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"QA 
JUN 30 P4 :42 
THIRTEENTH CONGRESS 
OF THE PHILIPPINE 
1 
First Regular Session 
)
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Introduced by Senator S. R. OsmeAa Ill 
EXPLANATORY NOTE 
Zamboanga City is located at 06'54" 
Latitude and 122' 04'E Longitude 
at the Eastern tip of the Western Mindanao Peninsula facing the Basilan Strait. 
Its hinterland road network is linked to the main road traversing the eastern side 
of the Peninsula to Misamis province and the rest of Mindanao. It has an 
airport located at the northern part of the city which serves as an alternative 
international airport to Davao. The public port is at the southern tip of the city. 
Zamboanga provides the main link between Region IX (composed of 
Basilan, Zamboanga del Sur and Zamboanga del Norte) and Manila. It is one 
of the principal ports of call for the main inter-island ships of the Manila-Cebu- 
Davao route. Situated at the southern tip of the Zamboanga peninsula, it is 
the only port of any significance for general cargo trade in the area except for 
Dapitan at the other extreme, and to a lesser extent, Pagadian. In addition to 
being an interisland port, it is also a ferry port of some significance for the island 
of Basilan and the Sulu Archipelago servicing principally passenger traffic. 
However the passengers bring with them large volumes of goods for sale in 
Zamboanga, taking back with them supplies to the islands. Zamboanga is not a 
transshipment point in the classical sense. Nevertheless, it is clear that 
Zamboanga City acts as a center of commerce for the region. In addition to this 
domestic trade, which is the main function of the public port, certain volumes of 
copra is at present exported through the Zamboanga port. 
This bill proposes to establish the Zamboanga International Airport 
Authority to spearhead the development of its existing airport. With its rich 
heritage of ethnic and cultural traditions Zamboanga clearly has promising 
potentials as a tourist destination, aside from being a center of regional 
commerce and trade. The upgrading and maintenance of its airport facilities is 
a viable investment that will facilitate the flow of tourist, business and goods 
traffic and the integration of its Muslim communities and economy with the 
rest of the country. 
In view of the foregoing, early approval of this bill is earnestly requested. 
n, 
SERGIO OSMENA Ill 
Senator 


c 
"04 JUP! 30 P5 :42 
THIRTEENTH CONGRESS OF THE R 
First Regular Session 
OF THE PHILIPPINE 
1 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
CREATING THE ZAMBOANGA INTERNATIONAL AIRPORT AUTHORITY, 
TRANSFERRING 
EXISTING 
ASSETS 
OF 
THE 
ZAMBOANGA 
INTERNATIONAL 
AIRPORT 
TO 
THE 
AUTHORITY, 
VESTING 
THE 
AUTHORITY 
WITH 
POWER TO ADMINISTER 
AND 
OPERATE THE 
ZAMBOANGA INTERNATIONAL AIRPORT, AND FOR OTHER PURPOSES 
Be if enacted by fhe Senate and the House of Representatives of fhe Philippines 
in Congress assembled: 
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Section 1. Title. - 
This Act shall be known and cited as the "Charter of 
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the Zamboanga International Airport Authority." 
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Section 2. Creation of the Zamboanga lnternational Airport Authority. 
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There is hereby established a body corporate to be known as the Zamboanga 
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International Airport Authority, hereinafter referred to as the Authority, which shall 
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be attached to the Department of Transportation and Communications. The 
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principal office of the Authority shall be located at the Zamboanga international 
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Airport. 
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The Authority may have such branches, agencies or subsidiaries as it may 
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deem proper and necessary 
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Section 3. Primary Purposes and 
. - The Authority shall 
principally undertake the economical, efficient and effective control, management 
and supervision of the Zamboanga International Airport in Zamboanga City, and 


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such other airports as may be established in Western Mindanao. In addition, it 
shall have the following objectives: 
(a) 
To encourage, promote and develop international and domestic air traffic 
in the Western Mindanao 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 
To upgrade the services and facilities of the airport and to formulate 
internationally acceptable standards of airport accommodation and 
service. 
Section 4. Functions, Powers and Duties. - 
The Authority shall have 
(b) 
the following functions, powers and duties: 
To formulate a comprehensive and integrated development policy and 
program for the airport and to implement, review and update such policy 
and program periodically; 
To control, supervise, construct, maintain, operate and provide such 
facilities or services as shall be necessary for the efficient functioning of 
the airport; 
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; 
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, airport facility, or property of whatever kind 


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and nature, whether movable or immovable, or any interest therein: 
Provided, That any asset located in the Zamboanga 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; 
To exercise the power of eminent domain in the pursuit of its purposes 
and objectives; 
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; 
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; 
To invest its idle funds, as it may deem proper, in government securities 
and other evidences of indebtedness; and 
To provide services, whether on its own or otherwise, within the airports 
and the approaches thereof as may be necessary or in connection with 
the maintenance and operation of the airports and their facilities. 
Section 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 of passengers, cargoes, aircraft, airport 
equipment, structures, facilities, personnel, funds and documents; 


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(b) 
Regulating the entry to, exit from and movement within the airports; 
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(c) 
Maintenance of peace and order within the premises of the Authority; 
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(d) 
Regulation and supervision of private security agencies operating in the 
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airports; 
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(e) 
Enforcement of rules and regulations promulgated by the Authority 
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pursuant to law; and 
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In case of emergencies or imminent danger involving national security 
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within the airport premises, the Philippine Air Force Security Command 
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shall take charge. 
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Section 6. Board of Direcfors. - 
The corporate powers of the Authority 
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shall be exercised by and vested in a Board of eleven (1 1) members, which shall 
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be composed of a Chairman, a Vice-chairman and nine (9) members. The 
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Secretary of Transportation and Communications and the General Manager of 
the Authority shall be the ex officio Chairman and Vice-chairman of the Board, 
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respectively. The Assistant Secretary of the Air Transportation Office and the 
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Secretaries of the following executive departments or any Undersecretary or 
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Assistant Secretary permanently designated by the respective Secretaries shall 
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be ex officio members, to wit: the Department of Finance, the Department of 
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Justice and the Department of Tourism. In addition, the governors of the 
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provinces of Zamboanga del Norte, Zamboanga del Sur and Basilan, the mayor 
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of Zamboanga City and the Chairman of the Regional Development Council of 
Region IX shall be appointed by the President of the Philippines for a term of four 
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(4) years. 
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The Board shall promulgate its rules relative to meetings, quorum 
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requirements and compensation or allowances of the members of the Board. 


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Section 7. Funcfions, Powe 
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: 
To define and approve the programs, plans, policies, procedures and 
guidelines of the Authority for the development and operation of the 
airports; 
To appoint the General Manager of the Authority who shall be the chief 
executive officer of the Authority; 
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 existing laws, 
rules and regulations; 
To approve salaries, 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 airports, upon 
recomme.ndation 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. Funcfions, Powers and Dufies of the General Manager. - 
The General Manager shall be directly responsible to the Board and shall have 
the following functions, powers and duties: 


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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. Capifal. - The Authority shall have an authorized capital 
stock equal to and consisting of: 
(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 airport as valued on the date of the 
effectivity of this Act; 


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(b) 
and 
(c) 
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 
The value of such real estate owned and/or administered by the airport; 
be provided for in the General Appropriations Act. 
Section IO. 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 or special reports as the 
Board may deem necessary. 
Section 11. Annual Report. - 
The Board shall submit to the President of 
the Philippines through the Department of Transportation and Communications 
and to both Houses of the 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. 


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Section 12. Applicabilify of Civil 
aws. - 
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 or 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. 


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Section 15. Transfer of Existing Facilifie 
ible Assefs. - 
All existing public airport facilities, runways, lands, buildings and other properties, 
movable or immovable, belonging to or presently administered by the 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, 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 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 Zamboanga City without the 
concurrence of the Authority. The Authority may assist in the maintenance of the 
Air Transportation Office equipment. 
Section 16. Projecfs 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 17. Transfer of Liabilifies 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 18. Abolifion of the Zamboanga Cify Airport as a Division in 
the Air Transportation Office. - The Zamboanga International Airport as a 
division under the Air Transportation Office, is hereby abolished. The Airport 
General Manager of the Zamboanga International Airport shall continue in office 
and shall perform all powers and functions of the Authority until such time as the 


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General Manager is appointed for the smooth transfer of responsibility from the 
abolished entity to the Authority, as well as the determination of personnel to be 
retained: Provided, That all officials and employees whose services are 
terminated shall, if not eligible for retirement, be given gratuities equivalent to one 
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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. 
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 
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accordingly. 
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Section 21. Effectivity. - This Act shall take effect fifteen (15) days 
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Section 20. Separability Clause. - 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. 
after its publication in at least two (2) national newspapers of general circulation. 
Approved.