The plane and the equipment were formally received by President Arroyo, assisted by Defense Secretary Angelo Reyes and Armed Forces chief Gen. Diomedio Villanueva, in a champagne-bottle breaking "christening" ceremony.
A beaming Mrs. Arroyo received the turnover documents from US chargé daffaires Robert Fitts.
The plane, costing some $3 million (roughly P156 million), is one of two C-130 planes pledged by US President George Bush during Mrs. Arroyos working visit to the US last week.
Fitts said the handover of the plane and equipment was only the start of enhanced security cooperation between Manila and Washington.
Fitts said the C-130 will boost the Armed Forces of the Philippines (AFP) not only in its military operations against terrorist groups like the Abu Sayyaf, but also in civil operations, like disaster relief.
Although the delivery of the plane was among Bushs aid pledges, Reyes said negotiations for the donation of the aircraft were initiated when he was still AFP chief of staff.
The plane, with tail number 61-0954, underwent a maintenance overhaul at the Warner-Robins Air Base before it was delivered yesterday under the US foreign military financing program.