Question & AnswerQ&A (EXECUTIVE ORDER NO. 80)
The purpose is to create the CDC as the operating and implementing arm of the Bases Conversion and Development Authority (BCDA) to manage the Clark Special Economic Zone (CSEZ), promoting economic and social development in Central Luzon particularly after the Mt. Pinatubo eruption and the U.S. military withdrawal from Clark Air Base.
The CDC is authorized to be formed by the President under his constitutional powers, and pursuant to Republic Act No. 7227 (Bases Conversion and Development Act of 1992).
The CDC shall be a subsidiary corporation of the BCDA, subject to its policies, rules, and regulations in managing the Clark Special Economic Zone.
The Board of Directors of CDC is composed of eleven (11) members.
They must be Filipino citizens, of good moral character, and recognized competence in relevant fields such as economics, management, international relations, law, or engineering.
The CDC's capitalization shall be determined by the BCDA and include cash equity by BCDA and other government agencies, portions of lands covered by the CSEZ with permanent improvements and fixtures, and other government-transferred assets as equity contributions.
The CDC shall have the powers of the Export Processing Zone Authority as provided in Presidential Decree No. 66, as amended, in addition to powers determined by the BCDA as incorporator and holding company.
The CSEZ shall have investment incentives similar to those in the Subic Special Economic and Free Port Zone, Export Processing Zones, and other applicable laws. The incentives vary between the CSEZ Main Zone (full incentives) and the CSEZ Sub-Zone (limited incentives) as determined by the BCDA.
Affected local government units retain their autonomy and identity, governed by their charters and the Local Government Code of 1991. In case of conflicts with the CDC on matters affecting the CSEZ other than defense and security, the CDC's decision prevails.
All heads of government departments and agencies are directed to support the Clark conversion program and coordinate with the BCDA to facilitate necessary approvals and expedite project implementation.