Title
Restructuring of Clark Intl Airport Corp
Law
Executive Order No. 14
Decision Date
Feb 28, 2017
Executive Order No. 14 transfers ownership of the Clark International Airport Corporation to the Bases Conversion and Development Authority, while the Department of Transportation maintains policy supervision and operational control over the airport, aiming to develop it as a major gateway to the Philippines.
A

Questions (EXECUTIVE ORDER NO. 14)

The primary purpose of Executive Order No. 14 is to revert the Clark International Airport Corporation (CIAC) as a subsidiary of the Bases Conversion and Development Authority (BCDA) and to maintain the policy supervision and operational control of the Department of Transportation (DOTr) over the Clark International Airport.

The CIAC is restructured as a subsidiary of the BCDA, and its ownership is transferred to BCDA.

The Department of Transportation (DOTr) exercises policy supervision and full regulatory and operational control over the Clark International Airport.

The CIAC is authorized to engage only in civil aviation, aviation-related services, and aviation-related logistics activities within the Clark Civil Aviation Complex (CCAC) and Clark Industrial Estate 5 areas. For all other business activities, prior approval from both DOTr and BCDA is required.

The Board of Directors is composed of the Secretary of Transportation (Chairperson), Secretary of Tourism (Vice-Chairperson), President of the BCDA (Vice-Chairperson), President and CEO of the CIAC (Vice-Chairperson), Director General of the Civil Aviation Authority of the Philippines (CAAP), and six other members appointed by the President of the Philippines upon consultation with the Secretary of Transportation and President of the BCDA.

EO No. 292 (s. 1987), known as the Administrative Code of 1987, grants the President continuing authority to reorganize the administrative structure of the Executive Branch.

The shares of CIAC were owned by the Republic of the Philippines, and the Department of Transportation was directed to facilitate the transfer and conveyance of these shares to BCDA as part of the restructuring.

The CDC continues to exercise its authority as the implementing arm of the BCDA within the Clark Freeport Zone (CFZ) and Clark Special Economic Zone (CSEZ), pursuant to Section 15 of RA No. 7227, as amended by RA No. 9400.

It recognizes and honors all contracts, leases, and business arrangements previously entered into by CDC within the Clark Civil Aviation Complex, subject to applicable laws and any terms in the implementing rules and regulations of the Order.

The BCDA, CDC, and CIAC, in consultation with the DOTr, are directed to adopt implementing rules and regulations within thirty (30) days from the effectivity of the Order.


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