State-run Clark Development Corp. (CDC) said the decision of President Ferdinand Marcos Jr.’s veto on the Bulacan Airport Special Economic Zone and Freeport Bill is a big boost to the full development of Clark Special Economic and Freeport Zone, which is just less than 60 kilometers from the planned international gateway of San Miguel Corp. (SMC).
“This decision is a big boost to our marketing efforts and our goals of attracting investments in Clark,” said CDC in a statement.
Marcos vetoed House Bill 7575, titled An Act Establishing the Bulacan Airport City Special Economic Zone and Freeport, Province of Bulacan and Appropriating Fund Therefore, on July 1, his very first major act as President after his took office on June 30, 2022.
In exercising his veto power against the bill, Marcos cited “fiscal risks” associated with the proposed creation of the ecozone and freeport.
The planned Bulacan airport special ecozone is a crucial component of the ambitious international airport of SMC on a 2,500-hectare property in Bulacan with $15-billion worth of investments.
But establishing an ecozone means granting tax exemptions to locators. The economic team of the previous Duterte administration also opposed the bill, which was among the last batch of legislative measures passed by the Lower House and the Senate for signature by Duterte before leaving office.
Recognizing the existence of Clark Special Economic Zone (CSEZ), President Marcos put emphasis on the significant role of Clark Special Economic Zone in being at the center of economic development, not only to Central Luzon but to the rest of the country.
“This sets the tone of President Ferdinand R. Marcos, Jr.’s administration vis-a-vis Clark Freeport Zone and Clark Special Economic Zone. God bless this administration for not succumbing to pressures from the proponents of the Bulacan City Special Economic and Freeport,” said CDC President and CEO PBGen. Manuel R. Gaerlan.
CDC, mandated to manage and develop this area, has so far remitted P6.06 billion to the national coffers since its establishment. It continues to attract investments, not only from local sources, but also from investors all over the world.
With its proximity to Clark International Airport and the North South Rail System, CSEZ will continue in the coming years to attract more investors, provide more employment and generate funds for the national treasury.
"While the proposed special economic zone will provide employment and introduce industrial development in the area, this is not the proper time to appropriate funds which are more needed to revitalize the weakened economy, to provide assistance to recovering industries and help our educational and health sector to go back to normal operations," Gaerlan said.
“We believe that Clark Development Corporation is more than ready to provide the impetus needed by the national government to jumpstart its economic recovery programs,” the statement added.
Philippine Economic Zone Authority (PEZA) Director General Charito B. Plaza also noted that registered ecozones are better than legislated ecozones.
“Legislated ecozones become government burden as national government has to provide the seed capital and the yearly budget for its maintenance, operations etc as government subsidy provided each year thus, competing in the utilization of people’s money for more crucial people’s needs,” said Plaza.
PEZA itself as the authorized agency to register lands and buildings into ecozones,is self-reliant, self-sustaining and resource-generating, remits 50 percent of its net profit as dividends to the national and does not receive subsidy from government, Plaza pointed out.