Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bil No. _4 27

Introduced by Honorable ERICO BASILIO A. FABIAN

EXPLANATORY NOTE

This Bill seeks to establish the Zamboanga City International Airport
Authority, an independent government entity clothed with sufficient corporate
Powers and authorities to efficiently manage and administer the operations of the
Zamboanga City International Airport (ZCIA).

The Bill was originally filed in the 10" Congress as H.B. No. 3714 by the late
Zamboanga City Representative Maria Clara L. Lobregat. It was favorably reported
by the House Committee on Transportation & Communications, with certain
amendments, and approved by the House on 3” Reading on October 30, 1997.
However, the bill was not acted upon by the Senate. In the succeeding 11" and
12" Congresses, former Zamboanga City Representative Celso L. Lobregat re-filed
the bill as H.B. No. 3618 and H.B. No. 2557 respectively.

It was again filed by this representation on August 09, 2004 as H. B. No.
2245 during the 13" Congress and was filed again on July 24, 2007 as H.B. 1297
during the 14 Congress. It was jointly referred to the Committees on Government
Enterprises & Privatization and Transportation & Communications, where it was
pending upon adjournment of the 13" and 14" Congresses. :

This Bill, if adopted, will effect the transfer of the jurisdiction and control of
the ZCIA from the Air Transportation Office (ATO) and the Department of
Transportation and Communications (DOTC) to the Authority. The ensuing scenario
will be the same as that presently obtaining at the Ninoy Aquino International
Airport and the Mactan-Cebu International Airport, which are managed and
administered by their respective chartered Authorities.

The creation of the ZCIA Authority to manage and administer the ZCIA is
deemed necessary in order to achieve the desired degree of efficiency,
effectiveness, simplicity, and economy in the operations of the ZCIA, which is the
center of air traffic in Western Mindanao. With its seven-man Board of Directors
and an airport General Manager in direct and immediate control of the ZCIA, the
Authority is expected to elevate the operational status of the ZCIA to international
standards within a reasonable period of time, which will benefit not only
Zamboanga City, but the entire Western Mindanao.

In view of the foregoing, approval ill is earnestly requested.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

cane AQ?

House Bill No.

Introduced by Honorable ERICO BASILIO A. FABIAN

AN ACT
CREATING THE ZAMBOANGA CITY INTERNATIONAL AIRPORT AUTHORITY,
DEFINING ITS POWERS AND FUNCTIONS, AND APPROPRIATING
FUNDS THEREFOR.

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

SECTION 1. Title. This Act shall be known as the “Charter of the
Zamboanga City International Airport Authority.”

SEC. 2. Creation of the Zamboanga City International Airport
Authority. There is hereby created a body corporate to be known as the
Zamboanga City International Airport Authority, hereinafter also referred to as the
“Authority”, which shall be attached to the Department of Transportation and
Communications (DOTC). The principal office of the Authority shall be located at
the Zamboanga City International Airport, in the City of Zamboanga, Philippines.

SEC 3. Primary Purposes and Objectives. The Authority shall principally
undertake the economical, efficient and effective control, management, and
supervision of the Zamboanga City International Airport, hereinafter also referred to


as the “Aiport’, in the City of Zamboanga. In addition, it shall have the following

objectives:

a) To encourage, promote and develop international and
domestic air traffic in Zamboanga City and Westen Mindanao, ,
and thereby assist and support the development of the entire area

as a center of international trade and commerce and tourism; and

b) To upgrade the services and facilities of the Airport, and
to formulate and adopt internationally acceptable standards of

Airport accommodation and service.

SEC. 4. Functions, Powers and Duties. The Authority shall have the

following functions, powers, and duties:

a) To formulate a comprehensive and integrated
development policy and program for the Airport, and to
implement, review and update such policy and program from time

to time;

b) To control, supervise, construct, install. maintain,
operate, and provide such facilities or services as may be
necessary for the efficient operation and maintenance of the
Airport:

c) To promuigate rules and regulations governing the
planning, development, maintenance, operation and

improvement of the Airport, and to control and supervise the


the construction or installation of any structure or facility. or the

rendition of any service within the Airport,

d) 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

e) To acquire, purchase, own, administer, lease, mortgage,
sell, or otherwise dispose of any land, building, facility, or
property of whatever kind and nature, whether movable or
immovable, or any interest therein’ Provided, That any property
or asset located in the Zamboanga City International Airport
directly related to national security, as deemed by the Authority,
shall not be subject to alienation, mortgage. or transfer to any
entity except upon prior approval of the Secretary of National
Defense:

f) To exercise the power of eminent domain in the pursuit of

its purposes and objectives,

g) To tevy and collect dues, charges, fees, or
assessments for the use or enjoyment of Airport premises. works.
appliances. facilities or concessions, or for any service provided

by the Authority;

h) To retain and appropriate dues. fees, and charges
collected by the Authority relative to the use or enjoyment of
Airport premises for such expense as may be necessary to
make the Authority more effective and efficient in the discharge

of its functions:


i) To invest its idle funds, as it may deem proper, in
government securities and other government-issued instruments

of indebtedness; and

}) To provide services, whether on its own or
otherwise, within the Airport and the approaches and vicinity *
thereof as may be necessary, or in connection with the

maintenance and operation of the Airport and its facilities.

SEC. 5. Police Authority. The Authority shall have the power to exercise
such police authority or power as may be necessary:within the Airport premises or
areas of control, operation, or jurisdiction in order to carry out its functions and attain
its purposes and objectives: Provided, That the Authority may, at any time and when
required, seek the assistance of any law enforcement agencies, including request
for deputization Such police authority shall be exercised in connection with,
among other things, the following:

a) Maintenance of security to passengers, cargoes, airctafts,
Airport equipments, structures, facilities, personnel, funds, and

documents,

b) Regulating the entry to, exit from, and movement within
the Airport;

¢) Maintenance of peace and order within the premises of

the Airport:

@) Regulation and supervision of private security -

agencies operating in the Airport:


e) Enforcement of rules and regulations promulgated by

the Authority, and

f) In case of emergencies or imminent danger involving
national security, the Aviation Security Unit of the Philippine
National Police, upon request of and in coordination with the
Authority, shall take direct and principal charge of all policg and

security matters within the Airport premises

SEC. 6. Board of Directors. The corporate powers of the Authority shall be
exercised by and vested in a board of directors composed of seven (7) members, which
shall include a chairman, a vice-chairman and five (5) members. The Secretary of
Transportation and Communications, or his designee, and the general manager of the
Authority shall be ex-officio chairman and vice-chairman of the Board, respectively.
The City Mayor of Zamboanga and the head of the Air Transportation Office (ATO)
shall be ex-officio. members. In addition, three (3) individuals of proven competence
and integrity. shall be appointed as members by the President of the Philippines

for a term of five (5) years each without reappointment.

The Board shall promuigate its rules relative to meetings and quorum
requirements. The chairman. vice-chairman, and the members of the Board shall be
entitled to per diem for each meeting attended by them at such amount as may be fixed

by the Board in accordance with existing laws, rules and regulations.

SEC. 7. Functions, Powers and Duties of the Board. \n 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) To define and approve the programs. pians, policies,
procedures and guidelines of the Authority for the development

and operation of the Airport

b) To appoint the general manager of the Authority, who

shall be the chief executive officer of the Authority;

c) To approve the Authority's organizational and
administrative structure, staffing pattern, operating and capital
expenditures. and financial budgets, subject to existing laws,

rules and regulations;

d) To approve salary ranges, benefits and other terms
and conditions of service for all officers and employees of the
Authority, in accordance with the Revised Compensation and
Position Classification system and the rules and regulations of the

Civil Service Commission:

e) Fix the rates 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 Airport: and

f) Generally. to exercise all the functions and powers
necessary or incidental to attain the purposes and objectives of

this Act

8 Functions, Powers and Duties of the General Manager. The

general manager shall be directly responsible to. and shall serve as such at the

Pleasure of the Board. He shall have the following functions powers and duties:


a) To direct and supervise the day-to-day management,

operation and administration of the Airport,

b) To implement and enforce decisions, orders. rules and

regulations issued, prescribed or adopted by the Board:

c) 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 recommendations to the Board for

proper action;

d) To appoint, suspend, remove or otherwise discipline
any subordinate officer or employee of the Authority, subject to
prior approval of the Board and in accordance with existing rules

and regulations of the Civil Service Commission,

e) Subject to the prior approval/authorization of the Board,
to execute contracts. incur obligations, acquire and dispose of

assets, and deliver documents on behalf of the Authority;

f) To grant permits or concessions to do business within
the Airport premises subject to prior Board approval and in
accordance with such rules and regulations as may be

promulgated by the Board; and


g) To perform such other duties as the Board may delegate
or assign to him, and such acts as may be necessary to

implement this Act

SEC. 9. Capital. The Authority shall have an authorized capital stock equal

to and consisting of.

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

b) The value of such real estate owned and/or

administered by the said Airport; and

c) Government contributions in such amount as may be
deemed necessary and appropriate initial amount, as approved
by the President of the Philippines. which shall be more or Jess
equivalent to six (6) month working capital requirements of the
Authority

SEC. 10 Auditor. The Commission on Audit (COA) shall appoint a
representative who shall be the auditor of the Authority, together with the
necessary personnel, who shall assist said representative in the performance of his
duties. The number and salaries of the said auditor and personnel shall be determined

by the Chairman of the Commission on Audit, subject to the rules and regulations of the
COA


-9

The Auditor, as soon as possible, but not later than three (3) months after ali
accounts have been submitted for audit, shall send his/her initial audit report to the
Board. The auditor shall also submit such periodic and other reports to the Board as

required by law

SEC 11 Annual Report. The Board shali submit to the President of the
Philippines, through the DOTC, and to the Senate and House of Representatives of
the Philippines, an annual report generally dealing with the activities and operations of

the Authority, tagether with the audit report on the relevant accounts.

SEC. 12. Applicability of Civil Service Laws. All officials and employees
of the Authority with the exception of the general manager, shall be subject to the Civil

Service Law and its rules and regulations.

SEC. 13. Borrowing Power. The Authority may, subject to existing jaws,
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: Provided, That in case of foreign

loans. the same shall be first approved by the Bangko Sentral ng Pilipinas

All loans contracted by the Authority under this section, together with ail
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 revenues 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


-10

SEC 14. Tax Exemptions. The Authority shall be exempt from the real
property tax imposed by local government units as provided for under Republic Act No
7160, otherwise known as the Local Government Code of 1991: 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 Airport facilities, runways, lands, buildings and other properties, movable or
immovable, belonging to or presently administered by the Zamboanga” City
International Airport, and all assets, powers, rights, interests and privileges relating to
Airport works or air operations, including all equipments which are necessary for
the operation of air navigation, air traffic control and crash, fire, and rescue facilities,
are hereby transferred and conveyed in ownership to the Authority: Provided,
however. That the operational control of all equipments 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 (ATO).
No equipment, however. shail be removed by the ATO from the Airport without the prior
approval of the Authority. The Authority shall assist in the maintenance and

improvement of all ATO-controlled equipments and facilities in the Airport.

SEC 16. Projects in Progress. All ongoing projects, relating to the
construction of Airport facilities and supply of equipment shall be assumed,

administered and undertaken by the Authority.

SEC. 17. Transfer of 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 the
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


SEC 18 Appropriation. The Secretary of the DOTC shall immediately
include in iis program the operationalization of the Zamboanga City International
Airport Authority, the funding of which shall be included in the annual General
Appropriations Act

SEC. 19. Abolition of the Zamboanga City International Airport as a
Division in the Air Transportation Office The Zamboanga City International
Airport. as a division under the Air Transportation Office, is hereby abolished. The
Airport general manager of the Zamboanga City Intemational Airport shall
continue to discharge his present functions, until such time that the general manager of
the Authority referred to in this Act, is appointed: Provided, That all other officials
and employees of the Airport shall be retained and absorbed by the Authority, without
loss of benefits or security Provided, That those qualified or entitled to retire under
existing laws and opt to so retire, may elect to be paid their retirement benefits in

accordance with existing laws, rules and regulations.

SEC. 20. Separability Clause. If any portion of this Act shall be held invalid
of unconstitutional, such invalidity or unconstitutionality shall not affect the other

provisions hereof which shall remain in full force and effect.

SEC. 21. 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 accordingly.

SEC. 22. Effectivity. This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a national newspaper of general circulation

Approved.