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Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila c

NINETEENTH CONGRESS
First Regular Session

1346

HOUSE BILL NO.

Introduced by Rep. LORETO B. ACHARON

EXPLANATORY NOTE

This bill seeks the creation of the General Santos International Airport Authority (GSIAA), a body corporate
granted with the powers and authority to operate, manage, and administer the efficient, and effective
control, supervision, expansion, and development of the airport in General Santos City.

Since it became fully operational in 1996, the General Santos Airport is the airport of choice by passenger
traffic from the adjacent provinces of Saranggani, South Cotabato and Sultan Kudarat; as well as those
from distant provinces of North Cotabato, Davao del Sur; and even in many instances, as the alternate
airport of choice for passengers from the Cities of Cotabato and Davao.

General Santos City is the 4" largest city in Mindanao and one of the most progressive cities in the
Philippines. As the banking and financial hub of Region 12, Gensan as it is known to be called, also serves
as the gateway to the region's centers of trade, agri-industries, education and eco-tourism.

The city also plays an active role in the sub-regional trade block known as the BIMP-EAGA or the Brunei
Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area, the cooperation initiative
established in 1994 to accelerate trade, tourism, and investment among the participating member states.

Without question, airports are the most vital component of a country’s goal to improve mobility and
connectivity by air however, the delivery of quality infrastructure and services that airlines need is critical
to the over-all flying experience.

‘continuing and cost-efficient improvement of any airport for that matter is most imperative due in most
part by the ever-changing environment and challenges of air travel and tourism.

It is now time to pursue a more vigorous program to level up the quality of services and boost the
competitiveness of the General Santos Airport by creating a body with the requisite corporate personality
to operate and manage the facility with the end in view of providing a safer and more efficient airport
services essential to any growing economy.


The proposed GSIAA will focus on policies and programs to exploit the potential of the General Santos
Airport as a first-class international airport.

This proposed measure comes at the heels of the recently enacted law, Republic Act No. 11659 or “An Act
Amending Commonwealth Act No. 146, otherwise known as the Public Service Act”; and Republic Act No.
11647 or “An Act Promoting Foreign Investments, Amending thereby Republic Act No. 7042 otherwise
known as “The Foreign investments Act of 1991”, as Amended and For Other Purposes”; relaxing
restrictions on foreign ownerships as well as allowing 100% foreign ownership of airports.

This representation believes that this bill is practically a bid to operate and manage the facility ourselves,
‘as our airport, in our city, for our people, the surrounding provinces and Region 12 at the very least.

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

pe:

LORETO B. ACHARON



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

1346

HOUSE BILL.NO.

Introduced by Rep. LORETO B. ACHARON

AN
ACT CREATING THE GENERAL SANTOS INTERNATIONAL AIRPORT AUTHORITY
(GSIAA), TRANSFERRING EXISTING ASSETS OF GENERAL SANTOS INTERNATIONAL,
AIRPORT TO THE AUTHORITY, VESTING THE AUTHORITY WITH POWER TO
ADMINISTER AND OPERATE THE GENERAL SANTOS INTERNATIONAL AIRPORT AND
APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. ~ This Act shall be known and cited as the “Charter of the General
Santos International Airport Authority.”

SEC. 2. Creation of the General Santos International Airport Authority. — There is hereby
established a body corporate to be known as the General Santos International Airport Authority, hereinafter
referred to as “The Authority,” which shall be attached to the Department of Transportation (DOT®). The
principal office of the Authority shall be located at the General Santos International Airport in General
Santos City.

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

SEC. 3. Objectives. ~The Authority shall principally undertake the economical. efficient and
effective control, management and supervision of the General Santos International Airport in General
Santos City and such other airports as may be established in the provinces of South Cotabato, Saranggani,
and Sultan Kudarat.

In addition, the Authority shall have the following objectives:

a) Encourage, promote, and develop international and domestic air traffic in Southern Mindanao
‘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) Upgrade the services and facilities of the General Santos International Airport and formulate
internationally acceptable standards of airport accommodation and service.


SEC. 4. Duties and Functions

‘The Authority shall exercise the following duties and functions:

a) Formulate a comprehensive and integrated development policy and program, including
expansion, for the General Santos International Airport and any other airports that it may
operate and implement, review. and update such policy and program periodically

b) Control, supervise, construct, maintain, operate, expand, and provide such facilities or services
as shall be necessary fir the efficient functioning of the General Santos International Airport or
other airports that would come under its i

c) Promulgate rules and regulations governing the planning. development, maintenance.
operation and improvement of the General Santos international Airport, and control and
supervise the construction of any structure or the rendition of any service within the General
Santos International Airport

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

e) 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 General Santos
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

1) Exercise the power of eminent domain in the pursuit of its purposes and objectives

g) To sue and be sued

hh) 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, 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

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

k)_ Provide services, whether on its own or otherwise, within the General Santos International
Airport and the approaches thereof as may be necessary or in connection with the maintenance
and operation of the General Santos International Airport and their respective 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, exits from and movement the airports

¢) Maintenance of peace and order within the premises of the General Santos International Airport

) Regulation and supervision of private security agencies operating in the General Santos
International Airport

e) Enforcement of rules and regulations promulgated by the 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.



SEC. 6. Bourd of Directors. ~ The corporate powers of the Authority shall be exercised by and
vested in the Board of Directors which shall be composed of a Chairman, a Vice-Chairman and
nine (9) members. The Secretary of the Department of Transportation and the General Manager of
the Authority shall be 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 ex officio members, to wit: Department of Finance, Department of Justice, and
Department of Tourism. In addition, four (4) members from the private sector who are residents of General
Santos City shall be appointed by the President of the Republic of the Philippines for a term of four (4)
years, The Mayor of General Santos City 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.

SEC. 7. Functions of the Board. ~ The Board shall exercise the following functions:

1) Define and approve the programs, plans, policies, procedures, and guidelines of the Authority
for the development and operation of the General Santos International Airport

b) Appoint the 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,
subject (o existing laws, rules, and regulations.

4) 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

€) Fix the rate of 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 airports, upon recommendation of the General Manager, and

f) Exercise all the functions and powers necessary or incidental to attain the purposes and
objectives of this Act

SEC. 8. Duties of the General Manager. ~ The General Manager shall be directly responsible to
the Board and exercise the following duties:

a) Direct and supervise the day-to-day management, operation, and administration of the General
Santos International Airport

b) Implement and enforce decisions, orders, rules, and regulations issued, prescribed, or adopted
by the Board

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

4) 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 behalf of the Authority.

f) 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 purpose, and



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

SE

9, Authorized Capital. ~ The Authority shall have an authorized capital stock equal to:

a). The value of fixed assets, including airport facilities, runways and equipment and such other
properties, movable and immovable, currently administered by or belonging to the General
Santos City International Airport as valued on the date of the effectivity of this Act

b) The value of such real estate owned or administered by the General Santos International
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 annual General Appropriations Act of the year following
the effectivity of this Act.

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

SEC. 10. Resident 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 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 Commission on
Audit,

‘The auditor shall as soon as practicable, 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
reports or special reports as the Board may deem necessary

SEC. 11. Annual Report. ~ An annual report of the activities and operations of the Authority,
together with the audit report shall be submitted by the Board to the President of the Philippines and both
Houses of Congress of the Philippine through the Department of Transportation,

SEC. 12. Applicability of Civil Service Laws. - The Authority and its officials and employees shall
be subject o the existing civil service laws and its rules and regulations.

SEC. 13. Borrowing Power. ~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. 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.


SEC. 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.

SEC. 15. Transfer of Existing Facilities and Incangible Assets. ~ All existing public airport
facilities, runways, lands, buildings, and other properties, movable or immovable, belonging to or presently
administered by the General Santos 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, aerodrome 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 or 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 the General Santos International Airport without the concurrence of
the Authority. The Authority may assist in the maintenance of the Air Transportation Office equipment.

SEC. 16. Projects in Progress. ~ All ongoing projects relating to the construction of General
‘Santos International Airport facilities and supply of equipment shall be administered and undertaken by the
Authority.

SEC. 17. 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 concemed in respect of
such physical facilities, intangible assets and completed projects within the General Santos International
Airport shall likewise be assured by the Authority.

SEC. 18, Transitory Provisions. ~The General Manager of the General Santos 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 on the basis of the highest salary received in
addition to other benefits accorded to them by existing laws.

SEC. 19. Repealing Clause. — All laws, executive order, letters of instructions, rules and
regulations, or provisions thereof which are inconsistent with the provisions of this Act are hereby repealed,
amended, or modified accordingly.

SEC. 20. Separability Clause. — 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.

SEC. 21. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved.