By Kris M. Crismundo
MANILA, June 15 (PNA Newsfeature) — The state-owned Bases Conversion and Development Authority (BCDA) has an ambitious land development in Central Luzon, the 9,450-hectare Clark Green City.
BCDA eyes Clark Green City to be the next central business district (CBD) up north, away from the congested Metro Manila, which is banking on smart urban planning to lure businesses to invest and locate in the area.
But as the latest report of Oxford Business Group (OBG) mentioned, “similar big ideas [in Asia] have gone nowhere, as investors are typically reluctant to be the first to move to an empty locale.”
Central Luzon, where Clark Green City is located, is the Philippines’ rice basket as most of the country’s rice supply is produced in this region.
Aside from rice supply and farmers, what Central Luzon — particularly Clark Green City — can offer to investors?
BCDA President and Chief Executive Office Arnel Paciano D. Casanova has described Central Luzon as an “economic powerhouse” region.
Its market size: third largest in the country with 12 million individuals growing at an average of 2.37 percent.
Casanova also said the region is the second largest source of labor pool with some 60,000 graduates every year and also the second largest source of offshore laborers with 320,000 overseas Filipino workers (OFWs).
The region, likewise, shares 9.2 percent to the gross domestic product (GDP).
What the BCDA brags about Clark Green City is its smart urban planning like its development in then-grass field Bonifacio Global City (BGC) in Taguig City.
BCDA wants to promote better quality of living in Clark Green City as well as addressing climate change through low-carbon footprint.
Clark Green City is also in a strategic location: inside a special economic zone, 15 minutes away from Clark International Airport, 45 minutes away from Subic Bay Freeport, and near expressways such as North Luzon Expressway (NLEX), Subic-Clark-Tarlac Expressway (SCTEX), Tarlac-Pangasinan-La Union Expressway (TPLEX), and the proposed Central Luzon Expressway (CLEX).
Clark Green City has also low risks and damages from inclement weather as its lowest point, at 56 meters-above-sea-level (MASL), is higher than Metro Manila’s highest point at 43 MASL.
As the Clark Green City is inside a special economic zone, the national government offers fiscal and non-fiscal incentives.
Among these incentives are the 5.0-percent tax perk on gross income earned (GIE) and an exemption to national and local taxes; duty free importation of equipment and raw materials; exemptions from real property tax; free movement of finished goods within the Freeport; and special visas to investors.
●First-mover advantage
The BCDA now relaxed the Terms of Reference (TOR) for the bidding of the first parcel of land in Clark Green City with a total land area of 288 hectares.
The first parcel of land ready for bidding is eyed for mix-used development.
In order for a firm to develop the 288-hectare first parcel of Clark Green City, it must bid for a joint venture with the BCDA for a minimum of Php160 million. The minimum bid was slashed from Php500 million to attract more bidders.
The joint venture will be 55-45 sharing, in favor of the winning bid. The joint venture deal will have a period of 50 years which is renewable for another 50 years.
The BCDA also removed the Php2.5 billion initial cash investment and capitalization for the winning company.
●Growth drivers and trends
Casanova stressed economic drivers and trends for investors to locate in Clark Green City including growing population and urbanization; located in a thriving center and ease of doing business in Clark; booming business process industry; infrastructure developments; secured business regime; residential requirements; and need for smart and green city to sustain economic growth momentum. (PNA)