EXECUTIVE ORDER NO. 778
EXECUTIVE ORDER NO. 778 - CREATING
THE MANILA INTERNATIONAL AIRPORT AUTHORITY, TRANSFERRING EXISTING
ASSETS OF THE MANILA INTERNATIONAL AIRPORT TO THE AUTHORITY, AND
VESTING THE AUTHORITY WITH POWER TO ADMINISTER AND OPERATE THE MANILA
INTERNATIONAL AIRPORT
WHEREAS, the Manila International
Airport as the principal airport of the Philippines for both
international and domestic air traffic, is required to provide
standards of airport accommodation and service comparable with the best
airports in the world;
WHEREAS, domestic and other terminals, general aviation and other
facilities, have to be upgraded to meet the current and future air
traffic and other demands of aviation in Metro Manila;
WHEREAS, a management and organization study has indicated that the
objectives of providing high standards of accommodation and service
within the context of a financially viable operation, will best be
achieved by a separate and autonomous body;
WHEREAS, under Presidential Decree No. 1772, the President of the
Philippines is given continuing authority to reorganize the National
Government, which authority includes the creation of new entities,
agencies and instrumentalities of the Government;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, and pursuant
to the authority vested in me by Presidential Decree No. 1416, as
amended, do hereby order:
Section 1. Title. — This Executive Order shall be
known as the “Charter of the Manila International Airport Authority.”
Sec. 2. Definitions. — For the purpose of this
Executive Order, the terms used herein shall have the following
meaning:
(a)
“AUTHORITY” shall mean the Manila International Airport
Authority;
(b) “BOARD”
shall mean the Board of Directors of the AUTHORITY appointed by the
President under Sec. 7 of this Executive Order;
(c) “AIRPORT”
shall mean the new Manila International Airport, including the Manila
Domestic Airport, and all its installations, facilities and equipment,
and such other airports as may, in the future, be constructed and,
administered by the AUTHORITY.
Sec. 3. Creation of the Manila International
Airport Authority. — There is hereby established a body corporate to be
known as the Manila International Airport Authority which shall be
attached to the Ministry of Transportation & Communications. The
principal office of the AUTHORITY shall be located at the new Manila
International Airport. The AUTHORITY may have such branches, agencies
or subsidiaries as it may deem proper and necessary.
Sec. 4. Purposes and Objectives. — The AUTHORITY
shall have the following purpose and objectives:
(a)
To encourage and promote international and domestic air traffic in the
Philippines as a means of (i) making the Philippines a center of
international trade and tourism, (ii) unifying the diverse ethnic
groups throughout the Philippine archipelago, and (iii) accelerating
the development of the means of transportation and communications in
the country;
(b) To
formulate internationally acceptable standards of airport accommodation
and service; and
(c) To upgrade
international and domestic air terminals as well as general aviation
and other facilities.
Sec. 5. Functions, Powers and Duties. — The
AUTHORITY shall have the following functions, powers and duties:
(a)
To formulate, in coordination with the Bureau of Air Transportation and
other appropriate government agencies, a comprehensive and integrated
policy and program for the AIRPORT and other airports in the
Philippines, subject to the approval of the Minister of Transportation
and Communications, and to implement, review and upgrade such policy
and program periodically;
(b) To
control, supervise, construct, maintain, operate and provide such
facilities or services as shall be necessary for the efficient
functioning of the AIRPORT;
(c) 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;
(d) To sue and
be sued in its corporate name;
(e) To adopt
and use a corporate seal;
(f) To succeed
by its corporate name;
(g) To adopt
its By-Laws, and to amend or repeal the same from time to time;
(h) To execute
or enter into contracts of any kind or nature;
(i) To
inquire, 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;
(j) To
exercise the power of eminent domain in the pursuit of its purposes and
objectives;
(k) 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, subject to the approval of the
Minister of Transportation & Communications in consultation with
the Minister of Finance;
(l) To invest
its idle funds, as it may deem proper, in government securities and
other evidences of indebtedness;
(m) To provide
services, whether on its own or otherwise, within the AIRPORT and the
approaches thereof, which shall include but shall not be limited to the
following:
—
aircraft movement and allocation of parking areas of aircraft on the
ground;
— loading or
unloading on aircraft;
— passenger
handling and other service directed towards the care, convenience and
security
of passengers, visitors and other airport
users; and
—- sorting,
weighing, measuring, warehousing or handling of baggage and goods.
(n) To perform
such other acts and transact such other business, directly or
indirectly necessary, incidental or conducive to the attainment of the
purposes and objectives of the AUTHORITY, including the adoption of
necessary measures to remedy congestion in the AIRPORT; and
(o) To
exercise all the powers of a corporation under the Corporation Law,
insofar as these powers are not inconsistent with the provisions of
this Executive Order.
Sec. 6. Police Authority. — The AUTHORITY shall
have the power to exercise such police authority as may be necessary
within its premises or area of operation to carry out its functions and
attain its purposes and objectives, without prejudice to the exercise
of functions within the same premises by the Ministry of National
Defense through the Aviation Security Command (VASECTOMY) as provided
in LOI 961; 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;
(b) Regulating
the entry to, exit from and movement within the AIRPORT;
(c)
Maintenance of peace and order within the premises of the AUTHORITY in
coordination with local police authorities and other authorized
peace-keeping entities within the AIRPORT;
(d) Regulation
and supervision of private security agencies operating in the Airport;
and
(e)
Enforcement of rules and regulations promulgated by the Authority
pursuant to law.
Sec. 7. Board of Directors. — The corporate powers
of the Authority shall be exercised by and vested in a Board of seven
(7) members, which shall be composed of a Chairman, a Vice-Chairman and
five (5) members. The Minister of Transportation and Communications
shall be the ex officio Chairman of the Board. The General Manager of
the Authority shall be the ex officio Vice-Chairman of the Board. The
Minister of Finance, Minister of Tourism, the Presidential Executive
Assistant, the Chief of Staff-Armed Forces of the Philippines, and the
Commissioner of Immigration and Deportation shall be ex officio
members.
In the absence of the Chairman, the Vice-Chairman shall act as
Chairman. The Chairman, the Vice-Chairman and the Board members may
designate their respective representative to attend Board Meetings in
their absence. Such representatives shall attend Board meeting and the
meetings of any committee assigned to their principals, and receive the
corresponding per diems.
The Board shall meet regularly once a month and as often as the
exigencies of the service demand. The presence of at least four (4)
members or their representatives shall constitute a quorum, and the
vote of a majority of the members of representatives present there
being a quorum shall be necessary for the adoption of any rule,
regulation, resolution, decision or any other act of the Board.
The Members of the Board or their representatives shall receive per
diems, as the Board may approve, for each Board meeting actually
attended by them: Provided, That such per diem shall not exceed ONE
THOUSAND PESOS (P1,000.00) during any one (1) month for each member or
representative.
Sec. 8. Functions, Powers and Duties of the Board.
— Without prejudice to the powers vested in the Board by virtue of the
other Section s herein, the Board shall have the following functions,
powers and duties:
(a)
To define and approve the programs, plans, policies, procedures and
guidelines of the Authority for the development and operations of the
Airport within the context of the over-all Government objectives, and
to control the management, operation and administration of the
Authority;
(b) To
recommend to the President of the Philippines for appointment, a
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,
prepared in accordance with the corporate plan of the Authority, upon
recommendation of the General Manager;
(d) To approve
salary ranges, 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 regulations;
(e) To fix the
rate 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
(f) Generally,
to exercise all the functions and powers necessary or incidental to
attain the purpose and objectives of this Executive Order.
Sec. 9. 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 management, operation, and administration
of the AUTHORITY so as to provide international standards of service to
airport users, and to ensure its financial stability in accordance with
the programs, plans, policies, procedures and guidelines of the BOARD;
(b) To
undertake, researches, studies, investigations and other activities
related to the present operations and future development requirements
of the AIRPORT, on his own initiative or upon instructions of the
BOARD, and to submit comprehensive reports and appropriate
recommendations to the BOARD for its information and action;
(c) To
appoint, transfer, suspend, remove or otherwise discipline any
subordinate officer or employee of the AUTHORITY, subject to the
approval of the BOARD;
(d) To
establish and maintain a system, in coordination with the appropriate
government offices and agencies, for the regular and prompt
dissemination of financial, statistical and other relevant date within
the AUTHORITY and to the BOARD;
(e) 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;
(f) To
implement and enforce decisions, orders, rules and regulations issued,
prescribed or adopted by the BOARD;
(g) To perform
such other duties as the BOARD may delegate or assign, and such acts as
may be necessary and proper to implement this Executive Order.
Sec. 10. Capital. — The capital of the AUTHORITY
to be contributed by the National Government shall be TEN BILLION PESOS
(P10,000,000,000.00). The initial capital shall consist of:
(a)
The value of fixed assets (Including airport facilities, runways and
equipment) and such other properties, movable and immovable, which may
be contributed by the National Government or transferred by it from any
of its agencies, as valued on the date of such contribution or transfer
after making due allowance for depreciation and other deduction or
taking into account the loans and other liabilities of the AUTHORITY at
the time of the takeover.
(b) The value
of such real estate owned and administered by the Manila International
Airport;
(c) The value
of the net current assets (including stocks and receivables less
prepaid payables and accrued expenses) and such cash amount as may be
deemed as appropriate initial balance. Such initial cash amount as
approved by the President of the Philippines, shall be more or less
equivalent to six (6) months working capital requirements of the
AUTHORITY, and shall be appropriated out of the funds of the National
Treasury or the current budget of the Bureau of Air Transportation.
Thereafter, the government contribution to the capital of the AUTHORITY
shall be provided for in the General Appropriations Act.
Sec. 11. Auditor. — The Chairman of the Commission
on Audit, shall be the ex officio Auditor of the AUTHORITY. For this
purpose, he may appoint a representative who shall be the auditor of
the AUTHORITY, together with the necessary personnel to assist said
representative in the performance of his duties. The number and
salaries of the auditor and said personnel shall be determined by the
Chairman of the Commission on Audit, subject to rules and regulations
of the Commission on Audit. Said salaries and all other expenses of
maintaining the auditor’s office shall be paid by the AUTHORITY.
The Auditor shall, as soon as practicable, but not later than three (3)
months after the accounts have been submitted to audit, send an annual
report to the BOARD. The Auditor may also submit such periodic or
special reports as the BOARD may deem necessary.
Sec. 12. Legal Counsel. — The Government Corporate
Counsel shall be the Legal Counsel of the AUTHORITY. For the
performance of his duties and the services of the Legal Staff of the
Office of the Government Corporate Counsel, the BOARD shall
appropriate, and the General Manager shall remit, such amount as shall
be determined by the Government Corporate Counsel.
Sec. 13. Annual Report. — The BOARD shall submit
to the President of the Philippines through the Ministry of
Transportation and Communications, together with the audit report on
the relevant accounts, an annual report generally dealing with the
activities and operations of the AUTHORITY.
Sec. 14. Applicability of Civil Service Laws. —
The AUTHORITY AND ITS officials and employees shall be subject to the
Civil Service law and its rules and regulations.
Sec. 15. Borrowing Power. — The AUTHORITY may,
after consultation with the Central Bank of the Philippines and
Minister of Finance, with the approval of the President of the
Philippines, as recommended by the Minister of Transportation and
Communications, raise funds, either from local or international
sources, by way of loans, credits 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.
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 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 provisions 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 of its
assets or property of the AUTHORITY.
Except as expressly authorized by the President of the Philippines, the
total outstanding indebtedness of the AUTHORITY in the principal
amount, in local and foreign currency, shall not at any time exceed the
net worth of the AUTHORITY at any given time.
The Minister of Finance, may guarantee, in the name and on behalf of
the Republic of the Philippines, the payment of the loans or other
indebtedness of the AUTHORITY up to the amount herein authorized,
subject to the approval of the President of the Philippines.
Sec. 16. Increase or Decrease of Rates. — The
AUTHORITY may increase or decrease the rates of the dues, charges, fees
or assessments collectible by the AUTHORITY to protect the interest of
the Government and to provide a satisfactory return on the AUTHORITY’s
assets, and may adjust the schedule of such rates so as to reflect the
cost of facilities or service provided or rendered. The AUTHORITY may
periodically review all dues, charges, fees or assessments collectible
by the AUTHORITY, and shall make such adjustments to the schedule of
rates as shall adequately reflect any increase in price levels and (in
the case of concession rentals) of volume of traffic through the
AIRPORT.
Sec. 17. Competitive Tender. — The General Manager
shall, as far as practicable, grant permits or concessions to trade or
business within the areas controlled by the AUTHORITY to the highest
bidder after a competitive public bidding: Provided, That the bidding
requirements may be waived in the case of banks, branches of post
office, Bureau of Telecommunications and those who are engaged in
airline operations.
The General Manager shall require such permittees or concessionaires to
provide goods or services acceptable under international standards and
at such prices similar to goods or services in Metropolitan Manila or
airports in other countries: Provided, That such final awards of
permits or concessions to successful bidders shall be subject to the
approval of the BOARD.
Sec. 18. Tax Exemption. — The AUTHORITY shall be
exempt from the payment of corporate income taxes. The AUTHORITY shall
likewise 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.
Sec. 19. Transfer of Existing Facilities and
Intangible Assets. — All existing public airport facilities, runways,
lands, buildings and other property, movable or immovable, belonging to
the AIRPORT, and all assets, powers, rights, interests and privileges
belonging to the Bureau of Air Transportation relating to airport works
or air operations, including all equipment which are necessary for the
operation of air navigation, air traffic control and crash fire and
rescue facilities, are hereby transferred to the AUTHORITY, subject to
such terms as may be agreed upon by and between the AUTHORITY and the
Bureau of Air Transportation.
Sec. 20. Projects in Progress. — All on going
projects relating to the construction of airport facilities shall be
continued by the agency or agencies involved until completion.
Thereafter, such projects shall be transferred to the AUTHORITY, in
accordance with agreement among agencies concerned. Any disagreement,
relating to such transfer, shall be submitted to the President of the
Philippines for final decision.
Sec. 21. 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 the Bureau of Air Transportation and other 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. 22. Abolition of the Manila International
Airport as a Division in the Bureau of Air Transportation and
Transitory Provisions. — The Manila International Airport including the
Manila Domestic Airport under the Bureau of Air Transportation is
hereby abolished.
The AIRPORT General Manager of the abolished Manila International
Airport shall continue in office and shall perform all powers and
functions of the AUTHORITY until such time as a General Manager is
appointed for the smooth transfer of responsibility from the abolished
entity to the AUTHORITY, as well as the determination of the personnel
to be retained: Provided, That, all officials and employees whose
services are terminated shall, if not eligible for retirement, be given
gratuities equivalent to one (1) month’s salary for every year of
continuous satisfactory service but not exceeding twelve (12) months on
the basis of the highest salary received, in addition to other benefits
accorded to them by existing laws.
Sec. 23. Repealing Clause. — All laws, executive
orders, letters of instructions, rules and regulations, or provisions
thereof, which are inconsistent with the provisions of this Executive
Order are hereby repealed, amended or modified accordingly.
Sec. 24. Separability Clause. — The provisions of
this Executive Order are hereby declared separable. If any portion
thereof shall be held invalid or unconstitutional, such invalidity or
unconstitutionality shall not affect the other provisions which shall
remain in full force and effect.
Sec. 25. Effectivity. — This Executive Order shall
take effect immediately.
Done in the City of Manila,
Philippines, this 4th day of March in the year of Our Lord nineteen
hundred and eighty-two.
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