WHEREAS, under Republic Act No. 7227, otherwise known as the "Bases Conversion Development Act of 1992," it is the policy of the Government to accelerate the sound and balanced conversion into alternative productive uses of the Clark and Subic military reservations and their extensions to promote the economic and social development of the country;

WHEREAS, under Republic Act No. 7227 (1992), the Bases Conversion Development Authority is empowered to form, establish, organize and maintain subsidiary corporations formed in accordance with the Corporation Code and existing rules and regulations promulgated by the Securities and Exchange Commission;

WHEREAS, Executive Order No. 80 (1993) authorized the establishment of the Clark Development Corporation (CDC) as the operating and implementing arm of the Bases Conversion Development Authority for the Clark Special Economic Zone;

WHEREAS, pursuant to Executive Order No. 62 (1993), the Clark Special Economic Zone is envisioned as a major civil aviation complex for international passengers and/or cargo;

WHEREAS, Executive Order No. 174 (1994) mandates the Bases Conversion Development Authority and the Clark Development Corporation to implement the phased development of the Clark Aviation Complex and tasks the former to recommend the organizational structure of a proposed Clark International Airport Corporation which shall have jurisdiction over the operations of the entire Clark Aviation Complex; and

WHEREAS, the variety of activities in the aviation complex calls for diverse types of expertise which should be assigned to specialists and government agencies whose interventions are required by law.

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order the following:

SECTION 1.   Creation of the Clark International Airport Corporation. - A body corporate to be known as the Clark International Airport Corporation (CIAC) is hereby authorized to be formed to operate and manage the Clark Aviation Complex.

Pursuant to Section 16 of Republic Act No. 7227 (1992), the CIAC shall be a wholly-owned subsidiary corporation of the Clark Development Corporation (CDC) and shall be formed in accordance with the Corporation Code and existing rules and regulations promulgated by the Securities and Exchange Commission. The CIAC shall be subject to the policies, rules and regulations promulgated by the Bases Conversion Development Authority (BCDA)/CDC.

SECTION 2.  Exemption from Civil Service Laws, Rules and Regulations.  - Pursuant to Section 16 of Republic Act No. 7227 (1992), the CIAC shall be exempt from the coverage of Civil Service laws, rules and regulations.

SECTION 3.   Board of Directors. - Subject to Section 16 of Republic Act No. 7227 (1992), the powers of the CIAC shall be vested in and exercised by a Board of Directors which shall be composed of not more than eleven (11) members.

The members of the Board representing the equity of the CDC and other government corporations or agencies in the capital stock of the CIAC shall be nominated by the President of the Philippines. No person shall be nominated as a member of the Board representing the equity in the capital stock of the national government in CIAC 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, tourism, law or engineering.

SECTION 4.   Capitalization. - The capitalization of the CIAC shall be determined by the BCDA/CDC which shall include the following:

a   Cash equity to be provided by CDC;

b   Portions of or all government lands embraced and covered by the Clark Aviation Complex, as well as permanent improvements and fixtures therein upon proper inventory; and

c    All other assets which the President may transfer to the CIAC as part of the equity contribution of the Government.

SECTION 5.   Transfer of Clark Air Base Proper. - In view of Section 4 hereof, and pending the full development of the Clark Reverted Baselands, the BCDA shall transfer to the CDC the land comprising, and the permanent improvements and fixtures within, the 4,440 hectares, more or less, covering the Clark Air Base Proper under Proclamation No. 163 (1993).

SECTION 6.   Role of Departments, Bureaus, Offices, Agencies, Instrumentalities of the Government. - All heads of departments, bureaus, offices, agencies and instrumentalities of the government are hereby directed to give full support to the Clark International Airport development program and to coordinate with the CDC and the BCDA to facilitate the necessary approvals to expedite the implementation of the various aspects of the conversion program.

SECTION 7.   Repealing Clause. - All executive issuances, rules and regulations or parts thereof which are inconsistent with the provisions of this Executive Order are hereby repealed, amended, or modified accordingly.

SECTION 8.   Effectivity. - This Executive Order shall take effect immediately.

Adopted: 27 July 1994