EXECUTIVE ORDER NO. 778 March 4, 1982
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 MANILAINTERNATIONAL 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...
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Executive Orders
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 Manilainternational Airport
Executive Order No. 778
Summary of Executive Order No. 778
Creation of the Manila International Airport Authority
- Establishes the Manila International Airport Authority (MIAA) as a body corporate attached to the Ministry of Transportation & Communications (Sec. 3)
- Defines "AUTHORITY" as MIAA, "BOARD" as the Board of Directors, and "AIRPORT" as the new Manila International Airport and other airports administered by MIAA (Sec. 2)
Purpose and Objectives of MIAA
- Encourage and promote international and domestic air traffic in the Philippines (Sec. 4a)
- Formulate internationally acceptable standards of airport accommodation and service (Sec. 4b)
- Upgrade international and domestic air terminals, general aviation, and other facilities (Sec. 4c)
Functions, Powers, and Duties of MIAA
- Formulate policies and programs for the AIRPORT and other airports, subject to approval (Sec. 5a)
- Control, supervise, construct, maintain, operate, and provide facilities for efficient functioning of the AIRPORT (Sec. 5b)
- Promulgate rules and regulations governing the AIRPORT (Sec. 5c)
- Sue and be sued, adopt and use a corporate seal, succeed by its corporate name (Sec. 5d-f)
- Adopt and amend by-laws (Sec. 5g)
- Execute contracts, acquire and dispose of assets, exercise eminent domain (Sec. 5h-j)
- Levy and collect dues, charges, fees, or assessments for use of AIRPORT facilities, subject to approval (Sec. 5k)
- Invest idle funds in government securities (Sec. 5l)
- Provide services within the AIRPORT, including aircraft movement, passenger handling, and cargo handling (Sec. 5m)
- Perform other acts necessary for attaining MIAA's objectives (Sec. 5n)
- Exercise powers of a corporation under the Corporation Law (Sec. 5o)
Police Authority of MIAA
- Exercise police authority necessary within its premises to carry out functions and objectives (Sec. 6)
- Maintain security, regulate entry and movement, maintain peace and order, regulate private security agencies, and enforce rules and regulations (Sec. 6a-e)
Board of Directors
- Corporate powers vested in a 7-member Board with a Chairman, Vice-Chairman, and 5 members (Sec. 7)
- Composition includes ex officio members from various ministries and agencies (Sec. 7)
- Quorum of 4 members required for decisions (Sec. 7)
- Members receive per diems up to ₱1,000 per month (Sec. 7)
Functions, Powers, and Duties of the Board
- Define and approve programs, plans, policies, procedures, and guidelines for MIAA (Sec. 8a)
- Recommend appointment of General Manager to the President (Sec. 8b)
- Approve organizational structure, staffing, expenditures, and budgets (Sec. 8c)
- Approve salary ranges, benefits, and terms of service for officers and employees (Sec. 8d)
- Fix rates of dues, charges, fees, or assessments (Sec. 8e)
- Exercise other necessary functions and powers (Sec. 8f)
Functions, Powers, and Duties of the General Manager
- Direct and supervise management, operation, and administration of MIAA (Sec. 9a)
- Undertake research, studies, and investigations, and submit reports and recommendations (Sec. 9b)
- Appoint, transfer, suspend, remove, or discipline subordinate officers and employees, subject to Board approval (Sec. 9c)
- Establish and maintain a system for disseminating financial, statistical, and other relevant data (Sec. 9d)
- Execute contracts, incur obligations, acquire and dispose of assets within delegated authority (Sec. 9e)
- Implement and enforce decisions, orders, rules, and regulations of the Board (Sec. 9f)
- Perform other duties assigned by the Board (Sec. 9g)
Capital of MIAA
- Capital contributed by the National Government is ₱10 billion (Sec. 10)
- Initial capital consists of value of fixed assets, properties, net current assets, and cash amount equivalent to 6 months' working capital (Sec. 10a-c)
- Subsequent government contributions to be provided in the General Appropriations Act (Sec. 10)
Auditor and Legal Counsel
- Chairman of the Commission on Audit is the ex officio Auditor of MIAA (Sec. 11)
- Government Corporate Counsel is the Legal Counsel of MIAA (Sec. 12)
Annual Report and Civil Service Laws
- MIAA to submit an annual report to the President through the Ministry of Transportation and Communications (Sec. 13)
- MIAA and its officials and employees are subject to the Civil Service laws and rules (Sec. 14)
Borrowing Power
- MIAA may raise funds through loans, credits, or securities, subject to consultation with Central Bank and Minister of Finance, and approval of the President (Sec. 15)
- Loans constitute a charge on MIAA's revenues and assets with priority over other claims (Sec. 15)
- Total outstanding indebtedness shall not exceed MIAA's net worth without Presidential authorization (Sec. 15)
- Minister of Finance may guarantee MIAA's loans, subject to Presidential approval (Sec. 15)
Increase or Decrease of Rates
- MIAA may increase or decrease rates of dues, charges, fees, or assessments to protect government interest and provide satisfactory return on assets (Sec. 16)
- MIAA shall periodically review and adjust rates to reflect price levels and traffic volume (Sec. 16)
Competitive Tender
- General Manager shall grant permits or concessions to the highest bidder after public bidding, with exceptions for certain entities (Sec. 17)
- Permittees or concessionaires shall provide goods or services at acceptable standards and prices (Sec. 17)
- Final awards of permits or concessions subject to Board approval (Sec. 17)
Tax Exemption
- MIAA is exempt from corporate income taxes and realty taxes imposed by the National Government or its political subdivisions (Sec. 18)
- Tax exemption does not extend to any subsidiary organized by MIAA (Sec. 18)
Transfer of Existing Facilities and Intangible Assets
- All existing public airport facilities, lands, buildings, property, assets, powers, rights, interests, and privileges related to airport works or air operations are transferred to MIAA (Sec. 19)
Projects in Progress
- Ongoing projects related to airport construction shall be continued by the involved agencies until completion, then transferred to MIAA (Sec. 20)
- Disagreements regarding transfer shall be submitted to the President for final decision (Sec. 20)
Transfer of Liabilities and Debts
- All debts, liabilities, and obligations related to the transferred physical facilities, assets, and completed projects shall be assumed by MIAA (Sec. 21)
Abolition of Manila International Airport and Transitory Provisions
- The Manila International Airport under the Bureau of Air Transportation is abolished (Sec. 22)
- The AIRPORT General Manager shall continue in office and perform MIAA's functions until a new General Manager is appointed (Sec. 22)
- Terminated officials and employees shall receive gratuities based on years of service, up to 12 months' salary (Sec. 22)
Repealing Clause, Separability Clause, and Effectivity
- Inconsistent laws, executive orders, instructions, rules, and regulations are repealed, amended, or modified (Sec. 23)
- Provisions of the Executive Order are separable (Sec. 24)
- The Executive Order takes effect immediately (Sec. 25)
Creation of the Manila International Airport Authority
- Establishes the Manila International Airport Authority (MIAA) as a body corporate attached to the Ministry of Transportation & Communications (Sec. 3)
- Defines "AUTHORITY" as MIAA, "BOARD" as the Board of Directors, and "AIRPORT" as the new Manila International Airport and other airports administered by MIAA (Sec. 2)
Purpose and Objectives of MIAA
- Encourage and promote international and domestic air traffic in the Philippines (Sec. 4a)
- Formulate internationally acceptable standards of airport accommodation and service (Sec. 4b)
- Upgrade international and domestic air terminals, general aviation, and other facilities (Sec. 4c)
Functions, Powers, and Duties of MIAA
- Formulate policies and programs for the AIRPORT and other airports, subject to approval (Sec. 5a)
- Control, supervise, construct, maintain, operate, and provide facilities for efficient functioning of the AIRPORT (Sec. 5b)
- Promulgate rules and regulations governing the AIRPORT (Sec. 5c)
- Sue and be sued, adopt and use a corporate seal, succeed by its corporate name (Sec. 5d-f)
- Adopt and amend by-laws (Sec. 5g)
- Execute contracts, acquire and dispose of assets, exercise eminent domain (Sec. 5h-j)
- Levy and collect dues, charges, fees, or assessments for use of AIRPORT facilities, subject to approval (Sec. 5k)
- Invest idle funds in government securities (Sec. 5l)
- Provide services within the AIRPORT, including aircraft movement, passenger handling, and cargo handling (Sec. 5m)
- Perform other acts necessary for attaining MIAA's objectives (Sec. 5n)
- Exercise powers of a corporation under the Corporation Law (Sec. 5o)
Police Authority of MIAA
- Exercise police authority necessary within its premises to carry out functions and objectives (Sec. 6)
- Maintain security, regulate entry and movement, maintain peace and order, regulate private security agencies, and enforce rules and regulations (Sec. 6a-e)
Board of Directors
- Corporate powers vested in a 7-member Board with a Chairman, Vice-Chairman, and 5 members (Sec. 7)
- Composition includes ex officio members from various ministries and agencies (Sec. 7)
- Quorum of 4 members required for decisions (Sec. 7)
- Members receive per diems up to ₱1,000 per month (Sec. 7)
Functions, Powers, and Duties of the Board
- Define and approve programs, plans, policies, procedures, and guidelines for MIAA (Sec. 8a)
- Recommend appointment of General Manager to the President (Sec. 8b)
- Approve organizational structure, staffing, expenditures, and budgets (Sec. 8c)
- Approve salary ranges, benefits, and terms of service for officers and employees (Sec. 8d)
- Fix rates of dues, charges, fees, or assessments (Sec. 8e)
- Exercise other necessary functions and powers (Sec. 8f)
Functions, Powers, and Duties of the General Manager
- Direct and supervise management, operation, and administration of MIAA (Sec. 9a)
- Undertake research, studies, and investigations, and submit reports and recommendations (Sec. 9b)
- Appoint, transfer, suspend, remove, or discipline subordinate officers and employees, subject to Board approval (Sec. 9c)
- Establish and maintain a system for disseminating financial, statistical, and other relevant data (Sec. 9d)
- Execute contracts, incur obligations, acquire and dispose of assets within delegated authority (Sec. 9e)
- Implement and enforce decisions, orders, rules, and regulations of the Board (Sec. 9f)
- Perform other duties assigned by the Board (Sec. 9g)
Capital of MIAA
- Capital contributed by the National Government is ₱10 billion (Sec. 10)
- Initial capital consists of value of fixed assets, properties, net current assets, and cash amount equivalent to 6 months' working capital (Sec. 10a-c)
- Subsequent government contributions to be provided in the General Appropriations Act (Sec. 10)
Auditor and Legal Counsel
- Chairman of the Commission on Audit is the ex officio Auditor of MIAA (Sec. 11)
- Government Corporate Counsel is the Legal Counsel of MIAA (Sec. 12)
Annual Report and Civil Service Laws
- MIAA to submit an annual report to the President through the Ministry of Transportation and Communications (Sec. 13)
- MIAA and its officials and employees are subject to the Civil Service laws and rules (Sec. 14)
Borrowing Power
- MIAA may raise funds through loans, credits, or securities, subject to consultation with Central Bank and Minister of Finance, and approval of the President (Sec. 15)
- Loans constitute a charge on MIAA's revenues and assets with priority over other claims (Sec. 15)
- Total outstanding indebtedness shall not exceed MIAA's net worth without Presidential authorization (Sec. 15)
- Minister of Finance may guarantee MIAA's loans, subject to Presidential approval (Sec. 15)
Increase or Decrease of Rates
- MIAA may increase or decrease rates of dues, charges, fees, or assessments to protect government interest and provide satisfactory return on assets (Sec. 16)
- MIAA shall periodically review and adjust rates to reflect price levels and traffic volume (Sec. 16)
Competitive Tender
- General Manager shall grant permits or concessions to the highest bidder after public bidding, with exceptions for certain entities (Sec. 17)
- Permittees or concessionaires shall provide goods or services at acceptable standards and prices (Sec. 17)
- Final awards of permits or concessions subject to Board approval (Sec. 17)
Tax Exemption
- MIAA is exempt from corporate income taxes and realty taxes imposed by the National Government or its political subdivisions (Sec. 18)
- Tax exemption does not extend to any subsidiary organized by MIAA (Sec. 18)
Transfer of Existing Facilities and Intangible Assets
- All existing public airport facilities, lands, buildings, property, assets, powers, rights, interests, and privileges related to airport works or air operations are transferred to MIAA (Sec. 19)
Projects in Progress
- Ongoing projects related to airport construction shall be continued by the involved agencies until completion, then transferred to MIAA (Sec. 20)
- Disagreements regarding transfer shall be submitted to the President for final decision (Sec. 20)
Transfer of Liabilities and Debts
- All debts, liabilities, and obligations related to the transferred physical facilities, assets, and completed projects shall be assumed by MIAA (Sec. 21)
Abolition of Manila International Airport and Transitory Provisions
- The Manila International Airport under the Bureau of Air Transportation is abolished (Sec. 22)
- The AIRPORT General Manager shall continue in office and perform MIAA's functions until a new General Manager is appointed (Sec. 22)
- Terminated officials and employees shall receive gratuities based on years of service, up to 12 months' salary (Sec. 22)
Repealing Clause, Separability Clause, and Effectivity
- Inconsistent laws, executive orders, instructions, rules, and regulations are repealed, amended, or modified (Sec. 23)
- Provisions of the Executive Order are separable (Sec. 24)
- The Executive Order takes effect immediately (Sec. 25)