'sennh 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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"13 
JUL -9 1\9 :11 
SENATE 
S.B.No. 667 
-----------------------------------------------------
Introduced by Senator LOREN LEGARDA 
EXPLANATORY NOTE 
This bill seeks to establish the Aklan Airport Authority to oversee the 
economical, efficient and effective control, management and supervision of the 
Kalibo Airport in the Municipality of Kalibo and the Caticlan Airport in the 
Municipality of Malay, both in Aklan. 
The world famous resort of Boracay in the Province of Aklan is one of the top 
tourist destinations of the Philippines. Business activities also flourished in the area 
to cater to foreign and local visitors. 
Volumes of passenger air traffic plying the Kalibo-Manila-Kalibo, Manila-
Caticlan-Manila, and Kalibo-Cebu-Kalibo routes have steadily grown due to both 
domestic and foreign tourist arrivals. Thus, there is a need to improve, expand, and 
upgrade the facilities in the two airports including night landing and all weather 
airport equipment and system, to cope with the demands of tourism and maximize 
the business and trade brought about by the same. 
Through the passage of this bill, such need will be addressed. 
In view of the foregoing, immediate passage of the bill is earnestly sought. 
"Vf 
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:::. 
Senator 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 667 
Introduced by Senator Loren Legarda 
AN ACT 
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'13 
JUL -9 A 9 :11 
CREATING THE AKLAN AIRPORT AUTHORITY AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
1 
Section 1. Title. - This Act shall be known and cited as the U Charter of the 
2 
Aklan Airport Authority." 
3 
4 
Sec 2. Creation of the Aklan Airport Authority. - There is hereby established 
5 
a body corporate to be known as Aklan Airport Authority which shall be attached to 
6 
the Department of Transportation and Communications. The principal office of the 
7 
Authority shall be located at Kalibo, Province of Aklan. 
8 
9 
The Authority may have such branches, agencies or subsidiaries as it may 
10 
deem proper and necessary. 
11 
12 
Sec. 3. Primary Purpose and Objectives. - The Authority shall principally 
13 
undertake the economical, efficient and effective control, management and 
14 
supervision of the Kalibo Airport in the Municipality of Kalibo and Catic1an Airport 
15 
in the Municipality of Malay, hereinafter collectively referred to as the airports, and 
16 
such either airports as may be established in the Province of Aklan. In addition, it 
17 
shall have the following objectives: 
18 
19 
(a) 
To encourage, promote and develop international and air traffic in the central 
20 
and western Visayas regions as a means of making regions centers of 
21 
international communication in the country; and 
1 


1 
(b) 
To upgrade the services the facilities of the airports and formulate 
2 
international acceptable standards of airports accommodation and service. 
3 
4 
Sec. 4. Functions, Powers and Duties. - The Authority shall have the 
5 
following, powers and duties: 
6 
7 
(a) 
To formulate comprehensive and integrated development policy and 
8 
programs of the airport and to implement, review and update such policy 
9 
and program periodically; 
10 
(b) 
To control supervise, construct, maintain, operate and provide such facilities 
11 
or services as shall be necessary for the efficient functioning of the airports; 
12 
(c) 
To promulgate rules and regulations governing the planning, development 
13 
maintenance, operation and improvement of the airports, to control and 
14 
supervise the construction of any structure or the rendition of any service 
15 
within the airports; 
16 
(d) To exercise all the power of the Corporation Code of the Philippines, insofar 
17 
as those powers are not consistent with the provisions of this Act; 
18 
(e) 
To acquire, purchase, own, administer, lease, mortgage, sell or otherwise 
19 
dispose of any land, building, airport facility, or property of whatever kind 
20 
and nature, whether movable or immovable, or any interest therein: Provided 
21 
that any asset located in the Kalibo Airport important to national security 
22 
shall not be subject to alienation or mortgage by the authority nor to transfer 
23 
to any entity other than the National Government; 
24 
(f) 
To exercise the power of eminent domain in the pursuit of its purposes and 
25 
objectives; 
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(g) To levy and collect dues, charges, fees or assessments of the use of the airport 
27 
premises works, appliances, facilities or concession, or for any service 
28 
provided by the Authority. 
29 
(h) To retain and appropriate dues, and charge collected by the Authority 
30 
relative to the use of airport premises for such measures as may be necessary 
31 
to make the authority more effective and efficient in the discharge of the 
32 
assigned tasks; 
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(i) 
To invest its idle funds, as it may deem proper in government securities and 
34 
other evidence of indebtedness: and 
2 


I 
0) 
To provide services, whether on its own otherwise, within the airports and 
2 
the approaches thereof as may be necessary or in connection with the 
3 
maintenance and operation of the airports and their facilities. 
4 
5 
Sec. 5. Police Authority. - The Authority shall have the power to exercise 
6 
such police authority as may be necessary within its premises or areas of operation 
7 
to carry out its functions and attain its purposes and objective: Provided that the 
8 
Authority may request the assistance of the law enforcement agencies, induding 
9 
request for deputization as may be required. Such police authority shall be exercise 
lOin connection with the following among others: 
11 
12 
(a) Maintenance of security to passengers, cargoes, aircraft, airport, equipment, 
13 
structures, facilities, personnel, funds and documents; 
14 
(b) Regulating the entry to, exit from and movement within the airports; 
15 
(c) Maintenance of peace and order within the premises of Authority; 
16 
(d) Regulation and supervision of private security agencies operating in the 
17 
airports; 
18 
(e) Enforcement of the rules and regulations promulgated by the Authority 
19 
pursuant to law; and 
20 
(f) In case of emergencies or imminent danger involving danger involving 
21 
national security within the airport premises, the Philippine Air Force 
22 
Security Command shall take charge. 
23 
24 
Sec. 6. Boards of Directors. - The corporate powers of the Authority shall be 
25 
exercised by the board of eleven (11) members, which shall be composed of a 
26 
chairman a vice chairman and nine (9) members. The Secretary of Transportation 
27 
and Communication and the General Manager of the Authority shall be the ex-
28 
officio chairman and vice chairman of the boards, respectively. The Secretary of 
29 
Finance, the Secretary of Tourism, The Chief of Staff of the Armed Forces of the 
30 
Philippines, the Commissioner of Immigration and Deportation, and the Provincial 
31 
Governor of Aklan, or their duly authorized representatives shall be ex-officio 
32 
members together with four (4) members from the private sector who shall be 
33 
residents of Aklan to be appointed by the board upon recommendation of the 
34 
provincial Governor. 
3 


1 
The Board shall promulgate its rules relative to meetings, quorum 
2 
requirements and compensation or allowances of the members, provided, that said 
3 
compensation or allowance shall be in accordance with existing rules and 
4 
regulation. 
5 
6 
Sec. 7. Functions, Powers, and Duties of the Board. -
In addition to the 
7 
powers vested in the Board under the other sections of this Act, the board shall have 
8 
the following functions, powers and duties; 
9 
10 
(a) 
To define and approve the programs, plans, policies, procedure, and 
II 
guidelines of the Authority who shall be done by the Chief Executive Officer 
12 
of the Authority; 
13 
(b) 
To recommend to the President of the Philippines for the appointment, a 
14 
general manager of the Authority who shall be the Chief Executive Officer of 
15 
the Authority; 
16 
(c) 
To approve the Authority's organizational and administrative structure, 
17 
staffing pattern, operating and capital expenditures, and financial budgets 
18 
upon recommendation of the General Manager; 
19 
(d) 
To approve the salary ranges, benefits and other terms and condition of 
20 
service for all officers and employees of the authority upon recommendation 
21 
of the General Manager, which shall be subjected to existing laws, rules and 
22 
regulation; 
23 
(e) 
To fix the rates of dues, charges, fees or assessments for the use of the airport 
24 
premises, works, appliances, facilities, concessions, services and other fees 
25 
and charges related to the activities of the airport, upon recommendation of 
26 
the general manager, and 
27 
(f) 
To exercise all functions and powers necessary or incidental to attain the 
28 
purpose and objectives of this Act. 
29 
30 
31 
32 
33 
Sec. 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, power and duties: 
, 
34 
(a) 
To direct and supervise the day-to-day management, operation and 
35 
administration of the airports; 
4 


1 
(b) 
To implement and enforce decisions, orders, rules and regulations issues, 
2 
prescribed or adopted by the Board; 
3 
(c) 
To undertake the researches, studies, investigations and other activities 
4 
related to the present operations and future improvements of the airports, 
5 
and to submit comprehensive reports and appropriate recommendation to 
6 
the Board of proper action; 
7 
(d) To appoint, transfer, suspend, remove or otherwise any subordinate officers 
8 
or employees of the Authority, the approval of the board; 
9 
(e) 
Within the limits of the Authority delegated to him by the Board, to execute 
10 
contracts, incur obligations, acquire and dispose of assets, and deliver 
11 
documents on behalf of the Authority; 
12 
(f) 
To grant permits or concessions to do business with the airports in 
13 
accordance with such rules and regulations to be promulgated by the 
14 
Authority for the purpose; and 
15 
(g) 
To perform such other duties as the Board may delegate or assign and such 
16 
acts as may necessary and proper to implement this Act. 
17 
18 
Sec. 9. Capital. - The Authority shall have an authorized capital stock equal 
19 
to or consisting of: 
20 
21 
(a) 
The value of fixed assets (including airport facilities, runways and 
22 
equipment) and such other properties, movable, currently administered by or 
23 
belonging to the airports as valued on the date of the effectivity of this Act; 
24 
(b) 
The value of such real estate owned and! or administered by the airports; 
25 
(c) 
Government contribution in such amount as maybe deemed an appropriate 
26 
initial amount, as approved by the president of the Philippines which shall be 
27 
more or less equivalent to sixty (60) months working capital requirement of 
28 
the requirement of the Authority shall be provided for the General 
29 
Appropriations Act. 
30 
31 
Sec. 10. Distribution of Income. - Should the Authority operate with a profit, 
32 
the net income shall be distributed as follows: 
33 
34 
(a) 
Thirty Percent (30%), shall be remitted to the National Government; 
35 
(b) 
Ten Percent (10%) shall be remitted to the Provincial Government; 
5 


· . 
1 
(c) 
Five Percent (5%) shall be remitted to the Municipal Government of Kalibo; 
2 
and 
3 
(d) Fifty-Five Percent (55%) shall be retained by the Aklan Airport Authority for 
4 
capital and other improvement. 
S 
6 
Sec. 11. Auditor. - The Commission on Audit may appoint a representative 
7 
who shall be the auditor of the Authority together with the necessary personnel to 
8 
assist said representative in the performance of his duties the number and salaries of 
9 
the auditor and said personnel shall be determined by the chairman if the 
10 
Commission on Audit in accordance with the revised compensation and position 
11 
classification system and other applicable laws, rules and regulation. 
12 
13 
The Auditor shall as soon as possible but not later than three (3) months after 
14 
the accounts have been submitted for audit, send annual report to the Board. The 
15 
Auditor may also submit such periodic and special reports as the Board deem 
16 
necessary. 
17 
18 
Sec. 12. Annual Report. - The Board shall submit to the President though the 
19 
Department of Transportation and Communication and both Houses of Congress of 
20 
the Philippines, together with the audit report of the relevant accounts, an annual 
21 
report generally dealing with the activities and operations of the Authority. 
22 
23 
Sec. 13. Applicability of the Civil Service Laws. - The Authority and its 
24 
officials and employees shall be subjected to the civil service laws and its rules and 
25 
regulations. 
26 
27 
Sec. 14. Borrowing Power. - The Authority may, in accordance with existing 
28 
laws, rules, and regulations on local and foreign borrowing, raise, either from local 
29 
or international sources, by way of loans, credits or securities, and other borrowing 
30 
instrument with the power to create the pledges, mortgages and other voluntary 
31 
liens or encumbrances or any of its assets or properties upon recommendation of the 
32 
Secretary of the Transportation and Communications and subject to the prior 
33 
approval of the President of the Philippines. 
34 
6 


· . 
1 
All loans contracted by the Authority under this section together with all 
2 
interests and other sums payable in respect thereof shall constitute a charge upon aU· 
3 
revenues and assets of the Authority and shall rank equally with one another, but 
4 
shall have priority over any other claim on charge on the revenue and assets of the 
5 
authority; Provided, that this provision shall not be constructed as a prohibition or 
6 
restriction on the power of the authority to create pledges, mortgages and voluntary 
7 
liens or encumbrances on any assets or property of the Authority. 
8 
The Payment of the loans or other indebtedness of the Authority may be 
9 
guaranteed by the National Government subject to the approval of the President of 
10 
the Philippines. 
11 
12 
Sec. IS. Tax Exemption. - The Authority shaft be exempt from the payment of 
13 
corporate income taxes. The Authority shall likewise be exempt from realty taxes 
14 
imposed by the National Government or any of its political subdivisions, agencies 
15 
and subsidiary which may be organized by the authority shall be for period of five 
16 
(5) years from the effectivity of this Act. 
17 
18 
Sec. 16. Transfer of Existing Facilities and Intangible Assets. - All existing 
19 
public airport facilities, runways, lands, buildings and other properties movable and 
20 
immovable belonging to or presently administered by the airports, and all assets, 
21 
powers, rights, interest or privileges relating to airport works or air operation, 
22 
including all equipment which are necessary for operation of the air navigation, air 
23 
traffic control and crash fire, and rescue facilities are hereby transferred to the 
24 
Authority. 
25 
26 
Sec. 17. Projects in Progress. -
All ongoing projects relating to the 
27 
construction of airport facilities shall be continues by agency or agencies involved 
28 
until their completion thereafter such projects shall be transferred to the Authority 
29 
in accordance with agreement among agencies concerned. Any disagreement 
30 
relating to such transfer shall be submitted to the President of the Philippines for 
31 
final decision. 
32 
33 
Sec. 18. Transfer Liabilities and Debts. - Upon transfer to and acceptance by 
34 
the Authority of the physical facilities, intangible assets and completed projects 
35 
referred to in the preceding sections, all debts, liabilities and obligations of 
7 


1 
government agencies or entities concerned in respect of such physical facilities, 
2 
tangible assets and completed projects within the airports shall likewise be assumed 
3 
by the Authority. 
4 
5 
Sec. 19. Funding. - The amount necessary to initially pay for the capital stock 
6 
of the Authority shall be included in the General Appropriations Act of the year 
7 
following its approval. Thereafter, subsequent government contribution to the 
8 
capital of the Authority shall be included in the General Appropriations Act. 
9 
10 
Sec. 20. Abolition of Kalibo Airport as a Division of the Air Transportation 
11 
Office. - The Kalibo Airport including the Catic1an Airport as a division under the 
12 
Air Transportation Office is hereby abolished. The Airport General Manager of the 
13 
Kalibo Airport shall continue in office and shall perform all powers and functions of 
14 
the Authority until such time as the General Manager is appointed for the smooth 
15 
transfer of responSibility from the abolished entity to the Authority; Provided, that no 
16 
official or employee shall be terminated; and Provided further, that existing personnel 
17 
shall have the option either to be absorbed by the Authority or remain with the Air 
18 
Transportation Office. 
19 
20 
Sec. 21. Repealing Clause. - All laws, executive orders, letters of instructions, 
21 
rules and regulations or provisions thereof which are inconsistent with this Act are 
22 
hereby repealed, amended or modified accordingly. 
23 
Sec. 22. Separability Clause. - If any portion of this Act shall be held invalid 
24 
or 'unconstitutional, such invalidity or unconstitutionality shall not effect the other 
25 
provisions hereof which shall remain in full force effect. 
26 
27 
Sec. 23. EffectiVity Clause. - This act shall take effect fifteen (15) days after its 
28 
publication in two (2) newspapers of general circulation. 
29 
30 
Approved, 
. 8