Transforming CIAC into BCDA Subsidiary

Executive Order No. 716 invokes the legislative authority in Republic Act No. 7227, particularly the authority of BCDA to construct, own, lease, operate, and maintain public utilities and infrastructure under Section 5(f).
Executive Order No. 716 relies on the relationship framework in Republic Act No. 7227, particularly the implementing steps under Section 16.
Section 3 applies within the Clark Freeport Zone and Clark Special Economic Zone pursuant to Section 15 of RA 7227 and RA 9400.
Executive Order No. 716 is premised on prior executive issuances establishing airport operations and entities, including Executive Order No. 193 (Series of 2003) creating CIAC as a subsidiary of Clark Development Corporation (CDC).

Executive Order No. 716 directs that CIAC’s development and operations be aligned to BCDA’s conversion program to support coordinated development of the Clark Civil Aviation Complex–Diosdado Macapagal International Airport (DMIA).
Executive Order No. 716 clarifies the functions and jurisdiction of CDC and CIAC to create synergy between the two corporations.
Executive Order No. 716 treats the development of Clark as a globally competitive international service and logistics center as a priority of the Administration’s “legacy agenda.”

Section 1 transforms CIAC from a subsidiary of CDC into a subsidiary of BCDA to operate and manage the Clark Civil Aviation Complex (CCAC) as defined in the Executive Order.
Section 1 provides that ownership of CIAC shall revert to BCDA.
Section 1 provides that BCDA shall be the recipient of the dividends from CIAC.
Section 2 subjects CIAC to the policy supervision of the Department of Transportation and Communications (DOTC).

Section 3 provides that CDC shall remain the implementing arm of BCDA within the Clark Freeport Zone and Clark Special Economic Zone.
Section 3 grounds CDC’s continued implementing role on Section 15 of RA 7227 and RA 9400.
Section 8 directs BCDA to take necessary steps toward implementing the transformation “pursuant to Section 16 of RA 7227,” including governing relationships among BCDA, CDC, and CIAC.
Section 7 allocates jurisdiction for parts of the industrial/logistics estate between CIAC and CDC, consistent with the intended synergy.

Section 4 provides that the powers of CIAC are vested in and exercised by a Board of Directors.
Section 4 limits the Board to not more than nine (9) members.
Section 4 provides that the Chairman and Members of the Board are nominated by the President of the Philippines.
Section 4 requires that no person may be nominated to the Board unless he is a Filipino citizen, of good moral character, and of recognized competence in relevant fields, including civil aviation, economics, finance, law, engineering, or management.

Section 5 provides that CIAC shall only engage in aviation, aviation-related services, and aviation-related logistics activities.
Section 5 requires that all lease and business arrangements pertaining to those services/activities shall be solely undertaken by CIAC.

Section 6 defines the Clark Civil Aviation Complex (CCAC) as comprising an area of two thousand two hundred (2,200) hectares.
Section 6 places the CCAC under the jurisdiction of CIAC.

Section 7 declares the Clark Industrial Estate 5 (IE5) area measuring approximately 290 hectares as a logistics center.
Section 7 provides that an area of approximately 166.9 hectares within IE5 is under the jurisdiction of CIAC.
Section 7 sets the boundaries of the 166.9-hectare CIAC jurisdiction as:
- East: the East Perimeter Wall;
- West: the Subic-Ciark-Tarlac Expressway (SCTEX) Interchange;
- North: the SCTEX Logistics Interchange.
Section 7 provides that the remaining areas within IE5 are under the jurisdiction of CDC.

Section 8 directs BCDA to prepare an implementing plan and take necessary steps to effect the transformation as BCDA’s subsidiary, including all aspects governing relationships among BCDA, CDC, and CIAC.
Section 9 directs all heads of government departments, bureaus, offices, agencies, government owned and controlled corporations, and instrumentalities to fast-track necessary approvals and assist CIAC to expedite the implementation of projects and activities for the development of the Clark Civil Aviation Complex.

Section 10 provides that all other orders, issuances, or portions thereof inconsistent with Executive Order No. 716 are revoked, amended, or modified accordingly.
Section 11 provides the immediate effectivity of Executive Order No. 716 upon issuance.