Question & AnswerQ&A (OP EXECUTIVE ORDER NO. 62)
The primary objective is to create immediate employment and livelihood opportunities utilizing existing world class infrastructure and support facilities in the reverted baselands in line with the national government objective of poverty alleviation and sustained economic recovery and growth.
The major baselands are the Subic Naval Base, Clark Air Base, Camp John Hay, other baselands like Wallace Air Station, O'Donnel Transmitter Station, San Miguel Naval Communication Station, Mt. Sta. Rita Station, other special economic zones in Bataan and Zambales, and portions of Metro Manila military camps.
They are governed by their respective policy-making Board of Directors appointed by the President of the Philippines upon the recommendation of the Chairman of the BCDA.
The BCDA exercises oversight function over the SBMA as one of its attached authorities.
They approve corporate plans, adopt internal rules, set performance targets, determine organizational structure, appoint officials, prepare budgets, approve capital expenditures, require management reports, implement privatization programs, and submit management reports to the BCDA.
Privatization is the basic thrust and includes leasing, joint ventures, management contracts, BOT and its variants. Processes should be conducted through public bidding, but may allow simplified or direct negotiation under certain conditions. Subsidiaries must avoid directly operating businesses unless created for that purpose.
Lease agreements may be on short-term or long-term basis but shall not exceed 25 years, subject to renewal for another 25 years.
Subsidiaries and attached authorities should engage private security agencies to secure the facilities to be privatized, retaining organic security personnel only for supervision and liaison with enforcement. They should also coordinate with local governments, agencies, and organizations to protect the properties.
A permanent total log ban shall be applied with allowed supervised cuttings to prevent forest fires. Environmental impact assessments are required for major projects and environmental standards must be strictly enforced by subsidiaries and authorities.
The BCDA is to develop and/or dispose of portions of the military camps transferred to it for productive uses to generate funds for base conversion, military housing, and military modernization, with the timetable to be approved by the President.