Gov’t, Japan to sign Clark Green City deal

A STATE-OWNED corporation from Japan and a Philippine state agency are eyeing to seal within the month a joint venture agreement that will help facilitate the entry of Japanese investments in the power, transportation and industrial sectors in Clark Green City, Pampanga.

Bases Conversion and Development Authority (BDCA) president and CEO Arnel Paciano D. Casanova said the agreement with Japan Overseas Infrastructure Investment Corp. for Transport and Urban Development (Join) would call for the creation of a holding company, where the local state-run agency would hold a minority share of 45 percent.

Join is a state-owned enterprise that serves as a platform for Japanese investors to explore opportunities abroad.

Casanova said the forging of this agreement was timely with many Japanese companies now eyeing the Philippines as an alternative location for expansion.

“The holding company that will be established will be for the Philippine and Japanese business and government. Through this, we are hoping to attract government-to-government secured investments in the country, particularly for the Clark Green City. This is an innovative approach to attract Japanese investors,” he said.

Casanova said the same approach of forging joint ventures and partnerships would be used for other interested foreign investors.

“Some of these players are probably new to the market. Our strategy is to nurture them, to create an opportunity for them to come in. And because we are part of the joint venture, they will be assured and confident enough that there will be full support from the government and Philippine businesses,” Casanova said.

Once the agreement is signed, the joint venture company is expected to focus on the development of the $1.9-billion Clark Rail Transit System. The holding company is also expected to bring in companies that will eventually undertake the construction, operation and maintenance of the railway. Amy R. Remo