Clark agency reviews deal with Megaworld

The state-run Clark Development Corp. is reviewing a 550-hectare property allotment at the Clark Freeport Zone and Clark Special Economic Zone sought by tycoon Andrew Tan-led Megaworld Corp. in line with the soon-to-be-issued guidelines covering land leasing at the former US air base.

In an interview Tuesday, CDC president Felipe Antonio Remollo said only 30-35 hectares of landbank within Clark has so far been identified for potential allotment to Megaworld, which the developer is planning for institutional development. Specifically, he said Megaworld was planning to build business process outsourcing (BPO) hubs with dormitories in several parcels of land in Clark.

However, he said the parcels of land would be covered by the new leasing guidelines to be issued by CDC early next year. The guidelines need approval of the Bases Conversion Development Authority and the Department of Finance.

From the start, Remollo explained that the memorandum of understanding between CDC and Megaworld provided for a mechanism for bidding, joint venture, public-private partnership or any mode of relationship with the CDC for some 500 hectares of landbank.

For its part, Megaworld said in a statement Tuesday that it would “fully cooperate with the new guidelines being set by CDC.”

“Our company has the expertise and capability to develop Clark into a world-class mixed-use complex, which will generate more jobs and contribute to the country’s economic growth,” the company said.

CDC recently said it would issue new guidelines defining the maximum size of land that investors could lease in the growth hub in Pampanga and Tarlac while ensuring transparency in awarding property deals. The review was spurred by concerns on equitable distribution of available land in Clark, which is now drawing huge interest from the country’s biggest business groups.

“There’s room for everybody in Clark,” Remollo said, adding that CDC was committed to unlocking the best values out of the Clark property.

In the main zone, Remollo said land available was less than 200 hectares while in the sub-zone, there were still around 28,000 hectares of untapped land. He said CDC could even increase the available landbank by encouraging lagging locators to sell their leasing rights, enter into joint development with new investors or sub-lease their areas.

In the case of Megaworld, which earlier committed to invest P7 billion in Clark, Remollo said the property firm would still have to do its own technical studies and could still back out of the project depending on the viability. “But I’m sure they are committed,” he said.

The initial 30-35 hectares of landbank identified for a leasing deal with Megaworld, Remollo said, was in line with Clark’s bid to become an even bigger BPO hub. This growth area was now the country’s third-largest BPO hub after Metro Manila and Cebu, he said.