Republic of the Philippines
Congress of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
2496

HOUSE BILL NO.

Introduced by Representative MANUEL JOSE M. DALIPE

EXPLANATORY NOTE

This bill seeks the creation of Zamboanga International Airport Authority (ZIAA)
Authority), a government entity clothed with corporate personality and sufficient powers and
authority to efficiently manage and administer the operations of the Zamboanga International
Airport. This proposed measure was filed in the previous Congress and re-filed by the
undersigned in the 18" Congress.

The Zamboanga International Airport in Zamboanga City is one of the country’s major
airports in Mindanao catering to thousands of travelers not only from Zamboanga City but also
the from the rest of Western Mindanao including ARMM provinces of Basilan, Sulu, and Tawi-
tawi.

With the creation of ZIA Authority, we hope to achieve the desired degree of efficiency,
effectiveness, and economy in the operations of the ZIA being the center of air traffic in
Western Mindanao. The people of Zamboanga City and the entire Western Mindanao will
surely benefit from the establishment of ZIA Authority as it is expected to further boost city
tourism and accelerate the growth and development of the region and nearby provinces.

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

MANUEL JOSE M. iy
Representative, 2" Joy ga City


Republic of the Philippines
Congress of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2496
HOUSE BILL NO.

Introduced by Representative MANUEL JOSE M. DALIPE

AN ACT
CREATING THE ZAMBOANGA INTERNATIONAL AIRPORT AUTHORITY
AND PROVIDING 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
International Airport Authority.”

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

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

SEC. 3. Objectives. - The Authority shall principally undertake the economical,
efficient and effective control, management and operation of the Zamboanga International
Airport in Zamboanga City. In addition, it shall have the following objectives:

(a) To encourage, promote and develop international and domestic air traffic in
Zamboanga Peninsula 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

(b) To upgrade the services and the facilities of the Zamboanga International Airport
and formulate international acceptable standards of airport accommodation and
service.

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


(a) To formulate a comprehensive and integrated development policy and program
for the Zamboanga International Airport and implement review and update such
policy and program periodically;

(b) To supervise, control, construct, maintain, operate and provide such facilities or
services as shall be necessary for the efficient functioning of the Zamboanga
International Airport with ICAO standards;

(c) To promulgate rules and regulations governing the planning, development,
maintenance, operation and improvement of the Zamboanga International
Airport, and to supervise and control the construction of any structure or the
rendition of any service within the Zamboanga International 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;

(¢) 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 Zamboanga International Airport important to national security
shall not be subject to alienation or mortgage by the Authority nor transfer to any
entity other than the National Government;

(f) To exercise the power of eminent domain in the pursuit of its purposes and
objectives;

(g) To levy and collect dues, charges, fees or assessments for the use of the 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 of airport premises for such measures as may be necessary to
make the Authority more effective and efficient in the discharge of the assigned
tasks;

(i) To invest idle funds, as it may deem proper in government securities and other
evidences of indebtedness; and

(j) To provide services, whether on its own or otherwise, within the Zamboanga
International Airport and the approaches thereof as may be necessary or in
connection with the maintenance and operation of the Zamboanga International
Airport 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 the 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 within the airports;

(c) Maintenance of peace and order within the premises of the Zamboanga
International Airport;

(d) Regulation and supervision of private security agencies operating in the
‘Zamboanga International Airport;

(e) Enforcement of the 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. Board of Directors. — The corporate powers of the Authority shall be exercised
by and vested in the Board of Directors, hereinafter referred to as the Board, which shall be
composed of a Chairperson, a Vice Chairperson, and nine (9) members. The Secretary of
Transportation and the General Manager of the Authority shall be the ex-officio Chairperson
and Vice Chairperson of the board, respectively.

The Director General of the Civil Aviation Authority of the Philippines (CAAP), the
Secretaries of the following executive departments or any Undersecretary or Assistant
Secretary designated by the respective Secretaries of the Department of Finance, Department
of Justice, Department of Health, Department of Agriculture, and Department of Tourism shall
be ex officio members of the Board.

In addition, three (3) members from the private sector shall be appointed by the
President of the Philippines 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. — The Board shall have the
following functions:

(a) To define and approve the policies, plans and programs, procedures, and
guidelines of the Authority for the development and operation of the Zamboanga
International 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 upon the
recommendation of the General Manager, subject to the final approval of the
GCG;

(d) To approve salary ranges, benefits and other terms and conditions of service for
all officers and employees of the Authority, upon the recommendation of the
GCG, which shall, as far as possible, be competitive with those offered in the
private sector, subject to the approval of the President;

(c) To fix the rate 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 the recommendation of the
General Manager, and

(£) To 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 shall exercise the following duties:

(a) To direct and supervise the day-to-day management, operation and administration
of the Zamboanga International 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 Zamboanga International
Airport and submit comprehensive reports and appropriate recommendation to
the Board for proper action;

(4) 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;

(c) Within the limits of the authority delegated by the Board, 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 in accordance
with such rules and regulations to be promulgated by the Authority for the
purpose; and

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

SEC. 9. Authorized Capital. - The Authority shall have an authorized capital stock
jual 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 Zamboanga International Airport which shall be determined by
an independent and qualified appraiser or appraisers within (6) months from the
effectivity of this Act;

(b) The value of such real estate owned or administered by the Zamboanga
International Airport; and

(c) Government contribution in such amount as may be deemed 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 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 duties. The number and salaries
of the auditor and said personnel shall be determined by the Commission on Audit, subject
to its rules and regulations.

The Auditor shall as soon as practicable, but not later than (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. — 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 to both Houses of Congress, through the Department of
Transportation.

SEC. 12. Applicability of Civil Service Laws. — The Authority and its officials and
employees shall be subject to civil service laws and pertinent rules and regulations issued
by the Civil Service Commission.

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 borrowing, raise funds, either from local or international sources, by way of loans,
credits 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 interest
and other sums payable in respect thereof, shall constitute a charge upon all revenues and
assets of the Authority and shall rank equally, but shall have priority over any 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 nay asset or 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 local government or any of its political subdivisions, agencies and
instrumentalities for the first ten (10) years of its operations: 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 or
immovable, belonging to or presently administered by the Zamboanga International
Airport, and all assets, power, 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 CAP. No equipment, however,
shall be removed by the CAAP from the Zamboanga International Airport without the
concurrence of the Authority. The authority may assist in the maintenance of CAAP
equipment.


SEC. 16. Projects in Progress. — All ongoing projects relating to the construction
of Zamboanga 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 concerned in respect of such physical facilities, intangible assets and
completed projects within the Zamboanga International Airport shall likewise be assumed
by the Authority.

SEC. 18. Transitory Provision. — The General Manager of the Zamboanga
International Airport shall continue in office and shall perform all powers and functions of
the Authority until such time that a General Manager is appointed in accordance with the
provisions of this Act. Official and employees whose services are terminated shall, if not
eligible for retirement, be given gratuities equivalent to (1) month salary for every year of
continuous satisfactory service on the basis of highest salary received in addition to other
benefits accorded to them by existing laws.

SEC. 19. 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. 20. 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. 21. Effectivity - This shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved.