Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No.3972

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

The Philippine Aerospace Development Corporation (PADC) was established and
created by virtue of Presidential Decree No. 286 as the government’s arm for the
development of the Philippine aviation and aerospace industry. In 2019, then
Pres. Rodrigo Duterte signed Executive Order (EO) No. 78, s. 2019, placing PADC
under the administrative supervision of the Department of National Defense, in
recognition of the vital role of PADC in addressing internal and external threats,
achieving self-reliance as regards defense equipment, and promoting transfer of
technolgy from neighbor countries.

Among PDAC’s major accomplishments are the development of PADC Defiant
300 (a single prototype light aircraft), and PADC Hummingbird ( a prototype
helicopter ) and the assembly of forty-four (44) BO-105 helicopter , sixty-seven
(67) BN Islander aircrafts, eighteen (18) SF 260 TP single-engine turbo prop
trainer, six (6) Lancaster ES, and two (2) Lancaster IV. PADC has also established
a maintaince, repair, and overhaul (MRO) center for various aircraft utilized by
the Philippine Air Force.

With the aim of further strengthening its capabilities to enable it to fully perform
its functions, PADC has been negotiating several joint venture agreements with
foreign and local MRO service providers. PADC also seeks to revive local/regional
air passenger and cargo transport in the performance of its functions.

In light of the impending expiration of PADC's corporate life on 05 September
2023, this bill seeks to extend PADC's life for another fifty (50) years. Otherwise,
PADC would cease to exist and operate, effectively paralyzing the government
arm in the aviation and aerospace industry. Without PADC, the nation would be
vulnerable to internal and external threats and would trail behind other
countries in the modernization of civil and defense aviation. On the other hand,


extending its corporate life is the first step in realizing the following promising
aspirations of the PADC:

(1) Restructuring and aligning the corporation per its mandate;

(2) Fulfilling the current needs of its target customer of quality products and
services;

(3) Serving both the public and private sectors for a more competitive and viable
Philippine aviation and aerospace industy;

(4) Promoting growth and development of the Philippine aviation and aerospace
industry;

(5) Regulating aircraft, spacecraft, missiles, avionics, major flight-vehicle
subsystems and importation of aircraft parts; and

(6) Representing the nation in both international and local aerospace industries,
to tap potential beneficialpartnerships.

In view of the foregoing reasons, the approval of this bill is earnestly requested.

Sie. ouvakez



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 3972

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT EXTENDING THE LIFE OF THE PHILIPPINE AEROSPACE
DEVELOPMENT CORPORATION (PADC) BY ANOTHER FIFTY (50) YEARS,
AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 286, AS
AMENDED, ENTITLED “AUTHORIZING THE CREATION OF A PHILIPPINE
AEROSPACE DEVELOPMENT CORPORATION, APPROPRIATING FUNDS.
THEREFORE, AND FOR OTHER PURPOSES”

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

SECTION 1. Section 1 of Presidential Decree No. 286, as amended, is hereby
further amended to read as follows:

“Section 1. Creation of the Corporation. There is hereby created a body
corporate and politic under the Office of the President of the Philippines
to be known as the Philippine Aerospace Development Corporation,
hereinafter referred to as the Corporation, which shall be governed by this
Decree and its by-laws as authorized hereunder. The Corportion’s
corporate term is hereby extended for another period of fifty (50) years
from the expiration of its oringal term on 05 September 2023. The
principal office of the Corporation shall be located in a place to be
determined by the Board of Directors.”

SEC. 2. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,