projects within the 
airport shall likewise be assumed by the Authority. 
Section 19. Repealing Clause. - All laws, executive orders, letters of 
instruction, rules and regulations, or provisions thereof which are inconsistent 
with the provisions of this Act are hereby repealed, amended or modified 
according I y . 


Section 20. Separabi/i.C'/ause. - If any portion hereof shall be held 
invalid or unconstitutional, such invalidity or unconstitutionality shall not affect 
the other provisions which shall remain in full force and effect. 
Section,21. €ffectMfy. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) national newspapers of general circulation. 
Approved.