Title
Creation of Clark Special Economic Zone
Law
Proclamation No. 1035
Decision Date
Mar 10, 2006
President Gloria Macapagal-Arroyo designates certain parcels of land in Pampanga and Tarlac as a special economic zone, based on the recommendation of the Philippine Economic Zone Authority, while President Fidel V. Ramos creates and expands the Clark Special Economic Zone to include Sacobia, promoting development through private investments and entrepreneurship.

Legal basis and governing framework

  • Republic Act No. 7916 provides the statutory authority for creating and designating special economic zones and governs the CSEZ subject to its rules.
  • The proclamation recognizes that the CSEZ is created and designed “pursuant to” Republic Act No. 7916 and is regulated through its Implementing Rules and Regulations.
  • The proclamation anchors the CSEZ institutional governance in Republic Act No. 7227, establishing the Bases Conversion and Development Authority (BCDA) as the governing body of the CSEZ.
  • The proclamation recognizes that Section 15 of Republic Act No. 7227 is the statutory basis for BCDA’s role over the CSEZ.
  • The proclamation carries forward the operating premise that the CSEZ is managed and regulated through BCDA and its operating and implementing arm established for the CSEZ.

Purpose and policy focus

  • The proclamation is issued to create and designate a special economic zone area that will be managed as a special economic zone under Republic Act No. 7916.
  • The proclamation framework emphasizes the economic conversion and development context associated with the Clark military reservations and their contiguous areas under the bases conversion regime.
  • The proclamation framework ties into the development and utilization of former bases areas through governance by BCDA and related implementing structures.

Boundaries, areas covered, and areas excluded

  • The proclamation establishes that the CSEZ area is the total of the areas identified in the referenced presidential proclamations covering Clark and adjacent lands.
  • Presidential Proclamation No. 163 (Clark Special Economic Zone creation) covers lands consisting of Clark Military reservations, including Clark Air Base proper and portions of Clark reverted baselands, and excludes areas in the reverted baselands reserved for military use.
  • Presidential Proclamation No. 163 states the CSEZ total area is 28,041 hectares, more or less, subject to actual survey, covering Clark Air Base proper (4,440 hectares) and portions of Clark reverted baselands (23,601 hectares).
  • Presidential Proclamation No. 163 enumerates specific covered and excluded areas (including zones and designated projects) by hectare totals, establishing the internal boundary framework for the reverted baselands.
  • Presidential Proclamation No. 805 (redefining CSEZ to include Sacobia) adds a 5,724-hectare portion commonly known as Sacobia located in Bamban, Tarlac and Mabalacat, Pampanga, subject to final survey and delineation by DENR.
  • Presidential Proclamation No. 805 requires respect for vested rights and valid ancestral domain claims within the Sacobia area as verified and validated by DENR and other pertinent government agencies.

Governance and management of the CSEZ

  • Section 15 of Republic Act No. 7227 establishes BCDA as the governing body of the CSEZ.
  • BCDA shall promulgate all necessary policies, rules, and regulations to govern and regulate the CSEZ.
  • The proclamation requires governance through BCDA’s operating and implementing arm established for the CSEZ.
  • The proclamation contemplates that land utilization and disposition within the transferred CSEZ lands are determined by BCDA.
  • The proclamation provides that the BCDA shall determine the utilization and disposition of the CSEZ lands transferred to it.

Transfer of lands and agreements for special uses

  • Presidential Proclamation No. 163 transfers to BCDA the Clark Air Base proper (covering 4,440 hectares, more or less) and portions of Clark reverted baselands (covering 23,601 hectares, more or less), totaling 28,041 hectares.
  • The transferred areas are stated to be approximate and subject to actual ground surveys.
  • The proclamation provides that inside the Clark Air Base proper, areas intended for use by:
    • the military,
    • the Mt. Pinatubo Assistance, Resettlement and Development Commission,
    • the University of the Philippines (U.P.), and
    • other institutions (if any)
      are to be delineated and covered by separate Memoranda of Agreements.
  • The separate memoranda must be agreed upon and entered into by BCDA and DND/AFP, the Pinatubo Commission, U.P., and other institutions (if any), and require final approval of the President.
  • The governing approvals for these memoranda are processed through BCDA’s role as governing body and through President’s final approval.

Institutional and administrative particulars in earlier CSEZ creation

  • Presidential Proclamation No. 163 recognizes that the BCDA is to be the governing body of the CSEZ under Section 15 of Republic Act No. 7227.
  • Presidential Proclamation No. 163 states that the governing boundary setup is subject to final survey, including delineations involving reverted baselands reserved for specific uses.
  • Presidential Proclamation No. 805 requires that the DENR performs the final survey and delineation on the ground for the Sacobia portion included in the CSEZ.
  • Presidential Proclamation No. 805 identifies that vested rights and ancestral domain claims within Sacobia are to be respected after verification and validation by DENR and other pertinent agencies.

Effectivity clause

  • Presidential Proclamation No. 163 states that the proclamation takes effect immediately.
  • Proclamation No. 1035 is framed to operate subject to the provisions of Republic Act No. 7916, its Implementing Rules and Regulations, and relevant PEZA Board resolution—consistent with special economic zone designation under the statutory regime.

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