EXECUTIVE ORDER NO. 903
EXECUTIVE ORDER NO. 903 - PROVIDING
FOR A REVISION OF 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; and
WHEREAS, under Presidential Decree No. 1416, as amended by 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 “Revised Charter of the Manila International Airport
Authority.”
Sec. 2. Definition. — 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 Airport, including the Manila Domestic
Airport, and all its installations, facilities and equipment, and such
other airports in Metro Manila 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 and Communications. The
principal office of the Authority shall be located at the New Manila
International Airport. The Authority may establish such offices,
branches, agencies or subsidiaries as it may deem proper and necessary;
Provided, That any subsidiary that may be organized shall have the
prior approval of the President.
The land where the Airport is presently located as well as the
surrounding land area of approximately six hundred hectares, are hereby
transferred, conveyed and assigned to the ownership and administration
of the Authority, subject to existing rights, if any. The Bureau of
Lands and other appropriate government agencies shall undertake an
actual survey of the area transferred within one year from the
promulgation of this Executive Order and the corresponding title to be
issued in the name of the Authority. Any portion thereof shall not be
disposed through sale or through any other mode unless specifically
approved by the President of the Philippines.
Sec. 4. Purposes and Objectives. — The Authority
shall have the following purposes and objectives:
(a)
To help encourage and promote international and domestic air traffic in
the Philippines as a means of making the Philippines a center of
international trade and tourism and accelerating the development of the
means of transportation and communications in the country.
(b) To
formulate and adopt for application in the Airport internationally
acceptable standards of airport accommodation and service; and
(c) To upgrade
and provide safe, efficient, and reliable airport facilities for
international and domestic air travel.
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 to implement, review and update
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/or supervise as may be necessary 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
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;
(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 and Communications in consultation with the
Minister of Finance, and subject further to the provisions of Batas
Pambansa Blg. 325 where applicable;
(l) To invest
its idle funds, as it may deem proper, in government securities and
other evidences of indebtedness of the government;
(m) To provide
services, whether on its own or otherwise, within the Airport or the
approaches thereof, which shall include but not shall be limited to,
the following:
(1)
Aircraft movement and allocation of parking areas of aircraft on the
ground;
(2) Loading
and unloading of aircrafts;
(3) Passenger
handling and other services directed towards the care, convenience and
security of passengers, visitors and other airport users; and
(4) 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 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 (AVSECOM) 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, the Minister of Tourism, the Presidential
Executive Assistant, the Chief of Staff of the 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 representatives to attend Board meetings in
their absence. Such representatives shall attend Board meetings 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 of their representatives shall constitute a quorum; and the
vote of a majority of the members or 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 operation of the
Airport within the context of the overall 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 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
(f) Generally,
to exercise all the functions and powers necessary or incidental to
attain the purposes 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, and its integral units including its buildings, runways,
facilities and equipment, 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 provide
general supervision and overall coordination of all government agencies
operating in the Airport with respect to the allocation and use of
building space and airport premises.
(c) 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;
(d) To appoint
transfer, suspend, remove or otherwise discipline any subordinate
officer or employee of the Authority, subject to the approval of the
Board and to engage either on contractual basis and other suitable
arrangements the services of highly qualified professionals, experts,
technical advisers or consulting firms and to determine their
compensation or fees including other terms and conditions of employment
as may be authorized by the Board;
(e) To enter
into a memorandum of agreement/understanding, contracts or such other
arrangements as may be feasible with such government agencies or
private entities operating or providing services in the Authority to
ensure proper coordination and integration of all activities in the
Authority, subject to the approval of the Board or such laws, rules and
regulations as are applicable in the exercise of such authority;
(f) 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 data within
the Authority and to the Board;
(g) 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;
(h) To
implement and enforce decisions, orders, rules and regulations issued,
prescribed or adopted by the Board; and
(i) To perform
such other duties as the Board may delegate or assign, and such other
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 Two and One Half
Billion Pesos (P2,500,000,000.00). 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, the valuation of which shall be determined jointly
with the Office of Budget and Management and the Commission on Audit 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 of
the assets and other properties;
(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 an 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.
Thereafter, the government contribution to the capital of the Authority
shall be provided for in the General Appropriations Act.
Sec. 11. Contribution to the General Fund for the
Maintenance and Operation of other Airports. — Sixty-Five per centum
(65%) of the annual gross operating income of the Authority shall
revert to the general fund in the National Treasury to be used for the
maintenance and operation of other international and domestic airports
in the country.
Sec. 12. 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 the 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. 13. Legal Counsel. — The Government Corporate
Counsel shall be the Legal Counsel of the Authority: Provided, That the
Authority may establish its own legal department to handle the
day-to-day legal matters affecting the affairs 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. 14. 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. 15. 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. 16. Borrowing Power. — The Authority may,
after consultation with the Minister of Finance and 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 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 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 any 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 President or his duly authorized representative after consultation
with 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.
Sec. 17. 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 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 services 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 rental) of volume of traffic through the
Airport, subject to the provisions of Batas Pambansa Blg. 325, whenever
practicable.
Sec. 18. Remedies for Non-Payment. — If the owner
or agent of any aircraft refuses or neglects to pay on demand any rate
or charges made in pursuance of Section 17 hereof, the Authority may,
in addition to any other remedy provided by law, detain, on its own
authority, such aircraft equipment or furniture belonging to the owner
or agent of said aircraft, until the amounts due have been paid.
Sec. 19. Fines and Penalties. — The Authority
shall have the power to exact reasonable administrative fines in such
specific amounts and for such specific violations arising out of the
use of the Airport, as shall be prescribed in rules and regulations
which the Authority is hereby authorized to issue for the purpose,
which amount of fine shall not be less than Fifty Pesos (P50.00) nor
shall be more than Ten Thousand Pesos (P10,000.00).
Sec. 20. 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, other government agencies
with airport-related activities and those who are engaged in airline
operations or where the fees, rates or assessments to be charged have
been fixed by the Board.
The General Manager shall require 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. 21. Tax Exemptions. — The Authority shall 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. 22. 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 crash fire and rescue facilities, are hereby transferred
to the Authority.
Sec. 23. Projects in Progress. — All ongoing
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. 24. 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. 25. 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 as a division 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 be entitled to all benefits and
gratuities provided for under existing laws.
Sec. 26. 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. 27. 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 effect the other provisions which shall
remain in full force and effect.
Sec. 28. Effectivity. — This Executive Order shall
take effect immediately.
Done in the City of Manila,
Philippines, this 21st day of July in the Year of Our Lord, Nineteen
Hundred and Eighty-Three.
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Since 19.07.98.