Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HB.No. 1522

Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR.

AN ACT
ESTABLISHING THE AKLAN AIRPORT AUTHORITY TO ADMINISTER
AND OPERATE THE KALIBO INTERNATIONAL AIRPORT AND THE
CATICLAN AIRPORT, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES

EXPLANATORY NOTE

Despite Boracay [sland’s stricter policies due to the ongoing COVID-19 pandemic and
its rehabilitation in 2018, the volume of tourists visiting Boracay is still huge In fact, the Island
welcomed a total of 267.278 tourists from January to March 2022 alone’. As the country continues
he contributions tourism will bring about through the
reopening of destinations such as Boracay Island cannot be overlooked.

to work towards full economic recover;

Given this, the facilities of the Caticlan and Kalibo airports must then be improved to
allow for better services offered to tourists visiting Boracay. In the same manner, the influx
of visitors in the Island is tantamount to greater Investments generating jobsand giving wider
economic opportunities for the people of Aklan.

In this light, this proposed measure seeks to establish the Aklan Airport Authority to
oversee the effective, efficient and economical management and supervision of the two
airportsin the province of Akian, namely the Caticlan Airport also known as Godofredo P.
Ramos Airport,in the Municipality of Malay, and the Kalibo International Airport in the
Municipality of Kalibo. In view of the foregoing, the passage of this bill is earnestly sought.

nossich's \\ WR

* Philippine Information Agency. Boracay welcomes over 260T tourists in QU.
hetps://pia.gov,ph /news/2022/04/08/boracay-welcomes-over-260t-tourists-in-q1


NINETEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
First Regular Session

H.B. nol522

Introduced by Representative TEODORICO “NONONG?" T. HARESCO, JR.

AN ACT
ESTABLISHING THE AKLAN AIRPORT AUTHORITY TO ADMINISTER AND.
OPERATE THE KALIBO INTERNATIONAL AIRPORT AND THE CATICLAN
AIRPORT, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congressassembled:

SECTION 1. Title. - This Act shall be known as the "Charter of the Aklan Airport
Authority’

SEC. 2. The Aklan Airport Authority. - There is hereby established a body corporate
to be known as Aklan Airport Authority, hereinafter referred to as “Authority,” which
shall be attached to the Department of Transportation. The principal office of the
Authority shall be located at the Kalibo International Airport, Kalibo, Aklan,

The Authority may have such branches, agencies, or subsidiaries as it may deem
proper and necessary.

SEC. 3. Primary Purpose and Objectives. - The Authority shall principally undertake
the effective, efficient and economical control, management and supervision of the
Kalibo International Airport in the Municipality of Kalibo and the Caticlan
Airport in the Municipality of Malay, hereinafter collectively referred to as
‘airports.”

In addition, it shall have the following objectives:

a) Encourage, promote, and develop international and air traffic in Western
Visayas as a means of making it a center of international trade and
tourism, and accelerating the development of the means of transportation
and communication in the country; and


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b) Upgrade the services and facilities of the airports and to formulate
internationally acceptable standards of airport accommodation and service.

SEC. 4, Duties and Functions. - The Authority shall have the following duties
and functions:

a) Formulate a comprehensive and integrated development policy and
programs ofthe airports and implement, review, and update such policy
and. program periodically;

b) Control, supervise, construct, maintain, operate, and provide such facilities
or servicesas shall be necessary for the efficient functioning of the airports;

c) To promulgate rules and regulations governing the _ planning,
development maintenance, operation, and improvement of the airports, and
to control and supervise the construction of any structure or the rendition of
any service within the airports;

d) Exercise all the powers of a corporation under Batas Pambansa Bilang 68,
as amended, otherwise known as the Corporation Code of the Philippines,
insofar as those powers are not inconsistent with the provisions of this Act;

©) 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 located in the Kalibo International Airport 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) Exercise the power of eminent domain in the pursuit of its purposes
and objectives;

g) Sue and be sued;

h) Levy and collect dues, charges, fees or assessment for the use of airport
premises, works, appliances, facilities or concessions, or for any service
provided by the Authority;

i) Retain and appropriate dues, and charges collected by the Authority
relative to the use of airport premises and for such measures as may be
necessary to make the Authority more effective in the discharge of its

assigned tasks;

j) Invest its idle funds, as it may deem proper, in government securities and
other evidences of indebtedness; and

k) Provide services, whether on its own or otherwise, within the airports and the



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approaches thereof as may be necessary or in connection with maintenance and
operation of the airports and their facilities.

SEC. 5. Police 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) Regulation of the entry to, exit from, and movement within the airports
©) Maintenance of peace and order within the premises of the Authority;
d) Regulation and supervision of private security agencies operating in the airports

e) Enforcement of the rules and regulations promulgated by the Authority pursuant
to law; and

f)_ Incase of emergencies or imminent danger involving national security within the
premises of the airports, the Philippines Air Force Security Command shall take
charge.

SEC. 6. Composition of the Board. - The corporate powers of the Authority shall
be exercised by and vested in the Board of Directors (Board) which shall be
composed of a chairman, a Vice Chairman and nine (9) members. The Secretary of
Transportation and the General Manager of the Authority shall be the ex-officio
Chairman and Vice Chairman of the Board, respectively.

The Secretary of Finance, the Secretary Tourism, the Secretary of Justice,
the Commissioner of Immigration, and the Provincial Governor of Aklan, or their
duly authorized representatives shall be ex-officio members of the Board. In addition,
four (4) members from the private sector who shall be residents of the Province of
Aklan shall be appointed by the Board for a term of three (3) years, subject to the
existing rules and regulations of the Governance Commission for GOCCs (GCG).

‘The Board shall promulgate its rules relative to meetings, quorum requirements
and compensation or allowances of the members, subject to existing rules and
regulations.

SEC. 7. Functions, 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) Define and approve the programs, plans, policies, procedure, and guidelines
of the Authority for the development and operation of the airports;


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b)

d)

e)

i)

Recommend to the President of the Philippines the appointment of a
General Manager of the Authority, who shall be the Chief Executive
Officer of the Authority;

Approve the Authority's organizational and administrative structure,
staffing pattern, operating and capital expenditures, and financial
budgets upon recommendation of the General Manager;

Approve the salary ranges, benefits and other terms and condition of service
for all officers and employees of the Authority upon recommendation of the
General Manager, which shall be subjected to existing laws, rules and
regulations;

Fix the rates of dues, charges, fees or assessments for the use of the
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

Exercise all functions and powers necessary or incidental to attain the purpose
and objectives of this Act

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:

a
)

b)

c)

ad

Direct and supervise the day-to-day management, operation and
administration of the airports;

Implement and enforce decisions, orders, rules and regulations issues,
prescribed, or adopted by the Board;

Undertake researches, studies, investigations and other activities related to
the present operations and future improvements of the airports, and
submit comprehensive reports and appropriate recommendation to the
Board for proper action;

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;

Execute contracts, incur obligations, acquire and dispose of assets, and
deliver documents on behalf of the Authority;

Grant permits or concessions to do business within the airports in accordance
with such rules and regulations to be promulgated by the Authority for the


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purpose; and

g) Perform such other duties as the Board may delegate or assign and such acts
as may necessary and proper to implement this Act

SEC. 9. Capital. - The Authority shall have an authorized capital stock equal to
or consisting of:

a) The value or fixed assets, including airport facilities, runways and equipment,
and such other properties, movable, currently administered by or belonging
to the airports as valued on the date of the effectivity of this Act;

b) The value of such real estate owned and/or administered by the airports; and

¢) Government contribution in such amount as maybe deemed an appropriate
initial amount, as approved by the President of the Philippines, which shall be
more or less equivalent to sixty (60) months working capital requirement of
the Authority shall be provided for the General Appropriations Act of the
year following the effectivity of this Act.

SEC, 10, Auditor. - The Commission on Audit 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 duties. The number and salaries of
the auditor and said personnel shall be determined by the Commission on Audit, in
accordance with the revised compensation and position classification system and
other applicable laws, rules and regulations.

‘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 and special reports as the Board may deem
necessary.

SEC. 11. Annual Report. - The Board shall submit to the President of the Philippines
and both Houses of Congress of the Philippines, through the Department of
‘Transportation, an annual report of the activities and operations of the Authority.

SEC. 12. Applicability of Civil Service Laws. ~ The Authority and its officials and
employees shall be subjected to the existing Civil Service laws and its rules
and regulations.

SEC. 13. Borrowing Power. - The Authority may, in accordance with existing laws,
rules, and regulations on local and foreign borrowing, raise funds, either from
local or international sources, by way of loans, credits or securities, and other
borrowing instrument, with the power to create pledges, mortgages, and other
voluntary liens or encumbrances on any of its assets or properties, upon
recommendation of the Secretary of the Transportation, subject to the prior approval
of the President of the Philippines.



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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
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 constructed 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.

SEC. 14, Tax Exemption. - The Authority shall be exempt from the payment of
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.

SEC. 15. Transfer of Existing Facilities and Intangible Assets. - All existing public
airport facilities, runways, lands, buildings and other properties movable and
immovable belonging to or presently administered by the airports, and all assets,
powers, rights, interest, or privileges relating to airport works or air operation,
including all equipment which are necessary for operation of the air navigation, air
traffic control and crash fire, and rescue facilities are hereby transferred to the
Authority.

SEC. 16. Transfer Liabilities and Debts. - Upon transfer to and acceptance by
the Authority of the 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 airports shall likewise be assumed
by the Authority.

SEC. 17. Projects in Progress. - All ongoing projects relating to the construction
of facilities of the airports shall be continued by the agency or agencies involved. Until
their completion thereafter, such projects shall be transferred to the Authority in
accordance with the agreement among agencies concerned. Any disagreement
relating to such transfer shall be submitted to the Board for final decision.

SEC. 18. Separability Clause. - If any provisions of this Act or the application of
such provision to any person or circumstances be declared unconstitutional, the
remainder of this Act or the application of such provision to other person or
circumstances shall not be affected by such declaration.

SEC. 19. Repealing Clause. - All laws, decrees, proclamations, executive orders, rules
and regulations or other issuances or parts thereof contrary to inconsistent
with the provisions of this Act are hereby repealed, amended or modified
accordingly.



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SEC. 20. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in two (2) national newspapers of general circulation.

Approved,