QuestionsQuestions (EXECUTIVE ORDER NO. 27)
The Executive Order states it was issued “by virtue of the powers vested in me by law,” and it also specifically references the legal framework for unsolicited proposals under R.A. No. 6957, as amended by R.A. No. 7718 (which later relates to BOT/PPPs).
It confers “flagship status” on the Masinloc Project and directs the Presidential Committee on Flagship Programs and Projects to ensure efficient, timely implementation, including coordination with government agencies for an unsolicited private proposal.
The consortium of private investors led by Smith Group Gexis, Inc. conceptualized and proposes to implement the Masinloc Project, requiring at least US$2 billion investment, and entered into a Memorandum of Understanding in March 1997 with the Province of Zambales.
The Memorandum of Understanding with the Province of Zambales was unanimously approved by the Sangguniang Panlalawigan of Zambales (Resolution No. 97-315, dated 14 July 1997). The project was also endorsed by Regional Flagship Team III, Regional Development Council of NEDA (Resolution No. 03-01-98, dated 14 January 1998).
Section 2 orders the PCFPP to ensure implementation as an unsolicited proposal under R.A. No. 6957 as amended by R.A. No. 7718, which govern BOT arrangements and the treatment of unsolicited proposals.
The eight components are: (a) Masinloc Economic Industrial Park (including socialized/industrial housing communities), (b) Masinloc International Transshipment Port, (c) Iba-Tarlac Tollway and Clark Field Spur Road and Rail Line System (as described in the component), (d) Central Luzon Food Terminal Complex including conversion to a modern food handling/storage/transport facility and the Masinloc International Fishing Port, (e) Ship Building Complex with ship-building and dry dock facilities, (f) Resort Development (three islands, other coastline resorts, and Mt. Tapulao resort), (g) Telecommunication Tower on Mt. Tapulao, and (h) 100 MW Power Plant.
At least 1,500 hectares will be developed into an industrial area. Of this, 1,000 hectares will be developed into sustainable communities for relocatees, migrant workers, and others.
The project includes the Iba-Tarlac Tollway (passing through the Zambales mountain range) to connect Zambales and Tarlac, plus a possible Clark Field Spur Road to create a direct link to an international airport and seaport requirements of Clark Field, and a possible cargo and passenger railway alongside the tollway.
It will be converted into a modern food handling, storage, and transportation facility, including building and operating the Masinloc International Fishing Port.
It is described as a “non-polluting acatalytica heavy industry” intended to be capable of generating substantial economic development and building world-class sea vessels, including dry-docking international tankers/bulk carriers.
Development includes (1) the three islands within Masinloc Bay as the “Masinloc Three Islands Resort,” (2) other coastline resorts, and (3) a mountain resort at Mt. Tapulao.
A Telecommunication Tower is planned on Mt. Tapulao to improve Central Luzon’s telecommunications infrastructure.
It estimates an additional 100 MW power plant is required for the development included in the Masinloc Project and nearby industrial areas.
It is ordered to ensure efficient and timely implementation of the Masinloc Project as an unsolicited proposal under the cited PPP/BOT law framework and to secure participation and cooperation of all concerned government agencies and instrumentalities.
The Executive Order mentions coordination/approvals involving the Department of Public Works and Highways, the National Economic and Development Authority, the Department of Transportation and Communications, and the Department of Trade and Industry (and notes this is not limited to those agencies).
It takes effect immediately upon issuance, which signals that coordination and implementation measures under Section 2 could begin right away.