Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

o~ 3754

HOUSE BILL NO.

Introduced by HON. BAMBI B. EMANO

AN ACT UPGRADING THE LAGUINDINGAN AIRPORT INTO AN
INTERNATIONAL AIRPORT, ESTABLISHING THE LAGUINDINGAN
INTERNATIONAL AIRPORT AUTHORITY (LIAA), AND APPROPRIATING
FUNDS THEREFOR

EXPLANATORY NOTE

Mitigating airport congestion is one of the crucial issues that our former president Rodrigo
Roa Duterte wanted to address in his Infrastructure Program (Build, Build, Build). Currently, our
newly proclaimed President Bongbong Marcos stated in his State of the Nation Address (SONA)
that he is in full support of the program and would therefore have an expanded version as the
Manila International Airport has been facing millions of passengers experiencing delays and air
traffic due to congestion. It greatly affects the on-time performance of airlines, operational
reputation of airports and air travel experience of passengers.

Laguindingan Airport seats as a gateway to all Northern Mindanao. This is the second
busiest airport in Mindanao, serving travelers from numerous provinces and cities including
portions of the BARRM particularly Lanao del Sur.

‘This bill seeks to upgrade the Laguindingan Airport to an international airport and to
establish the Laguindingan International Airport Authority (LIAA), an organization that would
effectively oversee and manage the Laguindingan International Airport's operations. This upgrade
would enhance the airport's operational capabilities, decongest the Manila International Airport,

and boost tourism in the unexplored tourist spots in the whole province.

Additionally, this calls for an improvement in the capacity of security and safety features
of the airport facilities. It would also entail expanding or creating new runways, modernizing
airport facilities, remodeling current terminals, boosting the airport's staff, and adding new
navigational and air traffic control aids. By no longer passing through Manila, Misamis Oriental
residents, Muslims, OFWs, and tourists can save money and time. Furthermore, with the creation



of the Laguindingan International Airport Authority (LIA), we hope to achieve the desired level
of effectiveness and efficiency in the management of the Laguindingan International Airport.

In view of the foregoing, immediate approval of this bill is earnestly sought. |

HON. BAMBI B. EMANO

_- Representative”
2nd District, Misamis Oriental



s
)F REPRESENTATIVES
Quezon City

ce 3754

HOUSE BILL NO.

by HON. BAMBI B. EMANO

AN ACT UPGRADIN

C AGUINDINGAN AIRPORT INTO AN
RNATIONAL AIRPOR'

HING THE LAGUINDINGAN

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled.

SECTION 1. The Laguindingan Airport shall be upgraded into an international airport to be
known as Laguindingan International Airport

]ON 2. ‘The Department of Transportation shall create a task force to implement a
master plan of action necessary to carry out the purpose of this Act, There shall be an upgrade of
existing terminals. airport facilities, extension or construction of runways and installation of
ional and air traffic control aids.

for the implementation of this Act shall be included
the current Ge Appropriations Act of the Department of Transportation, thereafter such sum
sary for the international airport shall be included in the General Appropriations Act

nec

SECTION 4, The Department of Transportation shall issue the necessary rules and
jons for the effective implementation of this Act

ION 5. There is hereby established a body corporate to be known as Laguindingan
al Airport Authority (LIAA). hereinafter referred to as "Authority". which shall be
attached to the Department of Transportation (DOTr). The principal office of the Authority shall
be located at the Laguindingan International Airport, Misamis Oriental.

The Authority shall have such branches, agencies, or subsidiaries a
necessary.

it deems proper and


SECTION 6. The Authority shall principally undertake the economi
effective control, management,
Misamis Oriental. In addition, it shall have the following objectives:

a)

b)

a)

bd)

©

d)

)

hy

ny

ECTION 7. Th

al. efficient, and
1 International Airport in

nd operation of the Laguindin

‘To encourage, promote and develop international and domestic air traffic in Northern
Mindanao, as a means of making the region a center of international trade and tourism

and accelerating the development of the me:
in the country; and

To upgrade the services
formulate international 3

of transportation and communications.

cd facifities of the Laguindingan International Airport and
eptable standards of airport accommodation and service

Authority shall have the following powers and functions:

To for
Laguindingan Internatio
program periodically:
‘To supervise, control, construct, maintain, operate, and provide such facilities or
services as shall be necessary for the efficient functioning of the Laguindingan
International Airport. with international Civil Aviation Organization (ICAO)
standards:

To promulgate rules and regulations governing the planning, development,
maintenance. operation and improvement of the Laguindingan International Airport,
and to supervise and control the construction of any structure or the rendition of any
service within the Laguindingan International Airport:

To exercise all the powers of a corporation under the Corporation Code of the
Philippines, insofar as those powers are not inconsistent with the provisions of this
Act
To acquire, purchase, own, administer, lease. mortgage, sell or otherwise dispose of
any land, building, aisport facility, or property of whatever kind and nature whether
movable or immovable or any interest therein: Provided. that any asset located in the
Laguindingan International Airport important to national security shall not be subject
to alienation or mortgage by the Authority nor transfer to any entity other than the
National Government:

To exercise the power of eminent domain in the pursuit of its purposes and objective
To levy and collect dues, charges, fees or assessments for the use of the airport
premises. works, appliances, facilities. or concessions or for any service provided by
the Authority:

To retain and
the use of

ulate a comprehensive and integrated development policy and program for the
al Airport and implement review and update such policy and

propriate dues. fees and charges collected by the Authority relative to
port premises for such measures as may be necessary to make the
Authority more effective and efficient in the discharge of the assigned tasks:

To invest idle funds, as it may deem proper in government securities and other
evidence of indebtedness: and

To provide services. whether on its own or otherwise, within the Laguindin;
International Airport and the approaches thereof as may be necessary or in connection
nd operation of the Laguindingan International Airport and

with the maintenance
their facilities.



SECTION 8. 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 the kaw enforcement
's. including request for deputization as may be required. Such police authority shall be
on with the following. among others:

agen
exercised in connect

a) Mai

facilit
b) Regul
©) Mainten

‘craft, airport equipment, structure:

nce of security to passengers,
- personnel, funds and documents;

ion of the entry to, exits from, and movement within the airports;

ince of peace and order within the premises of the Laguindingan International

‘argoes.

Airport:
d) Regulation and supervision of private security agencies operating in the Laguindingan

Intern:

ional Airport:

©) Enforcement of the rules and regulations promulgated by the Authority pursuant to
Jaw: 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 9. The corporate powers of the Authority shall be exercised by and vested in the
Board of Directors, hereinafter referred to as the Board, which shall be composed of a Chairperson.
a Vice Chairperson, and nine (9) members. The Secretary of Transportation and the General
Manager of the Authority shall be the ex-officio Chairperson and Vice Chairperson of the board,
respectively

‘The Director General of the Civil Aviation Authority of the Philippines (CAAP), the
Secretaries of the following executive departments or any Undersecretary or Assistant Secretary
designated by the respective Secretaries of the Department of Finance, Department of Justice,
Department of Health, Department of Agriculture, and Department of Tou all be ex-officio
members of the board.

In addition, three (3) members from the private sector shall be appointed by the President
of the Philippines for a term of three (3) years, subject to the existing rules and regulations of the
Governance Commission for GOCC's (GC

The Board shall promulgate its rules rela
ion or allowances of the members. subject to existing rules and regulations

quorum requirements and

ive to meeting
compensa

SECTION 10. The Board shall have the following functions:

a) ‘To define and approve the poticies, plans and programs, procedures,
the Authority for the development and operation of the Laguindingan Internation
Airpor

b) To appoint the General Mana
officer of the Authority:

ad guidelines of

er of the Authority who shall be the chief executive



©) To approve the Authority's organization and administrative structure, staffing pattern,
operating and capital expenditures and financial budgets upon the recommendation of
the General Manager, subject to the final approval of the GCG:

d) To approve salary ranges, benetits and other terms and conditions of service for all
officers and employees of the Authority, upon the recommendation of the GCG. which
shall as far as possible. be competitive with those offered in the private sector, subject

to the approval of the President:

To fix the rate 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 the recommendation of the General Manager; and

8) To exercise all the functions and powers necessary or incidental to attain the purposes
and objectives of this Act

.

SECTION |

the following d

The General Manager sh

II be directly responsible to the Board and exerci

ies:

a) Direct and supervise the day-to-day mau
Laguindingan International Airpor

b)_ Implement and enforce decisions. orders. rules, and regulatic
adopted by the Board;

©) Undertake research, studies, investigations, and other activities related to the present
operations and future improvement of the Laguindingan International Airport and
submit comprehensive reports and appropriate recommendations to the Board for
proper action

d) 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

e) Within the limits of the authority delegated to him by the Board, execute contracts.
incur obligations, acquire, and dispose of assets, and deliver documents on bebialf of
the Authority

£) Grant permits or cone:
such rules and regulations to be promul:

agement, operation, and administration of the

ssued. prescribed, or

jons to do business within the airports in accordance with
;ted by the Authority for the purpose: and

2) 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 12. The Authority shall have an authorized capital stock equal to:
a) ‘The value of fixed assets. including airport facilities. runways and equip \d such

other properties. movable and immovable, currently administered or belon

Laguindingan International Airport as valued on the date of the effectivity of this Act

the value of such real estate owned or administered by the Laguindingan International
Airport: and

©) Government contribu
balance. Such
shall be more or less equivalent to six (6) months working capital require

ng to the

Oy)

jon in Such amount as may be deemed an appropriate initial
{. as approved by the President of the Philippines, which

of the



Authority. is hereby authorized to be appropriated in the annual General
Appropriations Act of the year following the effectivity of this Act.

Thereafter, the government contribution t the capital of the Authority shall be
provided for in the annual General Appropriations Act

SECTION 13. 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 his duties. The number and salaries of the auditor and said personnel shall
be determined by the Chairman of the Commission on Audit. subject to the rules: and
regulations of the Cominission on Audit

‘The auditor shall as soon as practicable, but not later than three (3) months after the
nual report to the Board. The auditor may

accounts have been submitted for audit, send an

Dbmit such periodic reports or special reports as the Board may deem necessary.

also

ther

SECTION 14, An annual report of the activities and operations of the Authority. tog
with the audit report shall be submitted by the Board to the President of the Philippines and
both Houses of Congress of the Philippines through the Department of Transportation

ECTION 15. The Authority and its officials and employe:
civil service laws and its rules and regulations

's shall be subject to the existing

SECTION 16. The Authority may, in accordance with Section 21, Article XII of the
Constitution and other existing laws. rules and regulations on local or foreign borrowings.
raise funds. either from local or international sources, by way of loans, credit or securities,
and other financing instruments with the power to create pledges, mort nd other
voluntary liens or encumbrances on any of its assets or properties. subject to the prior approval
of the President of the Philippines

AES

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 encumbr ny 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
Government or any of its political subdivisions. agencies,
no tax exemption herein granted shall extend 10 any subsidiary which may be organized by
the Authority

ION 17. ‘The Authority shall be exempt from realty taxes imposed by the National
and instrumentalities; Provided. that



ECTION 18. All existing public airport facilities, runways. lands. buildings, and other
properties, movable. or immovable, belonging to or presently administered by the
Laguindingan International Airport, and all assets, powers, rights, interests, and privileges
relating to airport works or air operations, including all equipment which are necessary for the
operation of air navigation, acrodrome 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 control ce
retained by the Air Transportation Office from the Laguindingan International Airport without
the concurrence of the Authority. The Authority n st in the maintenance of the Air
‘Transportation Office equipment

er shall be

onal

1 Internat

SECTION 19. All ongoing project
Airport facilities and supply of eq
Authority.

Jating to the construction of Laguinding
pment shall be administered and undertaken by the

SECTION 20. 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, intangible assets and completed projects within the Laguindingan
International Airport shall likewise be assumed by the Authority,

SECTION 21. The General Manager of the Laguindingan International Airport shall continue
in office and shall perform all powers and functions of the Authority until such time as the
General Manager is appointed in accordance with the provisions of this Act. Officials and
employees whose services are terminated shall, if not eligible for retirement, be given
gratuities equivalent to one (1) month salary for every year of continuous satisfactory service
n the basis of the highest salary received in addition to other benefits accorded to them by
existing laws.

SECTION 22. If any provision or part of this Act is declared invalid or unconstitutional, such
parts or provisions not affected thereby shall remain in full force and effect

SECTION 23. All laws, executive orders, letters of
provisions thercof which are inconsistent with the provisions of this Ac

instruction

rules and regulations: or
jeby repealed

amended, or modified accordingly

SECTION 24. This Act shall take effect fifteen (15) days after its publication in the Official
ny newsp culation

Gazette or in per of general

Approved.