Law Summary
Policy Foundations and Mandate
- Government policy accelerates balanced conversion of Clark into civilian uses
- The Bases Conversion and Development Authority (BCDA) mandated by Republic Act No. 7227 to develop and implement a comprehensive conversion plan
- Vision for Clark as an international civil aviation complex, industrial estate, tourism, trade, and business hub
- Emphasizes collaboration with private sector and local government units
Creation of the Clark Development Corporation (CDC)
- CDC authorized as a corporation to operate and implement management of the Clark Special Economic Zone (CSEZ)
- Subsidiary of BCDA, formed under Philippine corporation law and Securities and Exchange Commission rules
- CDC subject to BCDA policies and regulations regarding the CSEZ
Powers and Functions of CDC
- BCDA determines CDC’s functions and powers
- CDC granted powers equivalent to those of the Export Processing Zone Authority as per Presidential Decree No. 66
Governance Structure
- CDC powers vested in an eleven-member Board of Directors who must be stockholders
- Board composition complies with RA 7227 provisions
- Board members representing government equity nominated by the President
- Members must be Filipino citizens, of good moral character, and have competence in relevant fields
- Preference given to residents within local governments participating in the CSEZ
Capitalization of CDC
- Determined by BCDA as incorporator and holding company
- Includes cash equity by BCDA and other government agencies
- Comprises land within the CSEZ, permanent improvements, and fixtures
- Includes other government-transferred assets as equity contributions
Investment Climate and Incentives in CSEZ
- BCDA to promulgate policies and regulations governing the CSEZ investment environment
- Consultation with local government units and relevant government departments required
- CSEZ Main Zone enjoys full investment incentives similar to Subic Special Economic and Free Port Zone
- CSEZ Sub-Zone receives limited incentives
- Incentives derived from RA 7227, Export Processing Zones, Omnibus Investments Code of 1987, Foreign Investments Act of 1991, and future investment laws
Local Government Autonomy
- Affected local governments retain their autonomy and respective governing laws
- Angeles City governed by its city charter
- Municipalities governed by Local Government Code of 1991
- CDC decisions prevail over local governments on CSEZ matters except defense and security
Government Support and Coordination
- All government departments and agencies directed to support the Clark conversion program
- Coordination with BCDA to expedite project approvals and implementation
Repealing Clause
- Repeals or amends conflicting presidential issuances, rules, and regulations
Effectivity
- Law takes effect immediately upon issuance
This summary encapsulates key provisions, scope, governance, investment policies, local autonomy, government roles, and legal framework governing the establishment and operation of the Clark Development Corporation for the Clark Special Economic Zone as prescribed in the executive order.