Republic of the Philippines:
House of Representatives
Quejon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

4176
H.B. No.

Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR.

AN ACT
ESTABLISHING THE AKLAN AIRPORT AUTHORITY TO ADMINISTER AND
OPERATE THE KALIBO INTERNATIONAL AIRPORT AND THE CATICLAN
AIRPORT, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Arguably one of the country’s top tourist destination, Boracay attracted 619,934 tourists
or 28% of the total number of tourists who visited the country in the first quarter of 2019. The
figure is 12% higher around the same time in 2018 which proves that the Island of Boracay’s allure
greatly enthralls foreign and local tourists alike.

Despite the Island’s stricter policies! in accepting visitors, the volume of local and foreign
tourists visiting Boracay is still huge. Rightly so, the government's rehabilitation initiative paved
the way for the pouring in of tourists. Due to this, facilities of the Caticlan and Kalibo airports
must be improved to allow for better services offered to tourists visiting Boracay. In the same
manner, the influx of visitors in the Island is tantamount to greater investments generating jobs
and giving wider economic opportunities for the people of Aklan

In this light, this proposed measure seeks to establish the Aklan Airport Authority to
oversee the effective, efficient and economical management and supervision of the two airports
in the province of Aklan, namely the Caticlan Airport also known as Godofredo P. Ramos Airport,
in the Municipality of Malay, and the Kalibo International Airport in the Municipality of Kalibo.
In view of the foregoing, the passage of this bill is earnestly sought.

HON. TEODORICO “NONONG” T\HARESCO, JR.
Representative
24 District, Province of Aklan

"After Boracay’s 6-month closure in 2018, the Department of Tourism has employed stricter measures on accommodation
‘stablishments such as hotels and inns, as part ofthe government’ efforts to maintain and rehabilitate the beauty ofthe Island.


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EIGHTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
First Regular Session

4176

H.B. No.

Introduced by Representative TEODORICO “NONONG" T. HARESCO, JR.

AN ACT
ESTABLISHING THE AKLAN AIRPORT AUTHORITY TO ADMINISTER AND
OPERATE THE KALIBO INTERNATIONAL AIRPORT AND THE CATICLAN
AIRPORT, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

SECTION 1. Title. ~ This Act shall be known as the “Charter of the Aklan Airport
Authority.”

SEC. 2. The Aklan Airport Authority. - There is hereby established a body corporate to
be known as Aklan Airport Authority, hereinafter referred to as “ Authority,” which shall
be attached to the Department of Transportation. The principal office of the Authority
shall be located at the Kalibo International Airport, Kalibo, Aklan.

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

SEC. 3. Primary Purpose and Objectives. - The Authority shall principally undertake the
effective, efficient and economical control, management and supervision of the Kalibo
International Airport in the Municipality of Kalibo and the Caticlan Airport in the
Municipality of Malay, hereinafter collectively referred to as “airports.”

In addition, it shall have the following objectives:

a) Encourage, promote, and develop international and air traffic in Western Visayas
as a means of making it a center of international trade and tourism, and
accelerating the development of the means of transportation and communication
in the country; and

b) Upgrade the services and facilities of the airports and to formulate internationally
acceptable standards of airport accommodation and service.

SEC. 4. Duties and Functions. - The Authority shall have the following duties and
functions:


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Formulate a comprehensive and integrated development policy and programs of
the airports and implement, review, and update such policy and program
periodically;

Control, supervise, construct, maintain, operate, and provide such facilities or
services as shall be necessary for the efficient functioning of the airports;

To promulgate rules and regulations governing the planning, development
maintenance, operation, and improvement of the airports, and to control and
supervise the construction of any structure or the rendition of any service within
the airports;

Exercise all the powers of a corporation under Batas Pambansa Bilang 68, as
amended, otherwise known as the Corporation Code of the Philippines, insofar as
those powers are not inconsistent with the provisions of this Act;

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 Kalibo 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;

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

Sue and be sued;

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;

Retain and appropriate dues, and charges collected by the Authority relative to
the use of airport premises and for such measures as may be necessary to make
the Authority more effective in the discharge of its assigned tasks;

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

Provide services, whether on its own or otherwise, within the airports and the
approaches thereof as may be necessary or in connection with maintenance and
operation of the airports and their 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;


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b) Regulation of the entry to, exit from, and movement within the airports;
©) Maintenance of peace and order within the premises of the Authority;
d) Regulation and supervision of private security agencies operating in the airports;

e) Enforcement of the rules and regulations promulgated by the Authority pursuant
to law; and

f) Incase of emergencies or imminent danger involving national security within the
premises of the airports, the Philippine Air Force Security Command shall take
charge.

SEC. 6. Composition of the Board. - The corporate powers of the Authority shall be
exercised by and vested in the Board of Directors (Board) which shall be composed of a
chairman, a Vice Chairman and nine (9) members. The Secretary of Transportation and
the General Manager of the Authority shall be the ex-officio Chairman and Vice Chairman
of the Board, respectively.

The Secretary of Finance, the Secretary Tourism, the Secretary of Justice, the
Commissioner of Immigration, and the Provincial Governor of Aklan, or their duly
authorized representatives shall be ex-officio members of the Board. In addition, four (4)
members from the private sector who shall be residents of the Province of Aklan shall be
appointed by the Board for a term of three (3) years, subject to the existing rules and
regulations of the Governance Commission for GOCCs (GCG).

The Board shall promulgate its rules relative to meetings, quorum requirements and
compensation or allowances of the members, subject to existing rules and regulations.

SEC. 7. Functions, Powers and Duties 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:

a) Define and approve the programs, plans, policies, procedure, and guidelines of
the Authority for the development and operation of the airports;

b) Recommend to the President of the Philippines the appointment of a 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;

4) Approve the salary ranges, benefits and other terms and condition of service for
all officers and employees of the Authority upon recommendation of the General
Manager, which shall be subjected to existing laws, rules and regulations;

©) Fix the rates 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 recommendation of the
General Manager; and


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f)

Exercise all functions and powers necessary or incidental to attain the purpose and
objectives of this Act.

SEC. 8. Functions, Powers and Duties of the General Manager. - The General Manager
shall be directly responsible to the Board and shall have the following functions, power
and duties:

a)

b)

8)

Direct and supervise the day-to-day management, operation and administration
of the airports;

Implement and enforce decisions, orders, rules and regulations issues, prescribed,
or adopted by the Board;

Undertake researches, studies, investigations and other activities related to the
present operations and future improvements of the airports, and submit
comprehensive reports and appropriate recommendation to the Board for proper
action;

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;

Execute contracts, incur obligations, acquire and dispose of assets, and deliver
documents on behalf of the Authority;

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

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

SEC. 9. Capital. - The Authority shall have an authorized capital stock equal to or
consisting of:

a) The value or fixed assets, including airport facilities, runways and equipment, and

such other properties, movable, currently administered by or belonging to the
airports as valued on the date of the effectivity of this Act;

b) The value of such real estate owned and/or administered by the airports; and

©) Government contribution in such amount as maybe deemed an appropriate initial

amount, as approved by the President of the Philippines, which shall be more or
less equivalent to sixty (60) months working capital requirement of the Authority
shall be provided for the General Appropriations Act of the year following the
effectivity of this Act.

SEC. 10. 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 duties. The number and salaries of the auditor and
said personnel shall be determined by the Commission on Audit, in accordance with the


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revised compensation and position classification system and other applicable laws, rules
and regulations.

The Auditor shall as soon as possible 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 and special reports as the Board may deem necessary.

SEC. 11. Annual Report. - The Board shall submit to the President of the Philippines and
both Houses of Congress of the Philippines, through the Department of Transportation,
an annual report of the activities and operations of the Authority.

SEC. 12. Applicability of Civil Service Laws. - The Authority and its officials and
employees shall be subjected to the existing Civil Service laws and its rules and
regulations.

SEC. 13. Borrowing Power. - The Authority may, in accordance with existing laws, rules,
and regulations on local and foreign borrowing, raise funds, either from local or
international sources, by way of loans, credits or securities, and other borrowing
instrument, with the power to create pledges, mortgages, and other voluntary liens or
encumbrances on any of its assets or properties, upon recommendation of the Secretary
of the Transportation, 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 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 constructed 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 Exemption. - The Authority shall be exempt from the payment of 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 Intangible Assets. - All existing public airport
facilities, runways, lands, buildings and other properties movable and immovable
belonging to or presently administered by the airports, and all assets, powers, rights,
interest, or privileges relating to airport works or air operation, including all equipment
which are necessary for operation of the air navigation, air traffic control and crash fire,
and rescue facilities are hereby transferred to the Authority,

SEC. 16. Transfer 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 government agencies or
entities concerned in respect of such physical facilities, tangible assets, and completed
projects within the airports shall likewise be assumed by the Authority.

SEC. 17. Projects in Progress. - All ongoing projects relating to the construction of
facilities of the airports shall be continued by the agency or agencies involved. Until their


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completion thereafter, such projects shall be transferred to the Authority in accordance
with the agreement among agencies concerned. Any disagreement relating to such
transfer shall be submitted to the Board for final decision.

SEC. 18. Separability Clause. - If any provisions of this Act or the application of such
provision to any person or circumstances be declared unconstitutional, the remainder of
this Act or the application of such provision to other person or circumstances shall not be
affected by such declaration.

SEC. 19. Repealing Clause. - All laws, decrees, proclamations, executive orders, rules and
regulations or other issuances or parts thereof contrary to inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 20. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
two (2) national newspapers of general circulation.

Approved,