AS A CATALYST OF GROWTH IN THE SUBIC-CLARK CORRIDOR AS A CATALYST OF GROWTH IN THE SUBIC CLARK CORRIDOR

Presentation to the 2nd Subic Bay Maritime Conference & Exhibit

Arnel Paciano D. Casanova President & CEO

Bases Conversion and Development Authority

24 April 2015

“From crisis to opportunities”

US and the Philippines

signed a Military Bases

Agreement

1947

1940 1980 1985 1970 1986 1950 1960 1987 1988 1989 1990 1991 1992

Series of Coup D’ Etat

1987-1989

1988 1989 1990 1991

North & Central Luzon Earthquake 1990

Pinatubo Eruption Termination of US and Philippine

Military Base Agreement

1991

RA 7227 was signed into Law by President Corazon Aquino

1992

Martial Law

19801970

1972-1981 LEBC prepared “Kumbersyon”

BCDA History

1986

1986 People Power

Revolution

Mandates of BCDA

Accelerate the conversion of former US military bases in Clark and Subic

and their extensions into alternative productive

uses.

Raise funds through the sale of Metro Manila Camps to

finance the conversion of former US military

bases.

Enhance the benefits of conversion to promote the socio-economic

development of Central Luzon, in particular,

and the country, in general.

(RA 7227)

Corporate Powers of BCDA

To construct, own, lease, operate and maintain

public utilities as well as infrastructure facilities.

To acquire, own, hold, administer, and lease real and

personal properties, including agricultural lands,

property lands, property rights and interests and

encumber, lease, mortgage, sell, alienate or

otherwise dispose of the same at fair market value it

may deem appropriate.

To exercise the right of eminent domain and

other special powers.

5

THE BCDA GROUP

Prime Real Estate 41,500 Has.

Asset Value USD 10 Billion

Public-Private

Partnerships

1 Tollway

2 Seaports

3 Airports

Major Real Estate

Developments

Fiscal & Non-Fiscal

Incentives

Preferential tax

rates

Zero VAT

Exemptions on Real

Property Tax

BCDA Diversified Portfolio

Image Credit: Palafox Associates 0 2 4 6 8

Bangladesh Bhutan Brunei

Cambodia China

Australia Guam

Hongkong India

Indonesia Japan

Laos Malaysia Maldives

Micronesia Mongolia Myanmar

Nauru Nepal

North Korea Pakistan

Palau Papua New Guinea

Saipan Singapore

Solomon Islands South Korea

Sri Lanka Taiwan

Thailand Timor Leste

Vietnam

4-HR FLIGHT ROUTE 6-HR FLIGHT ROUTE 4-HR FLIGHT RADIUS 6-HR FLIGHT RADIUS

LEGEND:

Hours of Travel

THE PHILIPPINES: STRATEGICALLY LOCATED AT THE CROSSROADS OF INTERNATIONAL SHIPPING AND AIRLINES.

LESS THAN 10 DAYS TRAVEL

MORE THAN 10 DAYS TRAVEL

LESS THAN 10 DAYS TRAVEL

MORE THAN 10 DAYS TRAVEL

LEGEND:

THE PHILIPPINES: STRATEGICALLY LOCATED AT THE CROSSROADS

OF INTERNATIONAL SHIPPING AND AIRLINES.

Image Credit: Palafox Associates

Port Country Travel

Time

Tokyo Japan 10 d

Yokohama Japan 10 d

Kobe Japan 10 d

Hong Kong Hong

Kong 2 d

Shanghai PRC 3 d

Tianjin PRC 10 d

Shenzhen PRC 2 d

Singapore Singapore 10 d

Incheon S. Korea 9 d

Kaohsiung Taiwan 2 d

Ho Chi Minh Vietnam 3 d

Penang Malaysia 13 d

Jakarta Indonesia 12 d

Alotau P. New

Guinea 15 d

Galle Sri Lanka 19 d

Tarlac

Manila Bataan

Subic

Clark

Corridor for Manufacturing/Logistics Cluster

Manila

Subic

• CLARK INTERNATIONAL AIRPORT

• NINOY AQUINO INTERNATIONAL AIRPORT

• PORT OF SUBIC • PORT OF BATAAN • PORT OF MANILA

• SCTEX • NLEX • TPLEX • CLEX

Developed Infrastructure

Special Economic Zone (27,000 hectares)

Special Economic and Freeport Zone (31,400 hectares)

Freeport Zone (4,400 hectares)

Airport Area

(2,300 has)

Industrial Area (2,100 has)

Clark’s Thriving Business Center

QUICK STATS (2014)

740 LOCATORS

84,310 EMPLOYEES

$ 4.61B EXPORTS

1M TOURISTS

$277M ACTUAL INVESTMENT

SCTEX Developments 1. North Luzon Expressway – Subic-Clark-Tarlac Expressway Integration

The integration addresses the capacity issues in NLEX and SCTEX and will provide the common customers with seamless travel experience in both expressways. NLEX-SCTEX Integration Agreement signed on 05 Feb 2015.

2. BCDA and MNTC Business Agreement

28-year Operation & Maintenance (O&M) Agreement with MNTC Signed on 26 Feb 2015.

13

THE CLARK GREEN CITY PROJECT

Dagupan City

Urdaneta City

Cabanatuan City

San Carlos City San Jose City

Gapan City

Angeles City

Olongapo City

Malolos City

Balanga City METRO MANILA

Baguio City

Alaminos City

Iba

Angeles CityAngeles CitySan Fernando City

SCTEX

CLARK GREEN CITY

TPLEX

CAPAS-BOTOLAN RD.

Cabanatuan City

TPLEX

CLEX

Mabalacat

NLEX

Concepcion

Lingayen

14

ConcepcionConcepcionTarlac City

Rosario

ConcepcionCapas

MNR

Economic Drivers and Trends

o Growing Population / Urbanization

o Located in a thriving center and ease of doing business in Clark

o Booming Business Process Outsourcing (BPO) Industry

o Clark Airport, Seaport and Road Infrastructure Development

o Secured Business Regime

o Residential Requirements

o Need for Smart and Green City to sustain momentum in economic growth

Clark Green City The New Ph Metropolis

Clark Green City Conceptual Master Plan The 9,450-hectare Clark Green City aims to create a destination where nature, lifestyle, business, education and industry converge into a global city, based on principles of sustainability, that aim to protect and enhance the delicate balance between nature and built environment.

INTERWEAVING GREEN ASSETS TO CREATE A HOLISTIC, VIBRANT, AND SUSTAINABLE DEVELOPMENT.

A NEW CITY, SERVING AS AN ADMINISTRATIVE AND COMMERCIAL CENTER >1 MIL POPULATION

…AT THE CENTER OF A GROWING REGION – CENTRAL LUZON

TO FOSTER A NEW FORM OF ECONOMIC DEVELOPMENT FEATURING THE LATEST IN SMART & SUSTAINABLE PLANNING

BCDA IS THE MASTER DEVELOPER

PHASING OF DEVELOPMENT EXPECTED OVER 50 YEARS

IMPLEMENTATION VIA PUBLIC PRIVATE PARTNERSHIP (PPP)

Clark Green City Overview

What Makes CGC Green & Smart? Key Performance Indicators

RESOURCE

MANAGEMENT ACCESSIBILITY IDENTITIY

LEADERSHIP &

GOVERNANCE

DIVERSITY &

DENSITY

ECONOMIC

VIBRANCY RESILIENCE

Air Quality

Reduced

Automobile

Dependence

Good Public

Spaces Collaboration

Compact

Development

Stimulate

Sustainable

Growth

Assess Climate

Threat

Biodiversity

Alternative

Modes of

Transportation

Heritage &

Culture Management

Mixed-Use

Neighborhood

Centers

Improve

Quality of Life

Avoid Traps &

Vulnerabilities

Water

Conservation

Universal

Design

Public Health

& Service Planning

Mixed-Income

Communities

Develop Local

Skills

Prepare for

Long-Term

Adaptability &

Short-Term

Hazards

Energy

Efficiency

Neighborhood

Schools

Local Food

Production

Materials

34,850 106,750

200,300

322,100

139,400

427,000

801,200

1,288,400

2020 2030 2040 2050

Employment Projection, Clark Green City, Based on Different Capture Rate, 2020F to 2050F

5% 10%15% 20%

Capture Rate Scenarios

# Workers

Recommended @1 mil

72,100

232,400 319,250

419,950 288,400

929,600

1,277,000

1,679,800

2020 2030 2040 2050

Population Projection, Clark Green City, Based on Different Capture Rate, 2020F to 2050F

5% 10% 15% 20%

Capture Rate Scenarios

Recommended @1.1 mil new + 233K existing/resettled

Clark Green City Residential & Employment Projections

more than 1.2 M population

more than 800,000 jobs

Clark Green City Conceptual Master Plan 1. Public Realm Mall 2. Commercial Center 3. Central Park 4. Expo 5. Retail/Interchange 6. Sports Hub 7. Institutional Block 8. Memorial Shrine Park 9. Residential District Commercial Center 10. Civic/Government Center 11. Civic Plaza 12. Civic Corridor 13. CBD Iconic Towers 14. Financial Center 15. Institutional Zone/Research Center 16. Retail Plaza 17. Light Industrial and R&D Office Zone 18. Worker Housing 19. Industrial Park 20. Administration Building 21. Mid-Rise Residential Aprtments 22. Hill Side Residential Apartments 23. Hill Side Residential and Eco-Tourist Resort24. Campus 25. Urban Farming Landbanks 26. Future Industrial Land 27. Mountain Trail 28. Tunnel

7

8 21

11

10

9

6 7

15

5

4

28

21

3

14

14

13

14

12

18

19

20

26

16

17 18

2

1

24

22

23

25

24

27

Land Use Distribution*

Clark Green City Conceptual Master Plan

314

318

501

315

91

266

403

54

100

553

233

106

Landfill Water Feature Road ROW Transport Hub Sports & Recreation Open Space Industrial Light Industrial Institutional Residential

*excludes 5,567-ha. Timber Area

CA

LRK

-BA

MB

AN

-CA

PA

S R

D

FUTURE CONNECTION

TO SCTEX

Kalangitan Road

San Nicolas Road

Clark Green City Master Development Plan

INDUSTRIAL • strategically located with access to Clark

International Airport, Subic Freeport, and to the region

• includes agricultural and manufacturing sectors

• will enable economic growth, diversification, trade relations and technological innovations.

Food Terminal

Industrial Park

Manufacturing Sector

Agricultural Sector

Farm

INDUSTRIAL PARK

FOOD TERMINAL

FARM

TO SUBIC VIA FUTURE SCTEX CONNECTION

DIRECT LINK TO CLARK

INTERNATIONAL AIRPORT

Clark Green City Master Development Plan

COMMERCIAL • lively urban core • scenic urban landscape with iconic

structures • large central park at the center • mixed-use components • to create a distinct skyline and identity

for CGC

Commercial Areas

COMMERCIAL CORE

INTERMODAL TRANSPORT

HUB

EXPO

RETAIL WALK

Mixed Use Zone

Commercial Core

Intermodal Transport Hub

Expo

TO SUBIC VIA FUTURE SCTEX CONNECTION

DIRECT LINK TO CLARK

INTERNATIONAL AIRPORT

Clark Green City Master Development Plan

RESIDENTIAL • mix of typologies set within an

active and varied community • accessible to a wide range of

income groups • pedestrian-friendly & live-work-play

environment • includes high-end hillside villas

Residential Areas

MIXED-INCOME HOUSING

CAMPUS HOUSING

LUXURY VILLAS

CONDOMINIUMS

Affordable Housing

Walk-up Housing

TO SUBIC VIA FUTURE SCTEX CONNECTION

DIRECT LINK TO CLARK

INTERNATIONAL AIRPORT

Clark Green City Master Development Plan

INSTITUTIONAL • public realm facilities

interconnected with open space connectors

• includes educational, religious, sports, and medical facilities as well as government offices

• new University of the Philippines (UP) Campus focused on research and internationalization

Institutional Areas

Walk-up Housing

NEW UP CAMPUS

RESEARCH CENTER

MEDICAL CENTER

SPORTS CENTER

CIVIC CENTER

CHURCH

University Campus Government Center

Civic Plaza Stadium

TO SUBIC VIA FUTURE SCTEX CONNECTION

DIRECT LINK TO CLARK

INTERNATIONAL AIRPORT

Clark Green City Tax and Fiscal Incentives

• 5% Special Gross Income Earned

• Exemption from all Local and National Taxes

• Tax and Duty Free Importation of Equipment and Raw Materials

• Exemptions from Real Property Tax

• Free Movement of Finished Goods within the Freeport

• Special Visas for Investors

CGC Infrastructure Projects: ACCESS ROADS Primary Access Roads

1. MacArthur-CGC Road

Lanes: 2 (initial)

Length: 9 km

Budget: 50 M (2015)

Status: Notice to Proceed issued to Contractor by DPWH (April 20, 2015 – Day 01)

2. Clark-Bamban-Capas Road

Lanes: 2 (initial)

Length: 15 km

Budget: 150 M (2015)

Status: Topographic Survey for approval by DPWH & BCDA

• Joint project by BCDA & DPWH • Total Length: 24 km • Row: 20 m (initial) • Total Cost: Php 1 Billion

2

1

CA

LRK-

BAM

BAN

-CA

PAS

RD

CLARK GREEN CITY

CLARK FREEPORT ZONE

CLARK INT’L AIRPORT

FUTURE CONNECTION

TO SCTEX

1.64 3.00 1.00 1.00 0.68 2.50 3.50 3.50 2.50 0.68

RROW 20.0 M

SIDEWALK PLANTING STRIP BIKE LANE PLANTING

STRIP C&G LAY-BY/SHOULDER CARRIAGEWAY LAY-BY/SHOULDER C&G

CLARK GREEN CITY PRIMARY ACCESS ROAD SECTION

CGC Infrastructure Projects: ACCESS ROADS

PROPOSED ALIGNMENT

• extension of the North-South Commuter Railway to CFZ Main Zone and CGC

• JV between BCDA & Rail Operator

• Bidding for Operator-Partner to commence within 2Q 2015

CLARK RAIL TRANSIT SYSTEM (CRTS)

NORTH-SOUTH COMMUTER RAIL (NSCR) PHASE 1

CGC

METRO MANILA

MALOLOS

CGC Infrastructure Projects: TRANSPORTATION

Clark Rail Transit System

App

rox.

88

kms

37.9

km

s

125.

9 km

s

CGC Infrastructure Projects: TRANSPORTATION

Clark Rail Transit System

GREENFIELD ALIGNMENT

TRANSIT-ORIENTED DEVELOPMENT(TOD) AT STATIONS

SAFE, EFFICIENT, COMFORTABLE, MODERN

CGC Infrastructure Projects: TRANSPORTATION Clark Transit Bus

System • Clark Transit Bus System is a

proposed Bus Rapid Transit (BRT) System connecting Metro Manila to Clark Freeport Zone and CGC

• Study being conducted by UP NCTS

• Includes study for internal systems for Clark

START

END

METRO MANILA

Proposed Alignment Proposed Alignment

UTILITY TUNNEL

CGC Infrastructure Projects: UTILITIES POWER

TELECOM

WATER

GAS

• Special underground construction to house all major utility lines

• Allows for unobstructed views of the city

• Significantly reduce costs and disruptions due to recurrent excavation works

• Better access to utility lines for maintenance works/repair

• Provides added protection to utility lines

Integrated Utility Tunnel

Integrated Operation Center

Crime Prevention Service

Transportation Service

Energy Mgmt Service

Facility Mgmt Service

Environment Service

Underground Facility Identification Water-pipe Monitoring Streetlight Monitoring

Smart Signal Control Traffic Information Parking Information Illegal Parking Detection

RFID Ticketing Environment

Info Weather Info

Intelligent Building System In-Building Communication Network Smart Office and Business Solutions

CCTV Camera control Real-time video

Analysis Monitoring & Decision

Making

Integrated Operation CenterIntegrated Operation Center

FacilityMgmt Service

Environment Environment

Underground Facility Identification WaterStreetlight Monitoring

Operation Service for public benefit

Operation Service for business

• Public services categorized in Transportation, Safe & Security, Environment

• Pursuit social benefit for public

• Utility services for citizen and business : Facility mgmt, Smart Card etc..

• Public-Private Partnership model

City-wide public services operated by Integrated Operation Center (IOC) make new city to be more convenient with not only efficiency but also financial benefit.

CGC Infrastructure Projects: UTILITIES

Integrated Operations Center

Opportunities with BCDA Land Development BCDA is looking for Joint Venture Partners for:

Mixed-Use Development

Industrial Estates

Innovation District

1. Power

• Generation (renewable energy)

• Distribution

• Back-Up/Storage

• Energy Management System

2. Water

• Suply

• Wastewater Treatment

3. District Cooling System

4. Telecommunication & Information Systems

5. Solid Waste Management

6. (Natural) Gas Supply & Distribution

Long-term partnership with BCDA to build and operate utilities.

Opportunities with BCDA Development of Utilities

• Electronics Manufacturing • Renewable Energy Systems • Information and Communication

Technology/Business Process Outsourcing (ICT/BPO)

• Nano-Electronics • Light Manufacturing • Biotechnology and Pharmaceuticals • Agro-Industries • Schools/Universities • Creative Industries/Animation • Research Centers • Medical Facilities • Government Offices • Housing Developers • Tourism Development • Others

Biotechnology and Pharmaceuticals

Opportunities with BCDA Target Locators

The BCDA Group @TheBCDAGroup bcda.gov.ph