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FOREWORD
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
MACRO ECONOMIC ASSESSMENT

PART I:  RESPONDING TO THE BASIC NEEDS

CHAPTER 1: HEALTH
CHAPTER 2:  NUTRITION
CHAPTER 3: FAMILY PLANNING
CHAPTER 4:  BASIC AND TERTIARY EDUCATION
CHAPTER 5: SKILLS DEVELOPMENT
CHAPTER 6: HOUSING AND COMMUNITY DEVELOPMENT
CHAPTER 7:  SOCIAL WELFARE
CHAPTER 8:  LABOR WELFARE AND PROTECTION

PART II:  PROMOTING ECONOMIC GROWTH

CHAPTER 9:  AGRICULTURE
CHAPTER 10:  FISHERIES
CHAPTER 11:  FORESTRY
CHAPTER 12:  MINING AND QUARRYING
CHAPTER 13:  TRADE AND INDUSTRY
CHAPTER 14:  TOURISM

PART III: INFRASTRUCTURE SUPPORT FACILITIES

CHAPTER 15: LAND TRANSPORTATION
CHAPTER 16: WATER TRANSPORTATION
CHAPTER 17: AIR TRANSPORTATION
CHAPTER 18: COMMUNICATIONS
CHAPTER 19: IRRIGATION, DRAINAGE AND FLOOD CONTROL
CHAPTER 20: POWER GENERATION, TRANSMISSION AND DISTRIBUTION

PART IV: DEVELOPMENT ADMINISTRATION

CHAPTER 21: INVESTMENT PROMOTION
CHAPTER 22:  PRODUCTIVITY IMPROVEMENT
CHAPTER 23:  SCIENCE AND TECHNOLOGY
CHAPTER 24:  GOOD GOVERNANCE
CHAPTER 25:  PEACE AND ORDER
CHAPTER 26:  DISASTER MANAGEMENT
CHAPTER 27:  SUSTAINABLE DEVELOPMENT
CHAPTER 28:  GENDER AND DEVELOPMENT
CHAPTER 29:  PLAN IMPLEMENTATION
CHAPTER 30:  FINANCING THE PLAN

ANNEX A: STATUS OF TOP TEN PRIORITY PROGRAMS AND PROJECTS OF BICOL REGION

   PART III: INFRASTRUCTURE SUPPORT FACILITIES

    

     Chapter 17. Air Transportation

I. Summary

 

   The Civil Aviation Authority of the Philippines (CAAP) was activated effective 22 May 2008 pursuant to Section 94 of Republic Act No. 9497, dated 04 March 2008, “An Act Creating the Civil Aviation Authority of the Philippines”.  Simultaneously, the Air Tranportation Office (ATO), created under Republic Act No. 776, as amended, was abolished pursuant to Sections 4 and 85 of R.A. 9497.  The Secretary of the Department of Transportation and Communications (DOTC) continued to assume the powers of Director-General (DG) of CAAP until the formal appointment of its first DG.

 

   Under DOTC Department Order No. 89-401, nine area centers throughout the country were created in the promotion/implementation of civil aviation in the country and abroad.  The airports of the Bicol Region were clustered as Area Center IV with Legazpi Airport as the cluster main airport.  An Airport Area Manager heads an Area Center wherein all airports in the region are under his jurisdiction.

 

   There are seven airports in Area Center IV, namely:  one cluster main airport (Legazpi Airport); five principal airports (Naga, Virac, Masbate, Daet, and Sorsogon); and one community airport in Bulan, Sorsogon.  Philippine Airlines (PAL), Cebu Pacific, Air Philippines, Zest Air and Asian Spirit provide the aviation needs of the region’s airports.

 

   The major air carriers for Legazpi Airport are Philippine Airlines (PAL), Zest Air, and Cebu Pacific.  Air Philippines and Cebu Pacific serve Naga Airport, while Asian Spirit and Philippine Airlines are serving the airports in the island provinces of Masbate and Catanduanes.  Daet, Sorsogon, and Bulan Airports operate and accepted non-commercial smaller aircrafts that fall under the category of general aviation.  All seven airports operate only during daytime However, with prior notice, Legazpi Airport can handle night landing operations.

 

   As of December 31, 2008, 16 airport maintenance/repair/infrastructure projects were undertaken by the agency. The total cost of all these projects was P4.598 million.  Maintenance projects were undertaken particularly in the airports of Legazpi, Naga, Masbate, and Virac, and Sorsogon.

 

 II. Assessment

 Development of a new Legazpi Airport of international standards

   The proposed New Legazpi Airport (Southern Luzon International Airport) Project involves the conduct of feasibility/advance engineering study, preparation of the detailed engineering design and construction of airport facilities. It also includes land acquisition of about 180 hectares. The project aims to develop a new airport with international standards in Alobo, Daraga, Albay replacing the existing Legaspi Airport to accommodate bigger aircraft that would service the growing volume of passengers.  The project would also enhance the efficiency, reliability and safety standard of air transportation services.  The project is one of the priority projects of the President identified in the SONA.

 

   The feasibility/advance engineering study, detailed engineering plans, and parcellary survey for the site acquisition were completed.  The feasibility study and engineering plans were submitted to NEDA in May 2009 for review and approval by the NEDA-ICC.

 

   The funding requirement for the proposed project is P3.89 billion.  It would be sourced from authorized allotments of the DOTC’s locally funded projects or as may be provided for by the GOP.  The funding strategy would be submitted to DBM for the issuance of Multi-Year Obligational Authority (MYOA).  The target construction period of the airport is 2009-2012.

 

 Upgrading of existing airports to serve as gateways to growth centers and tourism destinations

 

   As of December 2008, 16 regular maintenance/repair/infrastructure projects were undertaken by the agency. Total cost of all these projects was   P4.598 million.  Maintenance projects were undertaken in the airports of Legazpi, Naga, Masbate, and Virac, and Sorsogon (Table 17.1).

 

   All the airports in the region sustained considerable damages brought by typhoons Milenyo and Reming. The aforementioned newly implemented projects by CAAP were not spared by the fury of the said super typhoons. Millions of pesos of infrastructure facilities were damaged by the typhoons. 

Table 17.1 Infrastructure Maintenance Projects, Bicol Region, CY 2008

Name of Project Project Cost (PhP)
1 Repair of Powerhouse & Caretaker’s Quarter at Sorsogon Airport              34,560.00
2 Repair of Terminal Building damaged by typhoon Reming at Sorsogon Airport               73,369.00
3 Construction of one (1) unit guard shed at Sorsogon Airport               17,783.00
4 Repair/ Replacement of distance to go and markers at Legazpi Airport                72,445.00
5 Obstruction removal phase 1 at Virac Airport                530,900.00
6 Repair/ Rehabilitation of CHB Perimeter fence phase 3 at Virac Airport                454,100.00
7 Repair and replacement of perimeter fence of Naga Airport                 359,625.00
8 Repair of DVOR sideband cable rock wire protection of Naga Airport                 37,300.00
9 Obstruction removal (Hill Leveling) Phase 2 Virac Airport                 828,400.00
10 Repair of Pothole and damaged asphalt pavement at MBT AP                 422,050.00
11 Repair of Vehicular Area at Virac Airport                 213,481.50
12 Repair/ Repainting of VPA Perimeter Fence at Virac Airport                125,884.50
13 Resurfacing of runway asphalt pavement & repair of damaged CHB perimeter fence at Masbate Airport                492,772.00
14 Repainting of markings on slopes & repair of distance to go Markers, End markers and woods fencing of runway 22 at Naga Airport               200,754.00
15 Rehabilitation of Powerhouse at Masbate Airport               310,647.62
16 Repair & Rehabilitation of CHB Fence Phase 2 Virac Airport               423,722.22
TOTAL            4,597,793.84

                      Source:  CAAP Legazpi City

 Provision of more domestic and affordable flights for inter-provincial and inter-regional routes to cater to  tourism and other economic activities

 

   The major air carriers for Legazpi Airport were Philippine Airlines (PAL), Zest Air, and Cebu Pacific.  Air Philippines and Cebu Pacific served Naga Airport, while Asian Spirit and Philippine Airlines served the airports in the island provinces of Masbate and Catanduanes.  Daet, Sorsogon, and Bulan Airports operated and accepted non-commercial smaller aircrafts that fell under the category of general aviation.

 

   CAAP Area Center IV derived its revenues from: (a) Service Income; (b) Business Income; (c) Miscellaneous Income; and (d) Fines and Penalties (Table 17.2). A total income of P15.039 million was generated for CY 2008.  Most of the payments by the airport concessionaires were made at the Central Office resulting to low turn out of collection.  Payments of the following services/business operations were made at CAAP Head Office: (a) Aircraft Landing/Take-Off; (b) Terminal Parking Fee; (c) Operational Charges; (d) Rental of Floor Areas; and (e) Rental of Land Areas.

Table 17.2 Breakdown of Income and Collections,

CAAP Area Center IV, CY 2008

 Description/Source of Revenue  Income
OPERATING & SERVICE INCOME 15,038,870.35
   
A. SERVICE INCOME  
Clearance and Certification Fees 1,500.00
      Toll & Terminal Fee 5,109,200.00
Landing and Parking Fees  
Aircraft Landing/Takeoff 5,232,942.46
Terminal Parking Fee 178,213.80
Aircraft Transient Parking Fee  
Other Service Income  
Energy Fees 39,220.96
User Gas Fees 925,000.00
Water Charges 2,376.00
Advertising Fees 22,003.20
   
B. BUSINESS INCOME  
Income from Communication Facilities  
Operational Charges 2,342,363.04
Other Business Income  
Concession Privilege Fee 140,208.00
Rent Income  
Rental of Floor Areas 234,071.10
Rental of Floor Areas at CAAP Bldg. 171,851.04
Rental of Land Areas 627,730.75
   
C. Miscellaneous Income 12,190.00
   
D. Fines & Penalties  

                       Source:  CAAP Legazpi City

   The busiest airport in the region was Legazpi Airport with 1,287 aircrafts that used the airport in CY 2008, embarking/disembarking about 281,863 passengers.

Table 17.3 Landing, Parking and Cargo Movement for Airports,

CAAP Area Center IV, CY 2008

Particulars Legazpi Naga Virac Masb Daet Sor Bulan TOTAL
Number of Aircrafts Served 1,267 745 326 553 58 13 12 2,974
Total Number of Passengers 281,863 86,680 28,819 33,340 278 24 34 431,038
Volume of Cargoes (in kilograms) 1,020,792 255,961 56,669 156,876 1,969 0 16 1,492,283
Number of Flight Delays 179 0 94 339 0 0 0 612
Number of Flight Cacellations 24 14 31 37 0 0 0 106

                       Source:  CAAP Legazpi City

III.  Prospects and Trends for 2009 

 

   The Southern Luzon International Airport Project is a priority project of President Arroyo identified in the SONA.  The target construction period of the project is 2009-012.  In order for the project to take off, the following activities must be undertaken in CY 2009: 

  1. Review, presentation and approval of the project by the NEDA Board

  2. Bidding processes

  3. Acquisition of 180 hectares airport site

  4. Construction of airport access road

  5. Start of construction of airport runway and facilities.

    Maintenance and upgrading of other airports in the region will be undertaken in 2009.

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