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’04 JE;\1 30 P5 :4i! 
THIRTEENTH CONGRESS OF TH 
OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T  
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
In the 30’s and ~ O ’ S ,  lloilo used to be the leading trade and commercial 
hub for western Visayas. Its port had been serving international shipping since 
1855, handling sugar and fertilizer shipments for the international market. 
Iloilo’s strategic geographical location makes it a potential interregional 
distribution center. Located on the third largest island of the Philippines, lloilo is 
central to the entire Region VI consisting of the islands of Panay and Guimaras 
and the Province of Negros occidental with a market of not less than five million 
people. More than 75% of the country’s land area lies within a 500 kilometer 
radius of lloilo, encompassing Manila and the nation’s main industrial centers. 
Within this area is a potential market of more than 32 million people. 
The seaport of lloilo is one of the most ideal in the country and offers 
optimum accessibility for goods coming in from the ASEAN, Africa, the Middle 
East, and Europe, affording it a high potential of becoming an international 
transshipment point. lloilo could serve as a consolidation center for both 
importable and exportable commodities. 
The Western Visayas region has a rich cultural heritage of gracious living, 
exquisite culinary arts, historic buildings and monuments and scenic spots that 
draw tourist traffic from domestic and international markets. 
This bill proposed to cr\eate the Panay-iloilo International, Airport Authority 
a major building block in the integrated transport system that should spur 
economic development in the Western Visayas region. Where natural 
endowments and other infrastructure such as seaports, roads, bridges, and 
communication facilities are already in place, government investment in an 
airport facility lloilo City would yield much in social and economic benefits. 
In view of the foregoing, early passage of this bill is earnestly requested 
S E ~ G I O  
OSMENA I I I  
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
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1 
' 
'04 
\j\.;ii 31% P 5 :42 
OF THE PHlLlPPlNES 
First Regular Session 
) 
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Introduced by Senator S. R. Osmeiia Ill 
AN ACT 
CREATING THE PANAY-ILOILO INTERNATIONAL AIRPORT AUTHORITY, 
TRANSFERRING EXISTING ASSETS OF THE lLOlL0 AIRPORT TO THE 
AUTHORITY, VESTING THE AUTHORITY WITH POWER TO ADMINISTER 
OTHER PURPOSES 
AND OPERATE THE PANAY-ILOlLO INTERNATIONAL AIRPORT, AND FOR 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
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Section I. 
Tifle. - 
This Act shall be known and cited as the "Charter of 
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the Panay-lloilo International Airport Authority." 
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Section 2. Creation of the Panay-lloilo International Airport Authority. 
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There is hereby established a body corporate to be known as the Panay-lloilo 
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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 lloilo Airport or at its new 
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location in Cabanatuan, Province of Iloilo. 
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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 Objecfives. - The Authority shall 
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principally undertake the economical, efficient and effective control, management 
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and supervision of the lloilo Airport in the Province of Iloilo, and such other 
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airports as may be established in the Province of Iloilo. In addition, it shall have 
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the following objectives: 
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To encourage, promote and develop international and domestic air traffic 
in the Panay Region as a means of making the region centers 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 
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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 
and nature, whether movable or immovable, or any interest therein: 
Provided, That any asset located in the lloilo Airport important to national 
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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 
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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 apd 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; 
Regulating the entry to, exit from and movement within the airports; 
Maintenance of peace and order within the premises of the airports; 
(b) 
(c) 
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(d) 
airports ; 
(e) 
Enforcement of rules and regulations promulgated by the Authority 
Regulation and supervision of private security agencies operating in the 
pursuant to law; and 
In case of emergencies or imminent danger involving national security 
within the airport premises, the Philippine Air Force Security Command 
shall take charge. 
Section 6. Board of Direcfors. - 
The corporate powers of the Authority 
shall be exercised by and vested in a Board of eleven (I 1) members, which shall 
be composed of a Chairman, a Vice-chairman and nine (9) members. The 
Secretary of Transportation and Communications and the General Manager of 
the Authority shall be the ex officio Chairman and Vice-chairman of the Board, 
respectively. The Assistant Secretary of the Air Transportation Office and the I 
Secretaries of the following executive departments or any Undersecretary or 
Assistant Secretary permanently designated by the respective Secretaries shall 
be ex officio members, to wit: the Department of Finance, the Department of 
Justice and the Department of Tourism. In addition, five (5) members from the 
private sector recommended by the governors of the Provinces of Iloilo, Aklan, 
Capiz, Guimaras and Antique shall be appointed by the President of the 
Philippines for a term of four (4) years. 
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The Board shall promulgate its rules relative to meetings, quorum 
requirements and compensation or allowances of the members of the Board. 
Section 7. Funcfions, Powers and Duties of fhe 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: 
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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 adtninistrative 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 
r'egulations; 
To fix the rate dues, charges, fees or assessments for the use of airport 
premises, works, appliances, facilities, concessions, services and 'other 
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fees and charges related to the activities of the airports, upon 
recommendation 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 0. Functions, Powers and Duties of the General Manager. - 
The General Manager shall be directly responsible to the Board and shall have 
the following functions, powers and duties: 
(a) 
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; 
(b) 
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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. 
Capital. - The Authority shall have an authorized capital 
stock equal to and consisting of: 
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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; 
The value of such real estate owned and/or administered by the airport; 
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 
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(6) months working capital requirement of the Authority, is hereby 
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authorized to be appropriated in the General Appropriations Act of the 
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year following its enactment into law. 
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Thereafter, the government contribution to the capital of the Authority shall 
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Section I O .  
Auditor. - The Commission on Audit shall appoint a 
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representative who shall be the auditor of the Authority, together with the 
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necessary personnel to assist said representative in the performance of his 
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duties. The number and salaries of the auditor and said personnel shall be 
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determined by the Chairman of the Commission on Audit, subject to the rules 
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and regulations of the Commission on Audit. 
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Board may deem necessary. 
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regulations. 
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be provided for in the General Appropriations Act. 
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 
Section 11. Annua/ 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. 
Section 12. Applicability of Civil Service Laws. - 
The Authority and its 
officials and employees shall be subject to the Civil Service Law and its rules and 
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 
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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 
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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. 
Section 15. Transfer of Exisfing Facilities and lnfangible Assets. - 
All existing public airport facilities, runways, lands, buildings and other properties, 
movable or immovable, belonging to or presently administered by the airports, 
and all assets, powers, rights, interest and privileges relating to airport works or 
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air operations, including all equipment which are necessary for the operation of 
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air navigation, aerodrome control towers, crash, fire, and rescue facilities are 
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hereby transferred to the Authority: Provided, however, That the operational 
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control of all equipment necessary for the operation of radio aids to .air. 
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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 lloilo without the 
concurrence of the Authority. The Authority may assist in the maintenance of the 
Air Transportation Office equipment. 
Section 16. Projects 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, 
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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 //oil0 Airport as a Division in fhe Air 
Transporfafion Office. - The lloilo Airport as a division under the Air 
Transportation Office, is hereby abolished. The Airport General Manager of the 
lloilo Airport shall continue in office and shall perform all powers and functions of 
the Authority until such time as the 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 
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employees whose services are terminated shall, if not'eligible for retirement, be 
given gratuities equivalent to one (I) 
month salary for every year of continuous 
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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 
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with the provisions of this Act are hereby repealed, amended or modified 
Section 20. Separabilify 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. 
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Section 21. Effecfivity. - 
This Act shall take effect fifteen (15) days 
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after its publication in at least two (2) national newspapers of general circulation. 
Approved. 
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