Clark sees investments worth P20B in 2007

CLARK FREEPORT, Pampanga – The Clark Development Corp. expects P20 billion in investments this year following what the state-run corporation sees is the imminent restoration of the economic zone’s status as a free port. CDC president and chief executive officer Levy Laus told reporters over the weekend that he was “extremely jubilant" over Congress’ endorsement of Clark’s special status because it restores incentives and makes it at par with the Subic Freeport. Last February 1, a bicameral conference committee ratified the reconciled version of separate bills filed in the Senate and the House of Representatives converting the 4,400-hectare special economic zone into a free port. The ratified version also restores investment incentives and duty-free privileges to its locators, as provided under Republic Act 7227 or the Bases Conversion Development Act of 1992. Laus said the reconciled version of the two congressional bills is expected to be signed into law by President Gloria Macapagal Arroyo “anytime soon…in the next two weeks." “This is a big celebration for locators and people of Central Luzon, especially those from Pampanga and Tarlac," the CDC president and chief executive said, noting that there has been increased investor interest given the still big tracts of land that can be developed into golf courses, casinos, a retirement village, among others. He added that there are at least nine investor groups, including Koreans and Filipinos with foreign partners, that are interested in going into business in Clark. He declined to identify the prospective investors but said negotiations are ongoing. There are 320 hectares reserved as a tourism area, and CDC has committed to invest P3 billion to lay down infrastructure. “We want to make (Clark) into a tourism hub…. (and a) golfing and casino capital," Laus said. There are two 18-hole golf courses at the Mimosa Leisure Estates while two 18-hole courses are being constructed at the Fontana Leisure Parks, and four more by different groups. Clark is also building more hotels and casinos to address the growth in tourist arrivals. The 250-room Fort Stotsenberg Hotel and Casino and 250-room Oxford Hotel have has just been opened, while still on the drawing board are Paradise Resort and an additional 60 villas at Fontana. A Korean group has also proposed to build an entertainment city called Widus which will feature a condotel, casino and amusement park. Laus added that there are also some 600 hectares that can be developed into a “logistics and aviation hub" around the 800-hectare Diosdado Macapagal International Airport. Other areas in the free port are being eyed as a central business district even as its industrial parks are being expanded. “The fourth engine of growth (in Clark) is the ICT (information and communications technology) industry, and the technical industrial park. Clark will play host to more call centers, business process outsourcing companies and light manufacturing industries," Laus added. In 2005, the Supreme Court denied the petition to allow Camp John Hay to operate as a special economic zone and extend financial incentives to investors. The decision was also applied to Clark. The Supreme Court ruled that while it denied the grant of free port status to John Hay, it won’t bar a new law that would give such a privilege to the economic zone. In August 2006, the High Court reaffirmed its decision and ruled that only the Subic Bay economic zone was entitled to extend special tax exemptions to its investors. “The SC decision made it difficult to bring in investors last year," said Laus. In the interim, Clark was placed under the Philippine Economic Zone Authority and extended Peza incentives to cover its 356 locators. The incentives fell short of the original incentive package offered to the area’s locators. Clark is drawing up an investor incentive plan that will be patterned after those in place at the Subic Freeport. House Bill 5064 and Senate Bill 2260 were filed in Congress that sought to develop Clark as a free port. -GMANews.TV