FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
s. No. 3096 
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Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
Pursuant to Section 15 of Republic Act 7227 known as the "Bases 
Conversion and Development Act of 1992", then President Fidel V. Ramos 
issued Executive Order No. 80 creating the Clark Development Corporation 
(CDC) to manage the conversion of the Clark Special Economic Zone (now Clark 
Freeport Zone). From being a military camp, the area has become one of the 
more booming zones of economic development in the region, playing host to 
productive enterprises largely because of an efficient management arm that is 
the CDC, 
However, experience exposed a flaw in the mandate of the CDC as it 
suffered critical setbacks in a number of its meaningful programs mainly due to 
the unpredictable changes in management. Officers of the CDC remain to be 
political appointees serving at the pleasure of the one who sits as the appointing 
authority and a good initiative is to last only at the volatile tenure of its proponent. 
Important programs that would see implementation under one administration may 
only be scrapped at the takeover of another management team. 
This measure seeks to address the seeming discontinuity of significant 
programs and initiatives for the development of the Clark Freeport Zone. A fixed 
tenure afforded to officers of the CDC would ensure that management would 
have enough time to develop public service programs and organizational 
capabilities which they can see implemented to their full extent. Further, an 
assurance of a term may help to inspire the management to endeavor in properly 
executing their programs, secured that they themselves may still be in office to 
take credit for the results. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
MA 
EL "LITO" M. LAP~~ 
Senator 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
'30°" 
s. No.' 
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Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
PRESCRIBING FIXED TERMS FOR MEMBERS OF THE BOARD OF 
DIRECTORS OF THE CLARK DEVELOPMENT CORPORATION (CDC) 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. 
Term of Office of the Board of Directors. - Any provision of law 
to the contrary notwithstanding, the powers of the Clark Development Corporation 
(CDC) shall be vested in and exercised by a Board of Directors ("Board") which shall be 
composed of eleven (11) members each of whom shall be a stockholder of the CDC: 
Provided that, The composition of the CDC Board shall be subject to the provisions of 
Section 15 of Republic Act No, 7227, otherwise known as the Bases Conversion and 
Development Act of 1992. 
The members of the Board representing the equity or capital stock in CDC of the 
Bases and Conversion Development Authority (BCDA) and other national govemment 
agencies shall be nominated by the President of the Philippines to serve for a term of 
six (6) years, unless sooner removed for cause, except that any person appointed to fill 
a vacancy shall serve only for the unexpired term of the member whom he/she 
succeeds. 
No person shall be nominated as a member of the Board representing national 
government capital stocks in CDC unless he/she is a Filipino citizen, of good moral 
character, and of recognized competence in relevant fields including but not limited to 
economics, management, international relations, law or engineering. 
Preference in the designation of the members of the Board shall be given to 
residents within the local government units that concur to join the Clark Special 
Economic Zone. 


SEC. 2. 
Repealing Clause. - All laws, orders, proclamations, rules and 
regulations, or part thereof, which are inconsistent with any provision of this Act are 
hereby repealed or modified accordingly. 
SEC. 3. 
Separability Clause. - If any provision or part of this Act, or the 
application thereof to any person or circumstance, is held unconstitutional or invalid, the 
remainder of this Act shall not be affected thereby. 
SEC. 4. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
from the date of its complete publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
Approved,