Establishing Clark Development Corp for CSEZ

The Executive Order operates to implement the policy of accelerating the sound and balanced conversion of the Clark military reservations and contiguous extensions into alternative productive civilian uses.
Republic Act No. 7227 mandates the BCDA to adopt, prepare, and implement a comprehensive and detailed plan for converting the Clark military reservations and contiguous extensions consistent with national and local plans and programs.
The conversion program is envisioned to turn Clark into an international civil aviation complex, modern industrial estate and tourism, and a trade and business center for Luzon and Asia.
The Executive Order emphasizes the vital role of the private sector and local government units in the Clark conversion program.

Section 1 authorizes the formation of the CDC as a body corporate.
Section 1 states that the CDC is the operating and implementing arm of the BCDA to manage the CSEZ.
Section 1 makes the CDC a subsidiary corporation of the BCDA.
Section 1 requires that the CDC be formed in accordance with Philippine corporation law and Securities and Exchange Commission rules and regulations promulgated pursuant to Section 16 of Republic Act No. 7227.
Section 1 subjects the CDC to the policies, rules, and regulations of the BCDA for the CSEZ.

Section 2 states that the BCDA, as incorporator and holding company of its Clark subsidiary, determines the powers and functions of the CDC.
Section 2 provides that the CDC has the specific powers of the Export Processing Zone Authority under Section 4 of Presidential Decree No. 66 (1972) as amended.
Section 2 grounds the grant of those powers on Section 15 of Republic Act No. 7227.

Section 3 vests the CDC’s powers in a Board of Directors.
Section 3 requires the Board to have eleven (11) members, each a stockholder of the CDC.
Section 3 requires Board composition to be subject to Section 16 of Republic Act No. 7227.
Section 3 provides that the Board members representing equity/capital stock of BCDA and other national government agencies are nominated by the President.
Section 3 prohibits nomination to represent national government capital stocks unless the nominee is a Filipino citizen, of good moral character, and of recognized competence in relevant fields including economics, management, international relations, law, or engineering.
Section 3 directs preference in designation to be given to residents within the local government units that concur to join the CSEZ.

Section 4 provides that CDC capitalization is determined by its incorporators and holding company, the BCDA.
Section 4 requires inclusion of cash equity from BCDA and other government agencies and instrumentalities.
Section 4 requires capitalization to include portions of all the lands embraced and covered by the CSEZ, plus permanent improvements and fixtures thereon upon proper inventory.
Section 4 requires inclusion of all other assets that the President may transfer to the CDC as part of the government’s equity contribution.

Section 5 directs the BCDA to promulgate necessary policies, rules, and regulations governing the CSEZ, including investment incentives, for implementation by the CDC.
Section 5 requires consultation with local government units and pertinent government departments for the policies and incentives.
Section 5 provides that the CSEZ has the applicable incentives in the Subic Special Economic and Free Port Zone under Republic Act No. 7227, plus incentives applicable to Export Processing Zones, the Omnibus Investments Code of 1987, the Foreign Investments Act of 1991, and new investments laws enacted thereafter.
Section 5 establishes incentives by zone:
- The CSEZ Main Zone covering the Clark Air Base proper has all the aforecited investment incentives.
- The CSEZ Sub-Zone covering the rest of the CSEZ has limited incentives.
Section 5 requires that the full incentives for the Clark SEZ Main Zone and the limited incentives for the Clark SEZ Sub-Zone are determined by the BCDA.

Section 6 provides that affected local government units retain their basic autonomy and identity, except as expressly provided in the Executive Order.
Section 6 states that Angeles City is governed by its charter.
Section 6 states that the municipalities of Porac, Mabalacat, Bamban, and Capas operate and function under Republic Act No. 7160 (the Local Government Code of 1991).
Section 6 provides that in case of conflict between the CDC and the local government units on matters affecting the CSEZ other than defense and security, the decision of the CDC prevails.

Section 7 directs all heads of government departments, bureaus, offices, agencies, and instrumentalities to give full support to the Clark conversion program.
Section 7 requires government units to coordinate with the BCDA to facilitate necessary approvals to expedite implementation of conversion projects.

Section 8 repeals, amends, or modifies any presidential issuances, rules, and regulations (or parts thereof) inconsistent with the Executive Order.
Section 9 mandates that the Executive Order takes effect immediately.