Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Ci

FIFTEENTH CONGRESS
First Regular Session

House pitLNo, 2919

Introduced by HON. GLORIA MACAPAGAL ARROYO, HON. JUAN
MIGUEL MACAPAGAL ARROYO and HON. DIOSDADO M. ARROYO

EXPLANATORY NOTE

The Subic Bay Metropolitan Authority (SBMA) was created by law as the
authority over the Subic Bay Freeport Zone (SBEZ), and the Clark Development
Corporation (CDC) was created as an operating and implementing arm of the
Bases Conversion Development Authority (BCDA) over the Clark Special
Feonomic Zone (CSEZ). On 21 June 2001, the BCDA, SBMA, CDC and the
Department of Trade and Industry (DTI) entered into a Memorandum of
Understanding (MOU) creating the Subic-Clark Alliance Development (SCAD),
Task Force, their policy-making body in their integrated development program
with the SSEZ and CSEZ and the corridor between them, to be known as the
Subic-Clark Alliance Development Program.

Realizing the development and investment opportunity of the area, then
President Gloria Macapagal Arroyo declared the Subic-Clark corridor as one of
the ten-point legacy agenda on June 20, 2004. It was envisioned that the Subic-
Clark corridor shail be the most competitive international service and logistics
center in the Asia Pacific Region.

Several other executive and administrative orders were issued to
strengthen the organizational and institutional arrangements of the Subic-Clark
Alliance Development (SCDA) Council to ensure an efficient mechanism to
implement comprehensive and speedy development of the area.

While the SCAD Council has achieved modest gains with these executive
issuances, there is a need to further strengthen and enhance the powers and
capabilities of the SCAD Council as a permanent institution and mechanism
mandated to ensure the development of the area as a world-class mega-logistics
hub and a global gateway to the Asia Pacific Region. To achieve this end, it must
be guided by a Comprehensive Subic-Clark Development Program (CSCDP) that
will harmonize, integrate and rationalize the programs of national government
agencies such as the Bases Conversion Development Authority (BCDA), Subic
Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC)
and Clark International Airport Corporation (CIAC) as well as the plans of the
concerned local government, for the area.


In view of the prospective investments for the Subic-Clark corridor and
the increasing competitiveness of our ASEAN neighbors, it is imperative to
constitute the SCAD Council into a permanent. government body tasked to
implement the (CSCDP). The immediate passage of this measure is earnest
requested.

HON. GL A MACAPAGAL ARROYO:

HON. JUAN 'UEL MACAPAGAL ARROYO

HON. SDAYQO M. ARROYO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. __ 2910

Introduced by HON. GLORIA MACAPAGAL ARROYO, HON. JUAN
MIGUEL MACAPAGAL ARROYO, HON. DIOSDADO M. ARROYO

AN ACT PROVIDING FOR THE
COMPREHENSIVE SUBIC AND CLARK DEVELOPMENT PROGRAM,
ESTABLISH THE MECHANISM FOR ITS IMPLEMENTATION, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. This Act shall be known as the “Subic and Clark
Development Act of 2010.”

SEC. 2. Declaration of Policy. It is the declared policy of the State to pursue
growth in regional areas as a means to achieve sustainable economic
development. Likewise, the State recognizes the need to rationalize, harmonize,
consolidate and integrate government efforts to maximize impact and to achieve
long-term and sustainable development.

SEC. 3. Comprehensive Subic and Clark Development Program. The Subic-
Clark Alliance Development (SCAD) Council in coordination with the Bases
Conversion Development Authority (BCDA), Subic Bay Metropolitan Authority
(SBMA), Clark Development Corporation (CDC) and Clark International Airport
Corporation (CIAC), the seventeen (17) concerned Local Government Units
(LGUs) including the Municipalities of Mabalacat, Porac and Floridablanca shall
formulate the Comprehensive Subic and Clark Development Program which will
take into account the Subic-Clark Corridor Framework Plan, Central Luzon Land
Use Plan and the land use plans of the LGUs.

SEC. 4. Subic-Clark Alliance Development (SCAD) Council, Implementing
Mechanism. The SCAD Council is hereby tasked as the implementing institution
of this Act.

SEC. 5. Power and Functions of the SCAD Council. The SCAD Council
shall have the following powers and functions:

a. Act as the institutional mechanism mandated to implement the
Comprehensive Subic and Clark Development Program;

b. Formulate policies and programs to develop Subic, Clark, and the
corridor in between them as globally competitive Mega Logistics Hub;


following:

¢. Review, identify and recommend priority infrastructure projects for
implementation;

d. Formulate common investment promotions activities;

. Harmonize in the SBFZ and CFZ such programs, policies, rules and
regulations affecting investments, incentives, customs, immigration,
leasing, privatization, and other matters necessarily related thereto;
and,

f. Perform such other functions as may be authorized to achieve the
objectives of this Act.

SEC. 6. Composition. The SCAD Council shall be composed of the

a. Chairman, to be appointed by the President, with Cabinet rank, and
who shall be a member of the National Economic and Development
Authority (NEDA);

. Secretary of Trade and Industry - Vice Chairman;

. Chairman, BCDA ~ Member;

Chairman, SBMA - Member;

Chairman, CDC - Member;

Chairman, CIAC - Member;

.. President, BCDA ~ Member;

Administrator, SBMA - Member;

President, CDC - Member;

President, CIAC - Member;

. Governor, Province of Bataan- Member; and,

Governor, Province of Pampanga- Member

reve menos

SEC. 7. Powers and Functions of the SCAD Council Chairman. The SCAD
Chairman shall be a full-time head of the Council to rationalize resources and
harmonize strategies that will ensure an integrated and coordinated approach to
the development of the Subic-Clark corridor and achieve its objectives. The office
of the SCAD Council Chairman shall have the following duties and functions:

a.
b.

Actas the Chief Executive Officer of the SCAD Council;

Obtain the participation of strategic partners, domestic or foreign, from
the public or private sector, to spur the growth and development of
Central Luzon;

. Obtain the required participation, support and assistance of all relevant

government agencies and entities as well a8 concerned local government
units in the formulation of the development as well as the implementation
of the key components of the said program;

. Represent the Office of the President in dealings with offices, agencies and

instrumentalities of the Government and with persons and entities, public
or private, domestic or foreign, insofar as contributory to the development
of Subic, Clark and the corridor in between them as a globally competitive
international service and logistics center; and,

. Exercise such other powers, functions and duties as may be directed by

the President insofar as the development of the Subic-Clark hub is
concerned.

SEC. 8. Policy Oversight. The Office of the President, through the SCAD
Council Chairman, with Cabinet rank, shall exercise policy oversight over the
Bases Conversion Development Authority (BCDA), Subic Bay Metropolitan
Authority (6BMA), Clark Development Corporation (CDC), Clark International


Airport Corporation (CIAC) in so far as the development of Clark, Subic and the
Corridor between then into a major logistics hub is concerned.

SEC. 9. Organization. The SCAD Council shall have a staff support to fulfillits
mandate and implement the provisions of this Act. For this purpose, the SCAD
Council shall prepare its own staffing pattern subject to the approval of the
Department of Budget and Management.

SEC. 10. Role of Local Government Units, Departments, Bureaus, Offices, Agencies,
and Instrumentalities. All heads of Local Government Units within the coverage of
SCAD Corridor, departments, bureaus, offices, agencies, and instrumentalities of
the government are hereby directed to give full support to the SCAD Council to
expedite the implementation of the various programs and projects towards the
attainment of the SCAD vision.

SEC. 11. Funding. The SBMA, BCDA, and CDC shall allocate from their
respective yearly budgets an amount approved by the Department of Budget and
Management for the SCADC Budget as their contributions. This fund shall be
released every first week of January of the year to which it corresponds.

The SCAD Council shall have the authority to generate its own revenues or
funds and to disburse its own funds in accordance with government accounting
rules and procedures.

SEC. 12. Applicability and Repeating Clause. - All laws, presidential decrees,
executive orders, issuances, rules and regulations, and part thereof which are
contrary to or inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

SEC. 13. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved.