CLARK FREEPORT, Pampanga—A new P2.5-billion master development plan that will change the face of doing business inside the Clark Development Corp. freeport is now being prepare by a Filipino planner.
The plan calls for building lease instead of land lease for the 920 local and foreign firms operating inside the Freeport.
Jose De Jesus, chairman of the CDC, said affected by the development plan are about half of those firms whose 25 years of land lease contract with the CDC will expire next year, while those with existing lease contract will be respected.
The firms have a total registered investment of US$1.044 billion, employ a total of 101,000 persons, and export P5.1 billion worth of goods around Asia Pacific, Europe, US and China.
During a media forum here, De Jesus together with Noel Manankil, president and CEO of the government corporation said that those affected by the plan will be given priority for lease of the raw building that they can further develop according to their liking, interest and requirement.
The price tag for the new building is not yet available but under the present set up, the lease agreements for industrial site is $0.77 per square meter a month and for commercial lot is $2.20 per square meter a month.
“Instead of raw land, we will construct more buildings for lease to the investors and locators inside the former American base,” Manankil said.
Manankil also said money worth P2.5 billion will be deposited in the bank with low interest. The money is planned to be used to finance innovation in order sustain the continuous development of the Freeport for the government to earn more money for its development projects for the benefit of the people.
The new development which is a tourist oriented plan is now being draft by a local planner Palafox and Associate. The plan started this month and will be finished with seven months for immediate implementation, Manankil said.
The plan also calls for construction of tourist oriented establishments like parks, gardens, road widening for cycling lane, picnic ground and others.
According to the president, the target of the development plan is to utilize the remaining 35 of the total 2,000 hectares of land under leased contract and the other 300 hectares of land now presently occupied by the Philippine Air Force.
However, Manankil cannot determine the total hectares of land that the investors and locators will return after the expiration of their lease contract to the CDC.
De Jesus said that Vince Dizon, president and CEO of Bases Conversion Development Authority, and Defense Secretary Delfin Lorenzana are having series of meetings for this purpose.
Likewise affected by the 25 years of lease agreement expiration are more than 10 duty free shops operating inside the Freeport. However, De Jesus said they can still operate but without the privileges and benefit they enjoyed before.
With regards to the 21 villas worth P446 million, De Jesus said they will sell or offer them for rent to the executives of different foreign companies who need such houses.
The villas will be used by the 21 heads of state who are attending the ASEAN Summit this November 9 to 12 in the former American base.
Clark Air Base was abandoned by the Americans right after the eruption of Mt. Pinatubo last June 15, 1991. However, in 1992, the government enticed local and foreign businessmen to invest in the area by offering fire sale rate until it became successful.
During the 3rd Annual International Conference and Exhibit held at Cartagena, Columbia this month, Clark and Subic were cited as two best special economic zones among the 207 others around the world.
The honor was followed by a 55-minute slide and photos presentation by Gokhan Akinci, Global Product Leader of the World Bank Group who is one of the speakers during the conference, a CDC statement said.