Policy basis and project background
- The Executive Order recognizes as government policy the encouragement of private sector initiative and active participation in national and regional growth and development.
- The Executive Order identifies the Masinloc Project as requiring at least a US$2 billion investment and as being a Zambales Industrial Complex Project proposed by a consortium of private investors led by Smith Group Gexis, Inc.
- The Executive Order states that the Masinloc Project aims to develop the Municipality of Masinloc into an international transshipment port and major industrial-commercial center for the economic development of Central Luzon.
- The Executive Order cites a Memorandum of Understanding in March 1997 between the consortium and the Province of Zambales, which was unanimously approved by the Sangguniang Panlalawigan of Zambales through Resolution No. 97-315 dated 14 July 1997.
- The Executive Order notes a favorable endorsement by Regional Flagship Team III, Regional Development Council of the National Economic Development Authority through Resolution No. 03-01-98 issued 14 January 1998.
- The Executive Order records that, on 31 August 1998, the investors requested the President to endorse the Masinloc Project.
- The Executive Order recognizes that the Project requires coordination with and/or approvals from agencies including the Department of Public Works and Highways, National Economic and Development Authority, Department of Transportation and Communications, and Department of Trade and Industry.
Flagship status and eight major components
- Section 1 declares that the Masinloc Project is granted flagship status.
- Section 1 grants flagship status with eight (8) major components:
- a. The Masinloc Economic Industrial Park
- b. The Masinloc International Transshipment Port
- c. The Iba-Tarlac Tollway; Clark Field Spur Road; and Rail Line System
- d. The Central Luzon Food Terminal Complex including the Masinloc International Fishing Port
- e. Ship Building Complex including Ship-Building Facility and Ship Dry Docking Facility
- f. Resort Development
- g. Telecommunication Tower
- h. 100 MW Power Plant
- Section 1(a) requires at least 1,500 hectares for development of the Masinloc Economic Industrial Park for light and medium-scale industries, including Socialized and Industrial Housing Communities.
- Section 1(a) provides that 1,000 hectares will be developed into sustainable communities for relocatees, migrant workers, and others.
- Section 1(b) provides that the Masinloc harbor will be developed into an international transshipment port with modern port facilities capable of accommodating container vessels and bulk carriers.
- Section 1(c) provides for:
- an Iba-Tarlac Tollway connecting Zambales and Tarlac, passing through the Zambales mountain range, to provide access to Central Luzon;
- a Clark Field Spur Road as a possible tollway connecting to Clark Field, Angeles City to link to an international airport and serve Clark Field’s seaport requirements; and
- a Rail Line System consisting of a possible cargo and passenger railway constructed alongside the tollway with depot and multi-modal terminal stations at strategic locations.
- Section 1(d) requires the conversion of Masinloc’s existing fishing wharf into a modern food handling, storage and transportation facility, including building and operating the Masinloc International Fishing Port.
- Section 1(e) defines the Ship Building Complex as a non-polluting heavy industry that will generate substantial economic development, including:
- a Ship-Building Facility capable of developing world-class sea vessels; and
- a Ship Dry Docking Facility capable of handling dry-docking of international tankers/bulk carriers.
- Section 1(f) requires resort development including:
- the development of the three islands within Masinloc Bay into the Masinloc Three Islands Resort;
- other coastline resorts; and
- a mountain resort at Mt. Tapulao.
- Section 1(g) provides for developing Mt. Tapulao as a site for a telecommunication tower to improve Central Luzon’s telecommunications infrastructure.
- Section 1(h) requires an estimated 100MW additional power plant for all development included in the Masinloc Project and for nearby industrial areas.
Implementation authority and government coordination
- Section 2 orders the Presidential Committee on Flagship Programs and Projects (PCFPP) to ensure the efficient and timely implementation of the Masinloc Project.
- Section 2 recognizes the Masinloc Project as an unsolicited proposal of the consortium of private investors led by Smith Group Gexis.
- Section 2 ties the Project’s treatment to R.A. No. 6957, as amended by R.A. No. 7718, for the purpose of implementation.
- Section 2 requires the participation and cooperation of all government agencies and instrumentalities to implement the Project.
Legal effects, scope of declared action, and transitory rule
- The Executive Order’s operative effect is to declare flagship status for the Masinloc Project and to mandate implementation through the PCFPP.
- Section 3 provides immediate effect upon issuance, without any publication-delay requirement stated in the Executive Order itself.