QuestionsQuestions (EXECUTIVE ORDER NO. 716)
EO 716 transforms CIAC from a subsidiary of the Clark Development Corporation (CDC) into a subsidiary of the Bases Conversion and Development Authority (BCDA). Ownership is to revert to BCDA, which becomes the recipient of CIAC dividends.
EO 716 provides that CIAC is subject to the policy supervision of the Department of Transportation and Communications (DOTC). This implies CIAC remains operationally autonomous as a corporation but must align with DOTC policy direction.
EO 716 keeps CDC as the implementing arm of BCDA within the Clark Freeport Zone and Clark Special Economic Zone, pursuant to Section 15 of RA 7227 and RA 9400, while CIAC (as BCDA’s subsidiary) operates and manages the Clark Civil Aviation Complex.
EO 716 cites Section 5(f) of RA 7227, which grants BCDA authority to construct, own, lease, operate, and maintain public utilities and infrastructure.
EO 716 acknowledges that CIAC was granted by CDC a fifty (50)-year franchise to operate the Clark Civil Aviation Complex-Diosdado Macapagal International Airport. The EO then transforms CIAC’s parent and directs that ownership reverts to BCDA, aligning governance with BCDA’s conversion program. (Students should analyze continuity vs. reassignment of the franchise relationship.)
EO 716 states CIAC’s powers are vested in a Board of Directors composed of not more than nine (9) members. The Chairman and Members are nominated by the President of the Philippines.
No person may be nominated unless he is a Filipino citizen, of good moral character, and of recognized competence in relevant fields, including (but not limited to) civil aviation, economics, finance, law, engineering, or management.
CIAC may only engage in aviation, aviation-related services, and aviation-related logistics activities. Lease and business arrangements pertaining to these services/activities must be solely undertaken by CIAC.
The CCAC comprises 2,200 hectares and is under the jurisdiction of CIAC.
IE5 (approximately 290 hectares) is declared a logistics center. About 166.9 hectares within IE5—bounded by the East Perimeter Wall, SCTEX interchange (West), and SCTEX Logistics Interchange (North)—is under CIAC jurisdiction; the remaining IE5 areas are under CDC jurisdiction.
BCDA must prepare an implementing plan and take necessary steps to effect the transformation of CIAC as BCDA’s subsidiary, including all aspects governing relationships among BCDA, CDC, and CIAC, pursuant to Section 16 of RA 7227.
EO 716 directs all heads of departments, bureaus, offices, agencies, GOCCs, and instrumentalities to fast-track necessary approvals and assist CIAC to expedite implementation of various projects and activities for development of the CCAC.
It states that all other orders, issuances, or portions inconsistent with EO 716 are revoked, amended, or modified accordingly.
EO 716 takes effect immediately upon issuance (3 April 2008). This means its directives are enforceable right away, subject to subsequent implementing steps ordered in the EO.
EO 716 emphasizes alignment of CCAC development with BCDA’s conversion program, addressing potential duplication or misalignment of mandates between the prior CIAC/CDC structure and BCDA’s overarching conversion and development framework.