Purposes and Development Plans of BCDA
- BCDA owns, holds, administers reverted baselands and transferred Metro Manila military camps.
- Comprehensive development programs align with national and regional growth plans.
- Specific development programs for:
- Subic Naval Base as a special economic and free-port zone managed by SBMA.
- Clark Air Base as a special economic zone and major aviation hub.
- Camp John Hay preserved as tourist site and forest watershed.
- Other baselands for best land use per national priorities.
- Other special economic zones subject to viability studies.
- Metro Manila camps to be developed/disposed for funds supporting base conversion, military housing, and modernization under Presidential approval.
- BCDA encourages private sector participation particularly for Subic and Clark.
- Establishes coordination with local governments for consultations with affected communities.
- Acts as holding company, investor, and manager for subsidiaries and attached authorities.
- Coordinates relocation or resettlement of populations, especially military personnel.
Subsidiaries and Attached Authorities: Governance and Oversight
- BCDA can establish and oversee subsidiaries and attached authorities including the SBMA.
- Effective oversight mechanisms ensure efficient resource use and alignment with national objectives.
- Subsidiaries governed by Boards of Directors empowered to:
- Approve corporate plans aligning with BCDA directions.
- Establish internal rules, organizational structure, financial and operational targets.
- Appoint officials based on merit and qualifications.
- Approve budgets, capital expenditures, debts, and asset transactions.
- Require management reports including financial, operations, and investment plans.
- Implement privatization and divestment programs within set time frames.
- Boards comprise at least seven trustees appointed by the President.
- Boards appoint CEO, COO, and CFO with defined responsibilities.
- Minimum personnel maintaining lean, professional organizations.
Operations and Financial Policy Guidelines
- Standard corporate planning models provide subsidiaries operating flexibility.
- Performance criteria and periodic evaluation conducted jointly by BCDA and subsidiaries.
- Contracts up to PHP 50 million approved by subsidiaries' Boards; larger contracts follow national procurement laws.
- Mandatory submission of detailed financial reports on a timely basis.
- Conversion projects require clearly defined, measurable objectives and timelines.
- Performance agreements between BCDA and subsidiary CEOs specify targets and goals.
- BCDA performs semi-annual operational reviews.
Privatization Policies
- Privatization is central to base conversion, including leasing, joint ventures, BOT schemes, and variants.
- Subsidiaries generally act as administrators and regulators, avoiding direct business operations unless specifically created.
- Public bidding is preferred for privatization; negotiated or simplified bidding allowed in justified cases.
- Transparency in selection processes mandated through public advertisement.
- Approval by BCDA necessary for subsidiaries establishing further joint ventures or subsidiaries.
- Negotiated transactions require Presidential policy conformity.
- Selection criteria for lessees and partners include experience, capability, reputation, and accreditation.
- Investment bankers and consultants may be hired via shortlisting for privatization.
- Lease terms capped at 25 years with option to renew for another 25; leasing policies approved by Boards.
- Lease contracts signed by CEOs after Board authorization.
Security Arrangements
- Private security agencies preferred for facility and asset protection.
- Organic personnel limited to supervision and liaison roles.
- Cooperation with local government, agencies, NGOs, and community groups encouraged for property and environmental protection.
Environmental Protection Policies
- Permanent total log ban in military reservations with regulated supervised cuttings to prevent forest fires.
- Environmental Impact Assessments required for major projects.
- Strict enforcement of environmental standards by subsidiaries and attached authorities.
Government Support and Cooperation
- All government departments, bureaus, and agencies must facilitate approvals and assist BCDA for efficient implementation of the conversion program.
Effectivity Clause
- The policies and guidelines outlined here take effect immediately upon approval on February 27, 1993, signed by the President of the Philippines.